Manufacturing Matters
Manufacturing is the driving force behind the Texas economy, setting the stage for a secure future built on innovation and industry.
A diverse array of Texas-made products bolsters our national security, fortifies our economy and reduces our dependence on other nations for critical components of our supply chain. And for 20+ years, Texas has been the number one exporting state for manufactured goods – delivering economic security and stability to trade allies around the globe.
The Texas Association of Manufacturers (TAM) champions this critical sector, advocating for over 500 member companies that range from small startups to some of the world’s largest enterprises. Our mission is to shape policies and foster partnerships that enhance global competitiveness and ensure sustained growth for the Texas economy. Through advocacy, education, and collaboration, TAM ensures that manufacturing continues to be a cornerstone of prosperity for Texas and the nation.
Texas manufacturers employ more than 924,000 Texans.
Annual compensation for jobs in the manufacturing sector is more than $105,000, roughly 30 percent higher than other non-farm Texas workers.
On average, each manufacturing job created provides 5 additional jobs in our communities.
More than 63 percent of all private-sector R&D in the U.S. comes from the manufacturing sector, driving more innovation than any other sector in our economy.
Texas manufacturers exported $310.3 billion in manufactured goods in 2023. Texas has been the nation’s #1 exporting state for more than 20 years.
IN THE SPOTLIGHT
TAM President & CEO Tony Bennett: “Global competition for advanced manufacturing has never been more intense. Priorities and policy must be laser-focused to keep Texas on top.”
AUSTIN –The Texas Association of Manufacturers (TAM) today released its “TAM Top Ten,” which details the Association’s policy priorities for the 89th Legislature in 2025.
“Global competition to attract advanced manufacturing has never been more intense and our priorities and policies must be laser-focused on ways to keep Texas on top as the number one state to do business and the number one state for exported manufactured goods,” said Tony Bennett, president and CEO of TAM. “Smart policies related to pro-growth tax policy, transportation, infrastructure, electricity, workforce development and water are key to attracting and keeping large-scale manufacturing projects in Texas – which directly bolster our economy, strengthen our national and supply chain security and solidify our leadership in emerging technologies and advanced manufacturing.”
TAM’s Top Ten policy priorities include:
- Tax Structures That Promote Economic Growth
- Equity in Business Taxation
- Business & Personal Property Tax Reform
- Transportation, Critical Infrastructure & Timely Permits
- Maintain a Reliable, Cost-Effective, and Competitive Wholesale Electricity Market
- Ensure that Monopoly Utility Rates are Transparent and Fair to Customers
- Career and Workforce Readiness
- Support Commonsense Regulations and Sufficient Funding for TCEQ Operations
- School and Workplace Health
- Funding for Water Infrastructure Projects
More on TAM Top 10:
- Tax Structures That Promote Economic Growth
- SUPPORT: A competitive tax climate that incentivizes investment by new and existing businesses, including the new Jobs, Energy, Technology and Innovation (JETI) Act, a robust research and development (R&D) tax exemption and a consistent tax exemption for the maintenance, repair and overhaul (MRO) of general aviation aircraft.
- Equity in Business Taxation
- SUPPORT: Broad-based, low-rate tax policy that treats all taxpayers equally, recognizing that no franchise tax cut is a substitute for a competitive property tax environment.
- Business & Personal Property Tax Reform
- SUPPORT: Exempting either equipment used directly in the manufacturing process, or alternatively, all business inventories. This would provide competitive tax relief for all kinds of businesses and industries, large and small, and would create an ongoing and powerful stimulus for the Texas economy.
- Transportation, Critical Infrastructure & Timely Permits
- SUPPORT: Policies that will facilitate the flow of both interstate and intrastate commerce, alleviate supply chain disruptions and encourage efficient expansion – and timely permitting – of our infrastructure network of pipelines, utility rights-of-way, highway and rail corridors that will sustain the quality business environment in Texas.
- Maintain a Reliable, Cost-Effective, and Competitive Wholesale Electricity Market
- SUPPORT:Ensuring reliability and affordability by relying on market-based pricing for energy, ancillary services, and operational reserves; providing price signals for market participants who perform when the grid needs it most; offering robust demand response opportunities; limiting “out-of-market” actions, direct capacity procurements, and capacity markets.
