Mike Kamerlander, President & CEO, Hays Caldwell Economic Development Partnership
In an interview with Invest:, Mike Kamerlander, president and CEO of Hays Caldwell EDP, highlighted a surge in data center interest, noting, “We anticipate an AI-driven explosion in our area.” The organization also rebranded to reflect its broader growth beyond San Marcos.
What makes Hays and Caldwell counties attractive locations for businesses?
Hays and Caldwell counties stand out due to their proximity to Austin and location along the Austin-San Antonio corridor, with access to I-35 and SH130. This provides excellent north-south connectivity for transporting goods, services, and people. Being close to Austin and San Antonio offers a robust workforce and markets for businesses to sell their products. Many companies choose our region to service both cities from a single location, benefiting from the advantages of being near Austin without the associated costs. Our housing and land are more affordable, which is significant for companies looking to start or grow their businesses.
What are the biggest achievements for the Economic Development Partnership over the past year?
Our most significant accomplishment, not tied to a specific project, is the rebranding of our organization from the Greater San Marcos Partnership to the Hays Caldwell Economic Development Partnership. This change better reflects our region’s growth over the past 15 years. Initially, our focus was heavily on San Marcos, home to Texas State University and the largest city in our two counties. However, cities like Kyle, Buda, and Lockhart have experienced rapid growth, and we now spend more time outside San Marcos as these markets mature. The rebranding acknowledges that both counties are now more equal in terms of projects, capabilities, and sophistication in economic development, infrastructure availability, and business friendliness.
What are the key economic drivers of growth in your counties, and what opportunities do you foresee?
Being close to Austin, we see many support companies for large firms like Tesla and Samsung establishing operations in our area. Tesla leased a million square feet in Kyle to support its Austin operations, and we have Samsung suppliers in Kyle and Buda. Beyond that, we’ve seen increased interest from the defense sector, given our location between Austin’s Army Futures Command and San Antonio, known as Military City USA. For example, Luling in Caldwell County is home to X-Bow Systems, a solid rocket engine manufacturer, and we’re seeing more interest in unmanned aerial vehicle manufacturing. Approximately 78% of our project leads are in manufacturing, driven by our workforce, cost of doing business, and infrastructure availability. Additionally, we’re experiencing growth in food-related industries, such as cold storage and logistics. Lockhart recently landed a 300,000-square-foot cold storage facility, and US Foods in Buda announced a $120 million expansion. Looking ahead, we anticipate an AI-driven explosion in our area, with several data center projects in the pipeline, thanks to our abundant electricity and power reliability.
How would you assess the workforce in the region?
We recently hosted a mega-regional event to discuss workforce development along the Austin-San Antonio corridor. With major universities like UT Austin, Texas State University, and UT San Antonio, we have a strong college-educated workforce. However, we need to focus on credentialed, two-year degrees and apprenticeships for jobs that don’t require a four-year degree. We’re working to align our workforce development efforts with the needs of our companies, including high school CTE programs. Lockhart ISD recently joined the Austin Community College district, and we’re supporting the establishment of a Texas State Technical College campus in Guadalupe County, which will serve as a regional workforce development center.
How are you collaborating with municipalities, counties, the state, and other organizations to enhance regional growth?
We’re launching a new five-year strategic plan starting Oct. 1. Previously, our plans guided the economic development efforts of cities within our counties. Now, many cities have their strategic plans, so our focus is on supporting their goals and identifying commonalities to allocate resources effectively. Over the past five to 10 years, our cities and counties have become more sophisticated and prepared for incoming projects, with professional economic developers in each city working collaboratively for the benefit of the entire region.
What is your business sentiment regarding economic and political changes affecting businesses in your region?
Texas, particularly our region, is in better shape than much of the country. The state has done an excellent job diversifying its economy over the past 20 years, reducing reliance on energy by expanding into manufacturing, healthcare, and biotech. While there’s uncertainty with the new administration, our strong relationship with Mexico remains a constant. Mexico is our largest trading partner, and that relationship has been mutually beneficial. For instance, the Port of Laredo is the busiest inland port in the world, and disrupting that would require significant changes. Despite potential tariffs or policy shifts, our region is well-positioned to continue thriving.
What are your top priorities for the next two years?
Our focus is on managing the rapid growth in our region, particularly along the Austin-San Antonio corridor, which is the fastest-growing in the country. Caldwell County, with a current population of just over 50,000, is expecting 30,000 to 40,000 new homes over the next 15 years, potentially doubling its population. We need to ensure we have the necessary infrastructure, jobs, and resources to support this growth. We’re working on legislation to create additional connectors between I-35 and SH130 to improve transportation. Regional collaboration is more important than ever to ensure that the growth over the next three to five years sets the foundation for success over the next 25 years. We’re fortunate to have experienced leaders and economic developers along the corridor working together to achieve these goals.
