Texas-Sized Industrial Expansion is Taking Dallas By Storm: Here’s What You Need To Know
Everything is bigger in Texas and that doesn’t stop when it comes to the recent economic developments in Dallas Fort Worth. So, it’s no surprise that DFW continues to be a major leader in the job market throughout the latter half of 2023. This article explores the ins and outs of the expected industrial expansions throughout the area, their wide-reaching impacts, and updates on the DFW Airport economic report.
Dallas Leads in Year-to-Date Job Growth with A 4.4 Percent Increase
When it comes to the construction jobs market in Dallas-Fort Worth, Texas is experiencing unstoppable growth. In the last 12 months alone, nearly 20,000 new construction jobs were added in North Texas. This impressive growth has made the state a leader in construction employment growth, adding 21,100 jobs, more than any other state. These figures highlight the robustness of the construction industry in Texas and its contribution to the overall employment gains in the region. The Bureau of Labor Statistics estimates that D-FW saw a total employment gain of 154,800 jobs across all sectors so far this year, second only to New York City’s 208,200 jobs.
The growth doesn’t stop there. Future projections for growth in the Texas construction jobs market are promising. With the state accounting for the most construction employment growth in the nation, this upward trend is expected to continue.
With stats like these, it’s no surprise that Dallas-Fort Worth has emerged as a leader in job growth among significant metros, with a year-to-date job growth of 4.4 percent. Austin and Fort Worth also show substantial growth rates at 3.8 percent and 3.6 percent, respectively.
The September Texas Business Outlook Surveys further support the positive outlook for the construction jobs market. The surveys reported a strong rebound in manufacturing output and continued moderate growth in the service sector, indicating a healthy overall economic environment. This bodes well for the construction industry, as increased economic activity often translates into higher demand for construction projects.
With all this in mind, it’s safe to say that the Texas construction jobs market will continue thriving in the upcoming months. The state’s strong economic performance, coupled with the ongoing need for infrastructure development and urban expansion, creates a favorable environment for sustained growth in the construction sector. As long as these conditions persist, the construction industry in Texas is likely to offer ample job opportunities and contribute significantly to the state’s overall economic growth.
Unveiling Amazon’s Latest Investments in Texas
One of the biggest contributors to DFW’s recent economic advancements stems from the ecommerce giant, Amazon. Since 2010, Amazon has made a staggering investment of over $54.1 billion in Texas. This investment extends far past infrastructure development for the company. It also prioritizes generous compensation for its employees. With such a substantial financial commitment, Amazon has solidified its position as a significant player in the Texas economy.
In addition to its direct investments, Amazon’s presence is expected to have a ripple effect on the job market throughout the Longhorn state. The company’s contributions have directly led to the creation of more than 88,000 jobs in Texas, spanning various sectors. Even more impressive, this growth has supported an additional 166,000 indirect jobs across the state in construction and professional service industries.
Job creation is just the beginning regarding the economic impact of Amazon’s investments. The company’s contributions have fueled the state’s GDP, adding more than $59.7 billion. This impressive figure highlights the company’s commitment to investing in its operations and contributing to the state’s growth and prosperity.
In addition to Amazon’s hiring efforts, the overall employment growth in Texas has been positive. In August, Texas employment expanded by 1.1 percent, indicating a steady increase in job opportunities. But the progress doesn’t stop there. So far this year, Texas payrolls have grown by 3.3 percent, further highlighting the robust employment growth in the state.
Welcoming Siemens AG to Fort Worth
So far this year, Texas has proven itself to be a desirable location for mega-corporations to settle, further boosting their already flourishing economy. Another notable development in Fort Worth is the upcoming expansion by Siemens AG, a German multinational corporation.
The City of Fort Worth has recently approved incentives for this project, which involves the creation of an advanced manufacturing facility. With an initial investment of $133 million, Siemens aims to establish a facility that will produce low-voltage switchgear and switchboards. This expansion is expected to generate around 715 jobs, supporting job growth throughout DFW.
DFW Airport: A Major Contributor to Texas Economy
There’s no doubt that the DFW Airport significantly impacts the local and state economy. According to a major economic impact study conducted by the Perryman Group, the airport has experienced substantial growth in visitor spending and job creation. Let’s explore some of the details released in the study.
Since 2015, visitor spending at the airport has increased by 24.7 percent, reaching $23.96 billion. This surge in spending has contributed to the growth of jobs, with a 25 percent increase from 508,272 to 634,789 during the same period. These figures highlight the airport’s role in stimulating economic activity and creating employment opportunities in the region.
In addition to the direct impact on visitor spending and job creation, DFW Airport also has a significant effect on the local economy through payroll support. The economic impact study estimates that the airport contributes approximately $38 billion in direct and indirect payroll support. When you look at these numbers, it’s clear that the airport holds a special role as a significant employer in the area, providing income and financial stability to thousands of individuals and families.
Furthermore, DFW Airport is crucial in generating tax revenue for state and local governments. Studies suggest that the airport generates an estimated $5 billion in state and local tax revenue each year. This revenue is critical when it comes to funding public services and infrastructure development, benefiting the community as a whole. To put the cherry on top, the airport contributes approximately $7.1 billion in federal revenue, further bolstering the economy and supporting various government initiatives.
Overall, the economic impact of DFW Airport in Texas is substantial and multifaceted. It stimulates visitor spending, creates jobs, provides significant payroll support to local Texans, in addition to generating substantial tax revenue.
The Economics of Renting in DFW: Attracting a New Generation
Throughout the first 10 months of 2023, Texas has experienced population growth that contributes to the demand for multifamily housing, most of which can be attributed to the influx of younger demographics. Those in their 20s and 30s who are eager to settle in urban centers are flocking to the DFW area. This generation seeks the convenience and amenities of multifamily housing, such as proximity to workplaces, quality schools, and community living. As a result, the demand for multifamily housing has experienced a surge throughout Texas.
But that’s not the only thing fueling the rental market in North Texas. Experts have witnessed a shift in preference among Texas residents towards multifamily housing. Families and individuals alike are more enticed by the numerous advantages that come with living in multifamily developments, such as access to amenities, shared spaces, and a sense of community.
Multifamily housing offers a lifestyle that aligns with the needs and preferences of many individuals, especially those who value convenience, social interaction, and a vibrant urban environment. This shift in preference has further fueled the demand for multifamily housing in Texas.
Fort Worth, Arlington, and Dallas: Promising Options for Small Businesses
When it comes to kickstarting a small business, cities throughout the DFW metropolitan area stand out above the rest, according to Forbes Advisor.
There are numerous considerations that play into the study. One of the critical factors is the GDP growth rate of the cities. Cities with a higher GDP growth rate are generally considered less risky for small businesses as they indicate a thriving economy and potential for business growth. All the Dallas-Fort Worth cities got high marks for sharing a 3.10% GDP growth rate, which contributed to their favorable rankings in the study.
Another critical factor Forbes Advisor considers is the presence or absence of state-level corporate tax. Cities with no state-level corporate tax are often more attractive for small businesses as it reduces their tax burden and increases their profitability. The Dallas-Fort Worth cities, including Plano, Fort Worth, Arlington, and Dallas, all benefit from the absence of state-level corporate tax, contributing to their rankings as some of the least risky cities for small businesses.
Forbes Advisor also takes into account the property crime rate of a city when assessing its risk for small businesses. A lower property crime rate indicates a safer environment for businesses, as it reduces the risk of theft, vandalism, and other criminal activities that can negatively impact businesses. Plano, Fort Worth, Arlington, and Dallas all received high marks in the study because of their low property crime rates and excellent reputations.
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