Facts on Manufacturing

Manufacturing matters to the Texas economy.

The Lone Star State’s manufacturing sector employed 809,254 in 2006, according to the U.S. Census Bureau’s 2006 Annual Survey of Manufacturers, the most recent data available. The Texas Workforce Commission (TWC), using different methodology, indicates that Texas employed 926,500 in July 2008 – the latest data available- accounting for approximately 8.7% of the State’s nonagricultural employment. 

Manufacturing has contributed to the state's growth and will do so again in the future.

Texas gained more manufacturing jobs than any other state during the 1990s. Beginning in 2000, however, most of those gains were lost in a nationwide manufacturing recession. In 2005, the TWC indicated that Texas added a total of 4,900 additional manufacturing jobs – the first job growth since 2000. As the economy rebounds, more nimble manufacturers will capitalize on Texas’ advantages of location, available workforce and pro-business climate - as Toyota has.

Despite the downturn, Texas remains a major manufacturing state.

Only California employs substantially more people in its manufacturing sector. 

The "value added by manufacture" in Texas exceeded $196.5 billion in 2006.

Texas ranks second, after California, in this important manufacturing measure. 

The value of Texas manufacturing shipments was $527.6 billion in 2006 — more than any other state. 

The overwhelming majority of manufacturers are small to mid-sized businesses.

Most of the state's 24,320 manufacturing establishments employ fewer than 500 workers. Collectively, these smaller establishments provide approximately 99% of the state’s manufacturing jobs. 

Manufacturers continue to invest in Texas.

Capital expenditures totaled $12.7 billion in 2006 — up from $11.6 billion in 2005. 

Manufacturing provides good-paying jobs.

The average weekly wage in manufacturing at the end of 2007 was $1200, according to TWC. This is higher than most other industry wage breakouts and twice as high as retail, meaning that a worker who loses a manufacturing job would have to replace it with two retail jobs to maintain the same family income. 

Manufacturing is important to the nation's trade position.

Manufactured goods account for about 95 percent of total Texas exports. 

Texas exports reached $168.16 billion in 2007, up 11.45% from the previous year. 

Texas was ranked as the number one state by export revenues in 2007, for the sixth year in a row.

California has ranked second since 2002. Texas’ largest export market continued to be its NAFTA trading partners, Mexico and Canada, which accounted for almost 43 percent of total state exports during 2007.

Sources: U.S. Census Bureau, Annual Survey of Manufactures - 1993 to 2006 (www.census.gov/); Texas Workforce Commission, Texas Labor Market Review, January 2006 and Quarterly Employment & Wages, 2005 data (www.tracer2.com); State Merchandise Exports to the World: 2001-2005; 2006 County Business Patterns;and 2007 Texas Exports data (www.bidc.state.tx.us).