Austin’s tech sector transforms the state capital into an innovation hub

The abundance of talent and collaboration across the high-tech sector has transformed the state capital into a center for innovation. In a recent visit to Austin, Dallas Fed President Lorie Logan met with business, education and finance leaders focused on positioning the city’s technology sector for the future. This visit is a part of President Logan’s Listening in 360 engagements, which deepen her understanding of the region’s economy and its people.

One of the original Austin tech companies, Dell Technologies is developing artificial intelligence (AI) technology and infrastructure for commercial use. On a visit to the company, President Logan heard from company leaders about their work to identify solutions that fit the needs of businesses of all sizes, from mom-and-pop shops to corporations.

The development of this technology requires partnerships across the sector. “AI is not something you want to do on your own. You need to find someone to help you with it and to make your idea even better,” said Shelley Heburn, a senior principal systems development engineer at Dell.

Among the most recent generation of Austin companies is, Apptronik, which is building general-use robots to support humans. The founder considers the company a “Texas story,” with origins at the University of Texas and in project work for NASA’s Johnson Space Center. When asked about the future, Co-Founder and CEO Jeff Cardenas said, “Texas is very well-positioned for robotics,” noting the region’s universities, supportive stakeholders and the state’s track record in technology and innovation.

This visit builds on President Logan’s previous engagement in Austin, when she explored the University of Texas robotics lab and met with community leaders about the city’s innovation focus.

Austin Community College aims to redefine higher education and the blue-collar profession

Austin Community College (ACC) is reimagining higher education. ACC has 12 campuses across central Texas, and local students can attend for free. This is part of the college’s efforts to remove challenges students face while attending school. For example, ACC also provides child care for students. Programs are developed alongside industry partners to prepare students for their first day on the job. This industry alignment is essential as worksites have evolved, with manufacturing transforming from a focus on machinery operations to robotics. One leader noted, “the work of the future is not going to be the work of the past,” a mindset that’s inspired the college to adapt its curriculum to meet industry’s future needs.

And from the student perspective, the forward-looking skills developed in the classroom are transferable across industries. “We look at this [curriculum focus] as manufacturing, but this technology and these lessons can apply to the oil and gas industry, and in healthcare. That’s part of the value, especially if one day you want to switch careers,” one student said.

One challenge ACC leaders identified is attracting and maintaining prospective student interest in technical fields. As high schools establish career tracks for students as early as middle school, it’s difficult for the college to introduce itself and its innovative programs to prospective students before their career paths become too narrowly defined.

Austin labor market continues to outperform the state, Silicon Valley

Austin’s labor market has long outperformed Texas and the U.S. But since the pandemic, job growth in Austin has also accelerated beyond Silicon Valley.

Austin’s unemployment rate fell to 3.6 percent in December, below the state rate of 4.3 percent and the national rate of 4.4 percent.

And both high-tech employment and total employment continue to grow at a faster pace than in tech hub San Jose, Calif.

President Logan speaks at Asset Managers Derivatives Forum

While in Austin, President Logan delivered remarks at the Asset Managers Derivatives Forum, held by the Futures Industry Association (FIA) and the Securities Industry and Financial Markets Association’s Asset Management Group.

In her remarks, President Logan shared her view of the economy, her outlook for the year and her current stance on policy. Afterwards, she joined Walt Lukken, chief executive of FIA, for a moderated conversation.