The second in our state feature series, Texas is home to over 16,000 manufacturing companies, providing 1,107,000 jobs. For the last 20 years, the Lone Star State has been the number one exporting state for manufactured goods, and the top state for semiconductor manufacturing. With a strong manufacturing history, and a wide range of diverse industries, Texas is a world leader in manufacturing.

Liquid Gold

Huge resources of crude oil and natural gas has helped Texas become a leader in petroleum and chemical manufacturing. From the Spindletop Oilfield to the Permian Basin, Texas has been a key resource for oil and gas for over 100 years, and in the last year alone was responsible for 44% of the United States crude oil production.

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This wealth of natural resources transformed the state into a bustling hub of trade as businesses rushed to uncover more oil and gas, creating a never-ending stream of demand for specialised equipment and making high quality manufacturing a daily necessity.

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The Friendly State

Texas has created a friendly environment for manufacturers, facilitating an already booming industry with careful legislation and continued investment in the future of manufacturing.

Legislation

The regulatory environment created in Texas has had a positive impact on manufacturing, so much so that 209 headquarters have relocated from California to the Lone State since 2018. Texas has continued to support business friendly legislation and often builds on federal legislation designed to improve the US manufacturing industry.

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One shining example of this is the Texas Chips Act. In August 2022, the CHIPS and Science Act was introduced in the United States, which allocated $53 billion to revitalize domestic semiconductor manufacturing. The state of Texas responded by bringing in the Texas CHIPS Act in 2023, to encourage expansion, leverage Texas’ investments in the semiconductor industry, and maintain the state's position as a leader in semiconductor manufacturing.

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Texas' legislation also supports education, and in 2024 Governor Abbott awarded the Texas State Technical College (TSTC) a job training grant of over $179,000 so the college can continue to provide world class education, ensuring Texas will always have a steady stream of experienced, qualified manufacturers.

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Training Programmes

Texas State Technical College (TSTC) offers a vast range of technical programmes including Advanced Manufacturing, Industrial Systems, Instrumentation, Precision Machining, and Robotics & Industrial Controls. TSTC are so confident in their ability to create in-demand graduates that they offer a money-back guarantee, promising that if a graduate doesn’t get hired 6 months after graduation their tuition will be refunded.

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The University of Texas - Austin (Cockrell) offers a range of highly ranked programmes (in the U.S. News & World Report 2025-2026) including Petroleum Engineering (#1), Mechanical Engineering (#13), and Computer Engineering (#8). It was also home to John B. Goodenough (1922-2023) , the developer of the lithium-ion battery and the oldest winner of a Nobel Prize.

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Texas FAME (Federation for Advanced Manufacturing Education) started from a partnership with Toyota and transitioned to The Manufacturing Institute in 2019. They provide apprenticeship-style training programs to give students education and work experience, and help ensure that Texas’ reputation for well trained manufacturers continues into the next generation.

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Everything’s bigger in Texas

Texas’ manufacturing industry represents the state's diverse economy, with the headquarters of multiple world leading companies stationed in the state.

Aerospace

Houston is the home of NASA's Space Centre, the Johnson Space Centre, and the Houston Spaceport. This combination has a huge impact on Texas manufacturing, with a steady stream of specialised equipment and prototypes needed to continue pushing the boundaries of aerospace and innovation.

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The Houston Spaceport is a major manufacturing hub, covering the development and manufacture of habitation environment systems, space station fabrication and assembly, and hypersonic spacecraft development and engine testing.

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Automotive

In 2006 San Antonio became the seat of Toyota’s manufacturing plant, a highly industrious centre that produced over 200,000 vehicles in 2024 alone. In the same year, the the ToyotAbility Production Centre was opened. A dedicated workspace that employs individuals with intellectual and developmental disabilities in subcomponent work, the centre ensures there are equal opportunities for all Texans working in manufacturing. On top of this, Toyota is currently expanding, with a new facility planned that will focus on drivetrain parts production and is estimated to bring over 400 new jobs to San Antonio.

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A more recent entry into the booming Texas automotive industry is the Tesla Gigafactory Texas (also known as Giga Texas or Tesla Gigafactory 5). Officially finished in 2022, the factory is the second largest in the United States, and serves as the manufacturing hub for the Model Y, and as the home of the Cybertruck.

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BioTech and Medical Devices

The Texas Medical Centre (TMC) is the world’s largest medical complex, and contains the Centre for Device Innovation (CDI) which offers dedicated spaces for prototyping and testing, as well as specialised equipment for projects, facilitating state-of-the art manufacturing.

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Defence

The Army Futures Command have their headquarters in the capital, Austin. With more than 17,000 personnel worldwide, and with modernization priorities that include creating a next generation combat vehicle and future vertical lift, they are a significant contributor to the Texas manufacturing market.

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The Future

The headquarters of NASA, home to the second largest factory in the United States, and with a seemingly never ending stream of oil, the Lone State looks set to maintain its position as a global leader in manufacturing for many years to come.

About AMFG

AMFG works with high-mix, low volume manufacturers across the globe, streamlining their operations with our cutting-edge software platform. Our scalable tools automate all stages of manufacturing operations, providing automatic quoting and order management, with 500+ integrations. Using our software, our clients can adapt to complex demand with efficiency and precision, securing their place at the forefront of the manufacturing industry.

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