by the numbers

Texas ranks as No. 2 manufacturing hub in U.S., behind only California

A new study puts Texas at No. 2 among the states when it comes to manufacturing. Photo via Getty Images

Texas ranks among the country’s biggest hubs for manufacturing, according to a new study.

The study, conducted by Chinese manufacturing components supplier YIJIN Hardware, puts Texas at No. 2 among the states when it comes to manufacturing-hub status. California holds the top spot.

YIJIN crunched data from the U.S. Census Bureau, International Trade Administration, and National Association of Manufacturers to analyze manufacturing activity in each state. The study weighed factors such as number of manufacturing establishments, number of manufacturing employees, total value of manufacturing output, total manufacturing exports and manufacturing’s share of a state’s gross domestic product.

Here are Texas’ figures for those categories:

  • 19,526 manufacturing establishments
  • 847,470 manufacturing employees
  • Total manufacturing output of $292.6 billion
  • Total manufacturing exports of $291.9 billion
  • 11.3 percent share of state GDP

According to Texas Economic Development & Tourism, the state’s largest manufacturing sectors include automotive, tech, petroleum, chemicals, and food and beverage.

“The Lone Star State is truly a manufacturing powerhouse,” the state agency says.

In an October speech, Texas Gov. Greg Abbott praised the state’s robust manufacturing industry.

“We are proud that Texas is home to a booming manufacturing sector,” he said. “Thanks to our strong manufacturing sector, ‘Made in Texas’ has never been a bigger brand.”

Houston is a cornerstone of Texas’ manufacturing industry. The region produces more than $75 billion worth of goods each year, according to the Greater Houston Partnership. That makes Houston the second-ranked U.S. metro area for manufacturing GDP. The more than 7,000 manufacturing establishments in the area employ over 223,000 people.

“As one of the most important industrial bases in the world, Houston has access to many global markets thanks to its central location within the U.S. and the Americas,” the partnership says.

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A View From HETI

Meta will use electricity generated by one of ENGIE's Texas solar farms to power its U.S. data centers. Photo via engie.com.

Meta, the parent company of social media platform Facebook, has agreed to buy all of the power from a $900 million solar farm being developed near Abilene by Houston-based energy company ENGIE North America.

The 600-megawatt Swenson Ranch solar farm, located in Stonewall County, will be the largest one ever built in the U.S. by ENGIE. The solar farm is expected to go online in 2027.

Meta will use electricity generated by the solar farm to power its U.S. data centers. All told, Meta has agreed to purchase more than 1.3 gigawatts of renewable energy from four ENGIE projects in Texas.

“This project marks an important step forward in the partnership between our two companies and their shared desire to promote a sustainable and competitive energy model,” Paulo Almirante, ENGIE’s senior executive vice president of renewable and flexible power, said in a news release.

In September, ENGIE North America said it would collaborate with Prometheus Hyperscale, a developer of sustainable liquid-cooled data centers, to build data centers at ENGIE-owned renewable energy and battery storage facilities along the I-35 corridor in Texas. The corridor includes Austin, Dallas-Fort Worth, San Antonio and Waco.

The first projects under the ENGIE-Prometheus umbrella are expected to go online in 2026.

ENGIE and Prometheus said their partnership “brings together ENGIE's deep expertise in renewables, batteries, and energy management and Prometheus' highly efficient liquid-cooled data center design to meet the growing demand for reliable, sustainable compute capacity — particularly for AI and other high-performance workloads.”

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