economy

The High Plains Region2022 Regional Report

High Plains Region Snapshot

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About the 2022 Regional Reports

The 2022 regional reports use the latest available annual data from a variety of state and federal sources on or about Sept. 1, 2021. The data for the 2020 U.S. Census is as of Oct. 1, 2021. Sources include JobsEQ, REMI, Texas A&M Real Estate Center, Texas Department of Transportation, U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics and the Texas Comptroller of Public Accounts.

The 41-county High Plains region covers about 39,500 square miles in the panhandle of Texas, stretching from the Oklahoma state line in the east and north and the New Mexico state line in the west to the Lubbock metropolitan area in the south.

The High Plains region includes two metropolitan statistical areas (MSAs): the Amarillo MSA, comprising Armstrong, Carson, Oldham, Potter and Randall counties; and the Lubbock MSA, comprising Crosby, Lubbock and Lynn counties. The region’s other 33 counties are not associated with an MSA.

This report examines regional economic information and trends regarding population, personal income, jobs and wages, and education, as well as economic conditions unique to the High Plains region.

Demographics

Population

According to the 2020 Census, the High Plains region had a total population of more than 866,000, or 3 percent of the state’s total population. The populations of the Lubbock and Amarillo MSAs accounted for 37.1 percent and 31 percent of the region’s total population, respectively.

The region’s population grew by 3.2 percent (about 26,500 people) since the 2010 Census, compared to 15.9 percent growth statewide. Randall County led regional gains during this period at 16.6 percent, followed by Lubbock County at 11.4 percent. Despite overall population growth in the region, 38 of the 41 counties in the region lost population during this 10-year period.

The median age in the High Plains region was 33.6 years in 2019, younger than the state median age of 34.6 years. The Amarillo MSA’s median age (35.1 years) was close to that of the state, and the Lubbock MSA (31 years) was significantly younger. Yoakum (30.3 years) was the youngest county in the region, and Briscoe (46.4 years) was the oldest (Exhibit 1). An area’s age distribution can reveal specific challenges. A younger county may prioritize education and workforce development, for example, while an older county might face retirement issues and higher health care costs.

Note: Median age data for the counties are from the U.S. Census Bureau, American Community
Sources: U.S. Census Bureau 2010 and 2020 census; JobsEQ

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Median Household Income and Income Distribution

The High Plains region had a median household income of $52,813 in 2019, up from $43,800 in 2010, a 20.6 percent increase. Median household income in Texas, by comparison, was $61,874 in 2019, up 24.6 percent from 2010.

The region’s income distribution finds proportionally fewer households in the top quintiles when compared to Texas as a whole (Exhibit 2).

Note: Figures may not sum due to rounding.
Source: Income distribution derived by JobsEQ using data from U.S. Census Bureau American Community Survey, 2015 to 2019.

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Education

Occupational Earnings by Educational Attainment Requirements

A strong educational foundation provides a cornerstone for growth and competitiveness in the global economy. Postsecondary education delivers a good return on investments of time and tuition.

Data for 2021 indicate that occupations in the High Plains region requiring at least an associate degree or certificate paid an average of $4,767 more annually than those requiring less than a postsecondary education. Occupations requiring at least a bachelor’s degree paid an average of $34,867 more (Exhibit 3).

Note: Figures may not sum due to rounding.
Source: JobsEQ; Education requirement category assignments are from the U.S. Bureau of Labor Statistics

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Regional Institutions of Higher Education

A postsecondary education also offers opportunity for greater job prospects, workplace advancement, higher wages and the development of a richer world view. The High Plains region offers a variety of options for higher educational achievement, including four universities, four community colleges and one health science school (Exhibit 4).

Source: Texas Higher Education Coordinating Board

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Health Care

Availability of Hospital Services

Residents of the High Plains region have access to a variety of hospital services. General hospitals offer a comprehensive range of services and facilities for medical diagnoses and treatments, including surgical services. Special hospitals provide clinical laboratory facilities, diagnostic X-ray facilities, treatment facilities or other definitive medical treatments (Exhibit 5).

For a list of facilities offering services other than hospitals – such as rural health clinics, community mental health centers and birthing centers – visit Texas Health and Human Services.

