Thread by @Josh_Ebner

If there's a large migration of talented people from SF and NYC to Austin, Austin has a shot at being the next Silicon Valley.

#SF #NewYork #SiliconValley #technology #Austin #Texas

(Thread)

https://twitter.com/jaltucher/status/1256712532468924422

2/n

Remember: Texas actually has a long tradition of innovation.

For example, the integrated circuit was invented at Texas Instruments.

en.wikipedia.org/wiki/Texas_Ins…

#technology #tech #Texas

3/n

More recently, Amazon, Facebook, Google, and Apple have announced major campuses in Austin.

Google is building a new riverside building, and Facebook already has one.

austin.curbed.com/2019/4/2/18291…

4/n

The big tech companies creating major offices in Austin will draw a lot of talent here ... both technical talent, and also people in marketing, sales, finance, etc.

The talent in Austin is already good, but it's likely to get better over the next 5-10 years.

#Austin #tech

5/n

So Austin is likely to become a new hub for tech talent and high-skilled labor.

We're likely to see increased marketing, sales, and development in Austin (and the rest of the Texas Triangle).

6/n

But the advantage of Texas goes beyond just being a good location for tech talent and high-skilled labor.

Texas has a direct connection to Mexico, which is already a prime manufacturing center.

Mexico's importance for MFG is likely to increase.

https://twitter.com/Josh_Ebner/status/1240403212831727618

7/n

Importantly, Texas is directly connected to Mexico and Mexican manufacturing regions via Interstate 35.

I-35 cuts right through the heart of TX, but functionally extends down to Mexico City via a Mexican highway from Laredo TX to CDMX

#Texas #Mexico

8/n

This highway that connects Dallas/Austin/San Antonio to Mexico City passes through several of the biggest manufacturing regions in Mexico.

#Texas #Mexico #Manufacturing

9/n

In terms of production and exports, Mexico is not as good at high skilled MFG, but it's relatively good at lower-skilled manufacturing and assembly.

For example, many electronics like telephones and computers are assembled in MX.

#Mexico #Manufacturing

10/n

What this means is that Mexico is a good compliment to Texas.

If TX becomes a new tech hub, much of the design/development/marketing/high-skill-MFG could be done in TX

While the lower skilled manufacturing and assembly could be done in MX

#Mexico #Texas

11/n

This relationship between Texas and Mexico going forward is likely to be like the relationship between California and Asia in the past.

https://twitter.com/Josh_Ebner/status/1240363960307720192

#Texas #Mexico #California #China

12/n

So going forward, instead of "Designed in California, Assembled in China"

... you might see "Designed in Texas, Assembled in Mexico"

#Texas #Mexico #California #China #tech

13/n

Of course, none of this is guaranteed.

Texas in general and Austin in particular have their own imperfections, and there's still a lot of uncertainty with respect to the economy, corporate finance, and supply chain re-orientation.

14/n

But given the underlying fundamentals, it's reasonable to think that Texas could become the next tech and development hub of the US ....

#Texas #tech

15/n

Ultimately, Texas has:
– cheap energy
– cheap land
– good labor pool
– strong net migration
– migration of talent from SF/NYC/SV
– access to MX
– low taxes
– etc ....

... almost all of the pieces exist for Texas to become a new tech hub

#Texas #tech #SiliconValley