Texas-Based Manufacturing

The U.S. manufacturing industry is making a big comeback. After years of outsourcing a number of functions to workers in Asia, American manufacturers are expanding their U.S. operations and bringing their manufacturing activities back to America. Because of the many resources available to manufacturers, Texas is now one of the major players in U.S. manufacturing. Companies are relocating to business parks in Austin, Dallas, and other populated areas, creating new jobs and improving the Texas economy.

Several major U.S. manufacturing companies have operations in Texas. They include Kimberly-Clark, Lockheed Martin, Peterbilt, and Peerless. Several other companies have made a splash by announcing plans to open plants in Texas. In May 2013, Motorola announced that it will be creating two thousand new jobs by opening a Texas manufacturing facility to produce its Moto X smartphone. Apple also made the news when representatives announced that the company would be assembling Macintosh computers in the Lone Star State. On June 6, 2013, Duro-Last representatives also announced that their company would be opening a manufacturing facility in Carrollton, Texas.

Texas is an attractive location for American manufacturers for several reasons. Government officials are working to attract businesses to the state by offering a variety of incentives. Some of these incentives are offered by the state, while others are awarded on a local basis. Texas also has a strong higher-education system that focuses on creating intellectual property and making it commercially viable. Students are building job skills by participating in incubator programs that help them develop the qualifications needed to move into skilled manufacturing jobs and executive positions. The state is also attractive to both West Coast and East Coast transplants, making it easy for U.S. manufacturing companies to source talent.

The automotive industry also has a foothold in Texas, strengthening the U.S. manufacturing industry even further. In 2012, the Toyota production plant in San Antonio set a record for truck production. Peterbilt has its headquarters in Denton, as well as its only remaining truck manufacturing facility in the United States. General Motors recently expanded its Arlington plant, bringing much-needed jobs to Texas. Caterpillar and Continental Automotive Systems also have facilities in Texas. These five companies employed more than eleven thousand people in 2012, with motor vehicle parts manufacturing accounting for 51 percent of employment. Motor vehicle manufacturing and motor vehicle body and trailer manufacturing accounted for 26 and 23 percent of employment, respectively.

A favorable political climate, a strong source of skilled workers, and an abundance of resources make Texas one of the best locations for U.S. manufacturing. As Texas lawmakers introduce new incentives for businesses, it is likely that more companies will open or expand plants in Texas. This growth makes the outlook for the U.S. manufacturing industry and the Texas economy a positive one.

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