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

economy

Fabricated Metal Products ManufacturingNAICS 332 Overview

Subsector Snapshot | Printable (PDF)

Fast Facts

  • Fabricated metal products manufacturing provided about 120,800 direct jobs in 2016, as well as another 68,700 indirect jobs.
  • The subsector’s GDP totaled $14.2 billion in 2015.
  • Average annual wages in the subsector averaged about $59,520 in 2016. 
  • Subsector exports were more than $7.7 billion in 2016.

Introduction

Fabricated metal products manufacturing is the largest manufacturing subsector in Texas in terms of employment, accounting for 14.2 percent of Texas’ manufacturing jobs in 2016. The subsector’s share in the U.S., by comparison, was 11.6 percent. This subsector uses purchased metal shapes and further fabricates them into intermediate or end-use products. The processes employed include shaping individual pieces of metal (through forging, stamping, bending and forming) and joining separate parts together (through welding, machining and assembly).

Demand for fabricated metal products is driven by local and regional requirements and other industrial needs. Compared to other manufacturing subsectors, fabricated metal production is more labor intensive. For instance, labor compensation accounted for 65 percent of the value added in this subsector, compared to 46 percent for all manufacturing activity. The economic fortunes of the subsector are linked to overall economic growth and, particularly in Texas, the energy sector. 

Long-Term Employment Trends

Texas’ fabricated metal products manufacturing subsector employment rose 26 percent during the 1990s. Job counts rose and fell during the 2000s, tracking the national economic recessionary periods and economic expansions. Most recently, Texas’ job count fell, coinciding with a decline in oil prices. Overall, subsector employment levels in Texas are 19 percent above 1990 levels. By contrast, the U.S. subsector is down by 12 percent (Exhibit 4).

Recent Employment Trends

This subsector suffered job losses in Texas beginning in January 2015, coinciding with declining energy prices. Recently, however, its employment has begun to recover, adding about 13,500 jobs from September 2016 to June 2017 (Exhibit 5).

Subsector Economic Output Trends

Texas’ inflation-adjusted GDP in the fabricated metal products subsector rose by 31 percent from 1997 to 2015. During this period, the U.S. subsector GDP declined by 10 percent (Exhibit 6).

Exhibit 4: Fabricated Metal Products Manufacturing, Percent Change in Employment, U.S. vs. Texas,1990-2016 (Indexed to 1990)

Year Real GDP Employment
1990 0% 0%
1991 -4% 2%
1992 -7% -2%
1993 -6% -1%
1994 -3% 4%
1995 1% 10%
1996 2% 15%
1997 5% 21%
1998 8% 25%
1999 7% 23%
2000 9% 26%
2001 4% 23%
2002 -4% 14%
2003 -8% 6%
2004 -7% 7%
2005 -5% 14%
2006 -4% 25%
2007 -3% 31%
2008 -5% 35%
2009 -19% 18%
2010 -20% 13%
2011 -16% 22%
2012 -12% 34%
2013 -11% 37%
2014 -10% 43%
2015 -9% 35%
2016 -12% 19%

Sources: Texas Workforce Commission and Texas Comptroller of Public Accounts

Exhibit 5: Fabricated Metal Products Manufacturing, Monthly Employment Levels, January 2010 to June 2017

Year-Month Jobs
2010-Jan 109,700
2010-Feb 109,600
2010-Mar 110,100
2010-Apr 110,400
2010-May 111,100
2010-Jun 111,800
2010-Jul 112,600
2010-Aug 113,300
2010-Sep 113,300
2010-Oct 114,800
2010-Nov 115,400
2010-Dec 116,100
2011-Jan 115,500
2011-Feb 116,800
2011-Mar 117,800
2011-Apr 119,200
2011-May 119,800
2011-Jun 121,700
2011-Jul 123,200
2011-Aug 124,200
2011-Sep 125,700
2011-Oct 126,200
2011-Nov 126,500
2011-Dec 127,300
2012-Jan 128,000
2012-Feb 129,400
2012-Mar 130,900
2012-Apr 131,500
2012-May 132,400
2012-Jun 133,800
2012-Jul 134,500
2012-Aug 135,300
2012-Sep 135,400
2012-Oct 135,400
2012-Nov 135,300
2012-Dec 135,100
2013-Jan 134,500
2013-Feb 135,500
2013-Mar 135,800
2013-Apr 135,500
2013-May 135,400
2013-Jun 136,200
2013-Jul 136,500
2013-Aug 136,800
2013-Sep 136,800
2013-Oct 137,000
2013-Nov 137,900
2013-Dec 138,100
2014-Jan 138,000
2014-Feb 139,300
2014-Mar 139,800
2014-Apr 140,400
2014-May 141,200
2014-Jun 142,300
2014-Jul 143,100
2014-Aug 144,100
2014-Sep 144,600
2014-Oct 145,200
2014-Nov 145,900
2014-Dec 146,600
2015-Jan 144,900
2015-Feb 142,800
2015-Mar 141,000
2015-Apr 138,400
2015-May 136,600
2015-Jun 135,400
2015-Jul 133,100
2015-Aug 131,300
2015-Sep 130,000
2015-Oct 127,800
2015-Nov 126,200
2015-Dec 125,500
2016-Jan 123,700
2016-Feb 122,800
2016-Mar 121,800
2016-Apr 119,200
2016-May 118,300
2016-Jun 117,700
2016-Jul 116,700
2016-Aug 116,300
2016-Sep 115,800
2016-Oct 117,000
2016-Nov 116,700
2016-Dec 118,300
2017-Jan 120,800
2017-Feb 123,300
2017-Mar 125,200
2017-Apr 126,500
2017-May 127,900
2017-Jun 129,300

