Where Are We Going?

Comprehensive Economic Development Strategy: A Blueprint for Success

The Heart of Texas Economic Development District (HOTEDD) is designated as an Economic
Development District (EDD) by the U.S. Department of Commerce, Economic Development
Administration (EDA). Current members of the district include Bosque, Falls, Freestone, Hill,
Limestone, and McLennan counties. As part of its mission to promote economic growth and
stability, the EDA provides financial assistance to Economic Development Districts, including
HOTEDD, to develop and maintain a Comprehensive Economic Development Strategy
(CEDS). This critical document serves as the region’s economic roadmap, guiding efforts to
diversify and strengthen the regional economy.

HOTEDD’s Role in CEDS Planning

HOTEDD is responsible for preparing and adopting the CEDS document at least every five
years, in alignment with EDA guidelines. The planning process is led by the HOTEDD CEDS
Committee and supported by EDA funding, which ensures the resources necessary to develop a
comprehensive and actionable strategy. HOTEDD provides the organizational structure to
facilitate the CEDS process and serves as a regional coordinating body for economic
development initiatives.

The CEDS is formally approved and adopted by the HOTEDD Board of Directors, which also
serves as the CEDS Committee. This structure ensures that regional stakeholders are actively
involved in shaping the strategic vision for economic growth.

Purpose and Importance of the CEDS

The CEDS serves multiple purposes:
• Baseline Information: It compiles up-to-date data on demographics, economic
conditions, and potential projects within the region.
• Strategic Framework: It outlines economic development strategies, implementation
plans, and priority projects to enhance regional competitiveness.
• Grant Eligibility: Maintaining an up-to-date CEDS ensures the region’s continued
designation as an EDD and sustains eligibility for EDA funding. Governmental entities
applying for project grants under the EDA’s Public Works and Economic Adjustment
Programs must demonstrate how their proposals align with the regional CEDS.

A Dynamic Regional Guide

The CEDS is a living document, continuously updated to reflect the evolving economic state and
trajectory of the region. It serves as a vital resource for public and private sector leaders,
providing a strategic framework to guide investments, initiatives, and policies that foster
sustainable economic growth across the Heart of Texas region. By leveraging EDA support and
regional collaboration, HOTEDD is dedicated to driving economic development and ensuring the
long-term strength of its communities

For additional information, please contact Dorthy Jackson at 254-292-1874 or email [email protected].

CEDS Goals And Objectives - Defining Regional Expectations

Introduction

The Heart of Texas region, comprising Bosque, Falls, Freestone, Hill, Limestone, and McLennan counties, covers over 5,600 square miles with a population of approximately 374,000. The region balances rural and urban economic dynamics, supported by diverse industries, robust infrastructure, and a growing emphasis on workforce development.

Agriculture and Rural Composition

The rural counties—Bosque, Falls, Freestone, Hill, and Limestone—play a pivotal role in Texas’s agricultural economy, producing commodities such as cotton. These areas boast significant industrial capacities in government, utilities, mining, and farming, which provide a stable economic foundation. However, challenges like limited broadband access and aging infrastructure restrict opportunities for growth.

Industrial and Urban Hubs

McLennan County, with a population exceeding 261,000, serves as the industrial and commercial center of the region. Waco, its largest city, anchors the area's advanced manufacturing, healthcare, retail, and government sectors. Investments in real estate, infrastructure, and urban development have further solidified McLennan County’s status as an economic leader within the region. Key educational institutions, including McLennan Community College and Texas State Technical College (TSTC), play crucial roles in workforce development by offering technical, vocational, and academic training aligned with industry needs. Together with Baylor University, these institutions enhance innovation, research, and the talent pipeline, ensuring that the region remains competitive in advanced industries such as technology, healthcare, and renewable energy.

Infrastructure Development

Strategically located between Dallas, Houston, Austin, and San Antonio, the Heart of Texas region benefits from robust transportation networks, including major highways, rail systems, and access to airports. These assets make the area an ideal hub for logistics, warehousing, and distribution. However, rural counties face pressing infrastructure needs, particularly in expanding water, sewer, road, and broadband networks to support population growth and economic diversification.

Energy Sector Expansion & Economic Growth

The region’s energy sector is evolving, with new investments in wind and solar projects complementing its established oil, gas, and power generation industries. Each county is leveraging its available land and infrastructure to expand energy production and attract industry investment. These developments are creating jobs, increasing tax revenues, and strengthening the regional economy.

