Navigating Houston Industries: What’s Powering the City and What SMBs Should Know

If you think Houston is “just oil and gas,” think again. The city’s business ecosystem is evolving fast, and that opens up big opportunities for small and mid‑size businesses (SMBs) ready to adapt. Houston is projected to grow slightly faster than the U.S. in 2025, with real GDP growth around 2.2% versus about 1.9% nationally, placing the metro roughly mid‑pack among the 50 largest U.S. cities.

As Ferrell Fuller, President and CEO of ChaceTech, says, “Houston’s economic growth isn’t just coming from legacy sectors, we’re seeing technology, healthcare, manufacturing, and services emerge as powerful drivers of opportunity, creating space for SMBs to innovate and grow.”

That mix of growth and diversification shows Houston isn’t standing still, the industries powering the city are broadening, and many traditional and newer sectors are finding their place. Here’s a look at the main industries shaping Houston today, and why smart businesses should pay attention.

Exploring Houston Industries: Where SMBs Can Grow

1. Manufacturing — Still Strong, But More Diverse

Manufacturing remains one of Houston’s top economic pillars. The region has added over 635,400 jobs since 2020, bringing total employment to 3.5 million as of April 2025. It’s not just traditional heavy industry anymore — metal fabrication, machinery, chemical products, electronics, plastics, and food & beverage manufacturing all contribute to a diverse and expanding sector.

Houston is also attracting significant international investment, from large-scale facilities to specialized production operations, showing that manufacturing is growing, diversifying, and creating new opportunities. This makes the city a prime environment for SMBs to plug into supply chains, offer specialized services, or explore niche markets.

2. Energy & Petrochemical — Still a Big Player, But Not the Only One

Energy and petrochemicals remain a cornerstone of Houston’s economy, supporting thousands of jobs and fueling related industries. While oil, gas, and refining are still major contributors, the sector is also evolving with new technology, renewable energy projects, and advanced manufacturing tied to energy production.

For SMBs, this means there’s room to provide services, technology solutions, or supply support, benefiting from Houston’s continuing investment in energy infrastructure while diversifying beyond traditional oil and gas.

3. Healthcare & Services — A Growing Backbone

Healthcare and social assistance are among the largest employment sectors in Houston. In May 2025, more than 396,000 people worked in health care and social assistance in the Houston area, highlighting its role as a major economic driver.

As the city expands and the population grows, demand for medical services, supply-chain support, logistics, IT services, and specialized vendors continues to rise, creating opportunities for SMBs that provide solutions in these fields.

4. Professional & Business Services — Powering Core Sectors Across Houston

Houston’s economy is driven by a diverse mix of major industries, with energy (oil & gas) at the front, alongside large sectors in healthcare/life sciences, aerospace, technology, and advanced manufacturing. Professional and business services support all of these by providing consulting, engineering, IT support, project management, and other specialized services that help companies operate more efficiently and grow.

For SMBs, this creates strong opportunities to deliver software tools, technical expertise, consulting services, and business support that large regional players rely on every day. By aligning with Houston’s key sectors and offering targeted solutions, small and mid-size businesses can become essential partners in accelerating productivity and innovation across the metro area.

5. Logistics, Transportation & Trade — Benefit of Location

Because of Houston’s location, infrastructure, and its continuing role in energy, manufacturing, and trade, logistics, warehousing, transportation, and trade-related industries remain an important part of the ecosystem. Houston’s location and connectivity make it one of the most valuable logistics hubs in the U.S., and the world. The Port of Houston, one of the busiest in the nation, moved over 53 million tons of cargo in 2024 alone.

SMBs involved in shipping, parts supply, import/export services, or supply-chain support may find strong demand and growth opportunities in this bustling network.

Environmental Factors Fueling Industries in Houston

Houston’s industries are growing fast, and several key environmental factors make this possible:

• Strategic Location & Connectivity

1. Houston is a major logistics hub with highways, rail, and the Port of Houston moving millions of tons of cargo each year.

2. SMBs can tap into supply chains, shipping, and import/export services.

• Investment & Policy Support

1. Local incentives, enterprise zones, and business-friendly policies attract both domestic and international companies.

2. This creates projects and partnerships where SMBs can provide technology, services, or specialized expertise.

• Talent & Innovation Clusters

1. Universities, research hospitals, and industry partnerships provide skilled workers and new technologies.

2. SMBs aligned with these clusters can access emerging trends and collaborate with larger companies.

Key Risks Facing SMBs in Top Industries in Houston

Opportunities for SMBs to Grow in the Biggest Industries in Houston

Houston’s rapid growth and industry diversification aren’t just statistics; they translate into real opportunities for small and mid-size businesses. Here’s how SMBs can take advantage:

1. Niche Services & Specialized Support – Many Houston industries rely on highly specialized services, from precision manufacturing support to IT solutions for healthcare systems. SMBs that offer tailored expertise can become essential partners for larger companies.

2. Collaboration & Partnerships – Partnering with larger players in energy, aerospace, healthcare, or advanced manufacturing can open doors to new contracts, joint projects, and technology integration.

3. Innovation & Tech Adoption – Investing in cloud tools, cybersecurity, automation, and data analytics allows SMBs to stay competitive and meet the growing expectations of Houston’s industries.

4. Flexible & Resilient Operations – Businesses that plan for risks — economic shifts, regulatory changes, or environmental disruptions — are more likely to expand successfully in Houston’s dynamic market.

Positioning Your SMB in the Houston Top Industries

Houston’s economic landscape is evolving fast. With a strong mix of energy, healthcare, aerospace, advanced manufacturing, and professional services, the city offers SMBs countless chances to grow, innovate, and plug into the biggest industries in Houston. Environmental factors like connectivity, talent clusters, and policy support fuel this growth, while understanding risks, from economic fluctuations to cybersecurity gaps, helps businesses navigate challenges smartly.

For SMBs ready to seize these opportunities, having a trusted partner is key. ChaceTech provides comprehensive IT support, cybersecurity protection, cloud solutions, and managed services tailored for Houston businesses. By partnering with ChaceTech, your company can stay secure, maintain uptime, streamline operations, and confidently excel in Houston’s largest industries. Contact us today to safeguard your technology and grow alongside the city’s dynamic industrial ecosystem.