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. Overall, I .07 academic nonaccredited schools hired 74 percent from the South. business positions per doctoral graduate are expected in the Nearly 50 percent of recent Texas graduates stayed in state. At the same time 1.5 3 jobs per graduate are expected the South; an average of 61 percent of graduates from other in the entire 15-state Southern Region. southern states remain in the South. From 75 to 83 percent of all graduates of Deep South universities (for example, Sources and Destinations of Ph.D. Graduates those in Alabama, Louisiana, Mississippi, and South Carolina), where the Ph.D. programs are not rated as high as As a group, Ph.D. recipients are a highly mobile segment the programs in Texas, stay in the Southern Region. No of the population. Business professors, being in somewhat Texas Ph.D.s were found in New England; 7 percent were greater demand than other academics, are especially given found in the Mid-Atlantic and Midwestern regions, 14 to relocating. percent in the Mid-Continent East Region, 13 percent in About 60 percent of the recent graduates hired in Texas the Western Region, and 9 percent in foreign countries. received their degrees from a university in the South. The Two interrelated reasons probably exist for as many as next largest source of recruits was the Mid-Continent East 50 percent of Texas' graduates staying within the South. Sources of New Business Faculty for Texas Schools, 1974 through 1977

Area o r U.S. regio n w here Percentage hired Percentage hired by Percentage hired by faculty mem ber by all Texas accredited business no n accredited received Ph.D. schools schools schools

Southern 60 40 74 New England 4 7 2 Mid-Atlantic 6 7 s Mid-Co ntinent East 14 29 s Midwestern 4 s 2 Western 4 12 11 Foreign 1

Number sampled in survey

Ph.D.s 247 100 147 Schools 106 12 94

30 TEXAS BUSINESS REVIEW First, the state and the Southern Region need and consume located throughout Texas. The 21 schools that chose not to respond a significant number of graduates in their own colleges and to the survey were mostly smaller two- and four-year colleges. which other places of employment. Second, many graduates retain are not major consumers of business Ph .D.s. Of the I 06 participants strong ties to the South, to its climate, and to its life-style 12 (the University of Texas at Austin, the University of Texas at and make an effort to find employment in the region. Arlington, Texas A&M, Texas Tech. the Uniwrsity of Houston, Southern Methodist, North Texas State, Stephen F. Austin State, Baylor, East Texas State. Texas Christian, and TL·xas Southern) arc Note accredited by the Ameri<:an Assembly of Colkgiate Schools of Business. Although the other 94 colleges do not have accredited Included in this study, which was sponsored by the Southern business divisions, 54 of them indicated a hiring need during the Business Administration Association, were I 06 colleges of all sizes next few years for one or more new Ph.D.s in business.

An Interview with

Jess R. Totten

by Ken Roberts

Enrollment in business programs at both the undergraduate and graduate levels has incre ased dramatically during the 1970s. In an effort to understand this phenomenon and the changing attitudes of students toward business education we interviewed Jess R. Totten, student advisor for the MBA program at the University of Texas at Austin.

Review: Do you think that the increase in enrollment in many rewarding careers in the business world that the MBA program and business education in students are just now becoming aware of. They general is a result of what has been called are seeing that dealing with people on a day-to­ " vocationalism" - pressures of the job market, day basis in a management situation can be a very insecurity-or a change in attitudes of people rewarding experience. toward business in general? That is, has some sort of basic attitudinal shift taken place since the Review: Has this shift in attitudes included their feelings years of the 60s? toward big business?

Totten: First of all, as long as business activity is Totten: Yes , 1 think there is some mellowing of their increasing and there is no recession, I think perception of big business and its impact on the business education is generally going to grow environment, or whatever you choose to address because there is simply a demand for more your issue to, and students now recognize that big qualified people, those educated in the business business isn't necessarily bad. And to associate area , to fill a growing demand. Should that trend with a big company doesn't mean that you have reverse, I think probably enrollment would also to compromise your basic prindples. That ap­ reverse because there would be a perception on preciation, 1 think, has come about simply the point of the student that careers in that because business has made a conscious effort to particular area might not be as attractive. Also, convince not only students but people in general after talking to students who are applying to the that business does make a significant contribution program, I think they now appreciate that being to our country and to the economic system. Also, in business isn 't necessarily bad, that there are students are willing now to recognize that there is

FEBRUARY 1978 31 great security associated with working for a large Totten: No. Students are difficult to generalize about, but company. The benefits associated with em­ I think you find they have a full range of interests. ployment there tend to be better, for instance, There's a very active group at the small end of the than with the smaller company. And so those business environment. The entrepreneurs are very students who are seeking security not only in the dynamic, outgoing people who have the kinds of job market but after they finish their work years personalities that you would associate with that look toward big industries to provide that sort of kind of endeavor. There's a large middle group security. I think, yes, there has been a change in that's not really sure exactly what they want to attitude, and students now not only are willing do. They are keeping their options open to go but also are actively seeking employment with big either way, depending on what the circumstances companies. may present. And then at the other end of the spectrum there's that group that appreciates not Review: Are there any trends in the type of jobs the only the security that may come with the large students are getting? Are they general manage­ company but also the opportunities that are ment jobs or management trainee programs, or are offered within a large company. For instance, they being hired for very specific types of jobs some of those people visualize themselves even­ such as those in accounting or finance de­ tually as the chairman or chief executive officer of partments? something like General Foods, Exxon, or one of a very large, worldwide company, and the only way Totten: It's a little bit difficult to generalize. The larger to do that is to get involved early with a company companies who recruit are typically looking for like that. So they're willing to go to work for big people to put into some sort of training program. business simply because it offers big opportunities Although placement there may be in a particular in many cases. organization or department within the larger company, the graduate can expect to get involved R eview: What courses are most in demand by MBA in some sort of management program simply students? because he needs to learn the company and the big companies-that takes quite a training pro­ Totten : Accounting is a very popular area at the moment. gram. However, the medium-sized and smaller Most of our students want to take at least six to companies come to the campus looking for a nine hours in accounting beyond the two basic specific talent so they will be trying to fill a accounting courses in the core curriculum. This is specific position; there I think the demand is for a followed closely by courses in finance. particular training skill like accounting or finance or marketing or management. Now it's interesting R eview: Do you feel this is due to the demands in the job that we have a fairly significant percentage of the market? students who are educating themselves to do their own thing. Entrepreneurs they call themselves. In Totten: I think it's probably the student's perception of any case, the ultimate goal of the student is to what's going to be attractive on his resume more pick up the academic credentials and to either than anything else. The quality of the department establish his own business directly out of school, obviously has some impact, but again it's because if finances are available, or to accrue in some the student sees the employer looking at his fashion the finances required to establish his own resume, and if he took three or four accounting business. They are a very active group in the courses at the University of Texas, he obviously school. They've organized themselves into what has something on the ball, and they are interested they call an Entrepreneurs Club, and they sponsor in him. So, quality enters, but it is really the a day each semester when they invite back to the student's perception of a potential for employ­ campus UT graduates either who are currently ment. I think students tend to line up their doing their own thing as entrepreneurs or who academic programs as best they can to make them have been successful in the Southwest or in the high potential employees. They're looking for local area to give them practical tips on how to do credentials that will sell them in the job market; this. We have a number of faculty who are they're aware that the real proof of the pudding, interested in that area , and we offer a number of so to speak, for an education is how well they are courses in that area. able to place themselves to satisfy their own career goals. Review: I see. This would indicate that there may be two types of students that you're talking about: one Review: Are most of your students business majors? seeking security and another being an entre­ preneur. ls there any sort of a contradiction in Totten: It's split about evenly-about SO percent have this? undergraduate business degrees.

32 TEXAS BUSINESS REVIEW Review: What would an undergraduate student who ma­ Review : Do you see any particular disciplines from which jored in business expect to gain in going on for an they are coming into the MBA program, outside MBA, other than direct financial rewards? of an undergraduate business program, that is ?

