City of Kerrville, Texas: Market Research Report

Background

Overview

Kerrville, the county seat of Kerr County, Texas, is a city renowned for its picturesque landscapes in the Texas Hill Country. As of the 2020 census, the population was 24,278. The city is strategically located approximately 65 miles northwest of San Antonio, offering a blend of small-town charm and access to urban amenities. Kerrville is celebrated for its vibrant arts scene, outdoor recreational opportunities, and a diverse economy.

Mission and Vision

The City of Kerrville is committed to fostering responsible growth, preserving its unique character, and enhancing the quality of life for its residents. The vision is to create a sustainable and thriving community that balances development with environmental stewardship and cultural heritage.

Primary Area of Focus

Kerrville's primary focus areas include economic development, housing affordability, downtown revitalization, and environmental conservation. The city aims to attract diverse industries, support local businesses, and ensure sustainable growth that benefits all residents.

Industry Significance

Kerrville's economy is characterized by a mix of healthcare, manufacturing, retail, and tourism. The city serves as a regional hub for healthcare services, advanced manufacturing, and cultural tourism, contributing significantly to the economic vitality of the Texas Hill Country.

Key Strategic Focus

Core Objectives

Economic Diversification: Attract and support a variety of industries to create a resilient economy.

Housing Affordability: Develop diverse and affordable housing options to meet the needs of all residents.

Downtown Revitalization: Enhance the downtown area to foster a vibrant community hub.

Environmental Conservation: Protect natural resources, particularly the Guadalupe River, to maintain the city's environmental health.

Specific Areas of Specialization

Healthcare: Home to Peterson Regional Medical Center and Kerrville State Hospital, providing comprehensive medical services.

Manufacturing: Hosts companies like James Avery Artisan Jewelry and Killdeer Mountain Manufacturing, specializing in aerospace components.

Tourism and Arts: Known for cultural events such as the Kerrville Folk Festival and the Museum of Western Art.

Key Technologies Utilized

The city leverages advanced manufacturing technologies, particularly in aerospace and medical device production. Additionally, Kerrville employs sustainable building practices and green technologies in its development projects.

Primary Markets or Conditions Targeted

Kerrville targets markets in healthcare, advanced manufacturing, tourism, and agriculture. The city also focuses on attracting retirees and remote workers seeking a high quality of life in a scenic environment.

Financials and Funding

Funding History

Kerrville's funding initiatives are supported through a combination of local government budgets, state and federal grants, and private investments. The city's economic development efforts are bolstered by partnerships with organizations like the Kerr Economic Development Corporation (KEDC).

Recent Funding Initiatives

Power Generation Facility: In March 2025, the Kerrville City Council approved funding for a $175 million natural gas-fired power generation facility. The project is financed with a 60% low-interest loan from the Texas Energy Fund and 40% through tax-exempt revenue bonds. Construction is set to begin by summer 2025, with operations expected by June 2027.

Housing Developments: The city has partnered with Lennar Homes to develop over 100 homes in the Ridgeland subdivision, with plans for additional housing projects to address workforce housing needs.

Notable Investors

Investors include private developers, state and federal agencies, and local businesses. The city's pro-business environment and strategic location attract both regional and national investors.

Intended Utilization of Capital

Infrastructure Development: Enhancing utilities, transportation, and public facilities to support growth.

Economic Incentives: Providing incentives to attract and retain businesses.

Community Projects: Investing in parks, cultural centers, and recreational facilities to improve quality of life.

Pipeline Development

Key Pipeline Candidates

Killdeer Mountain Manufacturing (KMM): Aerospace components manufacturer expanding operations in Kerrville, with plans to employ 400 people within the next decade.

Megaacrete: A manufacturer of sustainable building materials investing $40 million to establish its U.S. headquarters in Kerrville, creating 40 high-quality jobs initially, with projections for 180 additional indirect roles.

Stages of Development

Both companies are in the early stages of establishing operations in Kerrville, with construction and hiring processes underway.

Target Conditions

The city aims to provide a supportive environment for these companies, including infrastructure development, workforce training, and economic incentives.

Anticipated Milestones

KMM: Facility operational within the next few years, with full employment expected over the next decade.

Megaacrete: Facility construction underway, with job creation expected in the near term.

Technological Platform and Innovation

Proprietary Technologies

Kerrville's manufacturing sector utilizes advanced technologies in aerospace component production and sustainable building materials.

Significant Scientific Methods

The city employs sustainable building practices and green technologies in its development projects.

Leadership Team

City Administration

City Manager: Oversees city operations and implements policies.

Economic Development Manager: Leads initiatives to attract and retain businesses.

Kerr Economic Development Corporation (KEDC)

Executive Director: Guides economic development strategies and partnerships.

Competitor Profile

Market Insights and Dynamics

Kerrville competes with other Texas Hill Country cities for business investments, particularly in manufacturing and tourism. The city's strategic location along Interstate 10 provides access to major Texas markets, enhancing its appeal.

Competitor Analysis

Fredericksburg: Known for its wine industry and tourism.

New Braunfels: Offers a mix of manufacturing and tourism.

Strategic Collaborations and Partnerships

Kerrville collaborates with state agencies, private developers, and educational institutions to foster economic growth.

Operational Insights

The city's focus on infrastructure development, workforce training, and quality of life initiatives provides a competitive edge in attracting businesses.

Strategic Opportunities and Future Directions

Strategic Roadmap

Infrastructure Enhancement: Developing utilities, transportation, and public facilities to support growth.

Business Incentives: Offering incentives to attract and retain businesses.

Community Development: Investing in parks, cultural centers, and recreational facilities to improve quality of life.

Future Business Directions

Kerrville aims to diversify its economy by attracting industries such as technology, renewable energy, and advanced manufacturing.

Opportunities for Expansion

The city's strategic location and pro-business environment present opportunities for expansion in various sectors.

Positioning for Future Objectives

Kerrville's commitment to sustainable development, infrastructure improvement, and community engagement positions it well to achieve future economic and social objectives.