TEXAS

FOOD AND BEVERAGE AND TOBACCO PRODUCT MANUFACTURING

The food manufacturing (NAICS 311) and beverage and tobacco product manufacturing (NAICS 312) subsectors include businesses providing a variety of products such as meats, specialty foods, baked goods, packaged fruits and vegetables, teas, coffees, beers and wines. Food manufacturing also includes the refiners of raw food materials such as rice, flour, corn and sugar.

CONCLUSION

169,250$15.1 Billion

$56,199$5.5 Billion

DIRECT & INDIRECT EMPLOYMENT

STATE SUBSECTOR GDP

AVERAGE ANNUAL WAGE

EXPORTS

To see more in-depth Texas manufacturing data, visit: comptroller.texas.gov/economy/economic-data/manufacturing/

LARGEST INDUSTRIES IN FOOD AND BEVERAGE AND TOBACCO PRODUCT MANUFACTURING, 2016Animal slaughterers are the largest food and beverage manufacturers in Texas, followed by poultry processing. Among the largest industries, animal slaughterers, soft drinks

Glenn Hegar Texas Comptroller of Public Accounts

Sources: U.S. Bureau of Economic Analysis, Regional Economic Models, Inc., Emsi, U.S. Department of Commerce International Trade Administration

Manufacturing continues to drive output and productivity in the Texas economy, creating jobs paying well above the statewide average. It also contributes significantly to job creation in other industries, particularly in design operations and services.

Texas manufactures a variety of food and beverage products across its diverse regions, as producers respond to local demand and local tastes. Proximity to raw materials and supply networks also are highly important to ensure the freshness of its products.

NAICS 311-312 96-1801-15 (6/18)

LARGEST JOB GAINS BY INDUSTRY, 2010-2016

UPPER RIO GRANDE 1.23

Sources: Emsi and Texas Comptroller of Public Accounts:

Sources: Emsi and Texas Comptroller of Public Accounts

HIGH PLAINS 3.15

UPPER RIO GRANDE 1.23

METROPLEX 1.43

UPPER EAST1.72

CENTRAL1.23

ALAMO1.12

COMPTROLLER REGIONS

Sources: Emsi, Texas Comptroller of Public Accounts

makers and tortilla manufacturers have location quotients above 1.00, meaning their statewide shares of employment are above the national averages, possibly indicating exporting industries.

Beverage manufacturers were among the largest job gainers from 2010 to 2016, including breweries, soft drink makers and wineries.

SUBSECTOR AND INDUSTRY CONCENTRATION IN TEXAS

HEREFORDFLOUR MILLING

BRENHAMICE CREAM AND FROZEN DESSERT BEAUMONT-

PORT ARTHURRICE MILLING

WACOPOULTRY MANUFACTURING

SOFT DRINK MANUFACTURING

THE BEVERAGE AND

TOBACCO SUBSECTOR ROSE BY 36 PERCENT FROM 2010 TO 2016, EASILY THE LARGEST PERCENT GROWTH AMONG ALL TEXAS MANUFACTURING

SUBSECTORS.

NACOGDOCHESPOULTRY MANUFACTURINGSOFT DRINK MANUFACTURING

PARISSPECIALTY CANNING

Due to its size and regional diversity, Texas produces a wide variety of food and beverage products, including beef in the High Plains, poultry in Upper East Texas, rice in the Southeast and tortillas in the South region.

0 500 1000 1500

POULTRY PROCESSING

MAYONNAISE, DRESSING AND OTHER

PREPARED SAUCES

WINERIES

SOFT DRINK MANUFACTURING

RETAIL BAKERIES

BREWERIES 86% PERCENT CHANGE

40%

17%

96%

111%

4%

CHANGE IN NUMBER OF JOBS

SOUTH-EAST1.26

DIRECT JOBS2016

AVERAGE TEXAS SALARIES

2016

LOCATION QUOTIENT

2016

ANIMAL (EXCEPT POULTRY) SLAUGHTERING 14,216 $40,688 1.27

POULTRY PROCESSING 13,822 $32,881 0.73

COMMERCIAL BAKERIES 8,589 $45,466 0.77

MEAT PROCESSED FROM CARCASSES 8,068 $41,687 0.80

SOFT DRINK MANUFACTURING 7,895 $57,482 1.18

FROZEN SPECIALTY FOOD MANUFACTURING 4,521 $38,186 0.95

RETAIL BAKERIES 4,429 $24,115 0.64

TORTILLA MANUFACTURING 3,461 $29,385 2.18

BREWERIES 3,157 $67,002 0.65

DUMASANIMAL (EXCEPT POULTRY) SLAUGHTERING

PLAINVIEWANIMAL (EXCEPT POULTRY) SLAUGHTERING

*Location quotient compares an industry’s share of jobs in a specific region with its share of nationwide employment. Source: Emsi

TEXAS MANUFACTURING OUTPUT HAS OUTPACED

THE TOTAL TEXAS ECONOMY.

From 1997 through 2016, growth in Texas manufacturers’ economic output more

than doubled U.S. manufacturing gains of 40 percent.

TEXAS MANUFACTURING

MOTOR VEHICLES,

BODIES AND TRAILERS,

AND PARTS

CHEMICAL PRODUCTS

COMPUTER AND

ELECTRONIC PRODUCTS

PETROLEUM AND COAL PRODUCTS

MACHINERY FABRICATED METAL

PRODUCTS

$0

$10

$20

$30

$40

$50

+66%

+59%

+130% +379%+31%

PERCENT CHANGE IN REAL GROSS DOMESTIC PRODUCT / 1997-2016

% INCREASE

199

7

20

15

LARGEST MANUFACTURING SUBSECTORS IN TEXAS BY GDP: GROWTH FROM 1997 TO 2015

To see more in-depth Texas manufacturing data, visit: comptroller.texas.gov/economy/economic-data/manufacturing/

BETWEEN 1997 AND 2016,

MANUFACTURING REAL GDP INCREASED

98 PERCENT, COMPARED WITH AN

84 PERCENT GAIN ACROSS ALL TEXAS

INDUSTRIES.

Glenn Hegar Texas Comptroller of Public Accounts

+584%

Texas has an extraordinary manufacturing economy. The state’s resources make it a natural leader in petroleum and chemical manufacturing; its research institutions have fostered computer-related and other high-tech manufacturing; and a business-friendly environment and skilled labor have helped create a burgeoning automotive manufacturing sector. IN ALL, MANUFACTURING CONTRIBUTED $226 BILLION TO TEXAS’ GROSS DOMESTIC PRODUCT (GDP) in 2016, an amount larger than the entire economy of Portugal.

3,000,000$225.8 Billion

$73,738$210.3 Billion

DIRECT & INDIRECT EMPLOYMENT

TEXAS MANUFACTURING GDP

AVERAGE ANNUAL WAGE

EXPORTS

0%

20%

40%

60%

80%

100%

2015201320112009200720052003200119991997

U.S.

TEXASMANUFACTURING

TOTAL STATE GDP

MANUFACTURINGTOTAL GDP

Glenn HegarTexas Comptroller of Public Accounts

+98.4%

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

Sources: U.S. Bureau of Economic Analysis, Texas Comptroller of Public Accounts

Sources: U.S. Bureau of Economic Analysis, Texas Comptroller of Public Accounts

Sources: U.S. Bureau of Economic Analysis, Regional Economic Models, Inc., Emsi, U.S. Department of Commerce International Trade Administration

IN B

ILLI

ON

S O

F 20

09

DO

LLA

RS

TEXAS MANUFACTURING ACCOUNTED FOR

10.4 PERCENT OF U.S.

MANUFACTURING GDP IN 2016.

While Texas’ manufacturing employment has diminished as a result of automation, technological advances and other factors, its economic output has increased. From 1997 through 2016, Texas’ manufacturing job count fell by 19 percent, but its real GDP rose by 98 percent. Texas has 858,000 DIRECT MANUFACTURING JOBS, as well as another 2.2 MILLION JOBS indirectly created or supported by manufacturers. In 2016, average annual Texas wages in manufacturing approached $74,000, much higher than the statewide average of $54,000.