Totten: Well, I think his perception is of a couple of Totten: Yes, I think probably one of the biggest ones is things, and the point that I try to make when I the educational field . Apparently, there are more talk to those students is that an advanced degree people looking for positions than there are satis­ normally allows a student to move through fying positions. The other is in the - I hesitate to relatively routine, perhaps unrewarding, jobs more call them philosophical disciplines- but in those rapidly than an undergraduate degree holder. For disciplines where again, the positions are limited instance, many industries have, by necessity, simply because of the lack of demand in our certain positions a prospective employee must go current economic situation. There is a demand for through in order to attain certain management qualified women in business; the women recognize levels. An advanced degree normally allows a that and are simply trying to meet those demands student to move through those positions more with adequate preparation. rapidly, simply because he grasps what's going on in a quicker fashion and demonstrates the re­ R eview : One last question. Say I was an executive seeking quired competence earlier. The other point that I an employee with a high level of professional think is important to the student is that an competency, and by that I mean someone who advanced degree typically will qualify him for a has a good knowledge of accounting or finance to broader spectrum of initial positions, and by that work in that department. Why would I choose an I mean the company that recruits will offer him MBA candidate over simply an undergraduate typically a wider range of starting jobs, which major in other field s? means that he has more opportunity to select a particular career field. It also allows him to move Totten: Well , there are a couple of things to take into from position to position with more ease than consideration. First of all, the student who applies does an undergraduate degree where the speciality to and completes an MBA program has demon­ might be in accounting or marketing or manage­ strated already a willingness to take on additional ment, where the employer visualizes that partic­ responsibilities and additional risks. Let me ex­ ular employee in that particular career field and pand on that. We at the graduate level have not in any other. It simply opens more doors as already eliminated many of the students who far as placement is concerned. would make the lower B average in their under­ graduate programs so the competition at the graduate level has already been restricted to Review: What about the enrollment of women? students who have made As and Bs at the undergraduate level. The pace is faster, the compe­ Totten: About 30 percent of our 980 students are women, tition is stronger, and the willingness to get and that percentage grows dramatically each year. involved in that kind of competition tells you As we look back over the last five years we find something about a person's character. Okay? that the enrollment of women has increased about Normally they are achievers, they are striving for 600 percent. goals and are willing to associate themselves with the kinds of people doing that. The second thing Review: What do you think has caused this dramatic is that I think it tells a potential employer that the increase in the enrollment of women? student was willing to take a couple of more years out of what normally would have been a produc­ Totten: First, I think women, because of their recent tive career and devote it to academic training to attainment of status, now want to move up and increase the quality of his product in whatever his into areas where they previously were not repre­ future career might be. That's a fairly significant sented, and, in order to do that, they recognize sa crifice when you consider that a typical under­ the requirement for some academic preparation graduate at UT in business may be offered a and some academic credentials. So it is a normal $10,000-$12,000 salary, starting out. Here's a outcropping of the woman's desire to excel and to student willing to sacrifice $25 ,000 initially be­ achieve positions that she's been unable to attain cause he perceives that the long-range goals are previously in any significant numbers. The other worth that kind of an investment. So he has factor is that some women have simply become demonstrated some appreciation for, I think, frustrated with what they have done in their long-range goals as o pposed to short-range gain. So undergraduate programs leading them into those are the kinds of folks that a potential dead-end careers; they're looking for alternatives employer should expect to find when he goes to that. recruiting MB As anywhere, practically.

FEBRUARY 1978 33 Sherman-Denison

A Center for Diversified Light Manufacturing

Carol T.F. Bennett

Charlt"s P. Zlatkovich

The Sherman-Denison metropolitan area has become a area. A degree of both competition and cooperation exists major manufacturing center for some of the largest firms in in the relation between Sherman and Denison: competition the United States. Located north of Dallas and Fort Worth, for new industries and retail sales and cooperation in the Sherman and Denison have been attractive to industry running of the county airport and college. seeking a regional distribution network in northern Texas but preferring to avoid the higher land, labor, and transpor­ tation time costs in Dallas and its suburbs. Manufacturing Population Structure employs over one third of the labor force in the area-a fraction over twice the Texas average. Furthermore, signif­ The Sherman-Denison SMSA consists of Grayson Coun­ icant developments have occurred in manufacturing re­ ty. According to the Bureau of the Census, Grayson County cently, with several very large plants established in the area has lost population since the 1970 census, going from within the 1976-1977 period alone. 83,225 in that year to 78,831in1975. The principal reason Sherman and Denison, although only ten miles apart, for the decline was the closing of Perrin Air Force Base in have different histories. Sherman was established as the seat 1970. The county population is probably now about of Grayson County in 1846 and by 1858 was a major 79,500. Sherman is larger than Denison, with an estimated distribution point on the Butterfield Overland Mail Route. 197 5 population of 26,000 against 22,400 for Denison. Denison was also a stop on the route but its growth resulted from the Missouri-Kansas-Texas Railroad, built in 1872 and still a major employer. The building of Denison Dam in the Employment and Personal Income late 1940s created Lake Texoma out of the Red River and gave the area one of the largest artificial lakes in the United Manufacturing is the dominant economic sector in the States. The Oklahoma border is only five miles from Sherman-Denison area. Over 36 percent of the nonagricul­ Denison, and interstate trade is an economic factor in the tural labor force is employed in manufacturing-SO percent

34 TEXAS BUSINESS REVIEW more than the national average. Manufacturing accounts for for the first half of 1977 is up 25 percent from that of the a smaller fraction of personal income-about 24 percent­ first half of 1976; the increase in 1976 from 1975 was 28 partly because the goods production sector tends to be percent. concentrated in light industries, which pay relatively lower The wholesale and retail trade sector is quite small wages. relative to the state and national averages. Usually metro­ The largest manufacturing plants in the area are owned politan areas are centers for trade and services for the by firms headquartered outside the area, most of them surrounding rural areas and thus have higher than average outside the state. At least sixteen of the major plants are trade and service employment. The small size of this sector owned by companies listed in the Fortune ranking of the in Sherman and Denison partly results from the fact that five hundred largest industrial firms in the country; this is manufacturing statistics overwhelm those for all other an impressive list for an area with about 80,000 residents. sectors. Another cause may be the proximity of the Products manufactured are diversified, with the result that Sherman-Denison area to the Dallas-Fort Worth metroplex, employment and income are not as vulnerable to the where much of the trade in business orders, consumer vagaries of specific firms and industries as is the case in durables, and entertainment may be drawn. According to many areas of Texas. David Huff and Diane DeAre in Principal Interactiun Fields The transportation, communication, and public utilities uf Texas Metropolitan Areas, Fannin County in Texas and sector contributes more to Sherman-Denison area employ­ Bryan County in Oklahoma are the only other counties in ment and earnings than the average for the state and nation, the area besides Grayson that are primarily attracted to largely because of the Missouri-Kansas-Texas Railroad, Sherman and Denison rather than to Dallas and Fort Worth. popularly known as the Katy. The Katy employs more than Of the trade employment in Sherman and Denison about 600 people in Denison and has both offices and mainte­ 85 percent is involved with retail rather than wholesale nance facilities in the community. While rail transportation is trade, further indicating that the trade employment gener­ well represented in the Sherman-Denison area, air transpor­ ally serves the local area. Another factor in trade employ­ tation is not. Sherman-Denison is the only metropolitan ment and income is tourism: visitors come to the area to area in the Southwest that does not have scheduled enjoy the recreation at Lake Texoma and to see the commercial air passenger service. The proximity of Sher­ birthplace of President Dwight D. Eisenhower in Denison. man and Denison to the Dallas-Fort Worth Regional The services sector in the Sherman-Denison area is also Airport is largely responsible for the absence of scheduled smaller than the state and national average. Two of the air service, although a commuter airline service linking the employment sectors under the services heading are private Sherman-Denison area with DFW and perhaps with Okla­ homa City or Tulsa would seem to be a potentially viable operation in view of the number of national firms operating Percentage of Personal Income by Major Sources, 1975 in the area and the size of the resident population. Sherman-Denison SMSA and Texas Contract construction accounts for a slightly smaller Sherman- percentage of employment in Sherman-Denison than in the Source De nison SMSA Texas United States. Construction has increased significantly in Agri culture 0 . 13 2.63 the area in the recent past. Particularly in 1976 nonresiden­ Mining 0 .8 4 3.52 tial construction rose sharply as a result of the building of Constructio n 3.78 5.56 new commercial, manufacturing, and hospital facilities. Manufact uring 23.75 I 5. 14 T ranspo rtatio n, co m municat io n , Housing construction value has risen steadily : total value and public utilities 6.02 5.84 Wholesale and retail trade 9.90 14.54 Finance, in surance, Nonagricultural Civilian Payroll Percentages and real estate 2 .56 4.04 Services 10.07 11 .45 Sherman-Denison SMSA and United States, July 1977 Other in d ustries 0.17 0.27 Total private labor and Sher man - Un ited pro prieto r in come 57.22 62.9 9 Category Denison SMSA States Federal civilian 0 .86 3.29 Federal military 0.38 2.79 Mining 0.6 1.0 State and local 6 .62 7 .66 Contract construction 4.7 5.0 Total government earnings 7.86 13.74 Manufact uring 36.1 23.9 Total labor an d proprieto r Transpo rtatio n , income (pl ace of wor k) 65.08 76.73 communicatio n, and Less: Personal contributio ns public utilities 6.2 5.6 for social insurance 3.42 3.78 Trad e 19.9 22.3 Residen ce adjustment +2.26 +0. 15 Finance, in surance, Net labor an d pro prieto r and real estate 3.9 5.6 income (place of residen ce) 63.92 73. 10 Services 16.8 18 .8 Dividends, interest , an d rent 18.56 I 5.64 Governmen t 11.8 17.8 T ransfer payments 17 .52 I 1. 26 To tal 100.0 100.0 Total personal in come (place of resid ence) 100.00 100.0 0 So urce: Sherman -Den ison data obtained from Labor Ma rket Re­ vie w (T exas Em p loyment Commission , A ugust 1977). U.S. data Source: Developed from data compil ed by the Regional Econo mics fro m Employment and Earnings (U.S. Departmen t of Labor, Information System , Bureau o f Econo mic An alysis, U.S. Dep art­ August 1977). men t o f Commerce.

FEBRUARY 1978 35 education and medical care. Austin College, which located company in Denison. Several smaller plants in these and in in Sherman in 1876, is one of the oldest colleges in Texas. smaller cities in Grayson County produce women's dresses With about one hundred faculty members and about twelve and sportswear. hundred students, Austin College offers its students a very The two largest employers in the area are also engaged in high degree of faculty contact; its programs show a strong light manufacturing. Texas Instruments employs over two liberal arts focus . Medical care is another important thousand workers at its recently expanded Sherman plant component of the services sector: according to County and two hundred more at a plant at the Grayson County Business Patterns, 19 74, about one half of all service Airport. Among the goods produced are precision parts for workers are engaged in medical care. industrial machinery, integrated circuits, calculators, and The federal government plays a very small role in the watches. Johnson & Johnson, which employs over five economy of the Sherman-Denison area. Where over 6 hundred workers at its regional headquarters in Sherman, percent of Texas income is derived from federal civilian and manufactures a variety of disposable medical and hospital military employment, only about 1.25 percent of supplies and athletic pads. Sherman-Denison area income comes from this source. Recently, both Sherman and Denison have been attract­ State and local employment and income are only slightly ing firms engaged in heavier industry. Fisher Controls has lower than Texas averages. Included in this category is begun manufacturing valves in Sherman and will eventually employment at Grayson County College, a two-year college employ several hundred workers. Kawneer Company, a that offers academic courses, a technical-vocational pro­ structural aluminum products manufacturer, has just gram, and continuing education. About 4,500 students opened a similar size plant in Denison. Hitchcock Industries attend Grayson County College, and more than 160 faculty is an aluminum foundry established about five years ago. members are employed there. Johns-Manville manufactures pipe, and Reed Tool Com­ Dividends, interest, and rent comprise a significantly pany produces earth augers in Denison. larger fraction of income in the Sherman-Denison area than in the state. Transfer payments are also high, due to the older-than-average population receiving social security and Population and Income Profile military retirement benefits. The population of the Sherman-Denison area is signifi­ cantly older than the Texas state average. Where the state Key Manufacturing Industries median age is 27.8 years, the median age in Sherman­ Denison is 32.l years. The percentage of population in the Manufacturing in the Sherman-Denison area began as age groups from 18 to SO is not very different from that of processing of agricultural commodities-cotton, grain, and the state; however, the age group over 65 is much larger, edible oils. Both Sherman and Denison have been cotton­ and the age group under eighteen is much smaller than the processing centers: Burlington Domestics owns a sheeting Texas average. plant established in Sherman in 1891 ; the Denison Mattress Factory has been operating since 1900; and the Hardwicke­ Etter plant, which now manufactures conveyors, began Manufacturing Plants with More Than 250 Employees producing cotton-ginning equipment in I 902. Two of the Sherman-Denison SMSA, 1977 oldest industries in Sherman involve the production of the Establishment regionally distributed Gladiola Flour and Mrs. Tucker's Cit y and name o f company Primary pro duct date of plant Shortening, both now subsumed under other owners. Denison The food processing industry is still a major employer in Diaper J eans, In c. Children 's apparel 195 0 the Sherman-Denison area. Six brands of margarine are Hitchcock Industries, In c. Mold and d ie castings 19 72 produced there: Chiffon by Anderson Clayton Foods, J o hns-Manvill e Products Corp. Pipe and fitt in gs 1958 Bluebonnet and Fleischmann's by Standard Brands, and Kawneer Company, Inc. Architectural products 1977 Empress, Coldbrook, and Dalewood by Safeway Stores. Levi Strauss & Company Apparel 1949 Safeway also produces a variety of salad dressings, syrups, Pillsbury Company Refrigerated dough products 1947 and detergents at its Denison facilities. Cottonseed, soy­ Safeway Sto res, In c. Ed ible o ils; bean, and peanut oils are also produced in the area. o ther foods 1949 Sherman Pillsbury manufactures refrigerated dough products for Anderson Clay ton Foods Edible oils 19 1 3 regional distribution, and Boise Cascade produces the Bu rlingto n Domestics Textile shee ting 189 1 specialized fiber cans for the Pillsbury goods. Oscar Mayer J o hnson & J o hnson Disposable medical supplies 195 1 and Company has just recently begun processing meats at Oscar Mayer & Company Mea t processin g 1976 its new southwestern headquarters plant in Sherman. Hardwicke-Etter Company Conveyor equipment 1902 Pool Manufacturing Apparel manufacturing occupies more than one thou­ Company A pparel 19 11 sand workers in the SMSA. The largest of the plants are Texas Instruments, In c. Electro nics 1966 Pool Manufacturing Company, which produces men's cloth­ Sources: 1977-1978 Directory of Texas Manufac turers; Denison ing in Sherman, Levi Strauss & Company, which manufac­ Area Chamber of Commerce; Greater Sherman Chamber of tures slacks in Denison, and Diaper Jeans, a children's wear Commerce.

36 TEXAS BUSINESS REVIEW Median household effective buying income-the total The primary advantage of the Sherman-Denison area income of all household members after taxes-is slightly relative to other SMSAs is its location. To a national firm lower than the Texas average. As measured by Sales and seeking manufacturing and distribution facilities in the Marketing Management, the Texas median is $13,117, while Southwest, Sherman and Denison offer convenient trans­ the Sherman-Denison median is $12,524. A probable reason portation access to the Dallas-Fort Worth area and to for this difference is the high proportion of persons over Oklahoma. The locational advantage is especially important age sixty-five, many of whose incomes would be largely for consumer-oriented goods industries, which would locate social security payments. near markets, and for light manufacturing, where raw materials shipments may not be deterred by overland Characteristic Features transportation costs. Another factor contributing to the attractiveness of the The Sherman-Denison metropolitan area can be charac­ area is the availability of land and labor. The Sherman terized by : Chamber of Commerce estimates that labor, land, and •Diversified light manufacturing as the dominant eco- building costs are about 20 percent lower in the SMSA than nomic activity. in the Dallas-Fort Worth area. At 6.8 percent, area •A secondary focus on transportation employment. unemployment rates are higher than the Texas average, •Little federal government involvement in the economy. signaling an availability of labor. Although several labor •A population significantly older than the state average. unions are active in the area, work stoppages have not been •Slightly lower levels of average household income than a problem for employers. Power and water are available Texas generally. also . Finally, the existence and expansion of well-established •A population decline since 1970. corporations operating manufacturing plants in the area is a •Recent location and expansion of several large manu­ feature that demonstrates the advantage of the Sherman­ facturing plants in the area . Denison area to other firms seeking expanded facilities.

Housing Market Outlook: 1973

Charles H. W urtzebach

Texas was one of the bright spots in the national housing While the early months of I 977 were dominated by gains in picture during 1977. One-family dwelling units authorized the single-family sector, apartment unit authorizations increased from 1976 levels by approximately 30 percent. gained considerable momentum during the later months so

FEBRUARY 1978 37 that overall annual apartment permits demonstrated consid­ were added to the supply. Although many regions of the erable strength. In short, 1977 housing unit authorizations country reported increases in apartment authorizations in Texas clearly reveal that this past year was an excep­ toward the end of 1977, those units will not be available tional year. unitl the end of 1978 or early 1979. Hence rents are expected to continue rising during 1978. This, of course, in the short run will make single-family dwelling prices more Major Factors Shaping 1978 Outlook attractive to renters. Second, expectations of future single-family price in­ While numerous factors interact to determine the actual creases will stimulate some to make purchasing decisions level of housing activity that will occur in any given year, during 1978 rather than wait until 1979 and beyond. Such four factors may play a major role in housing activity expectations are the result of the price changes that have during 1978: affordability and demand for single-family occurred in the recent past. It seems that many people housing, possibility of another round of federal tax reform believe that the rate of inflation is the key : slower inflation measures, availability of financing, and single-family dwell­ means slower increases in single-family prices and vice versa. ing investment value. This correspondent relationship between inflation and housing prices may or may not be accurate; all that really matters, however, is that consumers believe it. Housing Affordability and Demand Another important factor affecting demand during 1978 As the prices of new single-family dwellings have will be pent-up demand. The general recovery of the continued a dramatic spiral, many people have suggested economy during 1977 may allow those who have had to that the market is facing an affordability crisis. Simply postpone home purchases to become new home buyers stated, fewer and fewer households will be able to afford during 1978. Again, this factor tends to have more the average new home with each passing year. For this to significance during the short run rather than during the long occur, of course, housing prices must rise faster than run. household income with all other factors remaining con­ Finally, household members are demonstrating their stant. Statements suggesting an affordability crisis are willingness to go without other durable goods in order to supported by figures relating not only to the median price purchase a new single-family dwelling. In effect, this means of a new single-family dwelling but also to the percentage people are willing to allocate more than the traditional 25 of U.S. families that could afford to buy such a unit. These percent of income to housing costs. Since most mortgages figures currently point to a national median price soon to are of the level-payment variety, higher payments can be exceed $50,000. For conventional financing, an income of tolerated with the expectation that future increases in $20,000 would be required for such a purchase, as would a income-assuming mortgage payments remain constant-are $10,000 down payment. These median figures indicate that preferable to currently lower rental levels. while 46 percent of U.S. households could afford to buy a In the short run the housing affordability question does median-priced house in 1970, only 25 percent could in not loom as important as some other factors. However, as a 1977. With prices expected to increase another I 0 to 15 long-run factor, affordability may stimulate policy deci­ percent in 1978, this relationship can be expected to sions that could affect short-run housing activity. continue: higher prices, less affordability. What is not generally stated is that the affordability crisis is a long-term or intermediate-term crisis, not a Federal Tax Reform short-term crisis. However, as a long-term factor, afford­ While several areas of possible tax reform have been ability may stimulate policy decisions. These decisions mentioned as possible Carter administration proposals, only could affect both the subsidized and nonsubsidized sectors one would have a direct effect upon the housing industry. of the housing market. Depending upon program specifics, The proposal that would most affect the housing industry attempts to affect the affordability crisis could indeed would either eliminate or limit the deductability of stimulate 1978 housing activity. mortgage interest. If the deductability of mortgage interest Housing activity in 1978 will be determined by the were to be totally eliminated, the effect could be a various factors in the marketplace during the year- factors lessening of the demand for single-family dwelling units and that may or may not be partially affected by the a reduction in the attractiveness of apartment building affordability crisis. This is to suggest that in the short run investment. However, for such a tax reform proposal to many other factors affect the demand for housing and that have an adverse impact in the short run, it would have to be affordability is only one important consideration. implemented early in 1978. Given the reluctance of At least four additional factors will affect the demand Congress to act quickly, one doubts that any tax reform for single-family units in 1978. While their individual and package will be passed in 1978, let alone implemented in collective impacts will vary from case to case, these other 1978. factors are at least as important as price/affordability. First, A variant of the elimination of the mortgage interest the price of substitute goods, namely rents, must be deduction would limit the interest deduction to a maxi­ considered. During 1977 rents began to rise as surplus mum of perhaps $I 0,000. The effect of this proposal, existing units were occupied and relatively few new units regardless of when it could be implemented, would be

38 TEXAS BUSINESS REVIEW minimal in the single-family dwelling category. The reason ages the purchase of single-family dwellings and strengthens for this minimal effect is obvious-few homeowners would housing demand in the short run. be able to accrue an annual mortgage interest liability in excess of $10,000. This means that such a proposal would have its greatest effect upon apartment and commercial 1978 Outlook investment by individuals. Again, passage and implementa­ tion of any tax reform package in 1978 is unlikely, and Given the rather strong demand for single-family therefore the 1978 outlook is not expected to be adversely dwellings- a demand that will persist during 1978 -- and the affected. adequate financing that will be available, housing activity should remain very strong and continue to contribute significantly to the overall economy. Texas housing activity Financing will continue to be a national leader as in-migration and As in past years the availability and terms of financing further economic development continue. The primary will have a significant impact upon housing activity in difference expected in the Texas market will be a greater 1978. Availability involves the flow of funds through the dominance, in a relative sense, by apartment activity: the financial system into the real estate sector. It is expected single-family category will remain strong. In short, overall that the funds available from savings and loans in 1 978 will housing activity in Texas during 1978 should at least equal drop slightly from last year's level. However, the reduction levels reached in 1977. is not expected to have a significant impact upon interest rates or general loan availability. Mortgage rates for Estimated Values of Building Authorized in Texas# conventional single-family dwellings should range from 9 Percent change percent to 9.25 percent during 1978. Also, although mortgage credit will be somewhat less available in 1978 Nov Ja n-Nov 1977 1977 than in 1977, it will still be sufficient to support a high Novp J an-Novp from fro m level of housing activity. 1977 1977 Oct J an-Nov (thousands o f d li ars) 1977 1976 Continuation of the shift in emphasis from single-family Classificatio n to multifamily activity during 1978 is expected. This is not A ll Perm its 504 ,460 5,60 2,058 2 36 a long-run shift, but rather a short-run response to market New construction 462,422 5,053,5 0 1 39 Residential factors that indicate an increased demand for apartment (ho usekeeping) 273,638 3,066 ,233 3 57 units. The most significant factors affecting the increased One-fa mily dwellings 196,636 2 ,289,515 4 4 9 Multiple-famil y demand for apartment units are increased occupancy rates dwellin gs 77,002 776,7 18 28 87 and increases in rental levels. No nresidential 188,784 1,987,268 - 6 17 Ho tels, mo tels, and to urist courts 9 ,7 32 68,042 7 , 109 - 26 Amusemen t bu il dings 4,782 56,179 - 42 170 Investment Value of Single-Family Ownership Churches 10,442 74,80 8 248 30 A significant factor affecting the demand for single­ In dustri al bu il d ings 22,0 17 2 37 ,678 - 34 88 Garages (commercial family dwellings is a change in the goals sought through an d private) 3,87 1 40,374 - 11 19 homeownership. Traditionally, the purchase of a single­ Service stati ons and repair ga rages 1,396 9,84 1 63 - I I family dwelling represented the procurement of adequate Hospitals and housing services that were free from some of the risks institutio ns 4 ,592 I 15,738 88 - 37 renters are exposed to, notably eviction and rental in­ Office-ban k buil d ings 29,9 13 422,955 - 12 17 Works and utilities 16,297 83,017 - 19 - 22 creases. Over the past several years, however, a major Educatio nal build ings 24,964 254,484 - 14 2 change has taken place in single-family ownership goals. Stores and mer can tile buil dings 51 ,8 73 525,939 7 5 I Currently, the purchase of a single-family dwelling is viewed O ther b uildings and primarily as a sound investment and only secondarily as a structures 8,905 98,2 13 - 5 - 4 vehicle to provide permanent housing services. Additio ns, alterations, and repairs 42 ,038 548,557 - 17 16 This change in consumer orientation has been stimulated SMSA vs. n o n-SMSA by the large increases in property values that have occurred Total SMSAt 461,83 1 5, 100,4 18 - 4 36 in the recent past. Of all the alternative investment vehicles Cen tral cit ies 305 ,729 3,34 1,973 - 2 31 O u tside central cities 156 , 102 1,758,445 - 8 47 available, many would suggest that the purchase of a To tal no n-SM SA 42,629 50 I ,640 26 35 single-family dwelling is the most attractive investment for 10,000 to 50,000 po pulatio n 23,123 28 1 ,932 24 36 the average U.S. household. Less than I 0 ,000 Additionally, viewing single-family ownership primarily po pulation 19 ,506 2 19,708 30 34 as an investment allows individuals to allocate a greater # Only b u il di ng for which permits were iss ued with in the in cor­ portion of their income to housing services. In effect, many po rated area o f a city is included. Federal contracts and public are viewing their monthly payment as a dual-purpose ho usin g are no t in clu ded. payment. A portion of the payment is viewed as providing PPreliminary. t standard metropo lit an statistical area as defined in 197 5 census. housing services, and a portion is viewed as a monthly Source : Bureau of Bu sin ess Research in cooperati o n w ith the investment or saving vehicle. This attitude clearly encour- Bureau of the Census, U.S. Department o f Commerce.

FEBRUARY J 978 39 lA Comparison of Foreign and Texas Labor Costs

Implications for Foreign Direct Investment in Texas

Sion Raveed Tim Meinershagen Robert B. Morris III

Many Texas counties now find themselves with relatively Europe and Japan have grown much faster than those in the lower wage rates than those in foreign nations. Tradition­ United States; consequently, U.S. wage levels have fallen ally, U.S. wage rates have not attracted much direct foreign below those of some foreign nations. Union activity, investment to the United States. However, recent sharp automatic cost of living adjustments, and the devaluation of increases in labor costs abroad have been well above those the dollar have all contributed to this situation. From 1970 occurring in the United States. The lower wage rates and to 1975 wages including fringe benefits increased 43 fringe benefits, along with the recent decline in the price of percent in the United States, while in Sweden the increase the dollar relative to many other currencies, have left the was 107 percent, in West Germany 132 percent, in the United States, and Texas particularly, in a position to Netherlands 161 percent, in Britain 120 percent, in France attract foreign investment. 130 percent, and in Italy 133 percent. Over the same period Over a long period of time industrial compensation rates labor costs in Japan increased 214 percent. 1 These increases paid to U.S . labor have been much higher than those paid in can be attributed to the aforementioned factors as well as western Europe and Japan. In fa ct, many decisions by U.S. to large increases in fringe benefits paid in these countries. multinationals to engage in manufacturing operations In 1976 the wages in Texas, New Mexico, Arizona, and abroad were based largely on labor cost differentials. Colorado were below those in Sweden, while wages in the Recently, however, hourly compensation rates in western Netherlands and West Germany were below those in Texas

40 TEXAS BUSINESS REVIEW Table 1 Table 1 (continued)

Estimated Compensation Rates in Dollars Selected States and Foreign Countries, 1976 average hourly wage. To bring these data up to 1976 levels we assumed a uniform nationwide increase in manufacturing wages. Area Rate The percentage increase in wages was derived from data in the 1975 and 1976 editions of the Labor Relations Yearbook; the Foreign country same data were also used to adjust fringe benefits from 1975 to Sweden 8.14 1976 levels. Netherl ands 7 .40 Wage rates for 1976 for the foreign countries were obtained West Germany 6 .7 5 from a study by the Institut der Deutschen Wirtschaft of West France 4 . 16 Germany and converted to dollars using the average annual Italy 3.77 exchange rate for 1976. Wage rates for the Netherlands were J apan 3.37 available only for 1975 ; to bring these figures up to date, the United Ki ngdo m 2 .97 1975 wage rate was first converted to Dutch guilders (using the United States average annual exchange rate for 1975) and then adjusted by the California 8.76 percentage change in average industrial wages in the Netherlands Colo rado 8.0 7 from 1975 to 1976. This wage rate was then converted to dollars Arizona 8 .05 using the average annual exchange rate for 1976. In the German Texas 7 .58 wage study hourly wages for the different countries were given New Mexico 6.35 as hourly wages plus supplementary or fringe benefits. To obtain comparable figures for Japan we relied on a study by Ballon and No te: Da ta o n annual salaries and t he number o f e mployees in Sakurabazashi. manufacturing were obtained fro m County Business Pa tterns, Sources: U.S. Department of Commerce, Bureau of the Census, 1974 (U .S. Department o f Commerce , Bu reau o f t he Census), Statistical Abstract of the United States, 1976, 97th ed. fo r each state. A nnual gross wages per em plo yee were computed (Washington, D.C.: U.S. Government Printing Office, 1976), p. by d ividing the annual payro ll in man ufacturing by the number 380; "Competing for Exports: How Do Labor Costs Relate to o f employees in m anufact uring fo r each county. (I n cluded in the Market Share?" Business Europe, March 4, 1977, p. 71; payroll are all forms o f com pensa tio n subject to in come tax International Monetary Fund, International Financial Statistics, withho lding. It is repo rted prio r to deductio ns for F ICA, income February 1977; U.S. Department of Commerce, Foreign tax, etc. ) From this fi gure weekly wages were derived by dividing Economic Trends: The Netherlands, May 1977; Robert J . Ballon by 52; the weekly wage amo unt was divid.ed by the average and Mako to Sakurabazashi, Japan's Basic Salary (Tokyo: Sophia ho url y work week for each state in o rder to o btain the 1974 University, 1972).

by only 18 and 83 cents per hour, respectively . This picture days lost to work sto ppages appears to be high in Texas, the has recently changed significantly because of the deval­ relative amount of days lost because of work stoppages is uation of the dollar. In West Germany the dollar value of well below that of the other states in the region. The wages rose 65 cents from 1976 to August 1, 1977 ; in the comparative rankings are as follows: California, 0.33 Netherlands, 58 cents; and in Japan, 37 cents. However, percent; Arizona, 0.30 percent ; New Mexico, 0. 11 percent; wages denominated in dollars dropped 3 cents in Sweden, Texas, 0.09 percent; and Colorado, 0.06 percent. 2 With low 23 cents in Italy, I 2 cents in the United Kingdom, and 9 levels of unionism and relatively favorable wage rates, the cents in France over the same period . United States (and particularly Texas) should attract more The recent movements in exchange rates have tended to foreign investment in the future. reduce the price of the dollar to foreigners and have placed Texas labor in a more competitive position with West Germany and the Netherlands and have enabled it to Notes maintain its already favorable stance with Sweden. In fact , l. "Cost o f Labo r Herc and Abroad : A Turn in America 's l'avor," a number of Texas counties have wages below those in U.S. News & World Report . February 9. 1976, p. 65 . foreign countries. (See table 3 .) It is apparent that the 2. U.S. Department of Labor, Bureau of Labo r Statistics, Handhook declining value of the dollar against the Deutsche mark, the of Lahar Statistics, 19 76. Llulletin 1905 (Washington, D.C.: lJ .S. Dutch guilder, and the Japanese yen has made labor in the Government Printing Office. 1976). p. 316. United States less expensive to foreigners. This has caused investment in the U.S. manufacturing sector to be relatively Table 2 more attractive for corporations based in West Germany, the Netherlands, and Japan. Esti mat ed Com pensation Rates in Dollars, Selected Countries Of additional importance with regard to labor conditions August 1, 1977 is the prevalence of union activity. Two measures of union Country Rate activity can be considered: percentage of the labor force Sweden 8. t I belonging to a union and the number of days lost because Netherl ands 7 .98 of work stoppages. Although membership in unions as a West Germany 7.40 percentage of the work force may be high, disruptive France 4.07 J apan 3.74 influence of unions on the economy may not be . Italy 3.54 It is evident that Texas not only has a much lower level United Kingdom 2.85 of unionism than does any of the foreign countries Note: Es timated compensation rates as of August I , 1977 , were discussed but also has a lower level than any of the state's figured using the exchange rates in effect at that time; all o ther southwestern neighbors. Although the absolute number of fac to rs remained constant.

FEBRUARY I 978 41 Table 3

Wages in Texas Counties August 1, 1977

Hourly wage Hourly wage County (in dollars) County (in dollars)

Brazoria 11.65 Johnson 5.52 Moore 10.33 Bell 5.47 Galveston 10.02 Navarro 5.46 Hutchinso n 9.86 Brown 5.44 San Patricio 9.63 Brooks 5.42 Orange 9.61 San Augustin e 5.42 Calhoun 9.11 Wichita 5.39 Harris 9.11 Scurry 5.37 Matagorda 8.73 Walker 5.37 Ecto r 8.52 Tom Green 5.30 Fort Bend 8. 11 Limestone 5.29 Taylor 5.29 Counties with wages below Sweden- $8.11, Netherlands- $7.98 Wharton 5.29 Ward 5.27 Victoria 7.9 1 Jackson 5.24 Tarrant 7.88 Robertson 5.24 Yoakum 7.88 Dallam 5.23 Harrison 7.65 El Paso 5.23 Karnes 7.59 Polk 5.21 Nueces 7.55 Washington 5.17 Hardin 7.54 Waller 5.1 5 Gray 7.49 Bee 5.09 Castro 7.46 Randall 5.01 Jasper 5.00 Counties with wages below West Germany- $7.40 Palo Pinto 4 .97 Brewster 4.95 Dallas 7.38 Lavaca 4 .91 Angelina 7.11 Hamilton 4.89 Potter 7.11 Hays 4.88 Gregg 7.05 Pano la 4.88 Mon tgomery 6.94 Terry 4.85 Travis 6.89 Aransas 4.83 Gaines 6.83 Williamson 4.83 Howard 6.82 Cameron 4.78 Leo n 6.72 Refugio 4 .78 Kerr 6 .68 Titus 4.74 Smith 6.65 Liberty 4.71 Bowie 6.65 Medina 4.67 La mar 6.50 Floyd 4.66 Gonzales 6.39 Henderson 4.64 Deaf Smith 6.38 Wilbarger 4.62 Hunt 6.32 Comal 4.59 G rayson 6 .29 Lamb 4.59 Wise 6.28 Parker 4.59 Lubbock 6.26 Reeves 4.59 Clay 6.25 Val Verde 4.57 Hockley 6.25 Brazos 4.56 Cass 6.23 Fall s 4.54 Fannin 6.23 Fayette 4.54 Hale 6 .20 Gillespie 4.54 Young 6 .20 Upshur 4.52 Denton 6.19 Wilson 4.52 Cooke 6.12 Bosque 4.50 Austin 6.09 Comanche 4.47 Ho pkins 6.06 Kendall 4.45 Housto n 6.05 McCulloch 4.42 Hardeman 6.02 Tyler 4.38 Jim Wells 5.99 Collingsworth 4.36 Grimes 5.97 Colo rado 4 .36 Guadalupe 5.97 Rush 4.35 Bexar 5.96 Van Zandt 4.33 Nolan 5.91 Lee 4.32 Anderson 5.83 Hill 4.30 Ellis 5.83 Montague 4.16 De Witt 5.82 Erath 4.15 Midland 5.77 Swisher 4.15 Cottle 5.71 Cherokee 4.13 Shackleford 5.65 Lampasas 4. 12 Kaufman 5.59 Camp 4.10 Kleberg 5.59 Nacogdoches 4 .1 0 Collin 5.53

42 TEXAS BUSINESS REVIEW Table 3 (continued) Table 4 Ho urly wage County (in d o ll ars) Union Membership among Nonagricultural Workers Southwestern United States, 1975 Counties w ith w ages below Fra nce-$4.07 State Percentage Coryell 4.06 San Saba 4 .06 Cali fo rnia 28.2 Ll ano 3.97 Colo rado 18.9 Red River 3.97 Arizona 16.0 Coleman 3.94 New Mexico 14.1 Winkler 3.94 Texas 13.0 Runnels 3.9 1 Hidalgo 3.82 So urce : U.S. De partme nt o f Commerce, Bureau o f the Census, Hood 3.80 Statistical Abstract of th e United S tates, J 976, 97th ed. Caldwell 3.74 {Washingto n, D.C.: U.S. Governme nt Printing Office), p. 384. Carson 3.74

Counties w ith wages below J apan -$3.74

We bb 3.72 Newto n 3.72 Trinity 3.68 Wood 3.68 Crosby 3.67 Mason 3.67 Eastland 3.60 Table 5 Fran klin 3.S7

Counties w ith wages below ltaly-$3 .S 4 Union Membership in the labor Force Western Europe Bl anco 3 .S O Hall 3.SO Country Percentage Uvalde 3.48 Shelby 3.4S Sweden * 6 1 Real 3.31 Italy S7 Do nley 3.30 United Kingd o m 4 6 Mari o n 3.22 Ne therl ands 4 2 Bail ey 3.19 West German y 37 Li ve Oa k 3. 19 France 20 Willacy 2 .8 6 *Unio n membership fo r Swede n was computed b y d ividing the to tal Counties w ith wages below United Kingd o m -$2.8S numbe r o f wor kers belo ngin g to a unio n by the to tal work force. Atascosa 2 .80 So urce: Eri c J acobs, Euro pean Trade Unionism , (Great Britain : Mills 2.68 W.J. Mackey Ltd., 1973), p. 3 9. San J acinto 2 .20 Kn ox 2. 11 Call a han 1.67 Duval 1.2 0

