Why Businesses Choose San Antonio

San Antonio is home to a diverse mix of businesses, ranging from Fortune 500 corporations to family run shops. This article explores why so many companies choose the Alamo City.

We will look at the major employers, the industries that power the region and the qualities that make San Antonio a welcoming place to work and live.

Major Companies Headquartered in San Antonio

• HEB: grocery retail; approximately 154,000 employees (private, family owned).
• USAA: financial services (insurance and banking); approximately 37,000 employees (private, member owned).
• Valero Energy: oil and gas refining; approximately 10,000 employees (public, NYSE VLO).
• iHeartMedia: media and entertainment (radio); more than 10,000 employees (public, NASDAQ IHRT).
• Whataburger: fast food restaurant; approximately 50,000 employees (private, family owned).
• Frost Bank: regional banking; approximately 5,000 employees (public, NYSE CFR).
• Rackspace Technology: cloud computing and IT services; approximately 2,000 employees (public, NASDAQ RXT).
• Southwest Research Institute: research and development (nonprofit); approximately 3,100 employees (private nonprofit).

These names illustrate the breadth of San Antonio’s corporate community. Alongside household brands like HEB and Whataburger, the city is home to financial institutions, media leaders and technology innovators.

Many mid sized and smaller firms, from marketing services to food distribution, round out a rich and varied business landscape.

Key Industries

• Trade, Transportation and Utilities (17 percent of employment). Retail trade and logistics anchor the region. HEB's statewide grocery operations make San Antonio a regional retail hub, and its central location has spurred growth in warehousing and distribution. Workforce programmes like Ready to Work support this expansion.
• Government and Defense (15 percent of employment). About 187,800 people work in government and defence. Joint Base San Antonio combines Fort Sam Houston, Lackland Air Force Base and Randolph Air Force Base. Commands such as the Army Medical Command and the 16th Air Force cyber unit create a robust ecosystem that includes contractors and cybersecurity firms.
• Healthcare and Bioscience (14 percent of employment). Nearly 180,000 people work in healthcare, contributing around $44.1 billion in economic impact. San Antonio boasts large hospital systems, biomedical research institutions and a growing biotech sector.
• Leisure and Hospitality (12 percent of employment). Tourism and hospitality provide about 147,500 jobs. The city's historic sites, riverfront, theme parks and vibrant culinary scene attract millions of visitors each year.
• Information Technology and Cybersecurity. Though it employs around 19,000 people, this sector is expanding quickly. The presence of the Air Force Cyber Command and the NSA helps make San Antonio one of the nation's cybersecurity hubs. Companies like Rackspace and Hulu, as well as many startups, thrive here alongside strong university programmes.
• Financial Services. USAA and Frost Bank head a long established financial sector. Recently, firms like Victory Capital have relocated headquarters to San Antonio, drawn by lower operating costs and a professional workforce.
• Manufacturing and Aerospace. Automotive and aerospace manufacturing are cornerstones of the economy. Toyota's truck plant anchors an automotive supplier network, while Port San Antonio houses aerospace companies such as Boeing and StandardAero. Skilled technicians and a legacy of military aviation support these industries.

Why Companies Choose San Antonio: Key Advantages

Business Friendly Environment and Incentives

Texas has no corporate or personal income tax; instead it levies a modest franchise tax on gross receipts. Many small businesses owe no franchise tax at all.

Local governments offer tailored incentive packages such as cash grants, tax abatements and workforce funds to attract and retain employers. For example, Toyota's truck plant received about $133 million in state and local support when it opened in 2006. Today, new projects continue to benefit from grants and long term abatements.

The city also provides tax exemptions on manufacturing equipment and research materials, lowering operating costs. These policies create a business friendly climate with low overall tax obligations.

Skilled Workforce and Talent Pipeline

Greater San Antonio has a workforce of more than 1.2 million people. Each year, local universities and colleges such as UTSA, Texas A and M University San Antonio and the Alamo Colleges graduate over 30,000 students in engineering, computing, bioscience and business.

Military service members and veterans add depth to the talent pool. Roughly 200,000 veterans live in the region, bringing skills in cybersecurity, healthcare, logistics and leadership.

Cost of Living and Real Estate

Living in San Antonio is roughly nine percent more affordable than the national average. Housing costs are lower than in Austin or Dallas, which helps employees enjoy a higher quality of life.

Commercial real estate is plentiful and competitively priced. Office rents remain moderate even as demand grows, and utility rates are typically below national norms. Victory Capital, for example, cited the city's cost advantages when moving its headquarters from Ohio.

Strategic Location and Infrastructure

San Antonio sits at the crossroads of Interstate 35 and Interstate 10. From here, companies can reach major U.S. markets by road, rail or air within hours.

Proximity to Mexico and Latin America is another advantage. With the border about 150 miles away, firms can tap into cross border trade and bilingual talent. Ports at Corpus Christi and Houston, as well as San Antonio International Airport and Port San Antonio's multimodal facilities, connect the city to global markets.

Quality of Life and Culture

San Antonio blends big city amenities with a welcoming, family friendly atmosphere. The River Walk, historic sites, parks and the nearby Hill Country offer space to relax and explore.

The city's warm climate and affordable lifestyle appeal to relocating families and young professionals alike. A growing tech scene with startup incubators like Geekdom, combined with cultural diversity, makes San Antonio a vibrant place to live and work.

Unique Regional Strengths

Joint Base San Antonio anchors a large military and defence ecosystem. The presence of the U.S. Army Medical Command, the 16th Air Force and the NSA's Texas Cryptologic Centre supports industries from trauma care to cyber defence.

San Antonio's bilingual culture and strong ties to Mexico and Latin America help companies serve Spanish speaking customers and expand into international markets.

Collaboration between public agencies and the business community is another hallmark of the city. Organisations like the Greater SATX Regional Partnership and the San Antonio Chamber of Commerce work together to recruit and support employers, creating a sense of momentum and shared purpose.

Summary

San Antonio stands out as a headquarters location because of its business friendly policies, skilled workforce, cost advantages, strategic location and high quality of life. A diverse mix of industries thrives here, from energy and finance to technology and aerospace.

As the city continues to invest in infrastructure and talent, it is well positioned for future growth.

Sources

1. SATX Regional Partnership: top industries and employers in the San Antonio metro area
2. SATX Regional Partnership: major employers and workforce statistics
3. Indeed.com: 16 Companies Headquartered in San Antonio
4. San Antonio Report: Toyota incentives and economic development
5. Construction Dive: JCB plant announcement
6. Business Facilities: Victory Capital HQ relocation press release
7. San Antonio Report: DeLorean incentives and headquarters deal
8. A. Neumann & Associates: San Antonio business climate overview
9. Texas Economic Development Commission: San Antonio regional profile
10. LRG Realty: cost of living in San Antonio vs. other Texas cities (2025)
11. Valero Energy: company fact sheet (headquarters and employee count)