Manufacturing and construction industry growth have helped Texas add 20,000 additional jobs in August, according to reports from the Texas Workforce Commission.
Even though the state's unemployment rate technically increased to 5.3 percent from the 5.1 percent figure recorded in July, many believe that this is due to more people feeling greater confidence about entering the labor force in search of work.
The report found that the construction industry in the state added 6,900 jobs, while the manufacturing industry added 1,800.
Texas is able to attract new manufacturing investment due to its favorable business climate, which minimizes taxation and regulation and allows for more growth. One company that has taken advantage of this environment to expand is Kone, which has announced plans to build a light-manufacturing facility, adding 80 jobs in the process.
The Quad City Business Journal reports that Kone, which manufactures elevator and escalators, hopes to build its plant in Allen, Texas. Ron Bagwill, vice president of Kone America's supply operations, said that this new location will have significant logistical benefits.
"We will be customizing the elevator controls close to where they are installed in the U.S. and Canada," Bagwill said. "Our centralized location in Allen will simplify logistics, enhance quality and speed delivery."
In addition, since Kone only intends to occupy about one-fifth of the new facility, there will be plenty of room for other tenants to build their own manufacturing operations.
A favorable business climate is crucial for states that want to build their manufacturing industries. Whether they are major multinationals or CNC machining services, all manufacturing firms can benefit from pro-business policies.