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

 

Sponsored in part by: South Padre Island CVB

 

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