The Texas Automotive Manufacturing Industry the Texas automotive manufacturing industry in the ... U.S. Census Bureau Annual Survey of Manufacturers ... operations abroad in India and in China through

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  • The Texas Automotive Manufacturing

    Industry

    2013

  • Overview. 1

    Passenger Vehicles....... 10

    Heavy Duty Trucks 15

    Trailers. 19

    Automotive Parts.... 20

    Contents

    Texas at the SAE World Congress

    The State of Texas works to

    promote the advancement of its

    automotive manufacturing

    industry by exhibiting at the

    annual Society of Automotive

    Engineers (SAE) World Congress

    in Detroit. A Texas delegation of

    government officials and

    industry leaders hosts a booth

    and meets with automotive

    manufacturers and suppliers

    from around the world.

  • Texas Auto Manufacturing Headlines

    Toyotas San Antonio truck plant sets production record in 2012

    See Page 12-13

    See Page 11

    General Motors expands Arlington assembly plant

    Jobs in Texas auto part manufacturing sector surge 29% since 2009

    See Page 3

    Texas ranks No. 6 nationally for automotive manufacturing employment

    See Page 2

    Continental Automotive to add 300 jobs at Seguin component plant

    See Page 19

    Texas automotive exports jump 68% over past five years

    See Page 9

    See Page 16

    Peterbilt Motors only U.S. truck manufacturing facility located in Denton

    See Page 21

    Toshiba International hires 110 at hybrid motor production unit in Houston

  • T exas is home to a well-established automotive manufacturing sector that, unlike in many other states, has continued to grow in the 21st century. Texas is a right-to-work

    state, nationally ranked in the top

    ten for automotive manufacturing

    employment and establishments,

    as well as the size of its vehicle

    retail market, and the number of

    vehicle registrations. Texas is part

    of the growing NAFTA auto

    corridor, where billions of dollars

    of assembled vehicles and auto

    parts are shipped between

    Mexico and Texas.

    The state is home to two

    major passenger vehicle

    assembly plants, operated by

    global leaders General Motors

    (GM) and Toyota. GMs Arlington

    plant has operated for nearly 60 years

    and currently produces SUVs, while

    Toyota began production of full-size

    pickups at its San Antonio plant in 2006.

    The automotive manufacturing industry

    encompasses makers of cars and trucks,

    motor vehicle bodies, and auto parts. These

    sectors include the assembly of complete cars and

    trucks, as well as the manufacturing of motor vehicle

    frames, chassis, cabs, utility trailers, military vehicles,

    and automotive gasoline engines. The U.S. govern-

    ments North American Industry Classification

    System (NAICS) classifies the auto industry under the

    following categories:

    1

    Automotive Manufacturing Sectors

    Motor Vehicle Manufacturing/Assembly

    Motor Vehicle Body & Trailer Manufacturing

    Motor Vehicle Parts Manufacturing

    Automotive Manufacturing in Texas

    Major Automotive Manufacturers in Texas

  • OVERVIEW

    Automotive Manufacturing Employment in Texas 2012 Third Quarter

    Sector (Industry Code) Employees Firms Average

    Annual Wage

    Motor Vehicle Manufacturing (3361) 8,707 26 $68,068

    Motor Vehicle Body & Trailer Manufacturing (3362) 7,831 165 $40,820

    Motor Vehicle Parts Manufacturing (3363) 17,280 285 $46,176

    TOTALS 33,818 476 $50,572

    Source: Texas Workforce Commission

    Texas ranks No. 6 nationally for automotive manufacturing

    employment

    - U.S. Bureau of Labor Statistics (2011)

    Top Automotive Manufacturing Employers In Texas (2012)

    1 General Motors: 3,500

    2 Toyota: 2,900

    3 Peterbilt Motors: 2,215

    4 Continental Automotive Systems: 1,290

    5 Caterpillar (Engine Assembly): 1,120

    Although lying outside the traditional automotive belt

    of the Midwest and Southeast, Texas is currently one

    of the top 10 states in the U.S. by number of automo-

    tive workers and number of auto manufacturing

    establishments. More than 476 automotive manufac-

    turing firms directly employ over 33,800 workers in

    Texas. Workers at these companies earn an average of

    around $50,000 annually (see table below).

    Auto Manufacturing Workforce

    Employment has increased steadily over the past three

    years, growing over 19% from 2009 to 2012 (see

    chart on page 4).

    The table below provides a snapshot of employment

    in the Texas automotive manufacturing industry in the

    third quarter of 2012. The motor vehicle parts

    manufacturing sector accounts for 51% of the states

    automotive manufacturing employment (see chart at

    right).

    Source: Texas Workforce Commission

    Texas Automotive Manufacturing Employment, by Sector

    2

    OVERVIEW

  • Impact of the Texas Automotive Manufacturing Industry (2011)

    Sector Total Value of

    Shipments ($1,000s) Annual Payroll

    ($1,000s)

    Motor Vehicle Manufacturing $20,792,387 $490,121

    Motor Vehicle Body & Trailer Manufacturing $1,623,134 $252,510

    Motor Vehicle Parts Manufacturing $4,818,806 $545,351

    TOTALS $27,234,327 $1,287,982

    Source: U.S. Census Bureau Annual Survey of Manufacturers

    In 2011, Texas ranked No. 5 nationally for

    automotive manufacturing establishments and No. 6

    nationally for automotive manufacturing

    employment.

