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MANUFACTURING
Many factors have contributed to the Valley’s booming economy, but
none is so important as the boost in manufacturing brought about
by the North American Free Trade Agreement. The maquiladora, or
twin plant, concept of manufacturing, with labor-intensive work
done in Mexico where labor is cheaper, coupled with support facilities
on the U.S. side, has been growing steadily for over 20 years.
Brownsville/Matamoros
has more than 55,000 maquiladora workers. Its Foreign Trade Zone
is the largest general purpose trade zone in the United States.
McAllen/Reynosa has about 77,000 workers. The McAllen area has eight
industrial parks, two foreign trade zones and several commercial
enterprise zones.
With
low utility costs and no state income tax, companies can set up
shop in any part of the Valley with access to one of the largest
and youngest workforces in the world. On the United States side,
Customs brokers, construction companies, legal and accounting services,
government agencies, realtors and other support companies well versed
in international business are available to help companies set up
and begin production.
McAllen
is the site of the third World Trade Center in Texas. Located between
such major industrial centers as Houston and Dallas to the north
and Monterrey and Saltillo to the south, the Rio Grande Valley is
the ideal location from which to conduct international business.
Despite
the strong economy, unemployment remains relatively high, providing
an abundant labor force. Companies start up daily, drawn by all
the region has to offer.
Any
concerns about the trainability of the Mexican labor force should
be dispelled by the presence of 11 technical schools in Reynosa
alone. To the north, South Texas College in McAllen and Texas State
Technical College in Harlingen offer specialized courses in welding,
electrical, computer maintenance technology, drafting and design,
plastics and even an alternative fuel program.
South
Texas college students are being prepared for jobs at all levels
of design, manufacturing and management at the $25 million Engineering
School Complex and Rio Grande Center for Manufacturing at the University
of Texas-Pan American in Edinburg and The University of Texas-Brownsville’s
Science and Engineering Technology Building. The latter serves both
UTB and Texas Southmost and addresses long-range needs of Valley
industries.
TOURISM
Tourism is another growing industry in South Texas. The beaches
of South Padre Island draw visitors from around the world. The Island’s
state-of-the-art convention center attracts concerts, exhibits and
trade shows.
The
$13 million Schlitterbahn Beach Waterpark on South Padre Island
is the first Schlitterbahn venture outside of New Braunfels, TX.
More than 150 construction jobs were generated by the project, and
the park provides hundreds of summer jobs.
Ecotourism
is also a big draw. The World Birding Center is a $20 million development
based on a joint partnership between the Texas Parks and Wildlife
Department, The Parks and Wildlife Foundation, nine Rio Grande Valley
communities and the US Fish and Wildlife Service. Sports fishing
and hunting, especially for whitewing dove, are also popular.
Winter
Texans remain the largest tourist group. These annual tourists travel
to the Valley to live for up to six months out of the year, providing
an enormous economic bounty to local merchants. Many of them live
in the more than 500 RV and trailer parks scattered up and down
the Valley, which provide a total of 68,000 spaces.
HEALTH
CARE
Patients from the north and the south are drawn by the high quality
of Valley medical facilities. New and expanding facilities are expected
to generate large revenues for the South Texas economy.
The
Regional Academic Health Center (RAHC) in Harlingen is an upper
level medical school. The initial RAHC academic facility was constructed
and equipped by the University of Texas with a state appropriation
of $25 million. At full development, the facility should employ
around 250 full-time employees with an annual payroll of $5.5 million.
The total operating budget is estimated to reach $9 million by 2005.
Direct economic impact during the development phase (1999- 2005)
is estimated at $27 million.
TRANSPORTATION
The Texas Department of Transportation is currently implementing
a three-year, $220 million transportation construction program for
Valley roadways.
RETAIL
Valley retail business benefits from the ripple effect generated
by every other sector of the South Texas economy. Annual retail
sales exceed $10 billion in the four counties.
Expressway
83 between McAllen and Pharr overlooks several shopping centers
that include such national retail stores as Home Depot, Circuit
City, Target, Mervyn’s and Sam’s Club. Harlingen’s retail space
continues to expand in both its shopping centers and malls. The
downtown area has revitalized itself and attracted new shoppers
through the restoration of its historic Jackson Street District.
OTHER
STANDBYS
There is substantial drilling activity in Hidalgo and Starr counties
as well as some production in Cameron and Willacy counties. Several
hundred shrimp boats and many commercial fishing boats along with
shrimp farmers, who grow shrimp in ponds, produce tons of the shellfish
that grace dinner tables and angler’s hooks across the country (See
Agriculture).

VALLEY
ECONOMIC DEVELOPMENT
ORGANIZATIONS
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Brownsville
1205 N. Expressway, Brownsville 78520
website |
(800)
552-5352
(956) 541-1183
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Donna
307 S. 12th, Donna 78537 |
(956)
464-3314
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Edinburg
602 W. University, Suite B, Edinburg 78539
website |
(956)
383-7124
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Harlingen
311 E. Tyler, Harlingen 78550
website |
(956)
423-5440
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Hidalgo
611 E. Coma, Hidalgo 78557 |
(956)
843-2734
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La
Feria
115 E. Commercial Ave, La Feria 78559 |
(956)
797-2261
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McAllen
6401 S. 33rd Street, McAllen 78503
website |
(956)
682-2875
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Mercedes
316 S. Ohio, Mercedes 78570 |
(956)
565-3114,
ext. #143
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Mission
901 Bus. Park Dr., Suite 200, Mission 78572
website |
(956)
585-0040
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Pharr
1215 S. Cage Blvd., Pharr 78577
website |
(956)
781-7332
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Rio
Grande City
402 E. Main, Rio Grande City 78582 |
(956)
487-0672
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Roma
P.O. Box 947, Roma 78584-0947 |
(956)
849-1411
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San
Benito
P.O. Box 1870, San Benito 78586 |
(956)
361-3800
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South
Padre Island
600 Padre Blvd., South Padre Island 78597
website |
(956)
761-4522
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Weslaco
305 W. Railroad, Weslaco 78596
website
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(956)
969-0838
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Texas
Economic Development
Austin 78741
website |
(512)
936-0101
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