Smart Systems Technology

The smart systems technology industry designs and manufactures the components necessary to create more complex processes or a final product. Firms in this industry could be designing and manufacturing the automated processes used by advanced manufacturing firms or making component parts that will later be assembled into a final consumer product.

Executive Summary

Site selection considerations for industry

• Proximity to other suppliers and customers, especially in electronics, automotive, and other advanced manufacturing
• Access to a diverse labor force, from post-secondary training to graduate level earners
• Proximity to a density of advanced manufacturing employers
• Plentiful land and utilities to start and expand operations

Smart Systems Technology in Seguin

• Industry growth: Seguin has seen significant growth in the smart systems technology industry. Within the last five years, the industry has grown 402%, with an increase of more than 700 jobs from 2021 to 2022, and this industry is forecasted to grow 38% by 2028.
• Industry concentration: With a LQ of 1.2, Smart Systems Technology is more concentrated in Seguin than the US, Texas, and the San Antonio MSA. Guadalupe County is slightly more concentrated with a LQ of 1.3, and the high concentration in the County but not the region suggests that Seguin is primarily responsible for the high LQ.
• Existing assets: The smart systems technology industry is related to advanced manufacturing. Seguin’s strength in advanced manufacturing lays the foundation for diversification and continued growth within Smart Systems Technology. With similarities in workforce skillsets, infrastructure needs, and proximity to suppliers, there is already a strong base that the SEDC and City can strengthen to make Seguin even more competitive for smart systems technology firms.
• Wages: Smart Systems Technologies offers an average annual wage of $81,800, much higher than Seguin’s average annual earnings of $54,000. While the average annual wages in this industry are higher than the median household income, they are still $30-$50k lower than earnings in the San Antonio MSA, Texas, and the US.

Niche Sectors

Robotics and automation manufacturers

Robotics and automation manufacturing companies develop machinery capable of performing tasks that might otherwise be performed by human workers, reducing the need for human labor. While robots have been widely deployed in industrial settings such as automobile manufacturing for decades, their use has increased substantially in recent years, especially as the price of robotics hardware has fallen, increasing their value proposition. The resulting deployment of robotics and automation boosted productivity and helped domestic manufacturing operations remain globally competitive. Advances in artificial intelligence are making robots more adaptive to a variety of industrial settings, making the manufacturing of robotics to maintain efficient processes more important than ever.

Engineering

Engineering includes a range of firms involved in the engineering, design, development and utilization of machines, materials, instruments, structures, processes, and systems. The availability of talent is critical, especially the ability of companies to attract and retain skilled engineers. Engineering services include product and industrial process design; construction design and management; preparation of feasibility studies; systems engineering; maintenance and operations; inspection and evaluation of engineering products; and related services. Industries served include manufacturing, automotive, aerospace, energy and technology.

Electronics

The Electronics sector includes the design and production of components and finished products that typically feature integrated circuits. Although this niche sector relates to manufacturing, processes in electronics manufacturing are fundamentally different from processes of other machinery and equipment. The design and use of integrated circuits and the application of highly specialized miniaturization technologies are common elements in the electronics niche sector, especially for computers. This industry has grown significantly over the past few decades as electronic components are included in more products.

Component manufacturing

Specialty Component & Devices includes the design and production of components that will be further integrated into a more complex product or system. The components produced can apply to a wide variety of industries and niche sectors, including advanced manufacturing, automotive, robotics and automation, and electronics. Ideally, firms in this industry will support the growing of advanced manufacturing and other sectors by creating more efficient processes for production or final assembly.