Dallas has a diverse economy with strengths in many major industries. Some of the top industries that drive the Dallas economy include technology, financial services, defense, healthcare, and telecommunications.
Technology
Technology is one of the fastest growing industries in Dallas. The Dallas-Fort Worth metro area employs over 270,000 high-tech workers across over 5,000 tech companies. Major tech employers in Dallas include Texas Instruments, AT&T, Match Group, and Infosys. Dallas is home to the second largest concentration of technology workers in the nation.
Dallas has emerged as a major hub for information technology, telecommunications, and computer software. The region is sometimes referred to as “Silicon Prairie” due to the large and rapidly growing high-tech industry. Many technology companies are attracted to Dallas for its business friendly environment, skilled technology workforce, and lower cost of living compared to other major metropolitan tech hubs.
Some of the major technology industry subsectors growing in Dallas include:
- Software development
- Semiconductor manufacturing
- Data centers
- IT services and consulting
- Telecommunications
- Computer hardware
Major technology industry events and conferences held in Dallas include Dallas Startup Week, South by Southwest (SXSW) and the Consumer Electronics Show (CES). The region has over 100 coworking spaces, incubators, accelerators, and innovation centers supporting the growth of tech startups.
Key Tech Employers
Some of the major technology companies headquartered or with significant operations in Dallas include:
| Company | Industry |
|---|---|
| Texas Instruments | Semiconductors |
| AT&T | Telecommunications |
| Match Group | Online dating services |
| Infosys | IT consulting & services |
| Ericsson | Networking equipment |
| Nokia | Networking equipment |
| Fujitsu Network Communications | Telecom equipment |
| Alliance Data | Business services |
Major Tech Industry Developments
Some major recent developments in the Dallas technology industry include:
- Infosys announced plans to build a $245 million campus in Richardson, adding 500 jobs.
- Uber opened a new 100,000 square foot office in Deep Ellum, employing 3,000 workers.
- Texas Instruments is expanding its operations, investing $30 billion over 10 years in its semiconductor factories in Dallas.
- Dallas leads the nation in data center capacity, with companies like CyrusOne, CoreSite, AT&T, and others expanding data center infrastructure to meet demand.
- NTT Data is developing a $1.5 billion campus in Plano, which will create 10,000 high-tech jobs.
Financial Services
Financial services is another pillar of the Dallas economy. As home to the second largest concentration of Fortune 500 headquarters after New York, Dallas has emerged as a major hub for corporate finance and financial services.
Dallas houses the third largest concentration of banking assets in the United States after New York and San Francisco. Major banks headquartered in Dallas include Comerica, Plains Capital Corporation, and LegacyTexas Financial Group. The Federal Reserve Bank of Dallas oversees the district that includes Texas, northern Louisiana and southern New Mexico.
In addition to banking, Dallas has major hubs for insurance, asset management, and other financial services:
- Insurance – Dallas is a leading insurance center, with companies like State Farm and Blue Cross Blue Shield of Texas headquartered in the region. Dallas ranks as one of the top insurance hubs measured by direct premiums.
- Investment management – The Dallas metro has one of the largest concentrations of investment managers in the United States, with over 200 investment management firms managing assets over $730 billion.
- Accounting – 5 of the 10 largest US accounting firms have a major presence in Dallas, along with many mid-size and boutique firms that service local corporations and nonprofits.
The Dallas metro area has over 170,000 workers employed in the finance and insurance sector. Major industry subsectors and developments include:
| Subsector | Major Companies & Trends |
|---|---|
| Banking | Comerica, Plains Capital Corp, LegacyTexas Financial Group. Dallas banks hold $340 billion in local deposits. |
| Investments | Dallas is home to over 200 investment management firms like Capital Institutional Services and Dallas Capital Management. |
| Insurance | State Farm, Blue Cross Blue Shield of Texas and other major insurers employ over 50,000 workers in the metro area. |
| Accounting & Tax | 5 of the 10 largest US accounting firms have major regional presences in Dallas along with many local firms. |
Financial Industry Growth Factors
Dallas has emerged as a financial hub due to its:
- Business friendly environment and low taxes in Texas
- Central location with good transportation infrastructure
- Abundant tech and business talent from local universities
- Low cost of living and real estate relative to other major cities
- Strong economic and population growth in Texas
The Dallas financial sector will continue expanding as corporate relocations bring more Fortune 500 firms and the region attracts top talent. The area’s diversified economy also creates opportunities across insurance, investment banking, private equity, and other subsectors.
Defense & Aerospace
The Dallas-Fort Worth area has a major cluster of defense contractors and aerospace companies. The region employs over 100,000 workers in these industries.
Major defense contractors with a presence in Dallas-Fort Worth include:
- Lockheed Martin
- Raytheon
- L3Harris
- Bell Textron
- Boeing Global Services
- Elbit Systems of America
Many of these companies have offices near the Dallas/Fort Worth International Airport (DFW) and AllianceTexas development. The region is attractive to defense contractors due to its business friendly environment, logistics infrastructure, and engineering talent pool.
In addition to defense contractors, Dallas has a significant aerospace manufacturing industry anchored by American Airlines, which operates its largest hub at DFW. Other major players include Triumph Aerostructures, which manufactures airplane components, and Aviation Alliance, an aerospace engineering firm.
Defense contractors in Dallas design, engineer, and manufacture:
- Aircraft & aviation systems
- Radar, communications & electronic warfare systems
- Missiles & advanced weapons
- Navigation systems
- Military vehicles
These companies depend on the specialized engineering talent coming out of local programs at UT Dallas, UT Arlington, Texas A&M, and other area schools to staff their highly skilled workforce.
