Texas is facing a critical shortage of skilled workers needed to power the nation’s #1 state for manufactured goods.
A ready workforce is a significant factor when companies look to locate or expand in the Lone Star State, so this shortfall threatens our 20-year run as the Best State for Business and our ability to create even more high-quality jobs for Texans and the families they support.
A workforce shortfall is not just a challenge for businesses. It’s a priority for every Texan because workforce challenges stifle local economic growth and that slows job creation.
The Dallas Federal Reserve’s most recent Texas Business Outlook Survey identified a lack of skilled workers as one of the top barriers facing employers in the manufacturing industry. Nationally, the Manufacturing Institute and Deloitte forecast a shortage of 1.9 million skilled manufacturing workers by 2033, with Texas being a major contributor due to our large manufacturing sector. Some estimates indicate the workforce shortage could result in economic losses exceeding $1 trillion nationally due to lost production time.
In Texas, 54% of jobs are classified as middle-skill, requiring a postsecondary credential beyond high school but less than a bachelor’s degree, according to a report by Texas 2036. However, only 45% of Texans are sufficiently trained for these roles, resulting in skills gap equivalent to approximately 1.4 million workers who lack the training they need for these opportunities. It’s estimated that there are about 50,000 open positions in the high-wage, high-demand manufacturing sector in Texas alone. By 2029, the U.S. is expected to see 1.5 million new skilled trades jobs, with Texas facing significant demand due to its economic growth.
It is crucial for Texas’ public schools to be better aligned with the needs of our workforce, offering more career and technical education, more industry-based certifications, and more high school graduates ready for work on Day 1.
Fortunately, Texans have a direct opportunity to address this challenge and strengthen our talent pipeline by voting for Proposition 1. Without raising taxes, Prop 1 will direct $850 million in state general revenue funds to the Texas State Technical College (TSTC) to expand job-training programs and build more hands-on training labs and facilities.
TSTC already boasts nearly 50 programs across 11 campuses, offering career paths for students and veterans in advanced manufacturing, robotics and industrial controls, welding, instrumentation, precision machining, and industrial systems – the very jobs Texas employers are struggling to fill. Prop 1 means more Texans can graduate ready to step into these high-paying careers that strengthen households and communities.
TAM has long supported investing in TSTC to meet our critical workforce needs in part because its funding model is 100% outcomes-based, meaning they only receive full funding when a student graduates and secures a good-paying job. This results-driven approach is proven in producing the job-ready, skilled professionals that are in such high demand.
Texas’ many national economic accolades are not an accident but are the outcome of decades of deliberate focus on policies that support job creation and investment — the engines that have produced the 8th largest economy in the world.
On November 4th, Texans have a once-in-a-generation chance to continue that success. By voting “yes” on Prop 1, we can grow a ready workforce, strengthen opportunities for every Texas family, and secure a future where our state continues to lead the nation and the world.
Editor’s Note: The above guest column was penned by Tony Bennett, president & CEO of the Texas Association of Manufacturers. The column appears in the RGG Business Journal with the permission of the author.
