The San Antonio metropolitan area has distinctive strengths that retain residents while attracting visitors, investment, and businesses from across the country and around the world. In the past decade, the region’s economic output has grown by 40 percent, well above the national average of 28 percent.1 With more than 2.7 million people living in the eight counties of the San Antonio–New Braunfels metropolitan statistical area (MSA), residents take pride in the region’s culture of authenticity, teamwork, resilience, and entrepreneurial spirit.
But San Antonio can do more to achieve its full potential.
In this report, based on data-driven analyses, expert discussions, and interviews with local leaders, we discuss how San Antonio could harness more of its talent and culture to accelerate growth, improve the lives of all residents, and raise its profile on the global stage.
Building on San Antonio’s strengths
San Antonio appeals to employers and employees alike, thanks in part to its affordability and fast-growing talent pipeline. Doing business in San Antonio costs about 10 percent less than in peer cities,2 and San Antonio residents are relatively young, on average,3 making the region attractive to families with children and businesses looking for fresh talent.
Growth is likely to continue in the region’s three leading industries: finance and professional services, hospitality and tourism, and construction. Going forward, the region can also capitalize on opportunities in four emerging or “focus” industries: advanced manufacturing and logistics, cybersecurity and IT, life sciences and health, and aerospace and defense. Building on research from greater:SATX,4 our independent analysis suggests that these industries are likely to significantly boost economic growth in San Antonio.
Strengthening the talent pipeline
A strong talent pipeline is also critical for accelerating economic growth. San Antonio benefits from positive net migration from outside the state and from other regions in Texas.5 Labor force participation, however, is relatively low—and the benefits of economic growth may not be equitably distributed among the diverse population.
Investing in the talent pipeline, including through educational opportunities, could support the growth of focus industries while increasing prosperity and equity. Already, San Antonio has made some strides in attracting, retaining, and upskilling talent to fill high-skill, knowledge-based positions. New corporate partnerships, internships and apprenticeships, and nondegree offerings could further support the existing workforce in developing skills in STEM and other priority fields.
Boosting small-business productivity
Medium-size enterprises employ more than half of San Antonio’s workforce and play a critical role in the MSA’s economy. While some have achieved remarkable growth and are known on the national stage, others face productivity gaps because of limited access to technology, skills, financing, and markets. Regional San Antonio public sector and community organizations have already launched initiatives to tackle those challenges, and additional targeted investments could further boost their growth.
Shaping the future
In a world evolving at unprecedented speed, groundbreaking progress will require imagination, courage, and decisive action. To truly unlock the region’s potential, this progress must be sustainable and inclusive and must be accompanied by a compelling narrative that will position San Antonio as a beacon of opportunity on the global stage. With new collaborations, targeted investments, and a stronger talent pipeline, San Antonio can bolster its biggest industries; equip its micro-, small, and medium-size enterprises to innovate and compete; and gain firmer footholds in fast-growing sectors. The result: a virtuous circle of employment, talent attraction, community well-being, and profitable growth.
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