The North American Industry Classification System (NAICS) is a system used by United States government agencies to collect and display business economy data. Each business establishment is classified by NAICS code. There are five levels of NAICS codes, with 2-6 digits, that increase in specificity as the codes get longer (as shown below).

• Sector: 2-digit code
• Subsector: 3-digit code
• Industry Group: 4-digit code
• NAICS Industry: 5-digit code
• National Industry: 6-digit code

For example, an establishment that sells boats has NAICS codes in each of the five levels. Most generally, it is classified under retail trade, and most specifically, as a boat dealer. NAICS codes are a useful tool for analysts to examine economic trends for business in specific areas.

Table 1: NAICS Levels for Boat Dealers

Source: “Economic Census: NAICS Codes & Understanding Industry Classification Systems”, US Census, https://www.census.gov/programs-surveys/economic-census/year/2022/guidance/understanding-naics.html  

The next series of articles will focus on the Industry Group level (4-digit) NAICS codes for each county in the Rural Capital Area, and examine three areas at the industry level, establishments, employment, and earnings.

Establishments

Like many areas, the largest industry in Bastrop County by number of establishments is Restaurants and Other Eating Places, with 119 establishments as of 2023. The restaurant industry in Bastrop County hasn’t added many establishments since 2021, however, it still far exceeds other industries in terms of sheer numbers. Most of the top ten industries, in terms of establishments, in Bastrop County are service-providing industries, with two exceptions, namely, Building Equipment Contractors, and Residential Building Construction, which are goods-producing industries.

Figure 1: Number of Establishments in Bastrop County, 2021 to 2023

Source: Data Tactical Group, DTG 2024.Q2

The industry with the highest growth in establishments from 2021 to 2023 is Other Miscellaneous Retailers, which includes establishments “primarily engaged in retailing specialized lines of merchandise.” (US Census) Though seemingly an obscure industry title, this group encompasses the type of boutique shops that often line Main Streets across the Country, as well as other specialized retailers (e.g.: collector’s items, homebrew supplies, swimming/hot tub stores, etc). Office Administrative Services and Other Amusement and Recreation Industries also saw a large growth in establishments, outpacing Texas and national trends.

However, some industries in Bastrop County saw significant declines in establishments. Particularly, Agencies, Brokerages, and Other Insurance Related Activities, Grocery and Convenience Retailers, and Cattle Ranching and Farming.

Figure 2: Percent Change in Establishments by Select Industry, Bastrop County, 2021 to 2023

Source: Data Tactical Group, DTG 2024.Q2

Employment

Restaurants and Other Eating Places is also the largest industry group by number of employees in Bastrop County. Other service-providing industries also rank highly, including Grocery and Convenience Retailers, and Traveler Accommodation.  Building and Equipment Contractors ranks 4^th in employment and is the only goods-producing industry in the top ten employers.

Figure 3: Number of Employees by Industry, Bastrop County, 2021 to 2023

 Source: Data Tactical Group, DTG 2024.Q2

By growth in employment, Household and Institutional Furniture and Kitchen Cabinet Manufacturing saw some of the biggest change from 2021 to 2023. The industry grew from around sixteen employees in 2021, to just over 100 employees in 2023. The Medical and Diagnostic Laboratories and Investigation and Security Services industries also saw substantial growth in employment from 2021 to 2023.

Figure 4: Growth in Employment, Bastrop County, 2021 to 2023

Source: Data Tactical Group, DTG 2024.Q2

However, the Motion Picture and Video Industries, Home Health Care Services, and Building Finishing Contractors industries all lost between 50-100 employees each, contrary to the growth trends in those industries seen in the state and nation as a whole.

Figure 5: Decline in Employment, Bastrop County, 2021 to 2023

Source: Data Tactical Group, DTG 2024.Q2