French companies looking to develop in the United States may instinctively think about setting up shop in the country’s best-known financial and business hubs — like the states of New York and California.

Yet another U.S. place is increasingly positioning itself as an attractive destination for foreign companies: Texas. With a gross state product of $2.694 trillion as of 2023 (the second largest in the U.S.), Texas has become the eighth largest economy in the world, and actively touts itself as the “Best State for Business.”

This reputation is gradually being confirmed by France’s businesses. The Texas chapter of the French-American Chamber of Commerce (CCI), which aims at fostering transatlantic business exchanges between France and the U.S., has registered a steady growth of its activities over the past few years.

“This reflects the growing dynamic of a buoyant market,” says CEO Constance Bost, who believes that the Lone Star state has many development opportunities to offer French companies.

“Freedom of entrepreneurship”

What makes Texas so attractive? Bost praises the state’s many assets: a favorable tax climate, cheaper living costs and less competition compared to New York and California, demographic growth, an abundance of land available for companies to develop — and more generally, the state offers a business-friendly mindset. “There’s real freedom of entrepreneurship, in the sense that you can easily buy land in this vast state, and do what you want with it, thanks to relatively light regulations compared with other states.”

These advantages have led several Silicon Valley giants like Tesla and Oracle to transfer their headquarters to the capital city of Austin, thus reinforcing the state’s business ecosystem. At the forefront of this movement: the energy, tech and space sectors, where French companies could play a major role. “The state aims to prioritize nuclear energy to power its expanding industries, and we have French players well positioned to answer Texas’ needs,” says Bost.

There are also opportunities for French firms in the service and consumer sector, driven by Texans’ high purchasing power: “There’s no doubt that French products have their place at major retailers we work with, like Whole Foods Market and H-E-B,” adds the CEO of the CCI Texas.

French companies shining at SXSW and CERAWeek

French companies’ potential to develop in Texas was also recently highlighted by their strong presence at two big events held in March: South by Southwest (SXSW), known for its conference and festivals that celebrate the convergence of tech, film, music, education, and culture in Austin; and CERAWeek, an annual energy conference in Houston organized by S&P Global. “At SXSW, we saw the growing influence of French companies in official panels, where they were there not just for display but to share their ideas and be part of the conversation,” says Bost. “At CERAWeek, we had really positive feedback from U.S. companies which showed a lot of interest in our delegation of French firms and their innovative solutions. Many actually booked appointments with major companies like Exxon, Aramco and Chevron.”

It’s time for French businesses to seize the opportunities Texas has to offer, and remedy the state’s relative lack of popularity in France’s corporate community. “It’s not as mainstream as the East or West coast and there’s this image stuck in people’s minds that it’s a very traditional state. It’s actually international, open-minded and with a lot of diversity,” Boat notes. “Plus, it’s not just business-friendly — it’s friendly in and of itself!”

The head of the Texas chapter of the French-American Chamber of Commerce said we are witnessing a major opportunity for French companies. “It would be a shame not to take advantage of this dynamic market. We have all the right ingredients.”