    In 2008 and 2009,

    employment in the Texas

    automotive industry

    declined sharply, as the

    national and global

    recession brought on the bankruptcy of two of the

    United States largest automakers. However, as the

    industry has rebounded nationally over the past three

    years, production in Texas has also resurged.

    Employment at Texas automotive manufacturing

    firms has rebounded strongly from its 2009 trough,

    having recovered nearly to pre-recession levels by

    mid-2012 (see graph above). Among the three

    subsectors of the automotive manufacturing industry,

    the motor vehicle parts sector has led the way with

    employment gains of more than 29% since 2009.

    Motor vehicle trailer manufacturing and motor

    vehicle assembly also added jobs steadily between

    2009-2012. Additionally, the value of total motor

    vehicle manufacturing shipments increased from

    2010-2011, according to the U.S Census Bureau.

    OVERVIEW

    Source: Texas Workforce Commission. Data from third quarter each year.

    Five-Year Trends: Texas Automotive Manufacturing Employment, 2008-2012

    Motor Vehicle Parts Mfg.

    Motor Vehicle Mfg.

    Motor Vehicle Body & Trailer Mfg.

    Emp

    loym

    ent

    16,000

    14,000

    12,000

    10,000

    8,000

    6,000

    4,000

    2,000

    18,000

    20,000

    2008 2009 2010 2011 2012

    3

    The motor vehicle parts sector has increased employment by 29% since 2009

  • OVERVIEW

    The maps below identify the states

    Workforce Development regions with

    above-average specializations in

    automotive manufacturing. The high-

    lighted regions are not the only areas in

    Texas where workers in this sector can

    be found, but rather represent areas with

    the greatest concentrations relative to

    the size of the local labor force. This

    analysis compares the portion of each

    Texas regions workforce employed in

    the sector to the portion of the entire

    U.S. workforce employed in that sector.

    The comparison provides a ratio that

    measures how intensively a certain

    region is specialized in this industry,

    and ranks it as moderate, above aver-

    age, or high.

    Alamo Region Light Trucks

    Dallas/Fort Worth Light Trucks Heavy Duty Trucks

    Gulf Region Heavy Duty Trucks

    Motor Vehicle Manufacturing

    Moderate

    Above Average

    High

    Concentration

    Alamo Region Vehicle Interiors &

    Metal Stamping

    Cameron County Motor Vehicle Parts

    Tarrant County Vehicle Electrical Equip., Air Conditioning & Interiors

    Upper Rio Grande Vehicle Electrical Equip.

    Auto Parts, Vehicle Body, and Trailer Manufacturing

    Northeast Texas Truck Trailers Travel Trailers & Campers

    Heart of Texas Truck Trailers

    East Texas Truck Trailers

    Workforce Concentrations

    4

  • From electronics to fuel economy to tire perform-

    ance, a wide range of automotive technologies are

    developed and tested by Texas companies.

    Automotive Semiconductors

    Dallas-based electronics giant Texas Instruments

    designs semiconductors for a range of automotive

    applications, including body

    electronics, power trains, hybrid

    chargers, brakes, and infotain-

    ment systems.

    Freescale Semiconductor, based in Austin, has

    designed and manufactured automotive semiconduc-

    tors since the 1950s. As one of the worlds leading

    suppliers of automotive processors, microcontrol-

    lers, and sensors, Freescales technology is utilized

    in many new vehicles, including GMs Texas-built

    hybrid SUVs. Freescale has been a GM supplier for

    nearly 30 years.

    In addition to TI and Freescale, multiple smaller

    semiconductor firms in Texas also supply the auto

    industry, including SMSC, which develops and

    supplies microelectronics for automotive multimedia

    systems at its Austin, Texas, design center, and

    Silicon Labs, an Austin-based industry leader in the

    development of mixed-signal integrated circuits

    optimized for automotive applications.

    Research & Development Automotive Test Facilities German manufacturer Continental Automotive

    Systems operates a state-of-the-art test track facility

    in Uvalde, Texas. The 5,000-acre Uvalde Proving

    Grounds rural location,

    combined with high security,

    make it ideal for

    testing top secret

    components and

    vehicles for ride,

    handling, durability,

    and more. The

    facility was originally

    built by General Tire

    in 1959.

    Near Fort Stockton, Texas, midway between El Paso

    and San Antonio, lies Bridgestone Americas

    Texas Proving Ground (TPG). Established in 1955,

    TPG is more than 6,000

    acres of flat land that

    features a variety of test

    tracks and driving environments, where tires and

    vehicles can be tested in real-life conditions.

    Also located in West Texas, the Goodyear Tire

    Proving Grounds near San Angelo, provides the

    leading tire maker with

    product test facilities. Built in

    1957, the 7,000-acre site is

    one of only three proving grounds Goodyear

    operates in the U.S.