- Ensure that Monopoly Utility Rates are Transparent and Fair to Customers
- OPPOSE:“Rate riders” that let monopoly utilities increase rates quickly, with very limited review. TAM’s priority is to protect the ratemaking process against ongoing utility efforts to reduce oversight and transparency and to ensure that Texas businesses are not forced to pay more than they should for electricity.
- Career and Workforce Readiness
- SUPPORT: Robust career and technical education (CTE) programs and funding in all school districts, as well as a strong system of career, college and military advising beginning in middle school, with a particular emphasis on “return on investment” and a recognition that many careers do not require a 4-year degree, which is often accompanied by crippling student loan debt.
- SUPPORT: A strong accountability system for both public schools and institutions of higher education, with outcomes being paramount.
- SUPPORT: High-quality workforce training programs and funding that provide exceptional rate of return for the Texas economy — programs administered by the Texas Workforce Commission and local workforce boards including: the Skills Development Fund (SDF), Jobs and Education for Texans (JET) Program, and learn-while-you-earn apprenticeships.
- Support Commonsense Regulations and Sufficient Funding for TCEQ Operations
- SUPPORT: TCEQ’s use of clear and consistent regulations that have a market-driven and incentive-based foundation rather than heavy handed mandates or a one-size-fits-all approach, as well as increased inspections at manufacturing facilities that are consistent across the state’s geographic regions.
- SUPPORT: Providing adequate funding for Texas Commission on Environmental Quality (TCEQ) to ensure the agency has the resources and staff they need to efficiently process permits, hire additional inspectors, and provide enhanced salaries and training opportunities for TCEQ staff to maintain a qualified, experienced workforce.
- School and Workplace Health
- SUPPORT: Policies that encourage prevention of infectious disease in schools and the workplace and eliminate attempts to create barriers and access to vaccinations for employees and communities.
- Funding for Water Infrastructure Projects
- SUPPORT: Establishing a dedicated funding stream for the Texas Water Fund to support Texas’ population and economic growth, as well as additional market-based solutions that proportionally distribute any costs in developing regional water infrastructure among end users.
- SUPPORT: Water reuse incentives and sustainability initiatives developed in collaboration with innovative manufacturing partners to reduce the burden on water infrastructure.
Follow TAM on X (@TXManufacturers) and Facebook/TXManufacturers.
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The Texas Association of Manufacturers (TAM) actively represents more than 500 large and small companies from every manufacturing sector. Texas manufacturers employ more than 925,000 Texans in jobs that pay an average compensation of over $105,700 annually – nearly 30 percent higher than other non-farm Texas workers. Manufacturing accounts for 11.2 percent of the total output in the state, contributing more than $310 billion in 2023. On average, each manufacturing job created provides 5 additional jobs in our communities. Texas remains the number one exporting state for manufactured goods in the United States, now for more than 20 years running.
Media Contact: Gretchen Fox, 512-694-4326
AUSTIN – The Texas Association of Manufacturers (TAM) and its members will gather at the State Capitol on Tuesday, February 18th for Texas Manufacturers’ Day to impress upon lawmakers that #ManufacturingMatters to the state’s economy, jobs and national security.
Industry leaders will urge state leaders to focus on the TAM Top 10, the Association’s 2025 policy priorities crafted to protect Texas’ standing as the number one place to do business and the nation’s number one exporter of manufactured goods.
“Texas Manufacturers’ Day at the Capitol is our opportunity to remind lawmakers that manufacturing is a major contributor to the Texas Miracle and the importance of their continued policy leadership to keeping Texas on top,” said TAM President & CEO Tony Bennett.
“Smart policies related to pro-growth tax policy, transportation, infrastructure, electricity, workforce development and water are key to attracting and keeping large-scale manufacturing projects in Texas – which directly bolster our economy, strengthen our national and supply chain security and solidify our leadership in emerging technologies and advanced manufacturing,” he said.
Visit www.manufacturetexas.org to learn more about TAM and manufacturing in Texas.
