Texas Association of Manufacturers launched

A group of major companies launched the newly formed Texas Association of Manufacturers (TAM) Friday in a commitment to its manufacturing sector - the engine that drives prosperity in Texas, creates high-quality jobs, and provides significant revenue for public schools. An inaugural luncheon is scheduled on Tuesday, March 21, in Austin.

"With a special session around the corner, TAM is forming with an eye toward public policy's impact on jobs, the economic prosperity of Texas, and our ability to remain domestically and globally competitive," said Tony Bennett, chairman of TAM and vice president of TAM member, Temple-Inland Inc. "Our initial efforts will focus on our state tax system, which does not reflect today's Texas economy. We are committed to working proactively with the Texas Legislature to develop a broad-based tax system for the new, competitive, global economy."

Other issues of priority for TAM include the creation of reliable, competitive energy sources; safe, efficient, cost-effective transportation of goods; water management; and the promotion of transparent, science-based, predictable regulations - all of which will foster job growth, competitiveness, and productivity in the manufacturing sector.

"For the first time in 30 years, Texas manufacturing companies have come together with a singular focus to promote and protect manufacturing jobs in Texas," said Bennett. "Manufacturing is central to our state's economic security and its jobs are among the best in our state. Our mission is to advance public policy that promotes these quality jobs for Texans."

Manufacturing is critical to the Texas economy, contributing $96 billion each year. Every dollar in manufactured goods generates an additional $1.43 in economic activity - more than any other sector. More than 892,000 Texans work in the manufacturing industry, where across the U.S. compensation averages more than $63,000 a year, the highest in the private sector. These jobs pay, on average, 22 percent more than the national average.

The positive effect of manufacturing jobs ripples across other sectors as well. For every manufacturing job created in Texas, 2.5 service sector support jobs are created. For each petrochemical manufacturing job in Texas, eight service jobs are created.

Valuable jobs and the economic impact of the industry warrant the focused attention of manufacturers and leadership in Texas, according to Bennett.

"In all of our efforts, we must be mindful of competitive pressures at home and abroad," said Bennett. "Manufacturers are no longer simply competing within our borders. We share the marketplace with countries like China where the average manufacturing worker earns 61 cents an hour."

By comparison, U.S. manufacturing workers are paid an average of $16.42 an hour, according to a recent report by the Federal Reserve Bank of Dallas.

TAM flagship members include 25 leading companies that represent a cross-section of 12 manufacturing industry sectors. From paper and consumer goods to automobiles and snack foods, the members of TAM span the realm of manufacturing in Texas.

"Our lawmakers' attention will be well-placed on education funding in the coming weeks," said Bennett. "Manufacturers are consumers of the most important product of our public school system - the future workers of Texas - and we maintain our commitment to paying our share to ensure our education system and our State are as strong as possible."