Texas’ advantage: The state has a strong, diverse industrial base with access to cost-effective water, attracting continued investment.
Water pricing isn’t uniform:
- Different industries use water differently and generate different economic value from it.
- Example: 2 gallons of water can produce a dollar’s worth of paper or $5–$10 worth of CPU chips. Higher-value products justify higher water costs.
Industry-specific site selection:
- Water-intensive, lower-value industries (like paper) prefer regions with cheaper water, e.g., East Texas.
- High-value industries (like semiconductors) can locate in areas with more expensive water due to the high profit per unit.
Diverse industrial needs: Texas hosts chemical, petroleum, metal, paper, and food manufacturing—most water-intensive—and high-value sectors like electronics, machinery, and transportation equipment.
Investment outlook: Continuing investment in water infrastructure will support Texas’ manufacturing growth, enabling efficient water use across various industries.
Next focus: Transportation needs of manufacturing.
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