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Media Contact: Gretchen Fox, 512-694-4326
AUSTIN – The Texas Association of Manufacturers (TAM) has joined a new statewide coalition of business leaders and organizations urging the Texas Legislature to establish a dedicated revenue source to fund future water projects — an essential investment in the state’s long-term resilience and economic future. Water funding is a top priority for the Association for the 89th Legislature. See the complete TAM Top 10 here.
“Manufacturers recognize that water is essential for job creation and economic growth. This need is even more pronounced today considering the challenges to our nation’s supply chain security and the need to attract advanced technologies and critical manufacturing back to Texas and the United States,” said Tony Bennett, president and CEO of the Texas Association of Manufacturers. “Texas policymakers have been forward-thinking in supporting innovative approaches to water infrastructure funding. To build on these successes, Texas must establish a dedicated funding stream for the Texas Water Fund. The consequences of not doing so could be dire and even endanger Texas’ economic miracle.”
The water coalition’s efforts center on two goals: developing a resilient, diversified water supply to meet increasing demand and upgrading aging drinking water and wastewater systems across Texas. Just as a dependable energy grid and skilled workforce are pillars of Texas’ success, reliable water infrastructure is foundational to sustaining long-term growth and prosperity.
For more information about the water coalition, visit www.texas2036.org/txwater-funding.
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Follow TAM on X (@TXManufacturers) and Facebook/TXManufacturers.
Media Contact: Gretchen Fox, 512-694-4326
AUSTIN – Texas Association of Manufacturers President & CEO Tony Bennett joined the Texas Talks podcast to discuss how education, energy, foreign trade, and more impact manufacturing in Texas. Bennett shared details of the Association’s TAM Top 10 and provided a look ahead to the 89th Legislature.
The full episode of Texas Talks is available online here: Audio/Video.
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Media Contact: Gretchen Fox, 512-694-4326
CORE SECTORS
Discover the core manufacturing sectors that are making significant impacts, driving progress and leading in innovation in Texas.
The Texas Association of Manufacturers proudly represents the diverse array of sectors that drive our economy and keep us safe. From energy, aerospace and defense to chemistry products in plastics, pharmaceuticals and advanced semiconductors, Texas manufacturing improves, saves and protects lives every day.
Guiding PRINCIPLES
At the Texas Association of Manufacturers, our principles are the foundation of our advocacy and action.
We are dedicated to fostering a pro-growth environment where manufacturing thrives through sensible policies and strong industry standards. Our guiding principles address key areas such as energy, environmental policy, tax and economic development, transportation, workforce, and legal reform. Each principle is crafted with the goal of protecting and growing high-quality jobs, ensuring Texas remains at the forefront of manufacturing competitiveness and innovation. This commitment shapes our efforts at both the state and national levels, advocating for conditions that allow our industries to flourish and contribute to a prosperous Texas.
ENERGY
Manufacturers are by far the largest consumers of electricity in the State of Texas. The rising cost of energy continues to play a pivotal role in capital investment location decisions across the nation and around the globe.
- The development of market-based energy sources that will provide Texas with reliable and competitively-priced energy.
- An appropriate sharing of transmission infrastructure costs between producers and consumers of electricity.
- Streamlining the environmental permit processes to allow for more timely expansion of cost-effective electricity and other energy supplies.
- Allowing market-based, cost-effective resources, including load response, to compete in electricity markets.
- Effective oversight over the rates and services of monopoly electric utilities, which may include generation, transmission and/or distribution.
- Requiring accurate consumer cost fiscal notes for all energy-related initiatives and proposals.
- Favoring certain energy technologies over others through the use of mandates or subsidies.
- Mandated capacity markets that create unwarranted wealth transfers from electric consumers to generators.
- Allowing monopoly utilities to increase rates without comprehensive rate reviews and effective oversight.
- Taxes and fees on energy consumption.
- Increasing bureaucracy or regulatory burdens that will inhibit the efficient development of competitive energy sources.
ENVIRONMENT
TAM knows that being pro-business and pro-environment are not mutually exclusive policy objectives. Texas manufacturers have been working diligently over several decades to improve air quality in Texas and are leading innovators in technologies to protect and improve the environment. TAM supports environmental policies that are based on sound science and that protect the environment while allowing the economy to grow.
