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February 1978 s ESS February 1978 Business Doctorates in Texas 29 An Interview with Jess R. Totten 31 .......Denison: A Center for Diversified Light Manufacturing 34 Rousing Market Outlook: 1978 37 A Compari•on ot Foreign and Texas Labor Costs 40 Texas Vol. 52, No. 2, February 1978 Business Review 29 Business Doctorates in Texas: A Study in Demand and Supply, Barry Render, William Wagoner, James R. Bobo, Stephen Corliss Published by the Bureau of Business 31 An Interview with Jess R. Totten, Ken Roberts Research, University of Texas at Austin Charles C. Holt, Director 34 Sherman-Denison: A Center for Diversified Light Manufac­ Lorna Monti, Associate Director turing, Carol T.F. Bennett, Charles P. Zlatkovich 37 Housing Market Outlook: 1978, Charles H. Wurtzebach 40 A Comparison of Foreign and Texas Labor Costs: Implica­ The Authors tions for Foreign Direct Investment in Texas, Sion Barry Render Raveed, Tim Meinershagen, Robert B. Morris III Acting Director, Division of Business and Economic Research University of New Orleans Tables William Wagoner Professor of Economics University of New Orleans 29 Business Ph.D. Demand and Supply in Texas, 1977 through 1981 Jam es R. Bobo 30 Business Ph.D. Demand and Supply in the Southern Region, 1977 Dean of the Graduate School of Business through 1981 University of New Orleans 30 Sources of New Business Faculty for Texas Schools, 1974 through 1977 Stephen Corliss 35 Nonagricultural Civilian Payroll Employment Percentages, Sherman­ Graduate Research Assistant College of Business Denison SMSA and United States, July 1977 Administration 35 Percentage of Personal Income by Major Sources, 1975, Sherman­ University of New Orleans Denison SMSA and Texas Ken Roberts Research Associate 36 Manufacturing Plants with More Than 250 Employees, Sherman-Denison Bureau of Business Research SMSA, 1977 Carol T.F. Bennett 39 Estimated Values of Building Authorized in Texas Research Associate Bureau of Business Research 41 Estimated Compensation Rates in Dollars, Selected States and Foreign Charles P. Zlatkovich Countries, 1976 Research Associate 41 Estimated Compensation Rates in Dollars, Selected Countries, August I, Bureau of Business Research Charles H. Wurtzebach 1977 Assistant Professor of Real 42 Wages in Texas Counties, August 1, 1977 Estate and Finance 43 Union Membership among Nonagricultural Workers, Southwestern University of Texas at Austin Sion Raveed United States, 1975 Professor of International 43 Union Membership in the Labor Force, Western Europe Business 43 Days Lost Because of Work Stoppages, Southwestern United States and University of Notre Dame Western Europe Tim Meinershagen Graduate Student in Business 44 Local Business Conditions University of New Mexico 45 Selected Barometers of Texas Business Robert B. Morris III 46 Gross Retail Sales by Kind of Business for Texas Standard Metropolitan Graduate Student in Business University of New Mexico Statistical Areas Barometers of Texas Business (inside back cover) Cover design: Eje Wray Subscription rate: $5.00 per year. Single copy: $.SO. Address Texas Business Review is indexed in Marketing Information Guide requests to Publications Office, Bureau of Business Research, and Public Affairs Information Service and is available on P.O. Box 7459, Austin, Texas 78712. Second-class postage paid microfilm from University Microfilms. at Austin, Texas. Publication number 540-400. Contents of this publication are not copyrighted and may be The Bureau of Business Research is a member of the Association for reproduced freely. Acknowledgment of the source will be University Business and Economic Research. appreciated. Business Doctorates in Texas A Study in Demand and Supply Barry Render James R. Bobo William Wagoner Stephen Corliss That Texas occupies a unique position in higher educa­ management, marketing, economics, quantitative methods, tion among southern states is without question. Many of its and general business. universities enjoy a reputation of quality in and out of the The projected 1977-1981 supply data were derived from South. Over the years the state has steadily increased its the responses of the eight schools of business and/or output of Ph.D.s; it is now the largest regional producer and economics in Texas with doctoral programs- the University consumer of business Ph.D.s. At current and projected of Texas at Austin, Texas A&M , North Texas State, Texas levels, however, Texas will not graduate enough doctoral Tech, the University of Houston, Rice , Southern Methodist, students to meet its expected demands in the sectors of and the University of Texas at Arlington. A total of 581 academia, industry, and government. business doctorates are expected to be granted over the It is true that many academic areas are characterized by 1977-1981 period. This indicates that Texas will continue an oversupply and that some will probably produce more to produce less than the state academic demand in all but than the optimum number of Ph .D.s in the next five to ten two areas (economics and quantitative methods); Ph.D.s in years. However, it is also true that in some academic areas a the latter two areas will either leave the state or seek relative shortage exists, and an undersupply may exist in employment in government or business. Texas universities coming years. will supply 36 percent of all southern doctorates in The lack of information and presence of conflicting accounting, 26 percent in finance, 27 percent in manage­ information regarding supply and demand conditions for ment, 18 percent in marketing, and 36 percent in quanti­ new doctoral faculty in Texas are subjects of concern to tative methods. These figures are even more notable in light many. Universities training doctoral students are concerned of the fact that Texas contains only 15 .6 percent of the that their graduates will not find jobs commensurate with colleges in the entire 15-state Southern Region. their education. Students in Ph.D. programs worry that Doctorates will be granted by Texas universities in each demand for their talents may diminish or disappear by the of the traditional bu siness areas, including general business. time they reach graduation. Schools needing to hire new The demand for 44 general business Ph.D.s-while only 12 faculty are concerned about the availability of a sufficient students are enrolled - is, by the way, an interesting number of quality doctoral graduates to meet their recruit­ phenomenon. This situation appears to be the result of an ing needs within their budget restrictions. Business Ph .D. Demand and Supply In order to determine the anticipated academic demand in Texas, 1977 through 1981 for new Ph.D.s in business by Texas schools, administrators participating in the survey were asked to estimate new Projected Projected umber of jo bs Academic area demand supply per graduate faculty needs in each of several areas for each yea r through 1981 . Future enrollments, budget trends, and retirement Accounting 162 142 I. I 0 Econo m ics 62 120 0 .5 0 and attrition rates were some of the factors considered in Fin ance 89 73 1. 20 making the estimates. Ma nagem ent 107 89 1. 20 The four-year aggregated total demand of 623 new Ma rketing 8 1 60 1. 30 Q uantitative methods 64 75 0 .80 Ph.D.s makes Texas by far the largest consumer of business General busin ess 44 12 3.70 doctorates out of the 1 5 southern states studied; second O ther (busin ess education place North Carolina had a projected demand of only 329 and internatio nal busin ess) 14 I 0 1.40 Ph.D.s. About one fourth (162) of the state's needs will be Total 623 58 1 1.07 for accounting Ph.D.s, followed in order by finance, FEBRUARY 1978 29 Business Ph.D. Demand and Supply in the Southern Region, 1977 through 1981 Number of State Projected demand Projected supply jobs per graduate Alabama 240 84 2.86 Arkansas ISO J OO I.SO District of Columbia 3S 146 0.24 Florida 298 132 2.26 Georgia 28S 20S 1.39 Kentucky 149 S8 2.S7 Louisiana 199 116 1. 72 Mississippi 147 79 1.86 North Carolin a 329 19S 1. 69 Oklahoma 108 133 0.81 South Carolina 139 108 1.29 Tennessee 240 I OS 2.29 Texas 623 S81 1.07 Virginia 287 120 2.39 West Virgi nia 91 14 6.SO Total 3,320 2, 176 l.S3 increasing interest on the part of smaller Texas two- and Region (which contains many of the Big Ten schools). Only four-year colleges seeking well-rounded Ph.D.s who can 6 percent of the Ph.D. graduates sampled graduated from teach introductory courses in several areas. It may be Mid-Atlantic Region schools and 4 percent from New worthwhile to consider expanding such general degree England, Midwestern, and Western region universities. programs in business to meet the demand that exists not Almost two thirds of those professors hired in Texas from only in Texas but throughout the South. Southern Region schools actually graduated from a Texas Relatively well balanced demand-supply ratios for aca­ university. demic jobs exist in accounting (I . I jobs per graduate), Because of standards and competition, the state's accred­ finance (1.2), management (1.2), marketing (1 .3), and ited business colleges seek a more diversified faculty quantitative methods (0.8 ). In the field of economics only composition-that is, more non-South Ph.D.s-than nonac­ one job is forecast for every two graduates: since about 17 credited Texas schools. For example, the twelve accredited percent of all business Ph.D.s find employment in business colleges in Texas hired only 40 percent of their new or government, however, a slightly less severe oversupply of business faculty members from the South, while the 94 economists may actually occur.
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