kcentv.com - KCEN HD - Waco, Temple, and KilleenTexas now boasts #2 biggest economy in U.S.

In a dramatic realignment of the nation's economy, Texas has gained some major footing.

The Lone Star State now boasts the second largest economy in the country, according to the Bureau of Economic Analysis.

Texas' move is one of the biggest economic shifts in the past 50 years - and with the momentum of new growth, new companies and new national attention, now is the time area business recruiters are hoping to bank on these opportunities.

Inside Caterpillar's Waco facility, hands are hard at work.  More than 300 local workers found jobs with this construction giant thanks to the company's decision to open up three facilities in Waco.  Caterpillar Vice President William Springer says, "Waco is also very nicely located to serve both North and South America."

The geographic appeal of Texas as a whole is just one factor that boosted the state to the second biggest economy during the past decade.  Economic forecaster and President of The Perryman Group in Waco, Dr. Ray Perryman says there are several reasons Texas is moving up the list.  "For many, many years," he says, "Texas was really behind everyone else and we began to catch up with the enterprise fund in 2003 and the technology fund in 2005 and since that time we really have moved to the front of the pack."

That position is because of a favorable cost of living and diverse industries.  Greater Waco Chamber of Commerce Vice President Jim Vaughan says, "We focus on advanced manufacturing, healthcare, professional services and aviation."

Just last week, Pactiv Food Service in Temple announced 86 new jobs. 

In Killeen, the Aegis global call center will hire 800 people by October. Daniel Scroggins just nabbed a job there after moving to Texas from California, the only state topping Texas' economic size.  "There weren't a lot of jobs there so I came here, wanted to start over," says Scroggins.

Now the spotlight on Texas' economy is only shining brighter with the nation talking about Governor Rick Perry's possible presidential run and his economic strategies.  "There's speculation about what Gov. Perry might do," says Dr. Perryman, "because a lot of his message is the Texas success story economically."

Dr. Perryman says the strongest industries in Texas are technology and healthcare-related.

While the state is rapidly growing, economists say cuts to education and healthcare could have lasting effects on the economy in Texas.