Killeen-Temple-Fort Hood Area of Economic Development

Killeen-Temple-Fort Hood Region for Business

A Fast-Growing Regional Hub at the Center of the I-35 Innovation Corridor

A fast-growing Central Texas region powered by military talent, advanced manufacturing, healthcare innovation, and world-class logistics access.

 The Killeen–Temple–Fort Hood region is situated at the center of one of the fastest-growing corridors in the United States, providing companies with a powerful combination of workforce depth, strategic location, and industry diversity.

Anchored by Fort Cavazos (formerly Fort Hood), one of the nation’s largest military installations, the region benefits from a steady pipeline of highly trained, technically skilled transitioning service members. These strengths make the area an exceptional choice for Killeen-Temple-Fort Hood economic development and long-term corporate expansion.

Access to Millions of Consumers and a Deep Labor Shed

The Killeen–Temple-Fort Hood metropolitan area is home to more than 475,000 residents, with population growth accelerating along the I-35 Innovation Corridor that connects Waco, Temple, Killeen, Austin, and San Antonio. This central location provides companies with direct access to millions of consumers and a workforce of over 1.6 million within a one-hour drive. With rail access, major highway connectivity, and one of the state’s top medical and research hubs, the region delivers strong logistical efficiencies and competitive operating costs.

Temple’s thriving advanced manufacturing and life sciences industries—supported by Baylor Scott & White Medical Center, the Temple Medical and Research District, and high-growth manufacturers—complement Killeen’s strengths in defense, aviation maintenance, supply-chain operations, and retail distribution. Together, this integrated metro area provides companies with a stable and scalable environment for long-term investment.

The region’s advantages are reinforced by its strategic position in Central Texas, connecting companies to growing urban markets and regional talent networks. Organizations exploring wider opportunities can review additional business opportunities in Central Texas as they evaluate location strategies.

Rankings

Aerial view of office buildings in Temple, Texas.

#7 Most Affordable Places to Live in Texas (Temple)

Redfin 2024
A sunset view of downtown Killeen, Texas

#2 Fastest Growing Places in the U.S. (Killeen)

U.S. News & World Report 2024-2025
A pink sky at sunset in Killeen, Texas.

#10 Best Places to Live in Texas (Killeen)

U.S. News & World Report 2024-2025
A group of employees sits down in a conference room for a meeting in Temple, Texas.
Nursing students learn from an instructor in a clinical setting in Temple, Texas.
Aerial view of highway overpass in Temple, Texas.
  • Business Climate
  • Talent
  • Infrastructure
Business Climate
A group of employees sits down in a conference room for a meeting in Temple, Texas.

Diverse Industry Sectors Thrive In Temple-Killeen

From financial services to manufacturing and everything in between, this metro area has the business assets to support companies large and small.

Major business clusters in the Killeen-Temple-Fort Hood area include aerospace and aviation, materials manufacturing and financial services. Major employers in Killeen-Temple include Advanced Electrical Systems, Blackhawk Management Corporation, EG&G Technical Services, McLane Southwest, Pactiv, Pepsi Cola South, Raytheon, Teleperformance and Wilsonart.

Talent
Nursing students learn from an instructor in a clinical setting in Temple, Texas.

A Highly Skilled Talent Pool

Feeding the talent pipeline in this area are three main higher education institutions with strong research and development opportunities.

Higher education institutions include Central Texas College District, Temple College and Texas A&M University – Central Texas.

Infrastructure
Aerial view of highway overpass in Temple, Texas.

Business Assets In A Central Location

Temple-Killeen-Fort Hood’s central location and exceptional transportation by rail, car and plane create the perfect landscape for logistics and distribution operations.

The I-35 and the planned I-14 highways support transportation by car in this region, while the Killeen-Fort Hood Regional Airport offers efficient domestic air travel. Major Class I railroad carrier services offer reliable transportation by rail.

Why Choose Killeen–Temple–Fort Hood for Your Business?

Strategic Access to Major Texas Markets

Situated directly on the I-35 corridor, the region allows companies to reach Austin, Waco, Dallas–Fort Worth, and San Antonio within hours. This distribution advantage supports manufacturers, medical supply chains, e-commerce operations, and defense contractors with efficient access to suppliers and consumers.

A Rapidly Growing Regional Economy

The Killeen–Temple–Fort Hood area benefits from sustained population growth, rising investment, and steady expansion of healthcare, logistics, and advanced manufacturing operations. Companies gain access to a young, diverse workforce supported by strong educational partners and the area’s unparalleled pipeline of military talent.

A National Center for Military Workforce Expertise

With tens of thousands of active-duty personnel and transitioning soldiers annually, the region offers one of the deepest reservoirs of skilled technical labor in the country. Employers frequently hire veterans trained in IT, engineering, aviation maintenance, logistics, cybersecurity, healthcare support, and advanced technical trades. This is a key driver of the Killeen-Temple-Fort Hood area’s business opportunity for companies across the manufacturing, defense, and high-tech sectors.

Competitive Business Costs

Affordable industrial land, cost-effective development, and reasonable tax structures strengthen the regional value proposition and enhance the advantages achieved through broader business advantages in Texas.

