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

economy

Furniture and Related Product ManufacturingNAICS 337 Overview

Subsector Snapshot | Printable (PDF)

Introduction

This subsector includes products for households and offices, such as mattresses, blinds and shades, kitchen cabinets, countertops and parts and frames. The most common materials for production are metal, wood, plastic and textiles. Businesses in this subsector may combine design processes for their products.

Fast Facts

  • Furniture and related product manufacturing provided about 23,140 direct Texas jobs in 2016.
  • The subsector’s gross state product (GSP) totaled $1.4 billion in 2015.
  • Its annual wages averaged about $41,600 in 2016. 
  • Subsector exports from Texas were valued at $578.5 million in 2016.

Long-Term Employment Trends

Texas employment in furniture product manufacturing rose by 67 percent from 1990 through 2000, peaking at 34,300 jobs. The Texas job count mostly remained steady until the recession of 2008. In 2017, subsector employment in Texas was 13 percent above 1990’s level. In the nation as a whole, by contrast, subsector employment fell by 35 percent (Exhibit 1).

Subsector Economic Output Trends

The furniture and related product subsector’s Texas inflation-adjusted GSP fell by 14 percent from 1997 to 2015, while the U.S. subsector’s output declined by 26 percent

(Exhibit 2).

Exhibit 1: Furniture and Related Product Manufacturing, Percent Change in Employment, U.S. vs. Texas 1990 to 2017 (Indexed to 1990)

Percent Change in Employment
Year U.S. Texas
1990 0% 0%
1991 -7% -1%
1992 -6% 3%
1993 -4% 12%
1994 0% 22%
1995 1% 27%
1996 0% 32%
1997 2% 41%
1998 7% 49%
1999 11% 57%
2000 13% 67%
2001 7% 61%
2002 0% 56%
2003 -5% 50%
2004 -5% 50%
2005 -6% 52%
2006 -7% 61%
2007 -12% 54%
2008 -21% 40%
2009 -36% 19%
2010 -41% 10%
2011 -41% 6%
2012 -42% 7%
2013 -40% 7%
2014 -38% 7%
2015 -37% 10%
2016 -35% 13%
2017 -35% 13%

Sources: Texas Workforce Commission and Texas Comptroller of Public Accounts

Exhibit 2: Furniture and Related Product Manufacturing, Percent Change in Real GDP, U.S. vs. Texas, 1997 to 2015 (Indexed to 1997)

Percent Change in Real GDP
Year U.S. Texas
1997 0% 0%
1998 1% 1%
1999 6% 15%
2000 10% 16%
2001 -1% 7%
2002 -3% 4%
2003 -5% 0%
2004 2% 7%
2005 7% 15%
2006 9% 30%
2007 -1% 14%
2008 -15% -4%
2009 -38% -15%
2010 -37% 8%
2011 -36% 4%
2012 -37% -19%
2013 -32% -13%
2014 -28% -16%
2015 -26% -14%

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

Subsector and Industry Concentration in Texas

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.

A high LQ can identify a regional industry that enjoys a competitive advantage compared to other regions; an LQ below 1.00 can indicate competitive weakness. A regional LQ of at least 1.25 (meaning the subsector’s regional share of total employment is 25 percent greater than in the U.S.) can indicate an exporting subsector and the presence of a regional “industry cluster,” a group of interrelated firms providing related products or services and sharing similar needs for workers and suppliers.

Texas’ statewide 0.72 LQ in furniture and related product manufacturing indicates the subsector is not highly competitive. The only industry within the subsector with an LQ above 1.00 is the “Other Furniture Related Product Manufacturing” (Exhibit 3).

A regional assessment of employment concentration is useful, however, as the size of Texas’ economy and workforce can obscure regional industry strengths. The furniture and related product manufacturing subsector does have above-average employment concentrations in Texas’ Central, Upper East and Metroplex regions (Exhibit 4).

Exhibit 3: Furniture and Related Product Manufacturing in Texas: Industries

Jobs, Wages and Concentration by Industry
Industries NAICS 2016 Jobs 2010 to 2016
% Change
2016
Average Wages
2016
Location Quotient
Furniture and Related Product Manufacturing 337 23,142 3.50% $41,559 0.72
Household and Institutional Furniture and Kitchen Cabinet Manufacturing 3371 15,157 5.40% $40,907 0.74
Office Furniture (including Fixtures) Manufacturing 3372 4,321 0.30% $45,673 0.49
Other Furniture Related Product Manufacturing 3379 3,664 -0.30% $39,406 1.18

Source: Emsi and Texas Comptroller of Public Accounts

Exhibit 4: Furniture and Related Product Manufacturing LQ and Employment by Region, 2016

Jobs and Employment Concentration
Region 2016
Location Quotient
2016 Jobs
Central 1.63 2,115
Upper East 1.34 1,530
Metroplex 1.23 11,621
Capital 0.64 1,710
Upper Rio Grande 0.41 372
Alamo 0.39 1,179
Gulf Coast 0.39 3,105
Northwest 0.38 219
Southeast 0.32 230
South 0.28 623
West 0.22 159
High Plains 0.21 214
Texas 0.72 23,142

Source: Emsi and Texas Comptroller of Public Accounts

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.

The furniture and related product subsector is likely to benefit from rising home sales and housing starts. It will, however, continue to contend with import competition. Subsector businesses also are adapting to demographic and societal shifts, including a shift to smaller and multi-purpose items to accommodate renters and single-person households. Demand for home office furniture also is increasing as more workers telecommute.

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: