Advanced Manufacturing

The advanced manufacturing industry includes a range of businesses involved in transforming raw materials into component pieces and finished products using complex machinery. Modern Advanced Manufacturing is distinguished from the days of smokestacks and smelting by its reliance on advanced technology and a skilled labor force.

Executive Summary

Site selection considerations for industry

• Plentiful and affordable utilities, such as natural gas, water, and wastewater capacity, especially as manufacturing projects become larger and require more utilities
• Proximity to major transportation routes like interstates, ports, and/or rail facilities
• Financial, infrastructure, and workforce training incentives
• Access to skilled workforce

Advanced Manufacturing in Seguin

• Industry growth: Advanced manufacturing has strong employment growth in Seguin. Over the past ten years Seguin has gone from approximately 1,000 jobs in advanced manufacturing to approximately 3,500. With strong employment and forecasted growth, this industry appears ripe for additional expansion.
• Industry concentration: Advanced manufacturing is highly concentrated in Seguin. With a location quotient (LQ) of 7.8, advanced manufacturing is almost eight times more concentrated than in the US. This industry is also much more concentrated in Seguin than in Guadalupe County and the San Antonio MSA. A high concentration of these industries demonstrates that Seguin is competitive for advanced manufacturing firms because of its location, skilled workforce, and site availability.
• Existing assets: Seguin has a strong advanced manufacturing base in the community, meaning firms have proven that Seguin is a competitive location. Additionally, Seguin is continuing to develop career pathways for this industry and has a developing workforce pipeline.
• Wages: Wages in advanced manufacturing are more than $10k higher than Seguin’s average annual earnings. Growth in the Advanced Manufacturing targeted industry could also lead to overall increases in economic prosperity for Seguin residents.
• Strategic alignment: Advanced manufacturing aligns with the targeted industries of regional and state groups. While the intention is not for Seguin to directly compete with other economic development organizations (EDOs), alignment with regional and state targeted industries can strengthen Seguin’s contribution to state and regional competitiveness, while capitalizing on Seguin’s industry assets to highlight its ideal location within Texas and the metro region.

Niche Sectors

Machinery manufacturing

The Machinery Manufacturing niche sector includes firms that manufacture the heavy machinery and equipment used in agricultural, industrial, construction and mining activities, as well as general-purpose machinery. Machinery manufacturing has seen impressive growth in Seguin, with a LQ of 7.8, indicating that machinery manufacturing is almost eight times more concentrated in Seguin than in the US. Companies in this niche sector include Caterpillar, Alamo Group, and Rave Gears and Machining.

Fabricated Metal Manufacturing

The Fabricated metal manufacturing niche sector includes firms that transform metal into intermediate or end products or treat metals and metal formed products fabricated elsewhere through processes like forging, stamping, welding, and assembling. Firms in this niche sector may use one or a number of these processes during manufacturing. Like other manufacturing niche sectors, fabricated metal manufacturing is almost five times more concentrated in Seguin than in the US with a LQ of 4.7.

Composites and materials manufacturing

The composites and materials manufacturing niche sector includes firms that manufacture new materials derived from innovations in metal, polymers, glasses, composites, and textiles that are used in many different industries. This niche sector aligns with the newly designated automotive targeted industry, which has increased demand across the US for innovative materials due to the need for lighter, stronger component materials in automobiles and aircraft. Composites and materials is more than five times more concentrated in Seguin than the US with a LQ of 5.3. Firms in this niche sector in Seguin include Hexcel and Minigrip.