Presentation on theme: "Economic Drivers of Texas The opinions expressed are solely those of the presenters and do not reflect the opinions of the Federal Reserve Bank of Dallas."— Presentation transcript:
Economic Drivers of Texas The opinions expressed are solely those of the presenters and do not reflect the opinions of the Federal Reserve Bank of Dallas or the Federal Reserve System.
TEKS (7 th Grade Texas History) (12) Economics. The student understands the factors that caused Texas to change from an agrarian to an urban society. The student is expected to: (A) explain economic factors that led to the urbanization of Texas; (B) trace the development of major industries that contributed to the urbanization of Texas such as transportation, oil and gas, and manufacturing; and (C) explain the changes in the types of jobs and occupations that have resulted from the urbanization of Texas.
TEKS (7 th Grade Texas History) (13) Economics. The student understands the interdependence of the Texas economy with the United States and the world. The student is expected to: (A) analyze the impact of national and international markets and events on the production of goods and services in Texas such as agriculture, oil and gas, and computer technology; (B) analyze the impact of economic concepts within the free enterprise system such as supply and demand, profit, government regulation, and world competition on the economy of Texas; and (C) analyze the impact of significant industries in Texas such as oil and gas, aerospace, medical, and computer technologies on local, national, and international markets.
Urbanization Urbanization is the story of a transformation of the Texas economy. Old story of cattle, cotton and oil has given way to a new narrative. New story is driven by jobs in the urban centers.
Where Texans Work County Business Patterns (CBP) examines local economic data by industry. – Number of firms – Number of paid employees – Payroll Uses North American Industry Classification System (NAICS) Excludes farming and railroads, along with household jobs http://www.census.gov/econ/cbp/index.html
Top 5 Industries by Number of Firms IndustryNumber of firms Retail trade76,787 Professional, scientific, and technical services59,757 Health care and social assistance59,193 Other services (except public administration)48,097 Accommodation and food services46,045
Top 5 Industries by Employees Industry Paid employees Health care and social assistance1,280,332 Retail trade1,127,032 Accommodation and food services908,665 Waste management and remediation services 830,284 Manufacturing730,551
Top 6 Industries by Payroll Industry Annual payroll ($1,000) Health care and social assistance51,168,478 Professional, scientific, and technical services 40,436,455 Manufacturing38,849,364 Finance and insurance28,870,504 Management of companies and enterprises 28,811,285 Wholesale trade28,125,856
Two Lenses The CBP data looks at how big various sectors are in Texas. Concentration is a different way to measure the impact.
Industry Clusters Geographically concentrated groups of companies related by – the technologies they use – the markets they serve – the goods and services they produce – the labor skills they require
Location Quotient Ratio of Local Employment Concentration to National Concentration within a sector. Numbers greater than 1 indicate a greater concentration than the nation as a whole. Numbers less than 1 indicate a lesser concentration than the nation as a whole.
Top Five Industry Clusters IndustryLocation Quotient Oil and gas extraction5.9 Support activities for mining5.6 Pipeline transportation4.33 Funds, trusts and other financial vehicles2.78 Petroleum and coal products manufacturing2.78
The Rest of the Top Ten IndustryLocation Quotient Air transportation1.67 Leather and allied product manufacturing1.54 Support activities for transportation1.51 Information and data processing services1.42 Fishing, hunting and trapping1.32
The Next Five IndustryLocation Quotient Computer and electronic product manufacturing 1.24 Wholesale trade, durable goods1.21 Broadcasting and telecommunications1.2 Management of companies and enterprises1.18 Nonmetallic mineral product manufacturing1.15
Austin Computer and electronic product manufacturing4.09 Publishing industries2.01 Information and data processing services1.78 Wholesale trade, durable goods1.63 Lessors of nonfinancial intangible assets1.57
Dallas-Fort Worth Oil and gas extraction3.05 Air transportation2.78 Information and data processing services2.45 Computer and electronic product manufacturing2.11 Funds, trusts and other financial vehicles1.82
Houston Pipeline transportation10.22 Oil and gas extraction8.44 Funds, trusts and other financial vehicles8.29 Petroleum and coal products manufacturing5.08 Support activities for mining5.07
San Antonio Leather and allied product manufacturing7.86 Information and data processing services2.2 Management of companies and enterprises1.79 Insurance carriers and related activities1.65 Pipeline transportation1.53
Texas Wide Open for Business Advanced Technology & Manufacturing Aerospace, Aviation & Defense Biotechnology & Life Sciences Information & Computer Technology Petroleum Refining & Chemical Products Energy http://www.texaswideopenforbusiness.com/ind ustries/index.php
Economic Drivers Energy Services Manufacturing ???
For more information For data about the regional and national economy, see: www.dallasfed.org For information about key Texas industries, see: http://www.texaswideopenforbusiness.com/industries/index.php For industry profiles, see: http://governor.state.tx.us/ecodev/business_research/industry_profil es/%20 To learn about industry classifications, see: http://www.bls.gov/iag/home.htm For export data, see: http://www.census.gov/foreign-trade/statistics/state/data/tx.html