Texas Border Business
A profound transformation driven by technological advancements has occurred over the past 25 years, reshaping the economy. New industries and business models that were unimaginable a quarter-century ago have been unleashed, creating and redefining jobs at a rapid pace. Texas, in particular, has undergone significant changes, emerging as a global economic powerhouse. Let’s briefly look at some of what has happened over the first quarter of the 21st Century.
The Texas population has grown from about 20.9 million to approximately 31.7 million (as of July 2025), an increase of more than 50%. In addition to the rate of natural increase (more births than deaths), the state has seen strong domestic and international migration. For context, the US population increased by about 21% over the period.
The education level of Texans has also improved substantially for every racial/ethnic group. A significantly higher proportion of the population age 25 and older has graduated from high school as well as attaining a bachelor’s degree or higher.
The Texas economy has grown substantially, with both traditional and emerging industry groups contributing to the expansion. Texas Real Gross Product (RGP) totaled almost $1.1 trillion in 2001 (measured in inflation-adjusted 2017 dollars), and we estimate that in 2025 it was more than twice as high at $2.2 trillion. Per capita RGP has increased from about $50,160 (in 2017 dollars) to $70,560.
The economy has seen significant shifts in industrial composition. Although cornerstone industries have expanded, the rise of new segments has contributed to overall gains. The Services industry group saw the largest RGP growth by a substantial margin, with a total increase of almost $332.9 billion over the period; the industry group includes, among others, professional and business services, education, and health care.
In 2001, total wage and salary employment in the state was approximately 9.9 million, compared to an estimated almost 15.2 million in 2025. Growth in Services occupations comprised the majority of new jobs.
Texas has experienced significant growth in population, shifting demographics, and economic changes over the first quarter of the 21st century. In particular, the emergence of technology-oriented sectors and changes such as AI have driven shifts in the composition of the state’s industrial complex. Nonetheless, cornerstone industries such as energy remain important contributors. Ascendant sectors such as life sciences, alternative energy, carbon capture, LNG, AI and data centers, and next generation semiconductors are also enhancing future prospects.
Texas has led the way in the numbers of major new corporate locations and expansions for 14 consecutive years. Despite some notable challenges, the state is setting the stage to play a leading role in the economy of the future. It will be interesting to see what the next 25 years brings! Stay safe!
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Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com), which has served the needs of more than 3,000 clients over the past four decades.
