The integrated local economy

By John E. Martinez
The economic fortunes of Archer and Clay counties rise and fall with those of Wichita County.
Perhaps as much as two-thirds of earnings from these outlying counties come from their
residents working in Wichita County. The major drivers of the local economy are the oil and gas
sector, Sheppard Air Force Base, the manufacturing base, and Midwestern State University.
Thus, what happens to any of one of these sectors has a profound effect, not just on Wichita
County, but on the outlying counties as well.
The following two tables reveal just how closely integrated are the economic fortunes of Archer
and Clay counties with that of Wichita County. In Table 1, we see that the majority of residents
in the two outlying counties work in Wichita County. Over 55 percent of Archer County
residents and over 52% of Clay County residents work in Wichita County.
Table 1. Workforce Flows for Wichita Falls MSA
Counties
Percent of Resident Workforce working in Wichita County
Residence
Archer Co.
Archer Co.
Total Resident

Workplace
Archer Co.
Wichita Co.

Count
1,549
2,358
4,278

% county
36.2%
55.1%
100.0%

Clay Co.
Clay Co.
Clay Co.
Total Resident

Archer Co.
Clay Co.
Wichita Co.

94
1,859
2,765
5,249

1.8%
35.4%
52.7%
100.0%

Wichita Co.
Wichita Co.
Wichita Co.
Total Resident

Archer Co.
Clay Co.
Wichita Co.

299
237
58,752
61170

0.5%
0.4%
96.0%

Source: U.S. Census Bureau, March 6, 2003

Table 2 below reveals the extent to which the earnings of the outlying counties are derived from
working in the central county. In 2014, total earnings in Wichita County were $3,805 million. Of
this total, almost 18% (or $571.1 mm) went to residents residing in other counties. Almost 40
percent of the income for both outlying counties comes from their residents working in Wichita
County. However, the 40 percent figure captures only direct effects. If indirect effects are
included, then it would be accurate to say that at least two-thirds of the net earnings of Archer
and Clay counties come from their residents working in Wichita County.

Table 2. Percent of individual county earnings derived from Wichita County

(figures in millions of dollars)
County Description

Resident earnings within home county

Resident earnings from Wichita County
Resident earnings from other
Net county earnings*
% of Net Earning derived from Wichita County
Source: Bureau of Economic Analysis
Last updated: 2014
* Totals may not add to 100% because of rounding

Archer

Clay

Wichita

$216.6
$127.3
-$15.1
$328.7

$227.8
$141.9
-$14.9
$354.7

$3,805.6
-$571.1

38.7%

40.0%

-6.4%

$3,234.5

For any Metropolitan Statistical Area (MSA), the economic fortunes of the outlying counties are
inextricably linked to developments in the nuclear county. In the case of the Wichita Falls MSA
this is undoubtedly the case. The general concept of an MSA is that of an area containing a large
population nucleus and adjacent communities that have a high degree of integration with the
central county. Wichita County is designated as the central county for the Wichita Falls MSA.
The central county associated with a particular urbanized area is then used for purposes of
measuring commuting to and from potentially qualifying outlying counties. A county qualifies as
an outlying county if it meets the following commuting requirements: (a) At least 25 percent of
the workers living in the county work in the central county; or (b) At least 25 percent of the
employment in the county is accounted for by workers who reside in the central county. The
counties included in an MSA must be contiguous; if a county is not contiguous with other
counties in the MSA, it will not fall within the MSA. Consequently, the only two counties that
qualify as outlying counties for the Wichita Falls MSA are Archer and Clay Counties.
The viability of the engines which drive the Wichita Falls MSA is of critical importance not just
to the well-being of Wichita County residents but to those residents in outlying counties as well.