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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

Wood Product Manufacturing

Subsector Overview »

This subsector includes sawmills and wood preservation services; plywood, hardwood and truss manufacturers; and manufacturers of windows, doors, flooring, wood containers and mobile homes.

23,000
Direct & Indirect Employment


$1.4 Billion
State Subsector GDP


$41,025
Average Annual Wage


$358.1 Million
Exports

Sources: U.S. Bureau of Economic Analysis, Regional Economic Models, Inc., Emsi, U.S. Department of Commerce International Trade Administration


Industries in Wood Manufacturing Subsector

One method to measure a subsector’s regional strength is the location quotient (LQ), a ratio of the subsector’s share of employment in a region to its share of employment in the U.S. as a whole; the higher the LQ value, the more "concentrated” the industry. LQ values often are used to identify regional strengths and inform economic development and investment decisions.

Texas’ statewide 0.71 LQ in wood product manufacturing indicates that the subsector and its industries are not highly competitive.

Description Direct Jobs 2016 Average Texas Salaries 2016 Location Quotient 2016
Subsector Totals 23,038 $41,025 0.71
Sawmills and Wood Preservation 3,527 $44,021 0.47
Veneer, Plywood and Engineered Wood Product Manufacturing 4,815 $49,106 0.76
Other Wood Product Manufacturing 14,696 $37,658 0.79

Source: Emsi


Subsector and Industry Concentration in Texas Regions

A regional assessment of employment concentration is useful, as the size of Texas’ economy and workforce can obscure regional industry strengths. The wood product manufacturing subsector is highly concentrated in the Southeast and Upper East Texas regions and has an above-average employment concentration in Central Texas.

  • Southeast Region LQ 5.17
    • Nacogdoches: Sawmills
    • Lufkin: Wood Preservation, Reconstituted Wood Product Manufacturing
  • Upper East Region LQ 2.94
    • Longview: Truss Manufacturing
    • Jacksonville: Hardwood Veneer and Plywood Manufacturing, Wood container and Pallet Manufacturing
  • Central LQ 1.23
    • Killeen: Manufactured Home (Mobile Home) Manufacturing
  • Other LQ < 1
    • Huntsville: Sawmills

Sources: Emsi, Texas Comptroller of Public Accounts

Regional Job Changes,
2010 to 2016

Texas subsector jobs rose 18 percent from 2010 to 2016, compared to 14 percent in the U.S. Texas’ Alamo region experienced the largest percent growth of 54 percent; the Metroplex region added the most total jobs.

Upper Rio Grande
Change in Employment
Region Job Change 2010 to 2016
Percent Change
Alamo 821 32%
West 325 50%
Metroplex 6,717 41%
Upper East 3,369 20%
335 19%
Gulf Coast 3,555 16%
Central 1,603 9%
Texas 23,038 18%
U.S. N/A 14%

Conclusion

Manufacturing continues to drive output and productivity in the Texas economy, creating jobs paying well above the statewide average. It also contributes significantly to job creation in other industries, particularly in design operations and services.

Wood product subsector employment rose by 18 percent in Texas from 2010 through 2016, buoyed by demand from residential construction and housing starts. The subsector will continue to face competition from imports and from material substitutes such as rubber, plastics and steel.

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