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Buda, Texas Emerges as Aerospace and Defense Magnet South of Austin

On The Building Texas Show, host Justin McKenzie interviews Buda EDC CEO Jennifer Storm and Greater Buda Chamber CEO Monica Davidson on how the small city south of Austin built an aerospace and defense cluster in seven months, doubled Chamber membership, and launched a retail incubator in an 1884 train depot.


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Buda, TX (Newsworthy.ai) Monday Jul 20, 2026 @ 7:00 AM CDT

The latest episode of The Building Texas Show, titled The Aerospace & Defense Companies Picking Buda Over Austin, published July 13, 2026, features host Justin McKenzie sitting down in Buda, Texas with Jennifer Storm, CEO of the Buda Economic Development Corporation, and Monica Davidson, CEO of the Greater Buda Chamber of Commerce and a Buda City Council member. The conversation challenges the prevailing narrative that Central Texas aerospace and defense growth is an Austin story, arguing instead that the real footprint is landing in smaller I-35 corridor cities that offer right-sized space, workforce access, and lower rent.

Listeners get an insider look at how Buda built momentum in under a year. Topic threads include:

The Building Texas Show —  The Aerospace & Defense Companies Picking Buda Over Austin

The Building Texas Show — The Aerospace & Defense Companies Picking Buda Over Austin

Photo: Justin McKenzie

“People are saying aerospace and defense is coming to Austin, but that's not true. It's coming to Buda and Bastrop and Lockhart and Kyle and San Marcos.”

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  • Why aerospace and defense firms are choosing Buda over Austin, Round Rock, and Pflugerville, often seeking 10,000 to 20,000 square foot spaces rather than greenfield.
  • The Hive incubator, which moved 60 entrepreneurs through four cohorts in its first year across industries from salons to AI apps to drones.
  • A new retail incubator opening in Buda's restored 1884 train depot on Main Street.
  • The Hays CISD teacher externship program placing 17 educators inside local businesses this summer.

Storm is candid about her recent recognition from the International Economic Development Council, accepted at the Library of Congress, and equally candid about the community's positioning against its larger neighbor. "People are saying aerospace and defense is coming to Austin, but that's not true. It's coming to Buda and Bastrop and Lockhart and Kyle and San Marcos," Storm recounts a recent caller telling her. Davidson, who has doubled Chamber membership in two years, describes her role bluntly: "I want to be where business begins in Buda."

The episode digs into the mechanics behind the growth. Storm explains that the Buda EDC uses rebates rather than abatements, paying incentives only after jobs are delivered, which she frames as a low-risk taxpayer investment tied to a single mandate: economic prosperity. Davidson details how the Greater Buda Chamber rebrand widened the tent to include South Austin, Mustang Ridge, Luling, and Lockhart businesses, while partnering with anchors like US Foods, Texas Lehigh, and Jardine's. The pair also unpack the origin of Buda's trademarked title as the Wiener Dog Capital of Texas, a Lions Club idea from the 1980s that is now the city's largest annual event.

About The Building Texas Show

The Building Texas Show, hosted by Justin McKenzie, spotlights the founders, civic leaders, and operators shaping the next generation of Texas communities and companies. Each week the show travels the state to unpack how economic development, entrepreneurship, and local leadership intersect on the ground. New episodes release weekly across YouTube, Facebook, Instagram, and LinkedIn. This episode is available now wherever podcasts are heard.

Frequently Asked Questions

Why are aerospace and defense companies choosing Buda over Austin, Round Rock, or Pflugerville?
According to Jennifer Storm, most incoming aerospace and defense firms don't want greenfield sites — they want available space now, and often in smaller footprints of 10,000 to 20,000 square feet that larger communities won't demise down to. Buda also offers cheaper rent, the same commutable workforce as Austin, and easier access to San Antonio from the south side of the metro.
How does the Buda EDC structure its incentives, and why does Storm call them low-risk?
Storm says the Buda EDC never does abatements — only rebates. Incentives are tied to jobs and high-paying jobs, and companies are paid at the end of the year after delivering what they promised. If a company doesn't perform, Buda doesn't pay, which Storm frames as a low-risk taxpayer investment aligned with the EDC's single mandate of economic prosperity.
What is The Hive incubator and what has it accomplished so far?
The Hive is Buda EDC's industry-agnostic incubator, which just finished its fourth cohort in one year and has moved 60 entrepreneurs through the program. Participants range from salon owners to AI app companies to drone startups. Storm noted the team is also tracking businesses that chose not to launch after running the numbers, calling that a positive outcome that helps founders avoid years of debt.
What will the new retail incubator in the 1884 train depot offer?
The EDC is restoring Buda's 1884 train depot on Main Street to house a retail incubator where Hive graduates can either place products in a shared store or rent space to operate themselves for roughly 18 months to two years. Storm cited data that retailers without incubator support fail at nearly double the rate, and expects the program to launch by the new year.
How has Monica Davidson reshaped the Greater Buda Chamber of Commerce?
Davidson took over the chamber two years ago and has doubled membership by first winning back lapsed members, then expanding outreach to larger anchors like US Foods, Texas Lehigh, and Jardine's. She rebranded it as the Greater Buda Chamber to pull in businesses from South Austin, San Marcos, Lockhart, Luling, and Mustang Ridge, positioning the chamber as where business begins in Buda.
What is the Hays CISD teacher externship program?
Run through the Texas Workforce Commission, the externship places high school career and technical teachers inside local businesses over the summer so they can retool curriculum around real jobs. Davidson said 17 teachers are placed this summer, matched to fields like CPA work and audiovisual production, helping connect students to Hays CISD's 26 career and technical certification tracks and local employers.
How did Buda become the Wiener Dog Capital of Texas?
The wiener dog races began in the 1980s when a Lions Club board member returned from Georgia with the idea of adding a dachshund race to the group's Hill Country Fair. Despite initial skepticism, it grew into Buda's largest annual event, held each April, and the Lions Club secured the trademarked title Wiener Dog Capital of Texas.