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Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

economy

Manufacturing in the Metroplex Region

Texas’ Metroplex Region includes 19 counties stretching from Oklahoma south to the Brazos River and from the Cedar Creek Reservoir in the east to Possum Kingdom Lake in the west.

The Metroplex Region includes two metropolitan statistical areas (MSAs), the Sherman-Denison MSA, comprising Grayson County, and the Dallas-Fort Worth-Arlington MSA. The Dallas-Fort Worth-Arlington MSA, in turn, includes two Metropolitan Divisions (MDs): the Fort Worth-Arlington MD, which includes Hood, Johnson, Parker, Somervell, Tarrant and Wise counties, and the Dallas-Plano-Irving MD, which includes Collin, Dallas, Denton, Ellis, Hunt, Kaufman and Rockwall counties.

In 2019, the Metroplex Region had an estimated total population of about 8 million, about 27.5 percent of Texas’ total population, and accounted for nearly 30 percent of the state’s total employment.

The region included nearly 302,000 manufacturing jobs in 2019, about 8 percent of its total employment of more than 3.7 million. The sector’s contribution to regional gross domestic product (GDP) and total wages was much larger, however, in a testament to its high-value manufacturing production. The manufacturing sector’s regional GDP of $65.5 billion accounted for 12.1 percent of the total regional GDP of $541.3 billion. The Metroplex Region’s manufacturers paid more than $24.7 billion in wages in 2019, or more than 10 percent of total regional wages of $237.3 billion. Annual wages for its manufacturing jobs averaged $81,759 in 2019, compared to average wages of $63,428 for all regional jobs.

In Hunt County, manufacturing played a particularly significant role, contributing 36.5 percent of the county’s total wages and 45 percent of its total GDP, results far exceeding the regional averages. The county’s manufacturing jobs paid average wages of about $96,298, second in the region only to Collin County (Exhibit 1).

Regional manufacturing is led by computer and semiconductor manufacturing, an industry that invests heavily in scientific and research and development. Such activity boosts jobs in other industries, particularly related service providers. Regional employment in the computer systems design and related services industry, for example, rose by 45,365 jobs between 2009 and 2019, a 126 percent increase.

 

Exhibit 1: Manufacturing Overview by County, Metroplex Region, 2019

County Employment Gross Domestic Product Wages
Total Share Total
(millions)
Share Total
(millions)
Share Average
Annual Wages
Collin 27,518 6.4% $9,799 14.1% $3,052 10.4% $110,898
Cooke 3,223 21.2% $1,468 50.8% $187 25.5% $57,951
Dallas 117,700 6.7% $23,956 8.9% $10,031 8.1% $85,228
Denton 17,967 6.9% $3,360 10.2% $1,299 9.8% $72,290
Ellis 10,392 19.7% $2,003 30.8% $634 26.3% $61,045
Erath 1,859 10.8% $215 13.0% $88 13.7% $47,161
Fannin 785 9.2% $91 9.6% $40 11.0% $50,468
Grayson 5,614 11.8% $1,032 19.3% $369 17.3% $65,742
Hood 806 4.7% $125 5.2% $44 5.8% $55,117
Hunt 5,416 19.2% $1,875 45.0% $522 36.5% $96,298
Johnson 6,306 13.0% $1,034 17.3% $372 16.4% $58,962
Kaufman 4,389 13.6% $490 13.3% $240 16.6% $54,612
Navarro 3,598 20.7% $441 24.8% $162 23.3% $44,939
Palo Pinto 1,578 18.0% $267 23.8% $112 27.7% $71,003
Parker 3,203 9.2% $579 13.8% $189 11.9% $59,005
Rockwall 2,093 6.4% $373 10.8% $120 8.6% $57,532
Somervell 136 3.8% $17 1.3% $7 3.0% $51,770
Tarrant 87,126 9.5% $17,942 15.0% $7,088 13.3% $81,355
Wise 2,119 10.3% $404 12.8% $122 12.2% $57,465
Metroplex Region Total 301,827 8.1% $65,469 12.1% $24,677 10.4% $81,759
Texas 908,801 7.2% $241,005 13.1% $72,473 9.6% $79,746

Sources: JobsEQ, U.S. Bureau of Economic Analysis and Texas Comptroller of Public Accounts

Long-Term Regional Trends

Between 2001 and 2019, Metroplex Region manufacturing employment fell by 15.5 percent or more than 55,000 jobs. Manufacturing’s share of total regional employment fell from 12.6 percent to 8.1 percent in this period (Exhibit 2).