AIR
TAM SUPPORTS
- Maintaining current, ongoing initiatives which have dramatically improved air quality in Texas and do not interfere with enforcement of existing, effective state and federal air quality standards.
- Encouraging continued industry investment in technologically and economically feasible emission reduction solutions through market-driven measures rather than mandates.
- Maintaining automobile fleet turnover programs such as Low-Income Repair Assistance Program (LIRAP) that promote cleaner automotive usage and dramatically reduce mobile emissions.
- Maintaining cost-effective programs like Texas Emissions Reduction Plan (TERP) that are critical to reduce air emissions.
- Making air quality attainment requirements feasible to avoid unrealistic plans that risk Texas transportation funding, halt road construction and accelerate manufacturing job loss and relocation.
WATER
TAM SUPPORTS
- Promoting market-based solutions to meet the state’s water needs.
- Proportionally distributing any costs in developing regional water infrastructure among end users.
- Promoting water reuse incentives and sustainability initiatives developed in collaboration with innovative manufacturing partners to reduce the burden on proposed water infrastructure.
WASTE
TAM SUPPORTS
- Broad-based, comprehensive solutions to solid waste reduction.
TAXES & ECONOMIC DEVELOPMENT
Manufacturing is an important contributor to economic growth and tax receipts at all levels of government. Texas must maintain tax policies and economic development programs that support Texas manufacturers and make Texas more competitive in attracting new manufacturers, sustaining existing manufacturing and creating new jobs for Texans.
TAM SUPPORTS
- Keeping Texas on the competitive cutting edge to attract manufacturers and grow jobs.
- Maintaining the Texas Economic Development Act agreements under Chapter 312 and 313 of the Tax Code and renewing the Texas Enterprise Fund.
- Maintaining the structural integrity of Texas’ margins tax while seeking legislative and administrative technical changes and/or clarifications to create greater clarity and fairness in the business tax.
- Fostering a competitive business tax environment that reflects broad-based, fairly distributed taxes at the state and local levels.
- Maintaining a tax incentive for research and development, capital investment and job creation.
TAM OPPOSES
- Attempts to further distinguish tax rolls of residential and commercial entities, such as appraisal caps.
- Increases in local option sales taxes beyond the current cap.
TRANSPORTATION
The manufacturing sector depends on a reliable and efficient multi-modal transportation system in order to move goods.
TAM SUPPORTS
- Promoting a market-driven, cost-effective transportation infrastructure that allows efficient and competitive transport through the seaports, land ports, roads, railroads and pipelines of Texas.
- Transportation policy that increases productivity, reduces logistics costs for U.S. manufacturers, reduces fuel consumption and emissions, and relieves congestion — making Texas a more competitive, cleaner environment.
- Encouraging expeditious flow of goods, which improves the environment, promotes efficiency and benefits consumers through reduced costs.
WORKFORCE DEVELOPMENT
Historically, the manufacturing sector has been a primary source for middle-class jobs, especially for workers without a college degree. Today’s manufacturing is diversified and requires highly-skilled workers with education and training of all kinds, from welders to engineers. We need to counter the notion that all high-quality manufacturing jobs require a traditional four-year college degree.
TAM SUPPORTS
- Fostering an effective, efficient and standards-based education system that meets the needs of the Texas manufacturing industry and its wide array of employment opportunities.
- Providing an incentive to public school districts, public and private universities, community colleges and technical schools to increase the number of graduates in critical fields such as engineering, math, science and career and technologies.
- Encouraging rigorous yet flexible high school graduation pathways that lead to post-secondary success; including accountable and relevant programs to meet diverse manufacturing workforce needs.
- Ensuring that the state public education system supports and rewards local school districts wishing to offer career and technology courses that help meet their local employment demands.
- Ensuring that career and technology courses offered by school districts contain applied math and/or science components and qualify for credit for math and/or science toward flexible degree plans.
- Ensuring that in-state universities recognize and honor junior college career and technology-based courses.
LAWSUIT REFORM & EMPLOYER ISSUES
Texas Association of Manufacturers and its members are committed to sustaining economic growth and defending against attempts to rollback more than two decades of landmark civil justice reform.
