50 in 50: Texas

50 in 50: Texas

50 states in 50 weeks: U.S. states economic and infrastructure highlights.

Key Economic Indicators

GDP: $1.8 trillion

GDP 5-year compounded annual growth rate (CAGR) (2017-2021): 2.4% (U.S.: 1.6%)

GDP per capita: $63,728 (U.S.: $58,154)

Population: 29.5 million

Population 5-year CAGR (2017-2021): 1.1% (U.S.: 0.5%)

Unemployment: 4.0% (U.S.: 3.9%)

Economic outlook ranking: #11 out of 50

Fiscal health ranking: #33 out 50

Overall tax climate ranking: #14 out of 50

Key Sectors and Metro Areas

Top five industry sectors by 2021 GDP:

Top three industry sectors by GDP 5-year CAGR (2017-2021):

Top three metro areas by GDP:

• Dallas-Fort Worth-Arlington
• Houston-The Woodlands-Sugar Land
• Austin-Round Rock-Georgetown

Top three metro areas by population percentage increase in 2021 vs. 2020:

• Sherman-Denison
• Austin-Round Rock-Georgetown
• Killeen-Temple

Infrastructure Highlights

Infrastructure: ASCE Infrastructure Grade (2021): C

In Texas, highways and roads, levees, dams, and wastewater infrastructure received the lowest grades based on last year’s ASCE report. The organization estimates a funding gap of about $50 billion in water and wastewater infrastructure over the next 20 years. Weeks ago, TxDOT announced the advancement of the Unified Transportation Program (UTP), a 10-year plan that provides $85 billion in funding towards transportation safety, congestion, and rural connectivity. Texas handles more cargo and has more rail miles than any other state. Being a large state not only requires heavy investments but also forces engineers involved in projects to maximize efficiencies in order to lower operational and maintenance costs for transportation and other infrastructure systems. The state will receive over $35 billion from the Bipartisan Infrastructure Law (BIL), which will help sustain its economic growth. Over the next five years, Texas’s BIL funds will address the following categories of projects (additional funds may be deployed as grants get awarded to states):

Construction spending (Value of Construction Put in Place – CPiP):

• Private Nonresidential 2021 CPiP: $50.9 billion; 2.6% 5-year CAGR (2017-2021), above overall U.S. CAGR of 1.4%
• State & Local 2021 CPiP: $39.9 billion; 6.0% 5-year CAGR (2017-2021), above overall U.S. CAGR of 4.0%

AE Industry

ENR 500 firm headquarters (2022): 42

M&A activity since 2018:

• 186 deals with buyers from Texas
• 186 deals with sellers from Texas

For customized market research, contact Rafael Barbosa at [email protected] or 972.266.4955. Connect with him on LinkedIn.