Sources: Texas Workforce Commission and Texas Comptroller of Public Accounts

Exhibit 6: Fabricated Metal Products Manufacturing, Percent Change in Real GDP, U.S. vs. Texas, 1997-2015 (Indexed to 1997)

Year U.S. Texas
1997 0% 0%
1998 -2% 4%
1999 -2% -5%
2000 4% 6%
2001 -7% 3%
2002 -11% -2%
2003 -8% -5%
2004 -4% -3%
2005 -2% 13%
2006 2% 29%
2007 6% 46%
2008 -1% 42%
2009 -24% 7%
2010 -17% 12%
2011 -12% 34%
2012 -9% 48%
2013 -9% 43%
2014 -6% 53%
2015 -10% 31%

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

Industry Concentration in Texas

Several industries in this subsector have a higher share of employment in Texas than nationally, as gauged by location quotient (LQ), a measure of employment concentration in a given area: the higher the LQ value, the more “concentrated” the industry.

The architectural and structural metals industry has the highest LQ at 1.42, meaning the industry’s share of total employment is 42 percent higher in Texas than the U.S. Such levels of employment concentration can indicate a regional “industry cluster,” a group of interrelated firms in an area that provide related products or services and share similar needs for workers and suppliers. Other industries with a high concentration in Texas include boiler, tank and shipping container manufacturing and other fabricated metals, such as fabricated pipe fittings.

Overall, Texas’ fabricated metal products manufacturing subsector LQ was 1.02 in 2016, meaning that its share of the industry’s employment was 2 percent greater in Texas than in the U.S. (Exhibit 7).

Exhibit 7: Fabricated Metal Products Manufacturing in Texas: Industries

Description NAICS Code 2016 Jobs 2001 to 2010
% Change
2010 to 2016
% Change
2016 Average Salaries 2001 Location Quotient 2016 Location Quotient
Forging and Stamping 3321 4,100  -17%  -6% $65,633 0.59 0.51
Cutlery and Handtool Manufacturing 3322 1,274  -16%  -6% $51,267 0.31 0.41
Architectural and Structural Metals Manufacturing 3323 43,321  -19% 10% $54,728 1.62 1.42
Boiler, Tank and Shipping Container Manufacturing 3324 9,828  -1% 20% $67,431 1.12 1.28
Hardware Manufacturing 3325 990 9% 7% $52,579 0.25 0.48
Spring and Wire Product Manufacturing 3326 3,004  -34%  -6% $52,155 0.89 0.85
Machine Shops; Turned Product; and Screw, Nut and Bolt Manufacturing 3327 21,700 9% 2% $54,882 0.78 0.74
Coating, Engraving, Heat Treating and Allied Activities 3328 10,114 5% 4% $52,305 0.78 0.89
Other Fabricated Metal Product Manufacturing 3329 26,474  -3% 12% $71,524 1.06 1.18
Total Fabricated Metal Product Manufacturing 332 120,805  -9% 8% $59,519 1.02 1.02

Conclusion

The fabricated metal product subsector is more labor intensive compared to other manufacturing processes, and it represents Texas’ largest manufacturing subsector in terms of employment. The subsector experienced an employment recovery in 2017 following two years of job losses, which were largely due to falling energy prices.

The subsector is concentrated in several regions across Texas, especially in the Southeast, Gulf Coast and Upper East regions, and in cities like Longview, Beaumont-Port Arthur and Houston.

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: