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Texas industry concentrations Where the State’s Key Sectors Cluster

www.BusinessInTexas.com Contents

Biotech & Life Sciences 1 Industrial Manufacturing 14 Information & Electronics 4 & Chemical Products 18 Professional & Financial Services 8 Logistics & Transportation 20 Aerospace & Aviation 12 Food & Beverage Processing 22

Where are Key Industries Concentrated?

Across the diverse , each This report’s industrial concentration assessment, specializes in its own unique array of also called location quotient analysis, comes from advanced industries, where specific infrastructure Q4 2010 Texas Workforce Commission data. The and know-how have developed over years of analysis compares the portion of a Texas region’s growth. workforce employed in a certain sector to the portion of the entire U.S. workforce employed in Examining more than 40 advanced business that sector. The comparison provides a ratio that sectors, this report identifies the Workforce measures how intensively a certain region is Development of Texas where each specialized in a particular industry, and ranks it as industry is most highly concentrated. Using this “moderate,” “above average,” or “high.” approach, businesses can identify the regions with the largest concentrations of workers in a given This report focuses on a selection of advanced sector. sectors that are key to the state’s future economic growth, such as life sciences, IT, and aerospace. An existing cluster of firms in a particular The regions highlighted in this report do not industry leads to the creation and maintenance of a represent the only areas in Texas where a relevant trained labor force from which other businesses labor force can be found, but rather, represent the can draw. As a result, regions in Texas with areas of the state with the greatest concentrations specific labor pools continue to attract new of employment in these given industries. expansions and relocations in those same sectors.

Key

Moderate Regional concentration is similar to the national average for that industry

Above Average Regional concentration is 20% to 99% above the national average for that industry

High Regional concentration is double the national average for that industry, or more Medical Equipment North Central Region & Supplies Medical Equipment Mfg. Manufacturing County Ophthalmic Goods Mfg.

East Texas Surgical Instrument Mfg.

Concentration Medical Supplies Mfg. Moderate Capital Region Above Average Alamo Region Surgical Appliance Mfg. Medical Equipment Mfg. High

Related workforce: Machinery Mfg.(pg. 14-16)

Pharmaceutical & Medicine Tarrant County Manufacturing Consumable Pharmaceuticals Mfg.

Concentration Moderate Alamo Region Capital Region Biological Product Mfg. Above Average Consumable Pharmaceuticals Mfg. Consumable Pharmaceuticals Mfg. High

Related workforce: Chemical Mfg., pg. 18 1 BIOTECH & LIFE SCIENCES

Specialized Hospitals

East Texas

This sector provides treatment to inpatients with specific types of diseases or medical conditions and does not provide general emergency or surgical care

Gulf Region Concentration Moderate Above Average High Alamo Region

Medical and

Diagnostic Dallas County Diagnostic Imaging Laboratories Blood, Pathology & Other Labs

Concentration Moderate Capital Region Above Average Blood, Pathology & Other Labs Alamo Region High Diagnostic Imaging Blood, Pathology & Other Labs

2 BIOTECH & LIFE SCIENCES

Scientific Research and Development Services

This sector conducts original investigation in the fields of biotechnology, medicine, Region physical science, engineering, Physical & Engineering R&D social science, etc.

Concentration Moderate Capital Region Above Average Biotechnology R&D Physical & Engineering R&D High Alamo Region Physical & Engineering R&D

3 Semiconductors North Central RegionNorth Central Region Real Estate Credit Semiconductors/Related Devices Bare Printed Circuit Boards and Electronic Region

Components Dallas County Semiconductors/Related Devices Bare Printed Circuit Boards

Concentration Moderate Capital Region Above Average Semiconductors/Related Devices Printed Circuit Assemblies High

Computers and Peripherals Manufacturing

Concentration Gulf Region Electronic Computer Mfg. Moderate Above Average Capital Region High Electronic Computer Mfg.

4 INFORMATION & ELECTRONICS

Electronic North Central Region Instrument Electronic Instruments Dallas County Manufacturing Search & Navigation Instruments

Concentration Gulf Region Industrial Process Instruments Moderate Above Average Capital Region Industrial Process Instruments High

Related workforce: Aerospace Mfg. (pg. 12)

Communications North Central Region Wireless Communications Equip. Equipment Telecommunications Equip. Manufacturing Dallas County Telecommunications Equip. Alarm & Security Systems

Concentration Gulf Region Moderate Above Average Capital Region High

5 INFORMATION & ELECTRONICS

Data Management, Hosting, and Dallas/Fort Worth Data Management Related Services

Concentration Moderate Capital Region Above Average Alamo Region High Hosting

Software Publishing North Central Region

Dallas County

Concentration

Moderate Capital Region Above Average High

6 INFORMATION & ELECTRONICS

Internet Publishing and Web Search Portals

Concentration Moderate Capital Region Above Average Internet Publishing High

Computer Systems North Central Region Design and Related Computer Systems Design Services Dallas County Computer Facilities Mgmt. Computer Systems Design

Central Texas Custom Programming Services This sector provides custom- ized software and hardware integration, customized software installation, onsite IT and data facility manage- ment, and other computer- related services

Concentration Gulf Region Computer Systems Design Moderate Above Average Capital Region High Custom Programming Services Computer Systems Design

7 Architectural and Engineering Dallas/Fort Worth Architecture & Drafting Services Testing Laboratories

Central Texas Engineering Services Basin Geophysical Surveying Engineering Services Gulf Region Engineering Services Concentration Geophysical Surveying Moderate Above Average Capital Region Architecture High Surveying & Mapping

Legal Services

Dallas County Offices of Lawyers Title Abstract & Settlement

Concentration Moderate Above Average Capital Region High Offices of Lawyers Patent Agent & Paralegal Services

8 Credit and North Central Region Real Estate Credit Dallas/Fort Worth Consumer Lending Real Estate Credit Consumer Lending Sales Financing Credit Card Issuing

Central Texas Secondary Market Financing

Concentration Moderate Capital Region Above Average Sales Financing High

Security and Tarrant County Securities Brokerage Commodity Dallas County Dealing Investment Banking Securities Brokerage Commodity Contracts

Gulf Region Concentration Commodity Contracts Moderate Above Average High

9 FINANCIAL SERVICES Panhandle Other Financial Specialized Investors Dallas County Investment Portfolio Management Investment Advice Services Specialized Investors

This sector includes financial planning, portfolio manage- ment, mineral royalty and lease brokerage, venture capital firms, and other services

Concentration Gulf Region Portfolio Management Moderate Above Average Capital Region High Alamo Region Investment Advice Portfolio Management Specialized Investors Specialized Investors

Funds, Trusts, and Other Financial Dallas/Fort Worth Vehicles Insurance Funds Trusts, Estates, etc.

This sector pools securities or other assets on behalf of employee benefit groups or other shareholders. This includes pension funds, mutual funds, and others

Concentration Gulf Region Mutual Funds Moderate Above Average Capital Region High Alamo Region Pension Funds Mutual Funds

10 FINANCIAL SERVICES

Insurance West Central Texas Dallas County Carriers Life Insurance Property Insurance Life Insurance Health Insurance

Heart of Texas Life Insurance Property Insurance

Concentration Moderate Above Average High Alamo Region Property Insurance

Accounting North Central Region Services Payroll Services Dallas County Certified Public Accountants Payroll Services

Concentration Gulf Region Certified Public Accountants Moderate Above Average High

11 Panhandle Aerospace Aircraft Mfg. Product and Parts Aircraft Engines Manufacturing Tarrant County Aircraft Mfg.

Dallas County Aircraft Parts

Concentration Austin Metro Region Moderate Aircraft Engines & Parts Other Aircraft Parts Above Average High Alamo Region Aircraft Mfg. Aircraft Engines & Parts Related workforce: Electronic Instrument Mfg. (pg. 5)

Scheduled Air Transportation Dallas/Fort Worth Passenger Air Transportation

Concentration Gulf Region Passenger Air Transportation Moderate Above Average High

12 AEROSPACE & AVIATION

Support Activities North Texas for Air Aircraft Maintenance & Repair Tarrant County Transportation Airport Operations Aircraft Maintenance & Repair

Central Texas Aircraft Maintenance & Repair

Concentration Gulf Region Airport Operations Moderate Middle Aircraft Maintenance & Repair Above Average Aircraft Maintenance & Repair High Alamo Region Coastal Bend Region Aircraft Maintenance & Repair Aircraft Maintenance & Repair

13 Motor Vehicle

Manufacturing Dallas/Fort Worth Light Trucks Heavy Duty Trucks

Concentration Gulf Region Moderate Heavy Duty Trucks Above Average Alamo Region High Light Trucks

Motor Vehicle Parts Tarrant County Motor Vehicle Electrical Equipment Manufacturing Motor Vehicle Interiors Motor Vehicle Air Conditioning

Upper Rio Grande Motor Vehicle Electrical Equipment

Concentration Moderate Above Average Alamo Region High Motor Vehicle Interiors Motor Vehicle Metal Stamping Cameron County Motor Vehicle Parts 14 INDUSTRIAL MANUFACTURING

Motor Vehicle North Central Region Truck Trailers Body and Trailer Manufacturing Truck Trailers Travel Trailers & Campers

Heart of Texas Truck Trailers

Concentration Moderate Above Average High

Panhandle Agricultural, Mining, Farm Machinery and Construction Machinery

East Texas Oil & Gas Field Equipment

Concentration Gulf Region Oil & Gas Field Equipment Moderate Above Average High

15 INDUSTRIAL MANUFACTURING

Industrial Machinery Pumping Equipment Tarrant County Manufacturing Power Transmissions Conveyor Systems

Permian Basin Region Air & Gas Compressors

Concentration Gulf Region Pumps & Compressors Moderate Turbines Above Average High Capital Region Semiconductor Machinery

HVAC and Dallas/Fort Worth Refrigeration Equip. Air Conditioning Equipment Air Purification Equipment Manufacturing Industrial Fans and Blowers

East Texas Air Conditioning Equipment

Concentration Gulf Region Air Conditioning Equipment Moderate Above Average High Alamo Region Air Conditioning Equipment

16 INDUSTRIAL MANUFACTURING

Architectural and West Central Texas Fabricated Structural Structural Metals Metals Dallas/Fort Worth Windows, Doors & Sheet Metal Manufacturing Plate Work & Structural Metals

Brazos Valley Windows & Doors

Southeast Texas Architectural Metals Concentration Gulf Region Plate Work & Structural Metals Moderate Sheet Metal Work Above Average High

Panhandle Other Fabricated Fabricated Metals Metals Manufacturing Northeast Texas Fabricated Pipe Ammunition

Deep East Texas Metal Valves Upper Rio Grande

Southeast Texas Metal Valves Fabricated Pipe Concentration Gulf Region Metal Valves Moderate Fabricated Pipe Above Average High

17 Petroleum Product Manufacturing

East Texas Petroleum Refining

Permian Basin Petroleum Refining Southeast Texas Petroleum Refining Gulf Region Concentration Petroleum Refining Moderate Lubrication Oil Mfg. Above Average High Coastal Bend Region Petroleum Refining

Panhandle Chemical Carbon Black Mfg. Organic Chemicals Manufacturing North Central Region Explosives Other Chemicals

East Texas Basic Chemicals

Southeast Texas Petrochemicals Gulf Region Concentration Petrochemicals Moderate Alkalies & Chlorine Above Average Organic Chemicals High Coastal Bend Region Golden Crescent Region Petrochemicals Organic Chemicals Synthetic Pigments 18 Related workforce: Pharmaceuticals Mfg. (pg. 1) PETROLEUM & CHEMICAL PRODUCTS

Plastics Texoma Region Plastic Packaging & Film Manufacturing North Texas Plastic Pipes Plastic Pipes North Central Texas Plastic Packaging & Film Foam Products

East Texas Plastic Packaging & Film

Central Texas Laminates Foam Products

Gulf Region Concentration Plastic Pipes Moderate Foam Products Above Average Golden Crescent Region High Plastic Packaging & Film

Paint, Coating, and North Central Region Paints & Coatings Adhesive Dallas/Fort Worth Manufacturing Paints & Coatings Adhesives

Gulf Region Concentration Paints & Coatings Moderate Adhesives Above Average High

19 Freight Transportation Arrangement Tarrant County Freight Forwarders

Upper Rio Grande Freight Forwarders

Gulf Region Concentration Marine Shipping Agents Moderate Freight Forwarders Above Average / High Middle Rio Grande Freight Forwarders Freight Forwarders

Water Transportation

Southeast Texas Navigational Services

Gulf Region Concentration Marine Cargo Handling Moderate Navigational Services Above Average Deep Sea Freight Transport Inland Water Transport High Cameron County Marine Cargo Handling 20 Navigational Services LOGISTICS AND TRANSPORTATION

Rail Transportation Support Services Tarrant County Rail Cargo Transfer

East Texas Rail Car Maintenance

Southeast Texas Rail Car Maintenance Gulf Region Concentration Rail Cargo Transfer Moderate Rail Car Maintenance Above Average High

Process, Distribution and Tarrant County Logistics Consulting North Central Region

Upper Rio Grande

Concentration Moderate Above Average

High South Texas

21 Panhandle/South Plains Food Meat Processing Dallas/Fort Worth Manufacturing Snack Foods Seasonings & Dressings Frozen Foods

Northeast Texas Meat Processing Canned Fruit/Vegetables

Heart of Texas Poultry Processing

Concentration Concho Valley Gulf Region Fresh & Frozen Seafood Moderate Meat Processing Above Average Alamo Region High Baked Goods Coastal Bend Region Lower Rio Grande Baked Goods Fruit/Vegetable Processing

Beverage Tarrant County Breweries Manufacturing West Central Texas Soft Drinks Soft Drinks Dallas County Soft Drinks

Upper Rio Grande Soft Drinks

Concentration Gulf Region Soft Drinks Moderate Breweries Above Average Alamo Region High Soft Drinks

22 Sources

 Texas Workforce Commission www.tracer2.com  U.S. Bureau of Labor Statistics www.bls.gov Office of the Governor Economic Development & Tourism P.O. Box 12428 | Austin, TX 78711 (p) 512.936.0100

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