Exhibit 2: Manufacturing Employment and Manufacturing Share of Total Employment, 2001 to 2019, Metroplex Region

Manufacturing Employment and Manufacturing Share of Total Employment, 2001 to 2019, Metroplex Region
Year Total Industry Jobs Manufacturing Jobs Manufacturing Share of Total Industry Jobs
2001 2,835,120 357,361 12.6%
2002 2,767,075 328,396 11.9%
2003 2,723,706 312,966 11.5%
2004 2,755,675 311,902 11.3%
2005 2,823,391 312,650 11.1%
2006 2,922,183 317,566 10.9%
2007 3,001,336 313,999 10.5%
2008 3,050,294 302,390 9.9%
2009 2,924,999 275,568 9.4%
2010 2,923,993 263,948 9.0%
2011 2,994,605 269,447 9.0%
2012 3,077,743 273,277 8.9%
2013 3,164,705 276,164 8.7%
2014 3,270,403 277,355 8.5%
2015 3,384,791 278,319 8.2%
2016 3,473,946 279,533 8.0%
2017 3,562,901 285,077 8.0%
2018 3,644,461 292,942 8.0%
2019 3,740,773 301,827 8.1%

Sources: JobsEQ and Texas Comptroller of Public Accounts

The region recovered nearly 26,300 manufacturing jobs between 2009 and 2019, a 9.5 percent increase. Texas and U.S. manufacturing employment, by contrast, rose by 8 percent and 8.2 percent, respectively (Exhibit 3). The region’s manufacturing employment rose sharply between 2016 and 2019, led by gains in computer manufacturing, food manufacturing, aerospace products and plastics and rubber products.

Exhibit 3: Percentage Change in Manufacturing Jobs, 2009 to 2019 (Indexed to 2009)

Total Manufacturing Jobs, 2009-2019 (Indexed to 2009)
Year Metroplex Region Jobs Metroplex Region Percent Change Texas Jobs Texas Percent Change USA Jobs USA Percent Change
2009 275,568 0.0% 841,353 0.0% 11,854,159 0.0%
2010 263,948 -4.2% 814,265 -3.2% 11,532,264 -2.7%
2011 269,447 -2.2% 840,195 -0.1% 11,748,311 -0.9%
2012 273,277 -0.8% 867,771 3.1% 11,950,974 0.8%
2013 276,164 0.2% 877,534 4.3% 12,040,273 1.6%
2014 277,355 0.6% 890,468 5.8% 12,202,119 2.9%
2015 278,319 1.0% 881,291 4.7% 12,339,571 4.1%
2016 279,533 1.4% 848,235 0.8% 12,345,948 4.1%
2017 285,077 3.5% 854,385 1.5% 12,456,179 5.1%
2018 292,942 6.3% 882,339 4.9% 12,696,998 7.1%
2019 301,827 9.5% 908,801 8.0% 12,828,307 8.2%

Sources: JobsEQ and Texas Comptroller of Public Accounts

Between 2009 and 2019, the Metroplex Region added 205 manufacturing establishments, a 2.9 percent increase, versus gains of 9.4 percent in Texas and 1.1 percent in the U.S. (Exhibit 4).

Exhibit 4: Total Manufacturing Establishments in Metroplex Region, 2009 to 2019

Total Manufacturing Establishments in Metroplex Region, 2009 to 2019
Year Metroplex Region (total) Metroplex Region Texas USA
2009 7,001 0.0% 0.0% 0.0%
2010 6,837 -2.3% -1.4% -2.5%
2011 6,750 -3.6% -1.6% -4.0%
2012 6,658 -4.9% -1.9% -4.7%
2013 6,621 -5.4% -2.0% -4.7%
2014 6,639 -5.2% -1.4% -3.9%
2015 6,732 -3.8% 0.4% -3.0%
2016 6,767 -3.3% 1.7% -2.2%
2017 6,911 -1.3% 3.8% -1.3%
2018 7,000 0.0% 5.7% 0.0%
2019 7,206 2.9% 9.4% 1.1%

Sources: JobsEQ and Texas Comptroller of Public Accounts

The region’s manufacturing jobs paid average wages of $81,759 in 2019, slightly exceeding the Texas average and far exceeding the U.S. average. Between 2009 and 2019, these average wages rose by 31.2 percent, versus 32 percent in Texas and 27.4 percent in the U.S. (Exhibit 5).

Exhibit 5: Average Wages in Manufacturing Jobs, 2009 to 2019

Average Annual Wages, Manufacturing Jobs, 2009-2019
Year Metroplex Region Texas USA
2009 $62,321 $60,401 $54,939
2010 $65,450 $63,310 $57,595
2011 $67,447 $66,075 $59,277
2012 $69,922 $68,491 $60,553
2013 $70,227 $68,838 $61,143
2014 $72,067 $71,171 $63,024
2015 $73,342 $72,815 $64,352
2016 $75,099 $73,125 $64,922
2017 $77,865 $75,806 $66,898
2018 $79,447 $77,647 $68,585
2019 $81,759 $79,746 $69,976

Sources: JobsEQ and Texas Comptroller of Public Accounts

The manufacturing sector’s GDP value for the Metroplex Region rose by an inflation-adjusted 43.1 percent between 2009 and 2019, for an average annual increase of 3.6 percent. The sector’s average annual GDP changes in Texas and the U.S., by comparison, were 2.6 percent and 1.9 percent, respectively (Exhibit 6).

