Texas Supply Chain
Motor vehicles and parts are some of the most highly traded products in the world, facilitated by sophisticated and complex supply chain networks. General Motors, for example, spends $80 billion annually across roughly 15,000 global suppliers.
While this supply chain network enhances industry productivity and efficiency, it also leaves much space for supply disruptions, due in part to the size and complexities of its networks.
Texas Automobile Manufacturing Jobs
Texas Automobile Manufacturing GDP
Texas Automobile Manufacturing Exports
Sources: JobsEQ; U.S. Census Bureau, USA Trade Online
The economic disruptions caused by the COVID-19 pandemic continue to hamper automotive production. Global automakers are expected to produce up to 5 million fewer cars than planned in 2021, largely due to a global shortage of semiconductors. And trade disputes remain a common source of disruption, as countries often protect domestic auto production through tariffs, trade restrictions and local sourcing requirements.
In response, automotive leaders have planned several strategies to build greater resilience in their supply chains, including:
Automobile manufacturing is an important contributor to Texas jobs, trade and economic growth.
Sources: U.S. Census Bureau, USA Trade Online; Texas Comptroller of Public Accounts analysis
• In 2020, all Texas automobile manufacturing imports totaled $38.3 billion (14 percent of U.S. total), and the state had $11.7 billion in exports (about 11 percent of the U.S. total).
• Motor vehicle parts account for the bulk of automobile-related exports, totaling nearly $8.3 billion, or 71 percent, of the state’s auto-related exports in 2020. That compares to a 40 percent share nationwide, reflecting the importance of these products to Texas.
• More than 80 percent of Texas’ auto parts exports were to Mexico (by comparison, Mexico accounted for 37 percent of U.S. auto parts exports were to Mexico). Mexico also accounted for nearly 80 percent of Texas’ auto parts imports. U.S. auto parts imports from Mexico comprised a much smaller share at 43 percent.
This is one in a series of reports the Comptroller has prepared on Texas supply chains.
Texas Comptroller of Public Accounts
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