This subsector includes pulp and paper mills and manufacturers of paper products, including office supplies and products for shipping and packaging.
47,200
Direct & Indirect Employment
$2.1 Billion
State Subsector GDP
$62,783
Average Annual Wage
$1.9 Billion
Exports
Sources: U.S. Bureau of Economic Analysis, Regional Economic Models, Inc., Emsi, U.S. Department of Commerce International Trade Administration
One method to measure a subsector’s regional strength is the location quotient (LQ), a ratio of the subsector’s share of employment in a region to its share of employment in the U.S. as a whole; the higher the LQ value, the more “concentrated” the industry. LQ values often are used to identify regional strengths and inform economic development and investment decisions. Texas’ statewide 0.56 LQ in paper manufacturing indicates that the subsector and its industries are not highly competitive.
Description | Direct Jobs 2016 | Average Texas Salaries 2016 | Location Quotient 2016 |
---|---|---|---|
Subsector Totals | 17,207 | $62,783 | 0.56 |
Pulp, Paper and Paperboard Mills | 2,980 | $85,266 | 0.36 |
Converted Paper Product Manufacturing | 14,228 | $58,075 | 0.63 |
Source: Emsi
A regional assessment of employment concentration is useful, as the size of Texas’ economy and workforce can obscure regional industry strengths. The paper manufacturing subsector is highly concentrated in the Upper East, Central and Southeast Texas regions.
Sources: Emsi, Texas Comptroller of Public Accounts
Paper manufacturing jobs declined from 2010-2016 in the U.S. and Texas. Several Texas regions did see job growth, led by the West and Central regions.
Region | Job Change | 2010 to 2016 Percent Change |
---|---|---|
West | 532 | 49% |
Central | 2,086 | 40% |
Gulf Coast | 1,431 | 17% |
Southeast | 1,153 | 4% |
Sources: Emsi, Texas Comptroller of Public Accounts
Texas economy, creating jobs paying well above the statewide average. It also contributes significantly to job creation in other industries, particularly in design operations and services.
The paper manufacturing subsector’s employment and economic output levels have declined since the mid-1990s, both in the U.S. and Texas. Demand for paper products has declined as consumers shift to digital media. The subsector is buoyed, however, by demand for packaging from food and beverage industries.