Exhibit 6: Percentage Change in Real Gross Domestic Product, Manufacturing, 2009 to 2019 (Indexed to 2009)

Percentage Change in Real Gross Domestic Product, Manufacturing, 2009 to 2019 (Indexed to 2009)
Year Metroplex Region Texas USA
2009 0.0% 0.0% 0.0%
2010 7.5% 10.8% 5.4%
2011 14.6% 15.0% 5.8%
2012 17.0% 10.9% 5.1%
2013 24.0% 23.3% 8.3%
2014 20.5% 11.3% 10.2%
2015 20.9% 15.0% 11.7%
2016 22.3% 11.7% 10.9%
2017 30.1% 18.2% 13.7%
2018 36.2% 24.4% 18.5%
2019 43.1% 29.7% 20.8%

Sources: U.S Bureau of Economic Analysis and Texas Comptroller of Public Accounts

Pandemic Effects

All Texas industry sectors have been affected by the pandemic to some degree, and manufacturing is no exception. Monthly jobs data show that February 2021 manufacturing employment in the Dallas-Fort Worth-Arlington metropolitan area was lower by 9,300 jobs (-3.2 percent) than in the same month in the previous year. Manufacturing employment also declined in Texas (-6.0 percent) and the U.S. (-4.1 percent) during this period (Exhibit 7).

Exhibit 7: Changes in Manufacturing Jobs, February 2020 to February 2021

Metro Area Manufacturing Jobs Percent Change (Manufacturing) Percent Change (Total Employment)
Dallas-Fort Worth-Arlington MSA -9,300 -3.2% -3.7%
Sherman-Denison MSA -200 -3.6% -2.4%
Texas -54,200 -6.0.% -4.6%
United States -524,000 -4.1% -6.0%

Source: Texas Workforce Commission
Note: Not seasonally adjusted

Key Manufacturing Industries

The interactive exhibit (Exhibit 8) reveals regional manufacturing industry strengths and weaknesses through the use of two common analytical tools that compare regional manufacturing employment trends to national averages. These tools serve as an educational resource to assess industry strengths and inform development prospects.

First, the location quotient (LQ) measures state and regional industry concentration levels by comparing an industry’s share of total regional employment to its share of total national employment. If the regional industry share exceeds the national share (an LQ greater than 1.00), the industry is more “concentrated” in the region than nationally. A score above 1.00 may indicate that the regional industry is strong and self-sufficient and that it exports its products or services outside of the region. Regional industries with below-average employment concentrations (LQs of less than 1.00) often import goods or services from other areas.   

A second tool, shift-share analysis (SSA), measures regional industry job changes and assesses the role of local competitiveness on industry job gains or losses. The SSA uses national employment and industry trends to produce expected employment changes for a regional industry. If a regional industry’s actual employment changes exceed expected changes (a positive local competitiveness effect), the region may have a productive advantage in the industry. Between 2009 and 2019, SSA shows that manufacturing employment in the Capital Region exceeded expected changes by more than 12,000 jobs.

The Metroplex Region’s manufacturing industries plotted in the exhibit fall into one of four quadrants based on 2019 LQ values and SSA values between 2009 and 2019:

  • Strong and growing: Industry has above-average concentration levels (2019 LQ value > 1.00) and industry job changes exceeded expected changes between 2009 and 2019 (positive competitiveness effect);
  • Strong but declining: Industry has above-average concentration levels (2019 LQ value > 1.00) and industry job changes fell below expected changes between 2009 and 2019 (negative competitiveness effect);
  • Weak but growing: Industry has below-average concentration levels (2019 LQ value < 1.00) and industry job changes exceeded expected changes between 2009 and 2019  (positive competitiveness effect); and
  • Weak and declining: Industry has below-average concentration levels (2019 LQ value < 1.00) and industry job changes fell below expected changes between 2009 and 2019 (negative competitiveness effect).

While manufacturing isn’t highly concentrated in the Metroplex Region (2019 LQ = 0.92), it has competitive factors that have allowed manufacturing employment to flourish; regional manufacturing jobs exceeded expected changes by more than 7,700 jobs between 2009 and 2019.

