Skip navigation
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

Primary Metals Manufacturing

Subsector Overview »

Primary metals manufacturing includes mills and foundries that make a variety of upstream metal products such as closures, castings, pipes, tubes, wires and springs. Demand for primary metals stems from the industries that rely on them, including the automotive, energy, machinery and transportation industries. Other major operational considerations include access to raw materials and the costs of energy inputs and transportation.


69,500
Direct & Indirect Employment


$3.1 Billion
State Subsector GDP


$57,500
Average Annual Wage


$4.6 Billion
Exports

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


Advanced Industries

Some industries in the primary metals subsector are considered “advanced” as defined by the Brookings Institution — their research and development spending per worker ranks in the top 20 percent of industries and their share of workers with high levels of scientific and technical knowledge exceeds the national average.


More than 60 million tons of steel are recycled or exported for recycling each year in North America alone.


Source: American Iron and Steel Institute

Description Direct Jobs 2016 Job Change 2010-2016 Average Texas Salaries 2016 Location Quotient 2016
Subsector Totals 20,159 2.1% $57,532 0.65
Iron and Steel Mills and Ferroalloy Manufacturing 4,777 14.9% $60,262 0.70
Steel Product Manufacturing from Purchased Steel 4,140 10.3% $61,114 0.89
Alumina and Aluminum Production and Processing 3,529 -15.4% $57,925 0.73
Nonferrous Metal (except Aluminum) Production and Processing 3,791 29.6% $59,787 0.76
Foundries 3,922 -17.3% $47,891 0.40

Source: Emsi

REGIONAL SUBSECTOR LQs AND AREAS OF INDUSTRY SPECIALIZATION BY METRO AREA

Location quotient (LQ) compares an industry’s share of jobs in a specific region with its share of nationwide employment.

The Northwest, Upper East and Upper Rio Grande regions have the highest concentration of primary metal employment in Texas. The share of subsector employment in the Northwest region is about 70 percent higher than in the U.S. as a whole.

Sources: Emsi, Texas Comptroller of Public Accounts

  • Northwest Region LQ 1.69
    • Brownwood: Iron and Steel Pipes from Purchased Steel.
  • Upper East Region LQ < 1.55
    • Longview: Steel Foundries
  • Central Region LQ 1.17
    • Killeen-Temple: Steel Foundries
  • Southeast Region LQ 1.54
    • El Paso: Copper Rolling, Drawing, Extruding and Alloying
  • Upper Rio Grande Region LQ 1.36
    • Beaumont-Port Arthur: Rolled Steel and Shape Manufacturing
  • Other Regions LQ < 1
    • Seguin: Iron and Steel Mills
    • Port Lavaca: Alumina Refining and Production

TEXAS REAL GDP OUTPACES U.S. GROWTH

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

Year U.S. Texas
1997 0% 0%
1998 7% 11%
1999 14% 12%
2000 14% 26%
2001 7% 43%
2002 11% 30%
2003 7% 21%
2004 17% 73%
2005 8% 35%
2006 -2% 42%
2007 -4% 37%
2008 -2% 61%
2009 -3% 76%
2010 -7% 52%
2011 -2% 62%
2012 14% 80%
2013 22% 85%
2014 16% 74%
2015 33% 87%

The state’s primary metals manufacturing GDP rose by an inflation-adjusted 87 percent from 1997 through 2015, compared to 33 percent nationwide.

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.

Unlike many manufacturing industries, the aerospace industry generates a trade surplus, as the U.S. leads in innovative production processes. Recent U.S. aerospace business earnings have been strong, benefiting from global economic growth, rising incomes and greater demand for leisure travel in emerging economies. Texas added 1,500 aerospace jobs from January to July 2017, a 3.5 percent increase, compared to 0.6 percent nationally.

HB855 Browser Statement

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.

We support: