texas economic growth trends office of the governor – economic development & tourism key...
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TEXAS ECONOMIC GROWTH TRENDS
Office of the Governor – Economic Development & Tourism
Key Industries and Regions - 2014
Market Texas as a leading business location Advertising and business recruitment trips
Assist companies looking for sites or buildings in Texas
Provide business incentives
Factors Affecting Growth
Historical drivers of Texas growth expected to drive future growth
Climate Natural resources – Oil & gas Business environment Foreign trade – Mexico
Expansion of existing Texas businesses Attraction of out-of-state businesses
Past Decade of U.S. Job Growth
New York: 8%
California: 5%
Florida: 5%
Washington: 5%
Net New U.S. Jobs by Location, 2003-2013
Texas: 30%
Key Growth Industries in Texas Oil & Gas Extraction Manufacturing
Fabricated Metal Products
Machinery Refined Petroleum &
Chemicals
Professional Services IT Services & Data
Centers
Texas Crude Oil Production, 1981-2013
Oil & Gas
Texas rank in US: No. 1
85,000 jobs added in Texas (+44%) since 2010 Job multiplier effect: 2.7
Big share of Texas economy 14% of state GDP in 2012 vs. 7% in 2000
Key: Oilfield Services
Oilfield Services – Job Growth by Region (2010-2013)
Fabricated Metal Products
Texas rank in US: No. 2 24,500 jobs added in Texas (+22%) since
2010 Job multiplier effect: 2.3
Key: Steel Pipe and Structural Metals Supplying Oil & Gas industry and others
Fabricated Metal Products – Job Growth by Region (2010-2013)
Machinery
Texas rank in US: No. 1 16,000 jobs added in Texas (+39%) since
2010 Job multiplier effect: 2.6
Key: Oilfield Machinery
Oilfield Machinery – Job Growth by Region (2010-2013)
Refined Petroleum & Chemicals Texas rank in US: No. 1 5,500 jobs added in Texas since 2010
Multiplier effect: 8.5
Refined petroleum exports up 72% since 2010
Billions in new chemical plant investments planned on Texas Gulf Coast
Chemicals – Job Growth by Region (2010-2013)
Example Manufacturing Expansions in TexasCompany Sector Location Investm
entTenaris Steel Pipe Houston/Gulf $1.5 billion
Voestalpine Steel Corpus Christi$700
million
Borusan Mannesman
Steel Pipe Houston/Gulf$150
million
WeatherfordOil/Gas Machinery
Houston/Gulf$100
million
National Oilwell Varco
Oil/Gas Machinery
Houston/Gulf NA
Mitsubishi Heavy Ind.
Oil/Gas Machinery
Houston/Gulf NA
Dow Chemical Chemicals Houston/Gulf $2.5 billion
Exxon Mobil Chemicals Houston/Gulf $2.0 billion
Ascend Performance
Chemicals Houston/Gulf $1.3 billion
Manufacturing Highlights
Houston region dominating recent growth More than half of Texas’ new mfg. jobs since
2010
Midland-Odessa industrial base surging Manufacturing jobs up by one-third since 2010
Manufacturing growth weak in some small metros Tyler, Temple, Lubbock
IT Services and Data Centers Texas rank in US: No. 2 36,000 jobs added in Texas (+29%) since
2010 Job multiplier effect: 2.0
Key: IT Outsourcing and Software
IT Services – Job Growth by Region (2010-2013)
Example IT Services Expansions in TexasCompany Sector Location Jobs
Apple Electronics/Software
Austin 3,600
National Instruments
Electronics/Software
Austin 1,000
IBM Electronics/Software
Austin 900
USAA Corporate IT Dallas-Fort Worth 680
Company Sector Location Investment
Digital Realty Data Centers Dallas-Fort Worth$100
million
CyrusOne Data Centers Dallas-Fort Worth $45 million
Stream Data Centers
Data CentersHouston/Gulf Coast
$35 million
Summary
Industry Job Growth (since 2010)
Job Multiplier
Primary Regions
Oil & Gas 44% 2.7
Houston, Coastal Bend, Eagle Ford,
Permian Basin, North Texas
Fabricated Metals
22% 2.3 Houston, DFW, East Texas, Permian Basin
Oilfield Machinery
39% 2.6 Houston, DFW, Permian Basin
Refineries & Chemicals
7% 8.5
Houston, DFW Beaumont-Port
Arthur, Corpus Christi
IT Services 29% 2.0 Austin, DFW, Houston
Eric ClennonManager of Business Research
Economic Development and Tourism DivisionOffice of the Governor