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Electrical Equipment, Appliances and Component Manufacturing
The Comptroller’s office identified 18 manufacturing subsectors within the Texas economy. This manufacturing subsector is trade intensive and invests heavily in research and development (R&D). It includes the manufacturing of electric transformers and switchboards, communication wires such as fiber-optic cables, as well as household appliances and lighting fixtures.
45,000
Direct & Indirect Employment
$2.5 Billion
State Subsector GDP
$71,000
Average Annual Wage
$11.7 Billion
Exports
Sources: U.S. Bureau of Economic Analysis, Regional Economic Models, Inc., Emsi, U.S. Department of Commerce International Trade Administration
INDUSTRIES IN THE ELECTRICAL EQUIPMENT, APPLIANCE AND COMPONENT MANUFACTURING SUBSECTOR
All four industries in electrical equipment, appliance and component manufacturing are considered “advanced industries,” as defined by the Brookings Institution. Such industries have two distinguishing criteria: R&D spending per worker ranks in the top 20 percent of industries, and their share of workers with high levels of scientific and technical knowledge exceeds the national average.
| Description | Jobs 2016 | Job Change 2010 to 2016 | Average Texas Wages 2016 |
|---|---|---|---|
| Subsector Totals | 19,023 | 12.3% | $70,750 |
| Electric Lighting Equipment | 2,198 | 17.9% | $66,559 |
| Household Appliance | 1,562 | -9.8% | $80,091 |
| Electrical Equipment | 9,028 | 16.7% | $71,380 |
| Other Electrical Equipment and Components | 6,235 | 11.1% | $68,975 |
Source: Emsi
In 2016, this subsector accounted for just 2.2 percent of all texas manufacturing jobs, but contributed 5.6 percent of the state’s manufacturing exports.
Sources: Emsi, U.S. Department of Commerce International Trade Administration
TEXAS SUBSECTOR OUTPERFORMS NATIONAL TRENDS
This Texas subsector pays higher average wages than the national average, and its job growth and export activity have outpaced U.S. averages since 2010.
In 2016, the average earnings for this subsector in Texas was $95,624. In the U.S. it was $89,887.
Subsector exports in Texas grew 65.9% from 2010 to 2016, versus 51.6% in the U.S.
| Year | U.S. Jobs | Texas Jobs |
|---|---|---|
| 2010 | 0% | 0% |
| 2011 | 2% | 4% |
| 2012 | 5% | 11% |
| 2013 | 5% | 14% |
| 2014 | 6% | 16% |
| 2015 | 7% | 16% |
| 2016 | 7% | 12% |
SUBSECTOR EXPORTS
The subsector’s largest export destination was Mexico, which accounted for 61 percent of its total exports.
Source: U.S. Department of Commerce International Trade Administration
Conclusion
Manufacturing continues to drive output and productivity in the Texas economy, creating jobs paying well above the statewide average. It also contributes significantly to job creation in other industries, particularly in services.
The electrical equipment, appliance and component subsector consists of several innovative and “advanced” industries that offer above-average wages. The subsector did lose a significant number of jobs in the 2000s, yet one study estimates that nearly 90 percent of those losses were due to productivity gains. Since 2010, the subsector in Texas has experienced healthier job growth than the U.S. as a whole.