Key Industries Driving Growth in Killeen–Temple–Fort Hood

Defense, Aerospace & Military Support

Fort Cavazos—one of the largest military installations in the world, supports more than 36,000 active-duty personnel and tens of thousands of family members, civilian employees, and contract workers. This concentration of military activity fuels a robust ecosystem of defense contractors, aviation maintenance operations, logistics firms, and IT and cybersecurity specialists. The region consistently produces thousands of transitioning service members each year, creating one of the nation’s strongest pipelines of mission-ready technical talent.

Advanced Manufacturing

Temple is home to a growing base of advanced manufacturers specializing in industrial equipment, food products, pharmaceuticals, plastics, metal fabrication, and building materials. The region’s affordable land, multimodal transport, and talent pipeline help manufacturers scale quickly.

Life Sciences, Healthcare & Biotech

Temple is a major medical hub anchored by Baylor Scott & White Medical Center, the largest nonprofit health system in Texas and a top regional employer in healthcare delivery, research, clinical trials, and biomedical innovation. The Temple Medical and Research District supports a large and growing base of clinical research, life sciences, and biotech activity, with thousands of healthcare professionals working across hospitals, labs, and specialty practices. Continued investment in medical research, diagnostics, and medical manufacturing drives steady sector expansion.

Transportation, Logistics & Supply Chain

Killeen–Temple’s location along I-35, combined with Class I rail access and proximity to air cargo facilities, positions the region as a prime distribution hub for Central Texas. Retail, e-commerce, and food distribution companies operate major facilities in the region due to its strategic reach and cost-effective operations.

Central Texas’s rapid population growth and strategic I-35 location have spurred significant investment in industrial, manufacturing, and distribution facilities. Temple and Killeen collectively support millions of square feet of industrial and logistics space, with ongoing expansions tied to food processing, advanced materials, building products, and e-commerce fulfillment. Strong rail access, highway connectivity, and workforce availability reinforce the region’s position as a fast-growing supply-chain hub for Texas and the broader Central U.S.

Food & Beverage Processing

Temple and surrounding communities support a growing cluster of food processors, cold-storage providers, packaging operations, and agricultural suppliers that serve regional and national markets.

7 Major Employers Strengthening the Regional Economy

  1. Fort Cavazos (Defense)
  2. Baylor Scott & White Health (Healthcare & Clinical Research)
  3. Advanced manufacturing and industrial employers in Temple
  4. Aviation maintenance and defense contractors in Killeen
  5. Logistics and distribution companies along the I-35 corridor
  6. Retail and e-commerce hubs serving Central Texas
  7. Professional and business services firms supporting regional growth

Incentives and Support for Growing Companies

Performance-Based Incentives

Local economic development organizations in the Killeen–Temple–Fort Hood region offer project-specific incentive packages tied to job creation, capital investment, and wage competitiveness. These tools may include:

  • Job creation grants based on the number and quality of new positions
  • Site development assistance to help prepare land or facilities for rapid deployment
  • Infrastructure support such as utilities, road improvements, or site access enhancements
  • Workforce training reimbursements in partnership with regional colleges and military transition programs

Together, these incentives help reduce upfront costs, accelerate timelines, and support long-term growth for qualifying business expansions.

Workforce Training & Military Transition Programs

Central Texas College, Temple College, Texas A&M University–Central Texas, and Fort Cavazos transition programs establish a robust talent pipeline through employer-aligned training, industry certifications, and upskilling opportunities for both civilian and military-connected workers. These programs consistently prepare candidates for roles in aviation maintenance, precision manufacturing, logistics, IT, and cybersecurity, helping companies access one of Central Texas’s most capable and job-ready labor pools.

Local and State Tools

In addition to regional support, companies can access a full suite of Texas business opportunities at the state level. These include deal-closing incentives, targeted tax exemptions, workforce development grants, and R&D-focused programs that help reduce operating costs and accelerate expansion.

Together, these local and statewide tools strengthen the business case for new projects and reinforce the broader economic strength in Texas, giving companies a competitive advantage when launching or scaling operations in the Killeen–Temple–Fort Hood region.

Experience a High Quality of Life in this Region

The Killeen–Temple–Fort Hood region blends affordability, opportunity, and access to standout Central Texas amenities. Families benefit from strong K–12 schools, multiple higher-education institutions, and career paths spanning healthcare, defense, technology, and manufacturing.

Residents enjoy year-round recreation at Belton Lake, Stillhouse Hollow Lake, and Dana Peak Park, with boating, trails, and outdoor activities that support a balanced lifestyle. Temple’s growing downtown, restaurants, and community events add cultural vibrancy.

A strong military presence fosters a connected, family-centered community with deep support networks, giving employers a meaningful advantage in attracting and retaining top talent.

Grow Your Business in Killeen–Temple–Fort Hood

The Temple–Fort Hood region offers a compelling value proposition for companies expanding or relocating to Central Texas—combining strategic location, military-connected talent, multimodal connectivity, competitive operating costs, and a diverse economic base. These strengths, paired with Texas’ broader business advantages, support long-term growth across manufacturing, logistics, defense-related industries, and technology-enabled operations.

The Texas Economic Development Corporation (TxEDC) promotes regions like Temple–Fort Hood as part of Texas’ statewide economic opportunity and helps connect interested companies with the Governor’s Office of Economic Development & Tourism (EDT)—the state team responsible for site selection support, incentives guidance, and confidential project evaluation. TxEDC helps facilitate introductions and ensures businesses are connected to the appropriate state, regional, and local partners as they explore next steps. To begin the conversation, contact us to learn more about expanding or relocating your business in Texas.