With the commitment by the US government to make the federal fleet fully electric and consumer demand rising, the economic climate is positive for the electric vehicle (EV) manufacturing plant start-up market.
In the US, leading companies with the greatest EV market share include Tesla, with a share of about 71% in 2022, Hyundai and Ford.
As other companies now ramp up to meet demand, locating the best place to set up an EV manufacturing plant is more competitive, with many elements such as potential employee bases, existing infrastructures and local business tax incentives to consider.
Strong EV sales driving demand for manufacturing
In 2022, the US electric vehicle market continued to break records, seeing increasing demand for cars with manufacturing capacity also rising.
With a slow but steady and increasing sales growth in the EV sector, registrations in the US continued to rise.
During the first quarter of 2022, this was an increase of 60%, with EV manufacturing plant capacity sometimes struggling to meet with demand.
The US EV market is forecast to grow from $28.24bn in 2022 to $137.43bn in 2028, meaning demand for EV manufacturing plants across the US will continue to grow.
Economic landscape for EV manufacturing in Texarkana
Located at the crossroads of four states, Texarkana is known for its iconic courthouse and post office building, a building that sits bestride the state line between Texarkana, Arkansas and its sister city, Texarkana, Texas.
The metropolitan statistical area is a three-county region comprising the twin cities of Texarkana, Texas and Texarkana, Arkansas, encompassing the surrounding communities of Bowie County, Texas, Little River County, Arkansas and Miller County, Arkansas.
The manufacturing industry, alongside defence, is one of the leading sectors driving the regional economy, supporting the location as potentially the best place to set up an EV manufacturing plant.
This already successful tradition of and infrastructure for manufacturing makes the region a prime location for EV manufacturing plant businesses.
With a $4.8bn GDP, this region represents a pro-business, pro-investment environment. There are several significant business clusters in Texarkana that include food processing and manufacturing.
Texas leading the way in EV car manufacturing across Texarkana
Ranked as one of the top ten states in the US by the number of automotive workers and number of auto manufacturing establishments, Texas leads the way when it comes to selecting the best place to set up an EV manufacturing plant in Texarkana.
As of 2022, in excess of 450 automotive manufacturing firms directly employ more than 35,800 workers in Texas, showing the potential for investors.
With the burgeoning demand for electric vehicles, the related need for dedicated EV manufacturing plant operations has created a flourishing marketplace.
On average, automotive worker salaries average about $58,700 in Texas.
When considering the best place to set up an EV manufacturing plant, Texarkana investors need to consider the potential workforce and what will attract them, including salaries.
Texarkana region offering support for EV manufacturing plant businesses
When considering the best place to set up an EV manufacturing business, Texarkana has cities that benefit from local tax incentives.
Attracting business set-ups to the Texarkana regions is driven by the regional economic development organisation AR-TX REDI.
Committed to helping businesses connect with economic development opportunities throughout the Texarkana region, the body helps to attract start-ups as well as assisting the expansion of existing enterprises.
When assessing the best place to set up an EV manufacturing plant, Texarkana support networks can be just as important as determining whether there are positive fiscal forecasts for the sector.
Targeted fiscal support for EV manufacturing plant start-ups
Another potential reason to consider that the Texarkana region may be the best place to start up an automotive business in the US is the targeted fiscal support.
Across Texarkana, companies that relocate or start-ups (older than two years old) in Arkansas are offered what is locally referred to as the ‘InvestArk’ benefit.
Part of this incentive is a state-sponsored non-transferable and non-refundable tax credit equal to 7% of all eligible project expenditures.
For an EV manufacturer, this is a significant draw. Adding to this financial encouragement, new business start-ups with unused credits can carry them forward for a maximum period of nine years.
In terms of financial forecasting and planning for new companies, this long-term assistance promotes the region as somewhere to consider as the best place to set up an EV manufacturing plant.
AR-TX REDI continues to be inspired by the region’s long history in manufacturing, and the potential its strategic location offers to companies.
Information and Data from Global Business Alliance, ARTEXREDI, US Data and Statistics, Images of Texarkana, Texas Business, Arkansas Dept. Of Commerce.