Manufacturing

By Dave Rowland, President and CEO, Oklahoma Manufacturing Alliance

As local manufacturers settled into a postpandemic landscape, in 2022 worker shortages and inflationary pressure throttled production. Despite the challenges, business leaders look to the future and remain optimistic. The ability to endure has served Tulsans well over the past century and that unrelenting nature provides a backdrop for the cautious enthusiasm that prevails among area firms.

“While supply chain issues eased, manufacturers faced other obstacles like the rising costs of raw materials and the strain to find enough qualified employees,” said Sean Kouplen, board chair of the Oklahoma Manufacturing Alliance. “But as it has been for more than 100 years, manufacturing remains a pillar of economic strength in northeastern Oklahoma. It’s the foundation for so many vital industries like aerospace, transportation and, of course, oil and gas.”

The impact of a healthy manufacturing sector on Tulsa’s economy cannot be overestimated. There are about 70,000 manufacturing wage-earners in the metropolitan area, according to the Bureau of Labor Statistics. Manufacturing pays 40% higher salaries when compared to all other industries and every $1 million in manufacturing output supports the generation of $1.4 million in additional revenue for all businesses. Every 10 jobs in manufacturing supports 16.8 additional jobs, and taxes collected on just manufacturing production in the area were $175 million last year. Overall, the annual regional value of manufacturing output is normally more than $35 billion.

“It’s also important to remember that even though large manufacturers often grab headlines, the vast majority of production is done by small and medium-sized companies,” Kouplen said. “While some of these smaller companies did not survive the pandemic, most of the lost business was picked up by other firms. These surviving manufacturers are flexible and better able to adapt to changing conditions. That’s a real advantage.”

Following up on its plans to construct a $400 million “mega microfactory” near Pryor, electric vehicle manufacturer Canoo said it also will build its own battery module facility at MidAmerica

Industrial Park. “We are accelerating our hiring plans in Pryor with (this new facility),” Canoo CEO Tony Aquila said. “We will be the first EV company to produce our battery modules with hydro power from the Grand River Dam Authority. We will work closely with and hire within the surrounding communities to create an EV Ecosystem in the region.”

Activities at the Tulsa Port of Catoosa continue at a vigorous pace. Automotive supplier Lyseon North America is expanding operations and announced it is hiring 200 new workers. The company serves as a supplier to Tulsa’s Navistar Bus plant and is another electric vehicle supplier. Also, CMC Steel is building a new facility in the area.

Downstream, the burgeoning Port of Inola is increasing its economic impact. A $22 million federal grant is laying the groundwork for increased large-scale manufacturing in the area. Additionally, a new $16 million rail project will connect Union Pacific’s main line to Sofidel, a company that in 2020 began operations in a $360 million facility that manufactures tissue.

The activity is led by a locally based coalition of organizations from government, nonprofit, academia and private sectors creating the Tulsa Regional Advanced Mobility Corridor. The group’s goal is to cultivate a diverse hub for research, development, and manufacturing in the advanced mobility industry. A $38 million grant may well drive thousands of new jobs and billions in economic activity over the next several years.

The concept of “advanced mobility” goes beyond traditional vehicles, components and fueling infrastructure to focus on the development of new technologies for light-, medium- and heavy-duty vehicles, integrating those technologies with alternate energy.

Another push toward cleaner energy came when the governors of Oklahoma, Arkansas and Louisiana signed a first-of-its-kind partnership agreement. The states will work together to create a regional hub to produce clean hydrogen as a fuel and manufacturing feedstock. Similarly, Tulsa-based Big Elk Energy Systems announced it is partnering with Summit Carbon Solutions to develop what it calls the largest carbon capture, transportation and storage system in the world. The $4.5 billion private investment is designed to create economic opportunities for industries like ethanol and agriculture, as well as adding jobs and reducing greenhouse gas emissions.

“It’s impactful not only to Big Elk but also the region because as we begin our manufacturing processes, that in turn rolls to various supplychain partners and numerous other companies in northeastern Oklahoma,” owner and CEO Geoff Hager said.

Two local manufacturers are part of an everexpanding aerospace sector. Quality Aircraft Accessories announced a $3 million expansion, while a new facility at Broken Arrow’s CymStar — a military training and simulation firm — is estimated to have an $8 million impact. It houses a C-5 full-motion flight simulator used to test upgrades and modifications before implementation on the U.S. Air Force’s current fleet of aircraft. The new building has 60-foot ceilings that can accommodate up to five full flight simulators.

“This new state-of-the art facility will allow us to grow our engineering and manufacturing capabilities and help attract highly talented individuals to support the mission readiness of our defense forces with leading-edge training innovations,” President Dan Marticello said.

In November 2022, Big Elk Energy Systems announced it will partner with Summit Carbon Solutions to develop the largest carbon capture, transportation and storage system in the world. The $4.5 billion private investment will create new economic opportunities for critical industries such as ethanol and agriculture, create jobs, reduce greenhouse gas emissions and provide a boost to local communities across the Midwest and the United States. The project will create 40-50 jobs for Big Elk, and Summit Carbon will support 11,000 jobs during construction and 1,100 permanent jobs.

Tulsa Manufacturing Mix 2023

SECTORS ARE BASED ON SIC (STANDARD INDUSTRIAL CLASSIFICATION) CODES 20-39.

GEOGRAPHIC REGION: TULSA METROPOLITAN STATISTICAL AREA.

SOURCE: BASED ON DATA FROM DUN & BRADSTREET, NOVEMBER 2022. COMPILED BY RESEARCH WIZARD, TULSA CITY-COUNTY LIBRARY.