Advanced Manufacturing

In 2009, more companies chose to manufacture their products in Houston than any other U.S. city. The reasons are simple: an experienced and committed workforce, ready access to suppliers and multi-modal transportation, and a cost doing business-and living!-that's hard to beat.


Houston: Over $63 billion in manufacturing output

While chemical and petroleum products top the list of manufacturing shipments by category, Houston-area plants are also known for excellence in everything from food and beverages to electronics and plastics. We're home to nearly 4,000 manufacturers who employ almost a quarter-million skilled workers,1 and the Houston metropolitan area accounts for 31% of the total value of Texas manufacturing shipments. 2

 


Here's why Houston is the right place to locate or expand your manufacturing facility

A diverse labor pool that's dependable, affordable-and growing
Whether you need large numbers of affordable labor or access to manufacturing experts with years of experience, you'll find what you're looking for in Houston.

Houston is one of the country's youngest, most diverse and most rapidly growing metro areas. According to the Census Bureau, the region's population grew 25.2% between 1990 and 2000, nearly double the national average of 13.2%. The region has the second youngest median age in the country among large metropolitan areas-32.9-and nearly 45% of the population falls into the critical 25-54 age range.

Houston offers an ample supply of manufacturing expertise at very affordable rates.

Houston Wages - Manufacturing
Houston has an ample supply of workers serving the region's manufacturing industry.

AVERAGE WAGE FOR SELECTED MANUFACTURING OCCUPATIONS
HOUSTON MSA

Job Title

Number Employed

Average Hourly Wage

Production Managers

14,530

$29.81

Welders, Cutters, Solderers and Brazers

18,220

$18.75

Machinists

13,550

$17.85

Computer-Controlled Machine Tool Operators

2,820

$17.98

Mixing and Blending Machine Setters, Operators and Tenders

3,330

$15.86

Inspectors, Testers, Sorters, Samplers and Weighers

9,480

$16.20

Lathe and Turning Machine Setters, Operators and Tenders

3,120

$15.23

Structural Metal Fabricators and Fitters

5,250

$15.19

Cutting, Punching and Press Machine Setters, Operators

4,380

$13.54

Crushing, Grinding and Polishing Setters, Operators

1,720

$13.37

Extruding and Drawing Machine Setters, Operators and Tenders

1,690

$13.22

Plating and Coasting Machine Setters, Operators and Tenders

1,340

$12.98

Industrial Truck and Tractor Operators

11,020

$13.65

Electrical and Electronic Equipment Assemblers

4,670

$14.73

Electromechanical Equipment Assemblers

1,350

$13.35

Coating, Painting and Spraying Setters, Operators and Tenders

2,430

$12.96

Team Assemblers

17,770

$11.81

Laborers and Freight, Stock and Material Movers, Hand

44,270

$11.94

Helpers, Production Workers

8,550

$10.20

Woodworking Machine Setters, Operators and Tenders

1,410

$9.71

Source:Bureau of Labor Statistics, Metropolitan Area Occupational Employment and Wage Estimates, U.S., May 2009 (latest data available)


Manufacturing expertise you won't find anywhere else

Houston's workforce is 2.7 million people strong and offers a breadth and depth of manufacturing knowledge.

We beat national labor force averages in these key employment categories³:

  • 17x more oil and gas extraction employees
  • 8x the mining expertise
  • 5x more petroleum/coal resources
  • 2x the heavy/civil engineering experts
  • 90% more skilled construction laborers
  • 55% more machine manufacturers
  • 21% more specialty contractors

Goods-Producing Industry Location Quotients
Houston-Sugar Land-Baytown TX MSA industries with location quotient > 1.2.

2003 ANNUAL AVERAGE LOCATION QUOTIENT*

Metropolitan Statistical Areas with Populations Over 2 Million

MSA
(Short Title)

Oil and Gas Extraction

Support for Mining

Const. of Buildings

Heavy/
Civil Eng. Const.

Specialty Contractors

Petroleum
and Coal Products Mfg.

Machinery Mfg.

