Manufacturing businesses flock to Texas

The manufacturing sector in Texas had a strong month of June. According to data compiled by the Federal Reserve Bank of Dallas, the state jumped from an 11 to a 15.5 on the production index. This is largely the result of an increase in new orders.

"It seems some of that pick up is demand driven, as the new orders index rose," Emily Kerr, business economist for the Fed, told the news source. "Comments from survey respondents noted particular strength in machinery manufacturing this month."

Texas is able to support this manufacturing growth, in part, due to its rapidly developing energy sector and its business-friendly policies on the state level. Low taxes and minimal regulations make it easy for business to get set up and grow.

This has allowed the state to continuously attract manufacturing businesses. For example, Schneider Electric recently announced that it would be investing $7 million to expand its operations in El Paso. The money will go toward a new custom engineering-to-order power control business line, which will help the company serve its clients efficiently.

Then there is Mossberg & Sons, Inc., the oldest family-owned and operated firearms manufacturer. Originally based in Connecticut, the company recently decided to build a 116,000 square foot facility in Eagle Pass, Texas, expanding upon current manufacturing facilities that are already in the area.

As more manufacturing companies move to Texas, demand for CNC machining services is sure to increase. They can help develop an efficient manufacturing industry by providing unique components on-demand to companies that need them.