Advanced manufacturing on the rise in San Marcos

               While the national decline of employment throughout the Rural Capital workforce is projected to decrease by 3.9 percent by 2016, manufacturing is alive and well in the San Marcos region and is expected grow by 25.5 percent, according to the Greater San Marcos Partnership (GSMP). The reason for this being the abundance of opportunities, assets and help companies are receiving within the area.

                Keeping up with the latest technological advances and assessing the needs of companies can elevate their customer base and increase revenue while keeping them relevant, said GSMP President Adriana Cruz. The GSMP is a public-private partnership focused on job creation and investment within Hays and Caldwell counties.

                “Since 2010 the GSMP has made important headway on several fronts and began establishing its credibility and value position within the region,” Cruz said. “Since Oct. 1, 2012, over 500 new jobs were announced in the Greater San Marcos Region through corporate expansions and relocations.”

                Recently it was announced that storage company PODS Enterprises Inc. has chosen to consolidate its Central Texas operations into one location in San Marcos, Cruz said. While it will be creating at least 15 warehouse operation jobs, Cruz and the GSMP speculate that in the bigger picture, it will serve as a catalyst for the already increasing manufacturing growth in the region because storing materials and parts is essential for this industry.

                Founded in 1998, PODS moving and storage services have served more than 240 million consumers in 48 U.S. states, Canada, Australia and the U.K. PODS Representative Glenn Couch also feels the company has much to offer San Marcos and the rest of region, with location being the key reason for consider the city.

                “When it came time to consolidate our operations into one central location for our Austin and San Antonio market, the San Marcos region was an obvious choice,” Couch said. “This location with access to two major roads that connect the markets, the availability of land, and the assistance we received from the GSMP and the City of San Marcos were all factors in our decision.”

Photo by Christopher Salinas

Keynote speaker Matt Erskine talks to the audience about his experience of when he first visited STAR Park in 2012. He saw the potential in the research facility and knew it would be a key source in strengthing the local and regional economy. He believes the STAR Park project is an example of the robust partnerships needed to advance innovation across the U.S.

                In November, the GSMP hosted their second annual Innovation Summit, highlighting the success of region economic growth and recognizing the local tech and manufacturing companies that have helped made this possible such as Broadus Associates, Quantum Materials and SioTex. However, Matt Erskine, U.S. deputy assistant secretary of commerce for economic development and chief operating officer for the economic development administration, said during the event that Texas State also plays a role in this growth.

                “The university is having a tremendous impact on Central Texas,” Erskine said. “As well as on the Central Texas economy by helping to attract innovative companies. The university is a true asset and true catalyst for this new economy.”

                Erskine typically sees that in other regions, the communities are not fully prepared to seize any kind of economic growth to budge limitations and lack of other resources. San Marcos has the university and its research facility, STAR Park, which he believes are crucial resources that will allow the city and the rest of the region to prosper in innovation, manufacturing and business in the coming years.

                “The rate of formation of new firms has declined in every state during the past three decades,” Erskine said. “Businesses cannot succeed for long while their communities languish.”

                In an effort to continue this growth, the GSMP and Texas State’s Small Business Development Center (SBDC) Network joined together to recently kick off a tech focused program called Spectrum. The program has already been successful in Austin and focuses on biotech, green energy, computer hardware, software and mobile application for startup and mid-stage companies. This is an important program for not only the future of advanced manufacturing in San Marcos and the region, but for entrepreneurship in general, said Joe Harper, Texas State SBDC director.

                “The innovation community is actually driving the economy and driving business growth,” Harper said. “In recognizing that fact, we began to reposition the SBDC with tools, with resources and strategic partners like STAR Park and others, to be able to meet the unique needs associated with technology, technology commercialization and the subsequent business development.”

                The job of the SBDC is to assist companies in getting starting and helping them succeed. The value is that for every dollar invested in the SBDC operations, $6.49 is returned to the tax payer, which makes them a revenue generator as well, Harper said. The SBDC hopes to mentor, educate and collaborate with clients in the advanced manufacturing industry and other innovative entrepreneur innovators through this new program.

                “The vibrancy of the local entrepreneurial community – from San Antonio to Waco – and the innovations that happen in this market around technology far surpass many other places in the U.S.,” Harper said. “Through Spectrum, we strive to participate in this market by providing leadership, along with other community stakeholders, bringing together the best possible environment for technology companies to lay a successful foundation and grow to greatness.”

                Research infrastructure, activities and facilities associated with Texas State provide the region with a strong base for entrepreneurial capacity which leads to greater interest in advance manufacturing companies and other industries wanting to come to San Marcos, Cruz said. She believes the city and region are well on their way to the projected growth by 2016.

                “Building a competitive climate for startup development, research commercialization and focused innovation will take time and persistence,” Cruz said. “Building networks of entrepreneurs, a universe of startup focused events, get-togethers, programming and other tactics associated with ecosystem development achieved through program such as Spectrum must leverage exisiting talent but also seek to attract new entrepreneurs and investors to Greater San Marcos.”