Texas has been one of the strongest performing states in the US for a number of years, attracting more major corporate locations and expansions than any other and regularly topping lists of the best places to do business. As examples, the state has won the "Governor's Cup" for the most major projects for the past eight consecutive years and was recently named the "State of the Decade" by Site Selection magazine.
Manufacturing in the state is taking losses during this time of economic turmoil.
The manufacturing statistics for Texas in March were driven down by various factors associated with COVID-19 and the oil and gas industry. Dr. Perryman explains the effects.
The latest Purchasing Manager's Index covering August manufacturing is out, and Dr. Perryman says it tells a disturbing story.
We are seeing evidence that trade war and overall instability and uncertainty regarding trade policies is beginning to impact our manufacturing sector.
The latest monthly report from the Institute for Supply Management shows manufacturing in the US growing at its fastest clip in 3 years.
Dr. Perryman goes in the weeds to illustrate the boom in US manufacturing as described in a new report.
Manufacturing is a cornerstone of the Texas economy, employing more than 7% of Texans, paying high wages, and producing hundreds of billions in goods for export each year. These businesses also generate opportunities for a broad spectrum of other types of firms ranging from suppliers of needed inputs to those providing business services. In addition, as employees of all of these companies spend their payroll dollars, further economic benefits ensue. All in all, the multiplier (or "ripple") effects of goods-producing business operations greatly magnify their importance to the state economy. In fact, according to an impact assessment by my firm, The Perryman Group, a typical manufacturing job leads to 3.778 additional jobs in the state, with some sectors (such as refining which uses Texas oil) bringing much higher benefits. Viewed in this manner, manufacturing accounts for about 30% of Texas employment and an even larger proportion of gross product.