Table 6

Days lost Because of Work Stoppages Southwestern United States and Western Europe Summary Comments (in thousands)

Counties w ith wages below Sweden I S9 Area Days

Counties w ith wages below the Netherla nds IS9 Southwestern Unit ed States Ca li fo rnia 6 ,544.2 Counties w ith wages below West Germany ISO Texas 1,003.6 Ari zona 558.8 Counties w ith wages below France 35 o lo rado 134.S New Mexico 96. 1 Counties w ith wages below J apan 24 Western Europe It aly 19,466.7 Counties w ith wages below Italy 16 United Kingdom 14 ,7SO.O Netherl ands 6,854.0 Counties w ith wages below United Kin gdom 6 France 3,390.0 West Germa ny I ,OS 1.2 Counties fo r w hich no data were avail able* ...... 81 Sweden 57.6

*Data are no t shown separately for any industry that does no t have Sources: U.S. De partment of Labor, Bu reau of Labor Statistics, at least SO e mployees in the area, county, state, o r United Handbook of Labor Statistics, 1 9 76, Bulletin 1905 {Washingto n , Stat es covered by the tabulatio n . County Business Pa tterns, D.C.: U.S. Govern ment Printing Office, 1976), p. 3 16 ; Yearbook J 9 74, U.S . De partment of Commerce, Bureau of the Census, p. of Labour Statistics (Geneva, Switzerl and: International Labour vii. O ffi ce, 1975), pp. 803-804.

FEBRUARY 1978 43 Local Business Conditions

Statistical data compiled by Mildred A nderso n, Marylyn Donaldson, Jean Hall, and Mercedes Torrts.

Standard metropolitan statistical areas (SMSAs) include one or Census. They represent only building authorizations within city more entire counties, as shown. All SMSAs are designated as such by limits and exclude federal contracts and public works projects, such the U.S. Bureau of the Census. Population figures are from the 1970 as highways, waterways, and reservo irs. Building statistics for the census and 19 75 estimates by the Bureau of the Census. latest month are subject to revision. Building permit data are collected fro m municipalities by the Employment estimates include only wage and salary workers and Bureau of Business Research in cooperatio n with the Bureau of the are compiled by the Texas Emplo yment Commission in cooperation with the U.S. Bureau of Labor Statistics.

Indicators of Local Business Conditions for Texas Standard Metropolitan Statistical Areas

Percent change Pe rcent change from from Nov Oct Nov Nov Oct Nov Reported area and indicator 1977 1977 1976 Reported area and indicator 1977 1977 1976

ABILENE SMSA CORPUS CHRISTI SMSA Callahan, Jones, and Taylor Counties; population: 122,164 (1970); Nueces and San Patricio Counties; population: 284,832 (l 970); 128,400 (1975 est.) 297,300 (1975 est.) Urban building permits ($ 1,000} 2,377 - 42 ** Urban building permits ($1,000} 7,742 - 19 86 Nonfarm employment 46,800 ** I Nonfarm employment I 04,0SO - 1 I Manufacturing employment S,490 - I - 18 Manufacturing employment 12,100 ** 2 Unemployed (percent) 4 .3 - 12 13 Unemployed (percent} 6.0 - 9 6

AMARILLO SMSA DALLAS-FORT WORTH SMSA Potter and Randall Counties; population: 144,396 (1970); Coll in, Dallas, Denton, Ellis, Hood, Johnson, Kaufman, 152,000 (1975 est.) Parker, Rockwall, Tarrant, and Wise Counties; Urban bu ildin g permits ($ 1,000} 9,063 43 2 population: 2,378,353 (1970); 2,552,800 (1975 est.) Nonfa rm employment 69 ,100 ** 4 Urban building permits ($1,000) I SS,802 2 SS Manufacturing employment 8,610 I 2 Nonfarm em ployment 1,1 82,100 ** 4 Unemployed (percent) 3.1 - 9 - 14 Manufacturing employment 2S8,900 ** 4 Unemployed (percent) 3.2 - 3 - 20 AUSTIN SMSA Hays and Travis Counties; population: 323,158 (1970); EL PASO SMSA 394,800 (1975 est.) El Paso County; population: 359,291 (1970); 414,700 (1975 est.) Urban building permits($ 1,000} 18,728 - 26 S6 Urban building perm its ($1,000) l '.l ,769 - 30 I 06 Nonfarm employment 186,000 s Non farm employment 137 ,700 Manufacturing employment 20,000 10 Manufacturing employment 29 ,500 ** ** Unemployed (percent) 4.1 - 11 - 16 Unemployed (percent) I 0.8 - 6 - 17

BEAUMONT-PORT ARTHUR-ORANGE SMSA GALVESTON-TEXAS CITY SMSA. Hardin, Jefferson, and Orange Counties; population: Galveston County; populatio n: 169,8l2 (1970); 34 7,568 (l 970); 349,500 (1975 est.) 182,000 (1975 est.) Urban building permits ($ 1,000} 13 ,2 49 49 48 Urban building permits ($1,000) S,82 l - 13 177 Nonfarm employment I 37 ,900 ** ** Nonfarm employment 72,890 I 8 Manufacturing emplo yment 41,6SO ** I Manufacturing employment 1 1,670 - I 2 Unemployed (percent) 6.8 7 - 9 Unemployed (percent) 7. 1 •• 6

BROWNSVILLE-HARLINGEN-SAN BENITO SMSA HOUSTON SMSA Cameron County; population: 140,368 (1970); 169,300 (1975 est.) Brazoria, Fort Bend, Harris, Liberty, Montgomery, and Waller Urban buil d in g permits ($ 1,000) 3,77S - 13 180 Counties; population : 1,999,316 (1970); 2,297,300 (1975 est.) Non farm employment 51,SSO I 4 Urban building permits ($1,000) 97 ,S02 - 24 14 Manufacturing employment 9 ,420 2 S Non farm employment J , l 86,S OO 1 7 Unemployed (percent) 10.0 3 - 12 Manufacturing employment 193,000 2 3 Unemployed (percent) 4.3 4 - 19 BRYAN-COLLEGE STATION SMSA Brazos County; population: 57,978 (1970); 169,300 (1975 est.) KILLEEN-TEMPLE SMSA Urban building permits($ I ,000} 4 ,412 103 34 Bell and Coryell Counties; populat ion : 159,794 (1970); (Monthly employmen t reports are not available for the Bryan­ 210,500 (1975 est.) College Station SMSA.) Urban buildin g permits ($ 1,000) 4,109 - I 3 - 16 (Monthly em ployment reports are not ava ilable for t he Ki ll een· Temple SMSA.)

44 TEXAS BUSINESS REVIEW Percent cha nge Percent c hange fro m from Nov Oct Nov Nov Oct Nov Repo rted area an d indicato r 1977 1977 1976 Reported area and indicato r 1977 1977 1976

LAREDO SMSA TEXARKANA SMSA (continued) Webb County; population: 72,859 (1970); 78,100 (1975 est.) Unemployed (percent) 6.9 3 - 23 Urban building pe rmits {$ 1,000) 4 ,581 - 29 414 (Since the Texarkana SMSA includes Bowie o unty in Texas and Nonfarm e mploym ent 25 ,840 •• 4 Little River and Miller Co unties in Arkansas, all data , includ ing Manufacturing e mployment 1,8 1 O - I •• popu lat io n , refer to the three-co unty region.) Une mployed (percent) I 7. I I 3 - 6 TYLER SMSA LONGVIEW SMSA Smith County; population: 97,096(1970);107,400 (1975 est.) Gregg and Harrison Counties; population: 120,770 (1970); Ur ban building permits {$1,000) 6,256 38 44 125,300 (1975 est.) Nonfarm employment 43,640 •• 4 Urban buil d ing permits {$ 1,000) 13,320 134 25 1 Manufacturing employ ment 12 ,420 4 Nonfarm employment 52,750 •• 4 Une mployed (percent) 4.6 •• 13 Manufacturing employment 17 ,130 •• 8 Unemployed (percent) 5.9 II 6 WACO SMSA McLennan County; population: 147,553 (1970); LUBBOCK SMSA 156,700 (1975 est.) Lubbock County; population: 179,295 (1970); 196,700 (l 975 est.) Ur ban building permits {$ I ,000) 3,336 - 39 24 Urban building permits ($ 1,000) 12 ,063 7 4 Nonfarm employment 63,520 •• 3 Nonfarm employm ent 86,840 2 7 Manufacturing employment 14,790 •• 2 Manufacturing employment 14,9 00 2 23 Une mployed (percent) 4 .7 2 2 Unemployed (per cent) 2.8 3 * * WICHITA FALLS SMSA McALLEN-PHARR-EDINBURG SMSA Clay and Wichita Counties; population: 128,642 (1970); Hidalgo County; population: 181,535 (1970); 220,700 (1975 est.) 130, 700 (19 7 5 est.) Urban buil ding pe rmits ($1,000) 9,592 20 161 Ur ban building permits {$ 1,000) 2,826 - 70 25 Nonfarm employ m ent 59,050 I •• Nonfarm e mploym ent 47,710 •• 4 Manufacturing e mploy m en t 7,330 ** 2 Manufacturing employm en t 8,420 I 14 Unemployed (percent) 13.8 8 14 Unemployed (percent) 3.4 3 - 24