TAM SUPPORTS
- A fair and equitable civil justice system that promotes a sound business environment capable of attracting and retaining manufacturing jobs.
Key Initiatives
Explore TAM’s Top 10 Priorities, a carefully crafted list of strategic initiatives aimed at enhancing Texas’ manufacturing competitiveness.
These priorities represent some of the most pressing issues and opportunities identified by the Texas Association of Manufacturers, focusing on legislative, regulatory, and policy actions that can significantly impact the industry. From advocating for tax reforms to enhancing infrastructure and promoting technological innovation, each priority is chosen to safeguard and advance Texas’ position as a national leader in manufacturing. This list helps guide our advocacy efforts and aligns with our mission to ensure a competitive and flourishing manufacturing sector in Texas.
TAM supports a competitive tax climate that will incentivize investment by new and existing businesses. Sometimes, the State of Texas must adjust how taxes are applied in order get the attention of capital-intensive projects. Simply said, strategically and temporarily limiting tax…
The Texas Legislature reformed the franchise tax over a decade ago to better reflect the modern sectors of the Texas economy, close tax loopholes, and to help finance a reduction in the school property tax. Legislative sentiment periodically favors a phase-out…
Some states have completely exempted business personal property from their property tax assessments to grow their economies; Texas is not one of them. Business personal property includes assets that can be moved – furniture, equipment, and…
Manufacturing plants are energy intensive operations and require well-orchestrated logistics to receive raw materials and supplies and then ship finished products to customers worldwide. These activities require an ever-expanding network of transportation…
Following Winter Storm Uri, incumbent generators have increasingly sought government-mandated, fixed payments from customers to compensate them for simply owning existing generation facilities. These proposals have caused substantial…
Electricity is among the top three production costs for most manufacturers. Regulated monopoly utilities continuously ask for “rate riders” that let them increase rates quickly, with very limited review. These rate riders can disadvantage utility customers…
TAM supports flexible yet rigorous pathways in K-12 public schools and higher education, recognizing there are many pathways to career success. Texas’ education system must be aligned to prepare students to meet the diverse and evolving needs of employers…
TAM supports the Texas Commission on Environmental Quality’s (TCEQ) continued Sunset legislation implementation (SB 1397) efforts. TAM also supports the use of clear and consistent regulations that have a market driven and incentive-based foundation rather…
A healthy workforce results in a more productive workforce. Our global economy can be impacted quickly due to widespread illness, resulting in slowed manufacturing, the inability to get goods to consumers, job losses, and lost tax revenue. Every…
As Texas’ population continues to grow, and the State’s economy along with it, it is imperative that we have the infrastructure in place to support that growth. Water infrastructure must be part of this planning conversation. Accounting for this growth, the 2022 State Water…
JOIN US
Join the Texas Association of Manufacturers and propel your business to the forefront of the industry.
As a TAM member, you’ll gain crucial advocacy and resources and connect with peers, elected officials and regulators through networking opportunities that shape policy. Leverage our comprehensive advocacy and policy support to ensure your voice is heard in legislative matters that impact your operations and the industry at large.
MEMBERSHIP BENEFITS
Texas manufacturers are pivotal to both state and national prosperity.
As your advocate in Austin and Washington D.C., TAM champions policies that drive sector growth and job creation, ensuring that over 924,000 manufacturing professionals in Texas continue to thrive amid evolving legislative and regulatory landscapes.
TAM’s public policy advocacy amplifies the voices of manufacturers, ensuring our industry is connected to lawmakers.
Stay informed and ahead of industry trends with exclusive access to news clips and updates.
Engage in policy collaboration with your manufacturing sector colleagues, which will shape the future of manufacturing in Texas.
REACH OUT
Follow the Texas Association of Manufacturers to keep up to-date with manufacturing news, or reach out to our team.
TEXAS ASSOCIATION OF MANUFACTURERS WORKERS’ COMP INSURANCE PROGRAM
Underwritten by Texas Mutual Insurance Company
PO Box 50565, Austin, TX 78763
512-906-2000
www.tamworkerscomp.com
stacy.looney@tamworkerscomp.com
Gretchen Fox
512-694-4326
gfox@gfoxconsulting.com
