Jobs
More than 74,000 Texas enjoy outstanding jobs directly involved in manufacturing chemical products. These jobs are among the highest paid in the state, and typically come with excellence health care and other benefits. Average wages for production workers in the chemical industry were $23.55 per hour in 2001, 58% more than the state average manufacturing wage.
An annual payroll between $4 and 5 billion accounts for 13% of the state's manufacturing total, ranking second only to the electronics industry (computers and semiconductors) in terms of manufacturing sector leadership.
In addition to the 74,000 jobs directly created by the chemical industry in Texas, more than 510,000 jobs in Texas are generated indirectly by chemical industry activity in Texas and other states. For every chemical industry job in Texas, 4.5 jobs are created within the state - another 375,000 jobs. And 135,000 Texas jobs come from chemical industry activity generated outside the state. In total, more than 585,000 jobs in Texas are supported by the chemical industry. These jobs generate $25.7 billion in earnings.
The facilities operated by chemical industry employees are highly complex and represent tens of billions of invested dollars. They are literally cemented into the Texas soil and thus are not easily outsources or off-shored. Jobs here should remain and grow as long as these facilities can remain competitive in a global marketplace.
Investment
Capital intensive is an economic term which literally defines the chemical industry. The current taxable appraised property valuation for chemical manufacturing plants in Texas is about $50 billion, and growing each year.
New capital investment provides the lifeblood for maintenance, modernization and growth of businesses like the chemical industry in Texas.
Without new investment, facilities become obsolete and less competitive, and ultimately close. The chemical industry typically invests between $2 and 4 billion each year in new facilities in the state. In 2001, chemical sector investment was $2.4 billion, 22% of Texas' manufacturing total.
Investment has declined in recent years reflecting the significantly higher prices of raw materials from oil and natural gas.
Taxes
Texas chemical industry pays over $1 billion each year to schools, cities, counties, the state and other local taxing entities. The proportion of taxes paid by capital intensive industries is significantly larger than their share of the overall Texas economy. These industries pay average state and local taxes of over $10,000 per employee, while labor intensive industries pay taxes averaging around $1,500 per employee. Two related capital intensive manufacturing industries in Texas, chemicals and oil and gas, provide 2.8% of Texas jobs and generate 9.4% of Texas economic output but pay 19.4% of Texas taxes on businesses. Because of the capital intensive nature of this industry coupled with an over-reliance on property taxes for school funding. Texas is not competitive with other key industrial states in attracting investment in some new chemical plants.