Note: State psychiatric hospitals data as of February 2019
Source: Texas Department of Health and Human Services

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Health Care Access

Access to health care facilities adds to the viability of a community. According to the U.S. Census Bureau, the share of Texans without health insurance — 18.4 percent in 2019 — was twice the national average of 9.2 percent.

In 2019, the rate of uninsured people in the High Plains region ranged from a low of 13.2 percent in Randall County (the fifth lowest in the state) to a high of 33.8 percent in Dallam County (the second highest in the state); the overall rate for the region was 20.5 percent (Exhibit 6). (For additional information, see Uninsured Texans, Fiscal Notes, October 2020.)

Note: Uninsured population includes people younger than 65 (ages 0-64) only.
Source: U.S. Census Bureau, SAHIE (Small Area Health Insurance Estimates)

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Regional Economy and Employment

In 2020, the High Plains region had a gross domestic product (GDP) of $50.2 billion, about 2.8 percent of Texas’ statewide GDP of $1.8 trillion. Between 2010 and 2020, GDP rose by an average annual rate of just 0.6 percent, less than the statewide average annual rate of 3.6 percent. In 2020, GDP fell from the previous year by 9.8 percent, exceeding the state’s GDP fall of 4.7 percent (GDP values not adjusted for inflation). Preliminary data for the first two quarters of 2021, however, suggest a significant economic rebound in many industries and regions.

Regional Employment Levels

Of the 395,645 people employed in the High Plains region in 2020, 31.4 percent were in the Amarillo MSA and 38.5 percent were in the Lubbock MSA. Between 2010 and 2020, employment rose in the region by 3.6 percent, a slower pace than in the state (17.1 percent) and the U.S. (7.8 percent). The Lubbock metro area employment rose by 10.7 percent (Exhibit 7).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

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Regional Industries

In the five-year period between 2015 and 2020, jobs in the High Plains region fell by 2 percent, or about 7,900 jobs. During this period, by comparison, jobs rose by 3.3 percent in Texas and fell by 0.5 percent in the U.S.

The High Plains region’s largest industry sectors by employment are in accommodation and restaurants, education, health care and retail. Animal slaughtering and processing also rank highly in the region (Exhibit 8).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

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Some of the region’s most highly concentrated industries experienced the largest employment gains between 2015 and 2020, including cattle ranching and farming and animal processing manufacturing.  The region’s restaurant industry saw large gains during this period despite heavy losses in 2019. Jobs in health care and utility construction were also among leaders in regional job gains (Exhibit 9).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

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Using the location quotient (LQ) — a measure of an industry’s relative size in a region compared to its average size in the nation — animal ranching and processing, as well as industries supporting oil and gas, are highly concentrated and unique to the regional economy. An LQ of 1.25 or higher indicates that the region has a comparative advantage in the industry (Exhibit 10).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

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Regional Occupations

Occupations with high levels of employment and relative concentration reflect the industrial composition of the region. Agriculture, farming, ranching and meat processing occupations have some of the greatest LQ concentration levels in the High Plains region (Exhibit 11).

Sources: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

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High Plains Regional Infrastructure

Housing Affordability

The Texas Housing Affordability Index (THAI) from the Texas A&M Real Estate Center measures the ability of a household earning the median family income to purchase a median-priced home. An index ratio greater than 1 means that the median family income is more than the income required to purchase the median home in a specific area. The calculations for the index assume that consumers are making a down payment of 20 percent and have a family income that is 25 percent of the price of the median home.^[1]

According to the THAI, a median-income family in the Amarillo and Lubbock MSAs would have about twice the income needed to afford the median home (Exhibit 12). Home prices in these cities are more affordable than in the state as a whole.^[2]

Source: Texas A&M Real Estate Center

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Regional Transportation

Metropolitan planning organizations (MPOs) are federally mandated policymaking organizations created to coordinate transportation planning in urbanized areas. Two metropolitan planning organizations (MPOs) coordinate transportation planning in the High Plains region, in Amarillo and Lubbock. Roadways within the region make up parts of the Amarillo, Lubbock and Childress Texas Department of Transportation (TxDOT) districts.

Road miles and vehicle miles traveled for the region’s roadway network, as of 2019, are listed by road type (Exhibit 13).

