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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
| 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)
| 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
| 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
| 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)
| 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
| 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.