New York NY-NJ-PA

nd

0.01

0.75

0.50

0.80

0.44

0.34

Los Angeles CA

0.44

0.15

0.72

0.56

0.78

1.05

0.67

Chicago IL-IN-WI

nd

nd

nd

nd

1.00

1.27

nd

Philadelphia PA-NJ-DE-MD

nd

0.01

nd

nd

0.84

1.62

nd

Dallas-Fort Worth TX

3.27

0.59

nd

nd

1.04

0.61

nd

Miami FL

0.03

nd

1.05

1.05

1.01

nd

0.25

Houston TX

17.84

8.13

1.90

2.04

1.21

5.84

1.55

Washington DC-VA-MD-WV

nd

nd

1.33

1.09

1.27

0.18

0.17

Atlanta GA

nc

nd

0.96

nd

nd

0.35

0.44

Detroit MI

0.03

0.01

0.64

0.45

0.87

0.63

1.90

Boston MA-NH

nd

nd

0.74

0.70

0.81

0.45

0.71

San Francisco CA

nd

nd

1.38

0.84

0.97

nd

0.38

Riverside CA

0.00

0.05

1.17

1.46

2.02

0.17

0.60

Phoenix AZ

nd

nd

1.08

1.69

1.60

0.04

0.38

Seattle WA

nd

nd

1.12

0.98

1.04

0.41

0.42

Minneapolis MN-WI

nd

nd

nd

nd

0.96

1.26

1.54

San Diego CA

nd

0.04

1.14

1.06

1.29

0.09

0.75

St. Louis MO-IL

0.01

0.06

1.14

nd

1.11

2.39

1.13

Baltimore MD

nd

nd

1.09

0.94

1.26

0.58

0.54

Tampa FL

nd

nd

0.77

0.97

1.15

nd

0.43

Pittsburgh PA

0.61

nd

0.92

1.08

0.84

2.44

1.18

Denver CO

nd

0.96

nd

1.23

1.47

0.59

0.33

Cleveland OH

0.05

nd

0.75

0.45

0.80

0.85

1.84

Portland OR-WA

nc

nd

0.96

0.76

1.04

0.39

nd

Cincinnati OH-KY-IN

nd

nd

0.96

nd

nd

1.10

1.39

* Location Quotient (LQ) - the ratio of a given occupation's share of the local labor force to its share of the national labor force. The average occupational LQ is 1.00. A location quotient greater than 1.00 means that the occupation is more strongly represented in the local than in the national labor force. (A location quotient of 1.50, for example, means that an occupation has 50 percent more than its expected share of the labor force.)

Source: U.S. Department of Labor, Bureau of Labor Statistics (latest data available)
(nd) Not Disclosable
(nc) Not Calculable (data do not exist or value is zero)

Excellent labor relations
Union activity is roughly one-third the U.S. average and has slowed so dramatically that the National Labor Relations Board has moved most of their operations out of the city. In the last five years there has been only one strike in the Houston area and fewer than 700 employees were affected by union elections.


Educational partnerships help create a better workforce

Houston recognizes the critical role educational excellence plays in developing a strong workforce. We have 50 colleges, universities and other degree-granting institutions that awarded more than 65,000 degrees and certificates for the 2008-2009 academic year.

A network of more than 125 business and secretarial schools, over 750 vocational and technical schools, plus 10 exceptional local community colleges offer training programs in diverse areas including:

  • Construction trades
  • Diesel mechanics
  • Engineering technology
  • Electronics assembly/repair
  • Materials management
  • Precision metalworking
  • Small-engine repair
  • Welding

For a complete overview of workforce statistics and labor rates please go to Workforce.

Abundant, stable, cost-effective utilities
A deregulated energy market in the majority of Texas means a choice of retail providers and affordable rates across all utility categories. The region's commitment to developing Smart Grid technology will help reduce price volatility and improve energy management in the future.

 

A central location backed by an exceptional transportation network
Grow your business in Houston and get an excellent mid-country location that delivers a strong network of air, water, rail and road resources. Learn more about our transportation system and how it's backed by infrastructure support that's second to none.

Dedicated to environmental protection
Houston's commitment to the environment is shown in our record of supporting environmental regulations and our continuous advances and leadership over the past two decades - a rate that's especially impressive given the level of growth our area has experienced during this time.


Affordable sites and buildings-and some of the country's lowest property taxes
Houston has an ample supply of low-cost undeveloped land and established industrial space. Our current inventory is more than 361 million sq. ft., with an additional 3.7 million sq. ft. under construction. Our rate costs are very competitive with markets across the country and property taxes are some of the lowest in the nation.

The support you need for manufacturing success

Incentives created with your needs in mind
The Houston area offers a variety of attractive state and local incentives including:

  • Tax abatements on property, R&D and pollution control
  • Manufacturing sales tax exemptions
  • Tax-exempt industrial revenue bonds
  • Employee training grants
  • Product development/commercialization financing
  • Brownfield redevelopment assistance

Abundant technology transfer opportunities
Houston has an excellent track record of successfully and profitably transferring technology developed at area research institutions to the private sector. There are dozens of proven resources that can help your organization leverage the commercial value of research advances. For more information about Technology Transfer visit here.

Industry networks and events

A strong, collaborative network made up of business, academia and public sector members helps create a strong manufacturing community and drives innovation and long-term, international success. Learn more now about our business assistance and networking opportunities, here.


One of the country's most affordable places to build a business - and to call home
A business-friendly tax haven - ranked #7 lowest nationally

Houston's state and local taxes are consistently below national averages, making our region an appealing place to locate or expand.


The #1 Place to Live, Work and Play 4

Take a closer look at all that Houston has to offer and it's easy to see why people enjoy living here.

Houston's educational and healthcare resources are world-renowned and leisure options range from public parks, libraries and one of the country's Ten Best Zoos for Kids,5 to pro sports, art museums and ballet.

Affordable housing options abound at prices that are well below those of other major metropolitan areas. In fact, the second quarter 2009 ACCRA Cost of Living Index showed that Houston's housing costs are 26% below national averages and that overall after-taxes living costs are 11% lower.

When Houston is compared to 26 other metro areas with populations over two million, it does even better: housing costs are 46% below average and overall expenses are 20% lower. Houston residents keep more of their paycheck: local income tax rates are below national averages. Which means that it takes fewer dollars to have the same quality of life in Houston than in many of the country's top metropolitan areas. For instance, $50,000 in annual income in Houston is the equivalent of $130,000 in New York and $80,000 in Los Angeles.6
Learn more about Advanced Manufacturing in Houston. Talk to our Advanced Manufacturing expert: Robert Kramp. Email Robert at rkramp@houston.org.

1 Manufacturers' News, Inc. May 18, 2009; http://www.manufacturersnews.com/news/release.asp?ID=173

2 Manufacturing Overview from Houston.org; 2002

3 U.S. Department of Labor, Bureau of Labor Statistics (2003; latest data available)

4 Kiplinger's Personal Finance, July 2008

5 Parents magazine-parents.com

6 From a study by the Center for an Urban Future, as reported in siteselection.com, http://www.siteselection.com/issues/2009/mar/Top-Metros/

HOUSTON GIS
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