    In Laredo, Texas, a 2,000-acre facility owned by

    German firm MBTech Group offers a variety of

    special tracks and surfaces for

    vehicle and tire testing. The

    company is a joint subsidiary of

    AKKA Technologies, an industrial research and

    development firm based in France, and Daimler, the

    German parent of Mercedes-Benz.

    5

    OVERVIEW

  • T he Southwest Research Institute (SwRI), headquartered in San Antonio, Texas, is one of the nations oldest and largest independent, nonprofit, research and development organizations. Employing almost 3,000, the institute occupies over two million square feet of laboratories, test facilities, and offices. Its 2011 revenues exceeded $580 million.

    SwRIs world-class Office of Automotive Engineering coordinates operations with automotive clients. Among these operations is the Engine, Emissions and Vehicle Research Division, which designs and tests a wide range of automotive technologies, including powertrains, fuel cells, and diesel systems. The Fuels and Lubricants Research Division helps clients get automotive component and fluid products to market and improve them during their lifespan. Additionally, SwRIs Automotive Fleet Testing program provides comparative data for vehicle performance under actual operating conditions.

    SwRI currently operates seven automotive industry consortia to support its clients, as well as the U.S. Army TARDEC (Tank Automotive Research Development & Engineering Center) Fuels and Lubricants Research Facility, a government-owned facility in operation since 1957. The institute also maintains automotive

    operations abroad in India and in China through the Tianjin-based SwARC Automotive Research Laboratory, a joint venture with state-owned China Automotive Technology and Research Center (CATARC).

    San Antonio institute puts automotive technologies to the test

    Engine testing in low temperature conditions

    Engine oil oxidation testing Automotive fuel performance evaluation

    6

    OVERVIEW

  • Sharing the longest border with Mexico of any U.S.

    state, Texas is uniquely positioned for international

    trade with this significant emerging market in the

    g l o b a l a u t o m o t i v e

    industry. Billions of

    dollars in automotive

    goods are shipped from

    Texas annually.

    Texas has become an

    important part of the

    realigned North American auto alley, now running

    from Mexico through a number of

    southern U.S. states, and north through

    the Midwest rust belt. The traditional

    U.S. auto corridor radiating from Detroit

    has rapidly shifted toward the U.S. South

    since the 1980s. All but one North

    American automotive plant built in the

    last two decades was located in a

    southern U.S. state or Mexico. Many

    foreign-owned automotive firms, such as

    Nissan, Subaru, Volkswagen, Mercedes-

    Benz, BMW, and Kia, have located their

    operations in southern right-to-work

    states, away from the traditional center of

    U.S. automotive manufacturing.

    Spurred by the 1992 North American

    Free Trade Agreement (NAFTA), Texas

    serves as a primary link between

    Mexicos automotive plants and the rest

    of the U.S. automotive industry. The

    NAFTA superhighway, which runs

    through Texas as Interstate 35, serves as

    a main artery for the southern U.S. and

    northern Mexicos auto manufacturing

    industry. The regions large, skilled, and

    cost-effective labor pool, coupled with

    the NAFTA provision that qualifies any

    product of at least 62.5% American,

    Mexican, or Canadian parts to be duty-free, has made

    Texas a highly competitive location for automotive

    manufacturers. The shaded region on the map below

    represents the NAFTA superhighway corridor.

    NAFTAs impact is evident in northeastern Mexicos

    growing automotive cluster, located near the border of

    Texas. Manufacturers with facilities in this region of

    Mexico include GM, Toyota, BAE, Peterbilt,

    Freightliner, and Navistar International. Some of

    these firms also have facilities in Texas, which are

    detailed on the map on page 1 of this report.

    M E X I C O

    T E X A S

    Auto Manufacturing in the Texas-Mexico Corridor

    Tier 1 OEM Suppliers

    Manufacturing Plants

    Map courtesy of Bexar County Economic Development

    The Texas-Mexico Automotive Corridor

    7

    OVERVIEW

    Texas serves as a primary link between Mexicos auto plants and the rest of the U.S. auto industry

  • In 2012, Texas ranked as the No. 3 state for transpor-

    tation equipment exports, with a value of over $25.2

    billion, according to the U.S. Census Bureau.

    NAFTA partners Mexico and Canada were the top

    two destinations for Texas transportation exports.

    Over the past five years, Texas automotive exports

    have surged almost 68%, from around $10.9 billion in

    2008 to almost $18.4 billion in 2012 (see graph

    below). The three

    major motor vehicle

    manufacturing segments

    each grew during this

    period, although the

    economic downturn in 2009 led to across the board

    decreases that year. Motor vehicle parts is the largest

    of the three segments and experienced the strongest

    growth, increasing almost 55% from over $6.4 billion

    in 2008 to almost $11.8 billion in 2012.

    In 2012, Texas ranked No. 2 nationally for total port

    level trade for vehicle-related goods, including

    imports and exports, with a value of over $69.4

    billion, according to the U.S....

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