Austin Manufacturing Surprise

Post by
Scott Francis

Caught this article in the Austin American-Statesman the other day about Austin manufacturing output growing 4x the rate of the overall local economy:

Local manufacturing output has skyrocketed over the past decade, growing more than four times faster than the metro-area economy as a whole, according to a recent analysis compiled by Brian Kelsey, founder of Civic Analytics, a local economic development firm.
Manufacturing now accounts for roughly 20 percent of Austin?s gross metro product (the total goods and services produced in the area) up from just 9 percent in 2001. The sector is now the single-largest component of the local economy, surpassing the public sector.

Which sounds amazing, and great for the economy.? And I guess it is.? But there's a reason that people in America feel like manufacturing is down, or that the US isn't the worlds' largest (or second largest) manufacturer - because employment doesn't reflect the growth.? In fact:

Despite those soaring production levels, employment at area factories has plummeted over the same period. Manufacturers have cut 38 percent of their payrolls since 2001, a net loss of more than 30,000 jobs, according to Texas Workforce Commission data.

While employment has trickled upward 4% each of the last two years, when you lose 30,000 jobs in one sector, it doesn't feel like a come back.? Its nice to see Austin experiencing a manufacturing renaissance, and it is good for the economy - but it isn't going to produce the jobs it once did.

More From Blog

You Might Also Like

Driven Day 5: The Final Day of Automation Goodness: Enterprise UX and Design
Read More
Driven Day 4: Application Modernization
Read More
Driven Day 3: Process Automation Day
Read More
We Work With Companies Just Like Yours
Are You Ready?

Let’s Work Together

BP3 gets you there fast. Contact us today to see how we can bring more focus, foresight, and follow-up to your projects.