Workforce and Educational Assets

The region's educational and workforce development assets are key drivers of economic growth. McLennan Community College and Texas State Technical College provide essential technical and vocational training, preparing the workforce for high-demand fields like manufacturing, healthcare, and technology. Hill College in Hill County and Navarro College, with a substation in Limestone County, extend educational opportunities to rural communities, offering programs that enhance local workforce readiness. Texas Tech University at Waco and Tarleton State University at Waco further expand higher education access, offering bachelor's and graduate degree programs tailored to regional workforce needs. Baylor University enriches the region’s intellectual and cultural capital through advanced research and leadership development initiatives. Despite these strengths, gaps in higher education attainment, particularly in rural areas, underscore the need to expand access and align training programs with the demands of emerging industries.

Summary Background

The Summary Background of the CEDS document provides demographic data on the Heart of Texas region, along with historic and anticipated population changes. It also highlights growing industries, strategies for attracting investment and growth and provides an overview of the workforce, primary industries, geography and climate, infrastructure assets, and factors related to economic performance. You can also view demographic data here.

Download Complete Summary Background

SWOT Analysis

The SWOT Analysis provides an overview of the Heart of Texas region’s strengths, weaknesses, opportunities, and threats, with a focus on economic diversification, workforce development, and regional resilience. The region’s strengths include a diverse economic base supported by manufacturing, healthcare, education, and tourism, with major employers like SpaceX, Baylor University, L3Harris, and Ascension Providence driving innovation and job creation. Retail and entertainment assets such as Magnolia Market at the Silos, the Cottonwood Creek Market, and the Brazos Riverfront continue to bolster tourism and quality of life. Expanding infrastructure such as broadband, freight rail, and industrial parks has positioned the region—especially McLennan County—as a strategic hub for logistics and advanced manufacturing. However, challenges persist, including workforce skill gaps, aging infrastructure, and limited public transportation in rural areas. Emerging opportunities include renewable energy development, rural broadband expansion, and growing support for entrepreneurship. Read our SWOT Analysis for the full list of regional strengths and to explore the challenges, opportunities, and threats shaping the Heart of Texas region’s economic future.

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Strategic Direction/Action Plan

This section of the CEDS includes information on our guiding principles, vision and strategic direction. Here, you will find our goals and objectives, along with how we plan to achieve them. This portion of the CEDS document is foundational for the work HOTTED does to secure federal funding and grant opportunities for local economic development and government organizations to use as part of their growth strategies.

Download Complete Strategic Direction/Action Plan

Survey of Economic Development Resources

Our survey of resources includes a comprehensive directory of economic development partners at the state, regional, and local levels, alongside programs and initiatives that support business growth, workforce development, tourism, and infrastructure investment across the Heart of Texas region. The 2025–2030 CEDS outlines key entities such as the Texas Economic Development Corporation, city and county economic development corporations, regional chambers of commerce, and small business development centers that play essential roles in supporting entrepreneurs, attracting investment, and facilitating collaborative development strategies. This section also highlights coordinated efforts to strengthen disaster preparedness and economic resiliency through infrastructure upgrades, regional planning, and strategic partnerships. These resources form the foundation of our regional development strategy and are vital for building a sustainable, inclusive, and competitive economic future.

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Evaluation Framework

This 2025–2030 CEDS report employs a comprehensive evaluation framework that integrates government and local data sources to monitor the region’s economic performance, strategic progress, and development impact. Key national and state-level data sources include the U.S. Census Bureau, American Community Survey (ACS), Bureau of Labor Statistics (BLS), Texas Workforce Commission, and Texas Demographic Center. Regional analysis is enhanced through tools such as StatsAmerica, the National Economic Resilience Data Explorer (NERDE), and data from the Heart of Texas Economic Development District (HOTEDD), as well as insights from local economic development corporations and municipal infrastructure initiatives. The framework ensures that performance metrics—such as workforce trends, economic resilience, infrastructure investment, and business growth—are regularly assessed using both quantitative and qualitative data. Annual reports to the U.S. Economic Development Administration (EDA) and automatic updates via ESRI mapping technology support a dynamic, data-driven approach to economic planning. Click below to read more about our evaluation framework.

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County-level SWOT

Our county-level SWOT analysis provides information on the strengths, weaknesses, opportunities and threats impacting the economies of Bosque, Falls, Freestone, Hill, Limestone, and McLennan counties. Within each county’s SWOT you will also find descriptions of economic changes, new investments to the area, major employers and demographic data. You can also view demographic data here.

Download Complete County-level SWOT

References

Are you interested in seeing where our research came from or how we made our conclusions? Look through the reference section for more information.

Download Complete References

Heart of Texas Economic Development District Information

Leadership

Comprehensive Economic Development Strategy (CEDS)

Public Notices/Meeting Agendas

Loan Program

Workforce Information