Transcript The Story of Gold Mystery, Magic,and Money!

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 (7th 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 (7th 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
Industry
Number of firms
Retail trade
76,787
Professional, scientific, and technical services 59,757
Health care and social assistance
59,193
Other services (except public administration) 48,097
Accommodation and food services
46,045
Top 5 Industries by Employees
Industry
Paid
employees
Health care and social assistance
1,280,332
Retail trade
1,127,032
Accommodation and food services
908,665
Waste management and remediation
services
830,284
Manufacturing
730,551
Top 6 Industries by Payroll
Industry
Annual payroll
($1,000)
Health care and social assistance
51,168,478
Professional, scientific, and technical
services
40,436,455
Manufacturing
38,849,364
Finance and insurance
28,870,504
Management of companies and
enterprises
28,811,285
Wholesale trade
28,125,856
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.
Location Quotient
Top Five Industry Clusters
Industry
Location Quotient
Oil and gas extraction
5.9
Support activities for mining
5.6
Pipeline transportation
4.33
Funds, trusts and other financial vehicles
2.78
Petroleum and coal products manufacturing
2.78
The Rest of the Top Ten
Industry
Location Quotient
Air transportation
1.67
Leather and allied product manufacturing
1.54
Support activities for transportation
1.51
Information and data processing services
1.42
Fishing, hunting and trapping
1.32
The Next Five
Industry
Computer and electronic product
manufacturing
Wholesale trade, durable goods
Location Quotient
1.24
1.21
Broadcasting and telecommunications
1.2
Management of companies and enterprises
1.18
Nonmetallic mineral product manufacturing
1.15
Economic Drivers
Energy
Services
Manufacturing
Austin
Computer and electronic product manufacturing
4.09
Publishing industries
2.01
Information and data processing services
1.78
Wholesale trade, durable goods
1.63
Lessors of nonfinancial intangible assets
1.57
Dallas-Fort Worth
Oil and gas extraction
3.05
Air transportation
2.78
Information and data processing services
2.45
Computer and electronic product manufacturing 2.11
Funds, trusts and other financial vehicles
1.82
Houston
Pipeline transportation
10.22
Oil and gas extraction
8.44
Funds, trusts and other financial vehicles
8.29
Petroleum and coal products manufacturing
5.08
Support activities for mining
5.07
San Antonio
Leather and allied product manufacturing
7.86
Information and data processing services
2.2
Management of companies and enterprises
1.79
Insurance carriers and related activities
1.65
Pipeline transportation
1.53
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
Texas Exports (millions of dollars)
250,662
264,709
206,992
162,995
2009 Value
2010 Value
2011 Value
2012 Value
Texas’ Top Markets
•
•
•
•
•
•
Mexico
Canada
China
Brazil
Netherlands
South Korea
•
•
•
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Singapore
Colombia
Japan
Belgium
Economic Drivers
Energy
Exports
Services
Manufacturing
Questions?
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