Automotive

The automotive industry includes the development and fabrication of automobiles as well as the production of individual automobile components. The industry is changing due to new technologies, business models, consumer preferences and environmental regulations. This presents an opportunity for innovation and growth within the sector, adopting a shift to electric vehicles (EV) which are growing in popularity.

Executive Summary

Site selection considerations for industry

• Access to a large regional pool of skilled labor
• Regional density of automotive OEM manufacturers and suppliers
• Sites suitable for a large production facility in terms of size, location, proximity and zoning
• The availability of turnkey utilities is an attractive feature to developers and companies looking to expand and/ or relocate

Automotive in Seguin

• Industry growth: More than 1,750 automotive manufacturing plants call Texas home, and Texas ranks No. 7 in the US in total automotive manufacturing employment. Seguin has seen employment in this industry grow almost 500% from 2017-2022, and the industry is expected to grow by over 30% in Seguin between now and 2028.
• Industry concentration: The automotive industry is relatively concentrated in Seguin with a LQ of 2.8 which is more than five times the concentration in Texas. 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: The presence of major automotive firms in Central Texas, Seguin’s transportation assets, and advanced manufacturing base make Seguin a natural fit for automotive suppliers. Seguin’s workforce development pathways that currently serve the advanced manufacturing industry could be expanded to include automotive skills and careers.
• Wages: Average annual earnings at $38,700 annually and strong industry growth could signify that current automotive firms are low- skilled. As Seguin continues to grow this industry, finding opportunities to diversify and create higher-paying jobs is crucial.

Niche Sectors

Original equipment manufacturers

An automotive original equipment manufacturer (OEM) is defined as a manufacturer that produces parts or components for automobiles or develops the finished automobiles themselves. OEMs are an attractive niche sector for Seguin because of its proximity to major automotive firms, specifically Toyota in the San Antonio area and Tesla in the Austin area. Opportunities exist to fill gaps that in the current supply chain and take advantage of new technologies emerging in the automotive industry. 

Automotive parts and suppliers

This sector involves the designing, manufacturing and distribution of various components, systems and materials used in the production and maintenance of vehicles. The components include mechanical parts like engines, transmissions and suspension systems, safety and navigation systems, and more. Industries include OEMs, top tier suppliers and specialized manufacturers. The presence of existing companies in this sector make it an immediate target for business retention and expansion.

Automotive technology components

Automotive technology components have become an integral part of automobile production over the last several decades as automobiles have become more sophisticated, requiring new and advanced technologies. Automotive technology components have become increasingly complex devices that operate diagnostics, advanced collision avoidance systems, and infotainment systems. These trends, combined with the growing integration of advanced technologies within dashboard consoles and trucks are likely to sustain significant growth of automotive technology components.

Battery and electric vehicle (EV) components

Battery and EV components are critical to the manufacturing of automobiles, particularly with the growing trend in EVs over the past decade which have transformed and revolutionized the transportation industry, shifting from traditional internal combustion engines to electric propulsion systems. The primary components in this sector include battery packs, electric motors, power electronics and charging systems. The attractiveness of this sector is that it requires a wide range of technical expertise and skill sets and given the demand for battery and electric powered vehicles, it is a growth opportunity for Seguin to attract firms that require higher education attainment in its workforce. As the sector continues to grow, so does the need for suitable workforce.

Automotive in Texas