A new report from the Federal Reserve Bank of Dallas shows the Texas manufacturing industry is stronger than a hurricane, News Radio 1200 WOAI reports.
The Dallas Fed says factors ranging from production to shipments to delivery time to new orders increased in September, despite the devastation of Hurricane Harvey late in August.
"A lot of the notes indicated that they are going to be back up," said Rey Chavez, CEO of the San Antonio Manufacturers Association. "They still have ordered to do."
The data for the study were collected between September 12th and 20th, and surveyed 111 manufacturers throughout the state, in a wide variety of classifications.
Many said a lack of skilled and available workers was a far more serious problem facing manufacturing than the temporary challenges posed by Harvey.Employment in manufacturing in Texas is up sharply, delivery times, growth rate of orders, and new orders all finished strong.
The study shows that wage pressures are buildings due to a lack of workers, and the amount of hours worked also showed strength in September.
"They getting their facilities up to speed and are getting back into the game in minimum time," Chavez said.
The Dallas Fed says Harvey did 'materially slow logistics in Southeast Texas, which caused delivery delays, as well a acquisition of row materials.
The survey did find significant issues facing businesses overall in southeast Texas.
"Hurricane Harvey has seriously damaged the southeast Texas business community," the Fed said. "Already negatively affected by the general downturn of the oil business and the printing and USPS mail volume decline, the hurricane hitting Houston has been an economic disaster for local small businesses. The situation is sadly reminiscent of the weeks following the 9/11 attack.
"But outside the direct hit of Harvey, the problem remains a lack of workers.
"There is a labor shortage in Central Texas," the Fed wrote. "Manufacturers are unable to find qualified candidates."