MIDLAND SMSA **Absolute change is less than o ne half of I percent. Midland County; population: 65,433 (1970); 69,700 (1975 es t.) Urban building permits {$1,000) 3,899 7 - 75 Nonfarm employm ent 32 ,650 2 12 Manufacturing employment 3,890 12 Unemployed (percent) 2.3 4 - 26 Selected Barometers of Texas Busin ess ODESSA SMSA Ector County; population: 92,660 (1970); 98,800 (1975 est.) (Indexes- Ad justed for seasonal variation-1967=100) Urban build ing permits {$1,000) 5,016 54 8 Percent change Non farm employment 44,970 •• 6 Manufacturing employ m ent 5,940 •• 8 Year-to- Unemployed (percent) 2.6 - 7 - 19 Nov date Year-to- 1977 average SAN ANGELO SMSA date fr om 1977 Tom Green County; population: 71,04 7 (1970); 74,800 (1975 est.) Nov Oct average Oct from Urban building pe rmits {$1 ,000) 4 ,17 1 - I 5 2 1 Index 1977 1977 1977 1977 1976 Nonfarm employ m ent 29,930 ** 6 99.1 p 99.6p Manufacturing e mployment 5,620 •• 7 Crud e o il pro duction I Ol.3 5 Unemplo yed (percent) 2.7 - 13 - 25 Total electric power use 206.8p 2 l 5.9p 205.8 4 11 SAN ANTONIO SMSA Residential 24 l.5 p 264.3p 252.6 9 10 Bexar, Comal, and Guadalupe Counties; population: Industrial I 73.9p l 75.4p 172.5 11 888,179 (1970); 977,200 (1975 est.) Total industrial production n .a. 14 1.2 p 24,717 82 63 Urban building permits ($1,000) Urban building 336,200 2 Nonfarm e mployment •• permits issued 329.0p 345 .OP 3 19.4 5 36 5 Manufacturing employment 43,200 •• New resid ential 423.0p 429.4p 401.2 58 6.6 - 4 - 10 Unemployed (percen t) New nonresidential (unadjusted) 258.7p 275.8p 247.9 6 17 SHERMAN-DENISON SMSA Total n o nfarm Grayson County; population: 83,225 (1970); 79,000 (1975 est.) employm ent I 5 l.5 p I 50.7p 148.9 3 Urban build ing permits ($1,000) 6,731 1,476 958 Manufacturing Non farm employment 3 1 ,540 I 7 employ m ent I 36.7p I 35.2p 133.1 3 Manufacturing employment 11 ,430 I 0 Average weekly earn­ Unemployed (percent) 6.1 - 12 - 21 ings-manufacturing 208. 1 p 206. 1 p 196.5 8 Average weekly hours­ TEXARKA A SMSA manufacturing 99.2p 98.9p 97.2 •• I Bowie County, Texas; Little River and Miller Counties, Arkansas; Total unem ploy men t 163.6 187.0 l 70.6 - 13 4 population: 113,488 (1970); 114,700 (1975 est.) Insured unemployment 272 .3 267.4 256.5 2 6 Urban building permits ($1,000) 3,604 23 157 Nonfarm employm ent 4 1 ,400 •• 3 PPreliminary . Manufacturing employment 8,320 - I II n.a.Not avail able. **Change is less than one half o f I percent.

FEBRUARY 1978 45 Gross Retail Sales by Kind of Business for Texas Standard Metropolitan Statistical Areas

Percent change Percent change Apr-Jun Apr-Jun Apr-Jun 1977 from Apr-Jun 1977 from Reported area and 1977 Reported area and 1977 kind of business ($000) Jan-Mar 1977 Apr-Jun 1976 kind of business ($000) Jan-Mar 197 7 Apr-Jun 1976

AB ILENE SMSA BRYAN-COLLEGE STATION SMSA Apparel, accessories 5,840 43 29 Apparel, accessories 2,298 12 II Au tomotive dealers, Automotive dealers, service statio ns 41,541 - 15 7 service statio ns 18 ,230 22 16 Bu ilding materials, Building materials, farm equipment 10,216 24 16 farm equipment l l ,553 42 58 Drugstores 2,477 - l 7 Drugstores 1,243 2 37 Eating and drinking 8,862 5 20 Eating and drinking 6 ,085 16 3 1 Food 25,146 10 16 Food 14,248 2 ll Furniture, home F urniture, home fu rnish in gs 6 ,375 I 13 furnishings 2,538 14 29 General merchandise 14,445 21 I General merchandise 9,338 21 11 Liquor I ,511 JO 20 Liquor 901 6 15 Misce ll aneous retail 28,523 8 23 Miscellaneous retail 4,044 - 22 ** AMARILLO SMSA CORPUS CHRISTI SMSA Apparel, accessories 9,276 9 9 Apparel, accessories 9,956 9 29 Automotive dealers, Automotive dealers, service stations 71 ,894 13 3 service stations 74,903 9 9 Buil d ing materials, Building m aterials, farm equipment 17,444 31 25 farm equipment 22,769 32 34 Drugstores 7 ,548 5 4 Drugstores 6,495 7 - 2 Eating and drinking 17 ,019 20 18 Eating and drinking 22 ,700 17 17 Food 34,788 7 10 Food 63,821 10 58 Furniture, home Furniture, home furnishings 10,129 - 14 - 8 furnishings 12,283 4 15 Gen eral merchandise 22,808 24 4 General merchandise 29 ,834 23 - 4 Liquor 4,257 11 13 Liquor 3,079 6 8 Miscellaneous retail 36,424 17 51 Miscellaneous retail 51,716 9 17

AUSTIN SMSA DALLAS-FORT WORTH SMSA Apparel, accessories 17,080 7 10 Apparel, accessories 147,136 6 10 Autom otive dealers, Auto m o tive dealers, service statio ns 98,405 23 21 service stations 934 ,877 19 Building materials, Building materials, farm equipment 46,023 17 52 farm eq uipment 232,782 24 32 Drugstores 9,692 5 12 Drugstores 95 ,0 9 1 10 19 Eating and d rin king 41,987 13 16 Eating and d rin king 234,507 15 8 Food 48 ,595 4 19 Food 506,591 6 - 3 Furniture, ho m e Furniture, ho m e furnishings 21 ,944 7 22 furn ishings 139 ,4 78 2 11 General merchandise 54,312 21 8 General merchandise 335 ,079 22 26 Liquor 6,472 9 12 Liquor 5 1,370 15 13 Miscellaneous retail 52 ,615 10 - l Miscellaneous retail 566,911 4 17 BEAUMONT-PORT ARTHUR-ORANGE SMSA EL PASO SMSA Apparel, accessories 8,500 8 4 Apparel, accessories 16,520 18 12 Automotive dealers, Automotive dealers, service stations 94,309 24 19 service st atio ns 137 ,229 7 II Bu ilding m aterials, Building m ateri als, farm equipment 26,502 40 37 farm equipment 14,711 26 20 Drugsto res 13,142 - 2 9 Drugstores 13 ,111 20 22 Eatin g and drin king 25,518 12 11 Eating and d rin king 25 ,085 10 6 Fo od 79 ,068 6 3 Food 64,415 8 5 Furniture, home Furniture, home furnishings 15 ,885 10 14 furnishings 19,524 18 4 General merchandise 48,739 20 10 General m erchandise 66,027 32 7 Liquor 4,867 7 14 Liquor 5,608 18 7 Miscellaneous retail 42 ,829 16 8 Miscellaneous retail 46 ,198 ** - 12 BROWNSVILLE-HARLINGEN-SAN BENITO SMSA GALVESTON-TEXAS CITY SMSA Appare l, accesso ries 7,660 10 - 25 Apparel, accessori es 5,998 36 25 Automotive dealers, A uto m o tive dealers, service stations 24 ,256 6 2 service stations 170 ,938 32 5 Building materials, Building materials, farm equipment 11,048 26 20 farm equipment 11,545 35 20 Drugsto res 3,077 8 - 25 Drugstores 5,183 2 3 Eating and drinking 10,316 6 10 Eating and drinking 21,670 63 46 Food 30,748 8 4 Food 40,577 12 4 F urniture, h ome F urniture, home furnishings 7 ,222 16 8 furnishings 5,108 14 11 General merchandise 28,484 10 - 18 General merchandise 16,802 23 Liquor 883 - 12 3 Liquor 2,910 18 22 Miscellaneous retail 16,582 23 8 Miscell aneous retail 19 ,122 19 21

46 TEXAS BUSINESS REVIEW Percent ch ange Percent change Apr-Jun Apr-J un Apr-Jun 19 77 fro m Apr-Jun 1977 fro m Repo rted area and 19 77 Re po rted area an d 1977 kind o f business ( $000) J an -Mar 1977 Apr-Jun 1976 kind o f b usin ess ($000) J an-Mar 1977 Apr-Jun 1976

