El Paso Area of Economic Development

El Paso is the largest metro area on the Texas-Mexico border, with a dynamic economy poised for continued growth.

Nestled between the scenic Franklin Mountains and the historic Rio Grande, El Paso combines the advantages of a major metropolitan center with the charm of a modern western town. Historically focused on textiles, the region’s diversified economy continues to branch into new industries, including automotive, biomedical, defense, electronics, finance/business services, and medical device sectors. El Paso is also home to Fort Bliss, one of the largest military complexes in the United States and a key driver of regional employment, innovation, and public-private partnerships.

As a critical point of shipping and distribution, El Paso offers direct access to the West Coast, Midwest, and Southeastern U.S. markets.  New initiatives like the Advanced Manufacturing District and U.S. Space Force facility underscore El Paso’s shift toward innovation-driven industries. With a strong workforce, lower operating costs, and expanding infrastructure, El Paso and the broader West Texas region for business are set for sustained economic momentum.

El Paso Business Climate

El Paso offers one of the most competitive and supportive business environments in the Southwest. It has maintained steady job growth of 4.0% year-over-year as of 2024, outpacing many similar-sized metros. Business incentives include:

• Chapter 380/381 agreements for grants and loans
• Foreign Trade Zone #68, offering duty-free and tariff-reducing benefits
• Infill and Transit-Oriented Development incentives to promote strategic revitalization

Operating costs in El Paso are significantly lower than in other Texas metros, and forecasts show per capita income hitting historic highs in 2025, signaling increased consumer spending and wage stability.

El Paso’s strong infrastructure and regional coordination make it a model for resilience and adaptability within the broader business climate in Texas.

El Paso is doubling down on advanced manufacturing with the development of a 250-acre Advanced Manufacturing District, expected to create 17,000 jobs. The region also received $40 million in federal funds to develop a manufacturing cluster focused on aerospace and defense.

Aerospace and Defense

El Paso has been awarded $20 million by the Texas Space Commission to support a U.S. Space Force facility. With Fort Bliss, White Sands Missile Range, and Holloman AFB nearby, El Paso has become a launchpad for advanced defense technologies.

Healthcare and Education

Healthcare remains one of the largest employment sectors in El Paso. Institutions like the University of Texas at El Paso (UTEP) and Texas Tech Health Sciences Center feed a growing pipeline of healthcare professionals. El Paso’s three public school districts are among its top employers, with UTEP enrolling over 24,000 students and earning accolades for graduating first-generation and minority STEM students.

Logistics and Distribution

El Paso serves as a multi-modal port with highway, rail, and air connections supporting international trade. In 2023, the Paso del Norte region —which includes El Paso, Ysleta, Tornillo, and Santa Teresa ports of entry—facilitated $126.7 billion in U.S.-Mexico trade, representing 18.5% of all cross-border commerce between the two nations. As part of the fifth-largest manufacturing hub in North America, the Borderplex region remains a critical link in continental supply chains, connecting production centers across the U.S. and Mexico.

Workforce & Education

El Paso County’s working-age population (15–64) makes up 65% of its total population, and the county’s median age is just 34, reflecting a young and growing workforce.

The region includes 10 higher education institutions across El Paso, Las Cruces, and Ciudad Juárez. These institutions fuel cross-border workforce collaboration and graduate students in high-demand fields like engineering, data science, and advanced manufacturing.

UTEP, a top-tier research university, leads workforce development in fields such as cybersecurity, aerospace engineering, and robotics, partnering with military bases and industry leaders to deliver job-ready graduates.

Emerging Industries in El Paso

In addition to its established sectors, El Paso is positioning itself as a future-forward hub for high-growth markets. El Paso economic development is increasingly focused on these frontier industries:

• 3-D Printing: Expected to grow to $51 billion globally by 2030
• Hypersonic Technologies: Over $25.5 million granted to support research at 18 universities
• Robotics & Automation: Projected to reach $10.1 billion by 2028
• Cybersecurity: Forecasted to become a $376 billion global industry by 2029
• Aerospace: Revenue could hit $1.25 trillion, driven by both public and private sector innovation

Infrastructure and Sustainability

El Paso’s commitment to sustainability is reflected in bold infrastructure investments:

• 580 megawatts of solar energy capacity being developed by El Paso Electric, supporting clean growth and grid resilience.
• $295 million Advanced Water Purification Facility, delivering 10 million gallons/day of potable water.

Learn more about the El Paso Electric investment in economic development.

With three international ports of entry, extensive rail lines, and regional airport access, El Paso offers scalable logistics for any company expanding operations and looking to take advantage of Texas’ economic growth.

Quality of Life and Regional Advantages

El Paso offers an affordable lifestyle, safe neighborhoods, and a year-round climate ideal for outdoor recreation. In 2021, it was ranked the third safest large city in the U.S. and has a cost of living index 15.8% below the national average.

The city’s cultural vitality, cross-border connectivity, and 300+ days of sunshine annually make it not just a place to do business, but a place to thrive.

El Paso Business Opportunity

El Paso’s combination of advanced infrastructure, a resilient labor force, and forward-looking investments makes it one of the most promising cities for companies considering expansion.

Interested in pursuing business opportunities in El Paso? Check out the El Paso business development guide and the El Paso small business brochure to get started.

Offering strategic access, cross-border connectivity, and long-term value, El Paso represents one of the most compelling choices for doing business in Texas today.