Odessa, TX: a rising hub for medical manufacturing

With decades in the center of domestic energy production, Odessa, Texas, is rapidly establishing itself as a hub for numerous industries, including medical manufacturing. A combination of logistical advantages, workforce readiness and innovation make the West Texas city the perfect place to grow. A favorable business environment coupled with resources provided by the Odessa Development Corporation aids diversification by streamlining business development, relocation and expansion projects in medical manufacturing and adjacent industries.

“Odessa is the land of opportunity,” said Russell Tippin, President & CEO of Medical Center Health System. “There is so much opportunity here if you can get people and industries invested to stay here. Disposable income is off the charts in Odessa. 

Domestic manufacturing secures supply chain, expands opportunities

The COVID-19 pandemic demonstrated weak points in the global supply chain for medical products, including personal protective equipment utilized daily by healthcare providers. With tariffs expected to significantly impact U.S. imports in 2025, securing a domestic manufacturing location for equipment stabilizes costs, generates new competitive opportunities for growth in the medical device and supply industries and contributes to a secure supply chain. An aging U.S. population and increased focus on preventative care will further fuel the demand for domestic medical manufacturing in the coming years. Odessa is uniquely poised to support development with 24/7 industrial support for parts, services, and supplies. Local companies can meet immediate needs without long wait times or delivery issues.

Energy history generates a skilled workforce

Odessa’s talented workforce possesses a high level of precision and advanced manufacturing skills developed in oil, gas and related industries. Those individuals' abilities translate perfectly to manufacturers providing essential medical supplies and equipment to hospitals, doctor’s offices and veterinary clinics. Local colleges and universities are adept at adjusting curriculum and program offerings to meet emerging needs in the community.

A dynamic talent pipeline also exists directly to medical fields due to pharmacy and medical programs at regional higher education institutions like Odessa College, Texas Tech Health Sciences Center and The University of Texas of the Permian Basin. In 2023, Odessa and the surrounding region welcomed 2,755 health professionals and related program graduates to the workforce alongside 838 graduates in biological and biomedical sciences. These graduates are helping hospitals, clinics and private practices expand healthcare offerings in the city and adjacent rural communities, increasing demand for equipment and supplies in West Texas. Additional growth in this sector is anticipated as Odessa solidifies itself as a medical hub for the Permian Basin.

Logistics are simplified for suppliers in Odessa

For medical manufacturers eyeing distribution opportunities within and outside the Permian Basin, Odessa is the perfect hub to establish a statewide, national, cross-border or global medical equipment or supply business. Early medical manufacturers who expand to Odessa will find an eager and built-in customer base in West Texas, as the area is not served by a local supplier as of February 2025. Local hospitals, healthcare providers and the rural clinics surrounding Odessa could provide a robust customer base for a new company to tap immediately. In addition to immediately serving local markets, manufacturers can enjoy convenient access to other major Texas population centers, such as Dallas-Fort Worth, Houston, San Antonio and Austin.

Immediate access exists to major Union Pacific rail arteries and east-west Interstate routes bisecting the southern U.S. The resultant streamlined distribution generates cost savings for enterprises choosing Odessa. Ongoing investments totaling $4.5 billion further strengthen and improve local transportation infrastructure to meet future demands. Odessa businesses can also easily reach customers in Mexico and coordinate international shipments. Available land and shovel-ready sites are here for manufacturers of all sizes.

Community collaboration fuels growth in Odessa

Providing a supportive environment for new and expanding businesses is standard practice in Odessa. Medical manufacturers can discuss available resources and incentive programs with Odessa Economic Development, and learn why doing business here makes sense. Local economic incentives coupled with state investments support job creation and growth. Specific incentives include grants for job creation, capital investment, infrastructure improvement and training and workforce development. Property tax incentives are also an option for qualified enterprises.

Contact the Odessa Development Corporation today to discuss the future of medical manufacturing in Odessa and your business.