HOUSTON SMSA McALLEN-PHARR-E DI B RG SMSA Appa rel, accessori es 106,958 11 I 5 Apparel, accessories 9,392 7 - 14 Auto m otive dealers, A uto m o tive dealers, service statio ns 1,169,190 18 2 6 service stations 43,202 12 12 Building m aterials, Building m aterials, farm equipment 2 79,58 3 27 3 8 fa rm eq uipmen t 14 ,212 4 - J O Drugsto res 8 7 ,8 60 2 3 27 Drugsto res 5 ,868 30 38 Eating a nd drinking 230 ,303 16 2 2 Eating and d ri nkin g 10,986 6 13 Food 542 ,89 3 7 9 Food 42,780 3 26 Furniture, h o m e Furniture, h ome furnishings 13 5 ,4 34 10 20 furnishings 8,492 16 10 General m erch andise 376,349 22 10 General merchan dise 26,745 I S 10 Liquo r 38,395 5 9 Liquo r 842 - 10 12 Miscell aneous re ta il 634 ,459 10 34 Mi scell aneous retail 26,940 - 39 19

KILLEE -TEMPLE SMSA MIDLA DSMSA Apparel, accessories 6,046 12 29 Appa rel, accessories 3 ,294 3 I 5 Auto m o tive dealers, Auto mo tive deale rs, se rvi ce statio ns 35 ,835 25 7 service stations 23,39 1 17 I 5 Building m aterials, Building m aterials, fa rm equipment 11 ,347 15 2 7 fa rm equipment 5,938 7 29 Drugsto res 2,179 5 10 Drugsto res 5,042 7 3 Eating an d drinking 11 ,882 14 2 6 Eating and drin king 5 ,4 17 12 25 Food 2 7 ,337 13 4 2 Food 14,4 2 7 5 17 Furniture, h o m e Furniture, ho m e furnishings 5,376 5 II furnishings 4 , 162 •• 18 General merchandise 18,622 19 I 5 General merch an dise 9,886 10 7 Liquo r 965 2 4 2 Liquo r 1,0 31 13 16 Miscell a neo us reta il 10 ,5 72 2 10 Miscell aneous retail 4 2 ,530 - 10 33

LARE DO SMSA ODESSA SMSA Apparel, accessories 8,822 22 - 36 Apparel, accessories 4,332 5 2 1 Auto mo tive dealers, Auto mo tive deale rs, service statio ns 13,56 1 5 service statio ns 50 ,0 29 17 6 Building m aterials, Building materials, farm equipment 4 ,329 2 0 20 fa rm equipment 9,849 23 6 Drugsto res 1,8 17 I - 18 Drugs to res 1,5 0 0 - 2 2 Eating and drinking 4 ,297 18 4 Eating an d drin king 9,363 1 3 25 Food 18,162 17 28 Food 22,160 7 13 Furniture, ho me Furniture, ho me furnishings 6,384 I 5 - 12 furnishings 4,9 14 7 7 General m erchan d ise 19,90 I 18 - I 5 General merch andise 2 1,0 55 22 10 Liquo r 255 4 19 Liquo r 3,268 8 9 Miscell aneous reta il I 5,4 33 30 - 5 Misce ll aneo us retail 68,2 16 6 24

LONGVIEW SMSA SAN ANGE LO SMSA Apparel, accessories 5,72 1 18 Apparel, accessories 2,729 8 16 Auto mo tive dealers, A utomotive dealers, service statio ns 50,922 17 service statio ns 23,574 II 19 Building m ateri als, Building m aterials, fa rm eq uipme nt 14,3 19 19 fa rm equipment 8,626 25 36 Drugsto res 4,437 4 Drugsto res 1,4 16 Ea ting a nd drin kin g I 0,584 14 Eating a nd drinking 5,586 - 22 2 1 Food 35 ,855 10 Food 16,625 23 3 1 Furniture, h o me Furniture, h o me furn ishings 8,3 14 38 furnishings 3,670 9 19 General merch andise 16 ,7 19 3 1 General merchandise I 0 ,569 19 5 Liq uo r 5 ,4 18 •• Liquor 787 6 10 Miscell aneous retail 22,06 1 8 Miscell aneous retail 6 ,838 6 2 1

IO SMSA LUBBOCK SMSA SAN ANTO Apparel, accessories 37 ,428 17 7 Apparel, accessories 9 ,689 6 I 5 Automotive dealers, Auto m o tive d ealers , 260,252 14 service statio ns 69,413 3 22 service stati o ns 8 Bu il d ing m ateria ls, Building m ate rials, 13 farm equipment 28,496 2 39 farm equipment 56,720 27 17,31 9 13 Drugsto res 2,979 3 I Drugstores 2 Eating an d drin king 18,725 11 12 Eating and drinking 75 ,931 16 18 41 Food 47 ,716 4 28 Food 164, 167 5 Furniture, h o m e Furni ture, home furnishings I 5,223 4 2 1 furn ishings 37 ,449 11 9 Gener al mercha nd ise 2 7 ,843 16 10 General merchandise 124 ,9 37 48 27 Liquo r 4 ,837 11 1 1 Liquo r 12 ,475 10 26 Miscell aneous re tail 32 ,790 I 5 - 23 Miscellaneo us retail 102 ,236 8 13

47 FEBRUARY 1978 Percent change Percent change Apr-Jun Apr-Jun Apr-Jun 1977 from A pr-Jun1 977 from Reported area an d 1977 Reported area and 1977 kind of business ($000) J an-Mar 1977 Apr-Jun 1976 kind of business ($000) J an -Mar 1977 Apr-Jun 1976

SHERMAN-DENISON SMSA TYLER SMSA (continued) Apparel, accessories 2,696 12 ** Food 23,103 9 8 A utomotive dealers, F urniture, h o me service stations 22 ,065 13 15 furnishings 6,353 21 18 Building materials, General m erch andise 16,0 87 21 19 farm eq uipment 6,673 28 19 Liquor § Drugstores 2,721 ** - 5 Miscellaneous retail 12,629 - 11 - 27 Eating and drinking 5,779 47 37 Food 15,145 4 8 WACO SMSA Furniture, ho m e Apparel, accessories 4,534 9 10 furnishings 3,073 17 3 A uto mo tive d ealers, General merchandise 11,759 3 1 29 service statio ns 46,0 9 1 •• Liquor 1,047 2 1 7 Building m aterials, Miscellaneous retail 12 ,9 43 27 64 farm equipment 25 ,581 24 33 Drugstores 4 ,039 8 10 TEXARKANA SMSA Eating and drinking 12 ,376 3 15 Apparel, accessories 2,069 21 10 Food 35,130 7 38 A uto m otive dealers, Furniture, h o me service stations 20,166 - 2 11 furnishings 6,383 13 22 Building materials, General m erch andise 18,264 19 I fa rm equipment 9,917 33 39 Liquor 1 ,63 1 2 2 Drugstores 1,628 9 12 Miscellaneous retail 19 ,693 - 3 1 Eating a nd drinking 4 ,412 17 21 Food 14,333 7 8 WI CHIT A FALLS SMSA Furniture, h ome A pparel, accessories 5,335 31 22 f urnishings 4 ,854 93 43 A uto m o tive dealers, General m erchandise 9,047 30 8 servi ce st atio ns 41 ,668 18 7 Liquo r § Building materials, Miscell aneo us retail 6,380 - 5 10 fa rm equipment 10,622 24 14 Drugstores 5,449 7 15 TYLER SMSA Eating a nd drinking 9,794 17 11 Apparel, accessories 6 ,7 13 16 20 Food 24,718 11 9 A uto m otive dealers, Furniture, home service statio ns 34,613 23 39 furnishings 5 ,865 9 9 Building materials, Gener al m erch andise 15 ,4 2 3 19 7 farm equipment 18,791 40 38 Liquor 2,504 14 17 Drugstores 3,023 l 9 Miscellaneous retail 20,539 14 25 Eating and drinking 7,997 18 26

§ Omitted to avoid disclosure. **Absolute change is less th an one h alf o f 1 percent. ...No data, o r inadequate basis for compa ri son. Source: Sales Tax Division, State Comptroller of Public Accounts.

48 TEXAS BUSINESS REVIEW

BUREAU OF BUSINESS RESEARCH SECOND-CLASS POSTAGE PAID AT AUSTIN, TEXAS THE UNIVERSITY OF TEXAS AT AUSTIN AUSTIN, TEXAS 78712

1977·1978 DIRECTORY OF TEXAS MANUFACTURERS

The annual issue of the Directory of Texas Manufacturers is the most complete and up-to-date source of information on Texas manufacturing plants. It has been designed especially for agents or individuals selling to or buying from Texas manufacturers. For each of the more than 14,000 plants included, the Directory lists the name, address, and telephone number of the plant, name of the executive officer, and descriptions of products. Data have been obtained primarily from the manufacturers themselves, with supplementary information obtained from local chambers of commerce. Volume 1 contains an alphabetical listing of plants by firm name and a listing of plants organized by city. Volume 2 contains the product listings arranged by Standard Industrial Classification number and an alphabetical index of products with SIC numbers.

ISBN 87755-273-8 $40.00 per set (Texas residents add $2.00)

Bureau of Business Research • The University of Texas at Austin Austin, Texas 78712

For information call 512/471-1616. Ms. Briceno or Ms. White.