Raw materials go through a supplier to the manufacturer. That's the upstream side of the supply chain. Products go from the manufacturer through distribution to the consumer. That's the downstream side of the supply chain.
Global supply chains – the networks between a company and its suppliers that produce and distribute products to the final consumers – create value and contribute to lower consumer and production costs. They are integral to the trade of intermediate goods (components of final goods), a key feature in advanced manufacturing products like automobiles and semiconductors. Trade in parts and components is twice as large as the trade value in final goods.
Global trade enhances production efficiencies and reduces costs for producers and consumers. There are risks and vulnerabilities in the supply chain system, which were highlighted by COVID-19 economic disruptions.
Supply chain risks preceded the pandemic and will remain afterward. Some risks include overconcentration of production in one region, trade and geopolitical disputes, geophysical and climate-related events and, increasingly, cyberattacks.
In response, businesses are working to overhaul or streamline supply networks. Government has proposed infrastructure funding for critical industries like semiconductors and rare earth processing, citing their importance to national security and national competitiveness.
Texas had $276.4 billion in exports in 2020, accounting for 15.7 percent of state GDP, much higher than the national average of 6.8 percent. In pre-pandemic year 2019, Texas saw $328.5 billion in exports, or 17.8 percent of state GDP; by comparison, total U.S. exports comprised 7.7 percent of U.S. GDP.
Texas’ exports fell steeply during the pandemic but have since recovered to pre-COVID-19 levels:
In 2019, more than 1.1 million Texas jobs were supported by exports, by far the most among states.
Texas was the nation’s leading exporter in 2020, shipping $276.4 billion worth of goods, or 19 percent of the U.S. total.
|Destination||Exports Percent Change|
China’s consumption of Texas products is rapidly rising, increasing by 77 percent in the first six months of 2021 compared to the same period in 2019.
Sources: U.S. Census Bureau,
Texas Comptroller of Public Accounts
Texas’ largest trading partner, Mexico, accounts for about one-third of its exports.
|Commodity||Millions of dollars|
|Oil and Gas||62,826|
|Computer and Electronics Products||44,837|
|Petroleum and Coal Products||34,845|
Energy-related industries – oil and gas, petroleum products and chemicals – accounted for half of Texas’ exports.
Sources: U.S. Census Bureau, Texas Comptroller of Public Accounts
The state has vast infrastructure to facilitate supply chains and trade. Texas has 29 official ports of entry that serve as critical gateways to global trade. It shares an international border and is logistically centered with multiple interstate intersections and railway networks, as well as large hub airports providing both cargo and passenger service, making the state a good destination for reshoring initiatives.
Given trade’s role in the state economy, Texas would benefit from a more resilient global supply chain.
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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