The region’s aerospace product and parts industry is its most heavily concentrated manufacturing industry, with an LQ value of 2.56. (In other words, the industry’s share of Metroplex employment is nearly 2.6 times as high as the industry’s nationwide share.) Its 34,965 jobs in 2019 accounted for 67 percent of the industry’s total Texas employment. Regional industry jobs, however, fell slightly between 2009 and 2019, and SSA indicates that the industry fell below expected gains by more than 2,300 jobs in this period.

The computer and electronics manufacturing industry also is highly concentrated in the region — its 44,808 jobs in 2019 comprised 48 percent of the industry’s total Texas employment. It accounted for about 14.8 percent of the Metroplex Region’s total manufacturing employment and 26.7 percent of its total manufacturing wages. Between 2009 and 2019, the industry proved highly competitive in the region, exceeding expected job growth by 2,150 jobs.

Other highly concentrated industries that exceeded employment expectations included leather product manufacturing, printing and non-metallic mineral products.

Employment concentrations for many of the region’s manufacturing industries remain below national averages, yet several show high degrees of competitiveness, including medical equipment, wood products and food manufacturing. Such developments could identify emerging industries and prospects for further growth.   

A note of caution: A positive competitive effect indicates that some economic advantages exist in a region, such as access to natural resources or to a more productive labor pool, management or technologies. However, the sources of those advantages cannot be identified through SSA.  

Exhibit 8: Manufacturing Industries in the Metroplex Region, Concentration Levels and Competitiveness

Manufacturing Industries in the Metroplex Region, Concentration Levels and Competitiveness
Industry Title NAICS Employment, 2019 Location Quotient, 2019 Employment Changes due to Local Competitiveness, 2009-2019
Food Manufacturing 311 26,178 0.63 895
Beverage and Tobacco Product Manufacturing 312 5,422 0.74 194
Textile Mills 313 489 0.18 -23
Textile Product Mills 314 1,944 0.68 -1
Apparel Manufacturing 315 2,143 0.78 754
Leather and Allied Product Manufacturing 316 861 1.23 391
Wood Product Manufacturing 321 7,821 0.76 1,724
Paper Manufacturing 322 7,195 0.77 189
Printing and Related Support Activities 323 11,713 1.08 924
Petroleum and Coal Products Manufacturing 324 1,780 0.62 134
Chemical Manufacturing (Resource-Intensive Commodities) 3251-3253 3,758 0.52 425
Pharmaceutical and Medicine Manufacturing 3254 4,608 0.59 345
Chemical Manufacturing (Locally Processed Goods) 3255-3259 7,936 1.20 -787
Plastics and Rubber Products Manufacturing 326 15,573 0.84 -668
Nonmetallic Mineral Product Manufacturing 327 14,014 1.32 677
Primary Metal Manufacturing 331 7,031 0.71 412
Fabricated Metal Product Manufacturing 332 33,352 0.88 191
Machinery Manufacturing 333 20,045 0.70 666
Computer and Electronic Product Manufacturing 334 44,808 1.64 2,150
Electrical Equipment, Appliance, and Component Manufacturing 335 5,932 0.58 273
Motor Vehicle, Body, and Parts Manufacturing 3361-3363 19,569 0.77 -220
Aerospace Product and Parts Manufacturing 3364 34,965 2.56 -2,379
Other Transportation Equipment Manufacturing 3365-3369 973 0.16 -137
Furniture and Related Product Manufacturing 337 11,398 1.16 -384
Medical Equipment and Supplies Manufacturing 3391 6,133 0.74 680
Other Miscellaneous Manufacturing 3399 6,190 0.83 1,295
Total - Manufacturing 301,827 0.92 7,721

Sources: JobsEQ and Texas Comptroller of Public Accounts

Summary

Manufacturing employment in the Metroplex Region rose by 9.5 percent or 26,259 jobs between 2009 and 2019, a rate about on par with Texas and the U.S. Most of this growth occurred between 2016 and 2019, when about 22,300 jobs were added. In the Dallas-Fort Worth-Arlington MSA, manufacturing employment declined during the COVID-19 restrictions of 2020 but was less than total regional job declines.

The Metroplex Region is a hub for advanced manufacturing in Texas. Several advanced manufacturing companies recently have started new operations or expanded existing operations in the region. In Lewisville, for example, Mary Kay invested $100 million to open the Richard R. Rogers Manufacturing/R&D Center, a 453,000-square-foot building complete with state-of-the-art R&D laboratories to support the production of skin care products, color cosmetics and fragrances. In Fort Worth, Ariat International, the leader in innovative Western, English and work footwear and apparel, is opening a new 1 million-square-foot regional distribution and corporate center, bringing 75 new jobs. In Denton, Peterbilt Motors Co. completed an expansion of its truck factory to 600,000 total square feet, increasing its size by about a third.

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