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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

Electrical Equipment, Appliances and Component Manufact­uring

Subsector Overview »

The Comptroller’s office identified 18 manufacturing subsectors within the Texas economy. This manufacturing subsector is trade intensive and invests heavily in research and development (R&D). It includes the manufacturing of electric transformers and switchboards, communication wires such as fiber-optic cables, as well as household appliances and lighting fixtures.


45,000
Direct & Indirect Employment


$2.5 Billion
State Subsector GDP


$71,000
Average Annual Wage


$11.7 Billion
Exports

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


INDUSTRIES IN THE ELECTRICAL EQUIPMENT, APPLIANCE AND COMPONENT MANUFACTURING SUBSECTOR

All four industries in electrical equipment, appliance and component manufacturing are considered “advanced industries,” as defined by the Brookings Institution. Such industries have two distinguishing criteria: R&D 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.

Description Jobs 2016 Job Change 2010 to 2016 Average Texas Wages 2016
Subsector Totals 19,023 12.3% $70,750
Electric Lighting Equipment 2,198 17.9% $66,559
Household Appliance 1,562 -9.8% $80,091
Electrical Equipment 9,028 16.7% $71,380
Other Electrical Equipment and Components 6,235 11.1% $68,975

Source: Emsi

In 2016, this subsector accounted for just 2.2 percent of all texas manufacturing jobs, but contributed 5.6 percent of the state’s manufacturing exports.

Sources: Emsi, U.S. Department of Commerce International Trade Administration

TEXAS SUBSECTOR OUTPERFORMS NATIONAL TRENDS

This Texas subsector pays higher average wages than the national average, and its job growth and export activity have outpaced U.S. averages since 2010.

In 2016, the average earnings for this subsector in Texas was $95,624. In the U.S. it was $89,887.

Subsector exports in Texas grew 65.9% from 2010 to 2016, versus 51.6% in the U.S.

Change in Subsector Jobs in the U.S and Texas, 2010 to 2016
Year U.S. Jobs Texas Jobs
2010 0% 0%
2011 2% 4%
2012 5% 11%
2013 5% 14%
2014 6% 16%
2015 7% 16%
2016 7% 12%

SUBSECTOR EXPORTS

The subsector’s largest export destination was Mexico, which accounted for 61 percent of its total exports.

Source: U.S. Department of Commerce International Trade Administration



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 services.

The electrical equipment, appliance and component subsector consists of several innovative and “advanced” industries that offer above-average wages. The subsector did lose a significant number of jobs in the 2000s, yet one study estimates that nearly 90 percent of those losses were due to productivity gains. Since 2010, the subsector in Texas has experienced healthier job growth than the U.S. as a whole.


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