Sources: Texas Department of Transportation

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Transit authorities and transit districts are governmental entities or companies that coordinate public transit in an area. The Lubbock and Amarillo areas are served by their respective urban public transit districts, and rural transit is provided by Panhandle Community Services and the South Plains Community Action Association (Exhibit 14).

Sources: Texas Department of Transportation

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The state of Texas has 27 commercial service airports offering passenger service. Two of those commercial service airports are in the High Plains region (Exhibit 15).

Sources: Federal Aviation Administration

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Ports of entry within Texas account for 17 percent of all U.S. international trade, and each region contributes to international trade in direct and indirect ways. The High Plains region has two direct trade official ports of entry: Lubbock Preston Smith International Airport and Rick Husband Amarillo International Airport.^[3]

Region vs. Texas

If the High Plains region were a state, it would be the 38th largest in terms of area and 47th in terms of population. The region’s population – and Texas’ – is relatively young, with a quarter of its population younger than 18 (Exhibit 16). For more information on how Texas and its distinct, diverse regions compare to the U.S. and other states, visit TexIndex.

Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis

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High Plains Region Economic Development Highlights

• Texas and the High Plains region are leaders in renewable energy. An Excel Advantage Services, LLC project leased about 3,800 acres from a local landowner in Childress County to develop a new, transmission-grade and grid-connected solar photovoltaic electric generation facility. The proposed project will generate 517.35 megawatts, an amount that could power hundreds of thousands of homes annually.^[4]
• The High Plains region is also a leader in food production. The use of automated and progressive farming methods, dairy price increases and the opening of new dairy processing facilities in the region have helped make Texas the fourth-largest milk producing state (ahead of New York and just behind Idaho).^[5]
• New dairy projects include a Continental Dairy Facilities Southwest, LLC plant in Lamb County to process raw milk into consumer products such as whole milk powder, non-fat dried milk, cream, condensed milk and butter. In Lubbock County, the Leprino Foods Company has proposed construction of an 850,000-square-foot mozzarella cheese and manufacturing facility that is expected to process around 8 million pounds of milk each day after operations begin in 2025.
• An Amazon warehouse is set to open in Amarillo in early 2022 and will employ more than 500 people. The Amarillo Economic Development Corp. provided an incentive of $2.5 million based on capital expenditures, job creation and payroll goals.^[6]
• The U.S. Department of Energy’s (DOE) Pantex Plant located in Carson County and employing about 3,000 is part of the Nuclear Security Enterprise and is responsible for maintaining the safety, security and effectiveness of the nation’s nuclear weapons stockpile. The DOE is evaluating the next follow-on consolidated contract valued at $28 billion, which includes the management and operation of the Pantex Plant. This contract will run through September 2026.^[7]
• A project to rehabilitate U.S. Highway 87/287 around Dumas began in July 2021. This $36.8 million project is expected to last through May 2024.^[8]
• The City of Amarillo has offered incentives to an ammunitions manufacturer and a tool manufacturer for the wind energy industry. Each company would receive about $10,000 per job created, with the projects expected to bring about 130 new jobs to the city.^[9]
• A Texas Enterprise Fund grant of more than $1.1 million has been extended to Cacique, LLC to open its newest food processing facility in Amarillo. The project will create close to 200 jobs and $88 million in capital investment.^[10]
• The South Plains Association of Governments has provided more than $1 million from the COVID relief financing program to 17 small businesses in its coverage area.^[11]
• The American Farm Bureau Federation launched the West Texas A&M Chapter of the Collegiate Farm Bureau in fall 2020 – the first Collegiate Farm Bureau chapter to be established in Texas.^[12]
• The City of Shamrock plans to construct an industrial business park with a Canadian clean tech company as its anchor tenant. This project is expected to create at least 67 jobs.^[13]
• A Texas Enterprise Fund grant of $4.2 million was extended to Leprino Foods to establish a new dairy products manufacturing facility in Lubbock. The project is expected to create 600 new jobs and nearly $870 million in capital investment.^[14]

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Questions?

If you have any questions or concerns regarding the material on this page, please contact the Comptroller’s Data Analysis and Transparency Division.