This article was originally published in AQUILA’s 4Q 2020 Austin Office Market Report. To see what companies came to Austin in 2021, read our article The Industries and Companies That Came to Austin in 2021.
Now that the crazy, stressful, unforgettable year that was 2020 is finally over, I want to start the new year on a positive note. Despite the challenges the Austin market has faced, over 100 companies chose to either expand or bring their business to our city for the first time last year.
In this article, I use the Austin Chamber’s Relocations & Expansion Log to take a look at which companies and industries grew the most in Austin in 2020.
Companies That Came to Austin or Grew in Austin in 2020
According to the Austin Chamber, a total of 21,335 jobs were attributed to companies either expanding or relocating to Austin for the first time in 2020. Compared to the 11,478 jobs the Chamber tracked in 2019, it’s clear the COVID-19 pandemic did not dampen Austin’s allure.
Of the jobs created in 2020, 44% (9,435) were attributed to companies coming to Austin for the first time, and 56% (11,900) were expansions of pre-existing firms.
Below you can see the top ten companies that added the most jobs in Austin.
Of course, all of these jobs weren’t necessarily filled in 2020 (Tesla’s jobs, for instance, likely won’t be fully realized until construction on its new factory is complete in late 2021). But these numbers are still a helpful indicator for the volume of jobs these companies have estimated they will bring to Austin.
|Dell Children’s Hospital||740|
|Whole Foods Market||600|
|Tata Consultancy Services||530|
|Texas Children’s Hospital||400|
Top 10 Companies That Added the Most Jobs in Austin in 2020
Along with looking at the volume of jobs created, we were also curious which industries would see the most growth from these jobs.
To do this, we categorized each company into a broad industry based on its primary focus. Some companies could fit multiple industries (For example, is Tesla tech or automotive? We say automotive.), but this gives a general idea of the types of companies that chose Austin in 2020.
As you can see, the three industries with the most jobs created in 2020 were automotive (thanks to Tesla), tech (thanks to companies like Oracle and Realtor.com), and e-commerce (Amazon).
2020 Industry Breakdown Jobs Per Industry
While it’s not surprising that Austin is continuing to see growth in the tech and e-commerce sectors, it is notable that the manufacturing and logistics sector has continued to see growth. According to the Austin Chamber and Texas Workforce Commission, in 2019 there were 62,500 manufacturing employees in the Austin MSA (5.6% of the workforce), so new manufacturing jobs created in 2020 represent a 2.2% growth rate (1,383 jobs). Austin may not be the biggest manufacturing hub in Texas, but this growth mixed with a soon-to-be-thriving automotive sector puts it on a path for expansion.
Austin’s medical industry is growing as well (2,357 jobs), with projects like the new $450 million Texas Children’s Hospital and the $700 million expansion of Dell Children’s Hospital leading the way. As these projects start to take shape and Austin’s downtown Innovation District continues to evolve, Austin once again proves that it is one of the best medical cities in Texas.
Learn More: Download our latest Austin Office Market Report
In my opinion, Austin more than outdid itself in 2020 and proved once again that it’s one of, if not the best, cities for jobs in the United States. Having over 100 companies either expand or relocate to Austin in the midst of a global pandemic is no small feat, and the 21,335 jobs in the pipeline will be a great jumping-off point as the recovery begins.
I think every Austinite should be proud of what our city has become, and if there’s one thing I’ve learned it’s this: the Austin market is resilient, and its future is looking bright.