Recent Major Developments
Some recent major aerospace and defense industry announcements in Dallas include:
- Lockheed Martin received a $1.28 billion contract to build F-16 aircraft for Bulgaria (2022)
- Boeing expanded its Global Services division, adding 500 jobs in North Texas (2021)
- Bell Textron is expanding its Fort Worth helicopter assembly plant, adding over 200 jobs (2022)
- Elbit Systems of America opened a new manufacturing facility in Denton, Texas supported by a $15 million grant from the state (2021)
Industry analysts forecast the aerospace and defense cluster in Dallas will continue growing over the next decade driven by increasing defense spending and commercial aerospace demand.
Healthcare & Biotechnology
Healthcare is a major sector in Dallas, with over 250,000 people employed by hospital systems, research centers, medical device manufacturers and other healthcare companies in the metro area.
Dallas-Fort Worth has the fourth largest medical center in the nation at the Texas Medical Center (TMC), which conducts over $2 billion in research annually. Major players at TMC include:
- UT Southwestern Medical Center
- Texas Health Presbyterian Hospital
- Children’s Medical Center
- MD Anderson Cancer Center
In addition to the Texas Medical Center, the metro area has dozens of major hospital networks and facilities including Baylor Scott & White Health, Methodist Health System, Medical City, and Texas Health Resources.
Some of the major subsectors within Dallas-area healthcare include:
| Subsector | Major Companies & Trends |
|---|---|
| Hospitals | Baylor Scott & White, Methodist Health System and other large regional hospital networks. |
| Biotech | Texas has the third largest biotech sector with strengths in cancer and immunology research. |
| Medical Devices | Dallas is home to major device firms like Tenet Healthcare and Abbot Laboratories. |
| Pharmaceuticals | Leading pharma manufacturing and R&D presence from companies like GlaxoSmithKline. |
Some major recent developments in Dallas healthcare include:
- Baylor Scott & White is investing $1.5 billion over 5 years to expand facilities across North Texas.
- MD Anderson Cancer Center is building a new $215 million facility at the Texas Medical Center.
- Abbott Laboratories invested $550 million to expand medical device manufacturing capacity in North Texas.
Healthcare is forecast to continue robust growth in Dallas, driving expansions in hospital systems, medical research institutions, life sciences companies, and support services.
Telecommunications
Dallas is one of the top telecom hubs in the United States and the headquarters for major telecommunications companies. As of 2022, over 140,000 people were employed in the information sector in Dallas, which includes telecom companies.
Major telecom corporations headquartered in Dallas include:
- AT&T
- Verizon Communications (regional HQ)
- Texas Instruments (semiconductors, telecom equipment)
- Ericsson
In addition to corporate headquarters, Dallas has major telecom infrastructure including data centers, fiber optic networks, and cellular towers throughout the region.
Dallas has emerged as a telecommunications hub due to:
- Its central geographic location
- Strong talent pipeline from area universities
- Business friendly policies in Texas
- Low costs relative to coastal tech hubs
Recent major developments in Dallas telecom include:
- AT&T is relocating its headquarters to Dallas from San Antonio (2022)
- Ericsson opened a $100 million smart factory to manufacture 5G equipment in Lewisville (2021)
- Facebook is developing a $1 billion data center in Fort Worth (2021)
The Dallas region will continue to attract investment from major telecom players drawn to the area’s talent, infrastructure, and business climate.
Other Major Industries
In addition to the top industries profiled above, other major sectors underpinning the Dallas economy include:
Transportation & Logistics
Dallas is a critical transportation hub for rail, air, trucking and logistics. Major regional assets include:
- Dallas/Fort Worth International Airport – 4th largest airport in the world based on operations.
- AllianceTexas – Inland port with over 500 companies including Amazon, FedEx, UPS.
- BNSF and Union Pacific – 2 of the largest US railroads maintain major hubs in Dallas.
- Major interstate highways including I-35, I-20, and I-45.
Dallas is the #1 inbound freight metro and has one of the largest concentrations of logistics expertise in the US.
Energy
Although Houston is the epicenter of Texas oil and gas, Dallas still has a sizable energy industry presence including:
- Exxon Mobil – Major regional campus in Irving.
- Pioneer Natural Resources – One of the largest E&P firms with HQ in Dallas.
- Tenaris – Global pipe manufacturer supplying energy companies.
- Energy Transfer – Pipeline operator moving oil and gas across US.
Dallas also has strengths in renewable energy companies and providers to the industry such as power transmission firms.
Food Production
Major food production and agricultural companies based in Dallas including:
- Dean Foods – One of the nation’s largest dairy companies.
- Frito-Lay – Major chip and snack brand under PepsiCo.
- Cargill – Agribusiness giant with major operations in the metro area.
The Dallas region has expertise across processing, logistics, and supporting industries that make it a hub for food production.
Conclusion
Dallas has a highly diverse economy anchored by globally competitive industry clusters such as technology, finance, transportation, healthcare, aerospace, and telecommunications. The region benefits from a central geographic location, business-friendly policies, infrastructure, and wealth of talent from area educational institutions.
Dallas-Fort Worth will continue growing as a corporate center as more companies are attracted by the region’s low costs, talent pool, and quality of life relative to other major metros. Existing industry strongholds in finance, tech, logistics and other sectors will drive local economic expansion through job creation and investments. The outlook is bright for Dallas to build on its diverse economic base and emerge as one of the nation’s major hubs for innovation and business growth.