Texas oil production boosts state economy

For the third year in a row, Texas has gained manufacturing jobs. According to an article in the San Antonio Business Journal, industrial employment increased by 2.5 percent in the state from May 2013 to May 2014. This represented a total of 31,198 industrial jobs. 

All told, the news source reported that Texas has 22,567 manufacturing companies that employ more than 1.2 million workers. It is clear that the state is leading the nation when it comes to growth in this sector.

"That compares very favorably to the rest of the country," said Tom Dubin, Manufacturers' News Inc. president. "While there has been manufacturing job growth, the average state growth has been about 0.8 percent. There's no doubt that Texas' economy is being driven by the growth in the energy sector."

This blog has made numerous mentions of the Texas energy industry and the beneficial relationship it has with the state's manufacturing sector. Recently, we wrote about how the U.S. is in a position where it is able to export crude oil for the first time in four decades—and this is largely due to production increases in states like Texas.

Low energy prices that are the result of this production are a big part of the reason why manufacturers are more comfortable setting up shop in the U.S. Many are choosing Texas because of its low taxes and friendly business climate. Indeed, as long as the state continues to support the development of manufacturing resources—such as CNC machining services, manufacturing employment will continue to rise.