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Fact check: What are the main industries contributing to Texas' GDP?
Executive Summary
Texas’ GDP is driven by a mix of energy, manufacturing, technology, and a growing services and infrastructure sector, with mining, quarrying, and oil and gas extraction repeatedly cited as leading contributors to recent growth. State reports and federal data for 2025 show robust GDP expansion driven by those sectors plus rising investment in transportation and semiconductor/tech industries, while manufacturing and agriculture remain substantial anchors of the economy [1] [2] [3].
1. Energy Still Leads — Fossil Fuels and Renewables Power Growth
Federal and state accounts place mining, quarrying, and oil and gas extraction among the top drivers of Texas’ recent GDP increases, particularly in the second quarter of 2025 where energy led growth figures reported by the U.S. Bureau of Economic Analysis and summarized in state briefings [1] [2]. The energy claim is consistent across analyses that also emphasize Texas as a top producer of crude oil and natural gas while noting its rapid expansion in wind power and renewable investments, which diversifies the energy mix. These combined energy activities create both direct GDP contributions and significant downstream effects in services, transport, and manufacturing [4].
2. Manufacturing’s Massive, Multi-Faceted Role
Manufacturing appears as a persistent economic anchor with large employment and GDP shares, reflecting both traditional durable and nondurable goods production and advanced manufacturing clusters. Historical data cited shows manufacturing directly employed roughly 909,000 Texans and contributed about $241 billion to GDP in 2019, while combined agriculture, mining, and manufacturing were reported at $516 billion in 2023 for key Texas regions, illustrating manufacturing’s scale and regional concentration [5] [3]. Manufacturing’s value extends beyond output to R&D, supply-chain stimulation, and workforce development, keeping it central to state economic strategies and industrial recruitment efforts [6].
3. Technology, Semiconductors, and High-Growth Sectors
Multiple analyses emphasize technology and semiconductors as emerging and accelerating contributors to Texas’ GDP, including exports and cluster formation in major metros; these sectors are framed as complements to energy and manufacturing rather than replacements [4] [6]. Reports note significant private investment and talent migration into tech fields, which boosts higher-wage jobs, increases state export capacity, and supports growth in information services and fintech. While not yet the single largest GDP slice, technology’s rapid expansion and linkages to advanced manufacturing and logistics make it a critical area for future GDP gains and resilience [7] [6].
4. Services, Finance, Construction and the Infrastructure Multiplier
Beyond industry-specific outputs, reports highlight financial services, construction, and information services as important contributors to GDP growth and resilience, especially through large-scale projects and urban expansion [7] [6]. Infrastructure investments — exemplified by projections for the I-27 corridor estimating over $55.6 billion in added GDP in the first 20 years and tens of thousands of jobs — show how transportation projects can multiply economic effects across goods movement, real estate, and regional development [8]. These service and construction activities capture indirect economic value that complements Texas’ tradable sectors, underpinning sustained statewide growth [2].
5. Agriculture, Aerospace and Life Sciences Add Depth and Stability
Texas’ economic profile includes agriculture, aerospace, biotech and life sciences as stabilizing components that contribute meaningful GDP shares and regional employment, reinforcing the state’s diversity [3] [6]. Agricultural output remains significant in rural regions and supply chains, while aerospace and biotech clusters attract specialized investment and high-skill employment, creating pockets of concentrated GDP contribution and innovation. These sectors cushion the economy against cyclical swings in commodities and energy, broadening the state’s risk profile and enhancing long-term growth potential through diversified export and employment bases [6] [3].
6. How Analysts Differ — Emphasis, Time Frames, and Policy Context
Different analyses emphasize different drivers: federal BEA data spotlights short-term GDP growth and energy’s leading role, state and regional reports stress manufacturing, tech, and infrastructure investments, and economic development summaries project longer-term diversification into semiconductors and life sciences [1] [2] [6]. Some pieces frame Texas’ performance as a function of business-friendly policy and workforce advantages, while infrastructure projections highlight public-sector-led multipliers like I-27; these emphases reflect distinct agendas — federal statistic reporting, regional economic promotion, and political advocacy for infrastructure — and explain variance in what each source highlights [2] [8] [3].
7. Bottom Line: A Diverse, Energy-Heavy Economy Mid-Transition
Across the available analyses, the core picture is consistent: Texas’ GDP is anchored by energy and manufacturing, growing rapidly in technology and semiconductors, and increasingly supported by services, infrastructure, aerospace, agriculture, and life sciences. Short-term BEA figures from 2025 show above-average expansion, with infrastructure and investment projections promising further shifts in sectoral contributions; the net effect is a large, diversified economy still weighted toward energy but actively transitioning toward high-tech and infrastructure-driven growth [1] [2] [8] [6].