Manufacturing plant to open shop in Harlingen

Manufacturing plant to open shop in Harlingen
Tuesday, May 18th, 2010
Texas Border Business

Harlingen, Texas, May 12, 2010 -- HHS Rotec, LLC has announced plans to establish a manufacturing operation that could employ up to 200 people in Harlingen, Texas.

The company has leased an 80,000 square foot building in the Harlingen Industrial Park and is moving equipment valued at $2 million to begin production. The company will have 10 employees at the start of production, but has the potential to grow to 200 employees.

HHS Rotec, LLC was formed by HHS Development, LLC and Rotec Engineering USA, Inc. to manufacture panels made of polyurethane and galvanized steel for the housing market. The company has the rights to manufacture construction systems of Platinum Advanced Technologies, Inc. for energy efficient, wind storm tolerant and pest resistant housing.

HHS Rotec has expressions of intent for ...Click here to read more

6th Annual State of Real Estate Forum Draws Large Attendance

6th Annual State of Real Estate Forum Draws Large Attendance

Tuesday, April 20th, 2010

TexasBorderBusiness.com

Edwards Abstract and Title Co. has taken the lead in providing the latest economic data affecting the Valley’s economy. The 6th Annual State of Real Estate was held on Friday, January 22 where almost 230 real estate professionals were in attendance.

The Forum was headlined by national economist Dr. Ted C. Jones, PhD, Senior Vice President and Chief Economist for Stewart Title Guaranty Company. During his presentation, Dr. Jones informed the group that the McAllen-Mission-Edinburg MSA was one of only 15 out of 366 metropolitan statistical areas that had job growth from November 2008 to November 2009. The McAllen-Mission-Edinburg MSA ranked 6th best in the country out of 366 MSAs across the nation.

Dr. Jones also reported that the according to Campbell Surveys, a division of Campbell Communications, during the first seven months of 2009 an estimated 610,000 homes were sold due to the $8,000 First-Time Homebuyer Tax Credit.

Congressman Ruben Hinojosa was invited ...

Click here to read more

Texas is Number One Exporting State for 8th Consecutive Year

Texas is Number One Exporting State for 8th Consecutive Year

Thursday, February 11th, 2010
Texas Border Business
Full Article

HOUSTON – Gov. Rick Perry today touted Texas’ strong economic environment – created by low taxes, a reasonable and predictable regulatory climate, and a skilled and educated workforce – for helping to make Texas the top exporting state in the nation for the eighth year in a row in 2009. The governor spoke at the North Houston Economic Outlook Annual Symposium.

"Texas leads the nation in so many positive categories, from Fortune 500 companies to job creation, and we owe it to our citizens to continue our economic success by adhering to our proven fiscal disciplines,” Gov. Perry said. “Our principled leadership has created an environment that allows us to compete for jobs, investment and business, and defend the economic climate that has made Texas the top exporting state in the nation for the eighth straight year.”

Texas’ exports totaled more than $163 billion for 2009, with the top export recipients being Mexico, Canada, China, the Netherlands and Korea, which respectively imported $56 billion, $13.7 billion, $8.9 billion, $6 billion and $5.3 billion in Texas-manufactured goods. Texas’ top exporting industries in 2009 were computers and electronics, chemicals, machinery, petroleum and coal, and transportation equipment.

The governor credited the Texas Enterprise Fund (TEF) with helping attract businesses, jobs...
Full Article

Local officials visit Asia to learn about world-class manufacturing; recruit new companies

Local officials visit Asia to learn about world-class manufacturing; recruit new companies

Texas Border Business

Wednesday, December 16th, 2009

Click Here to Read More

Local officials from the Rio Grande Valley meet with Mr. Masataka Kataoka, President/CEO of ALPS, in early November 2009 in Japan. Kataoka invited the local officials to tour the ALPS headquarters and centers for advanced manufacturing. ALPS already has located several divisions and a corporate headquarters in McAllen/Reynosa.


During a week-long trip in early November, economic development officials and educators traveled to Korea and Japan to visit with prospective companies and meet the leadership team at ALPS, a global leader in the manufacturing of electronic components and switches.

ALPS already has several manufacturing operations in McAllen/Reynosa. Representatives from the McAllen Economic Development Corporation, Mission Economic Development Authority, Hunt Valley Development, South Texas College and the University of Texas-Pan American used this trip as an opportunity to promote the region as the place for advanced manufacturing given the strategic border location, labor force and educational programs.

The trip started in Korea, where the group met with more than 20 companies that expressed an interest in the McAllen/Reynosa area. “We already have several Asian companies doing business in McAllen and Reynosa, so we use this opportunity to promote the area as an ideal location for manufacturing and business and we also can follow-up with our existing clients,” said Keith Patridge, President/CEO of the McAllen Economic Development Corporation.

“This outreach strategy is critical to discuss the advantages of our region with the decision-makers face-to-face in their country.”After the seminars and company visits in Korea, the group traveled to Japan thanks to a personal invitation from Mr. Masataka Kataoka, President/CEO of ALPS. Since the early 1990s, ALPS has had a presence in McAllen/Reynosa and has partnered with STC and UTPA to provide training and educational opportunities for local employees. Over the years, ALPS has hired several UTPA and STC graduates to work within all divisions of the company.

Mr. Kataoka, along with other ALPS executives, has visited McAllen several times and invited the McAllen team to see first-hand the company’s new technology and to announce that they are creating 40 more jobs and relocating an additional division in McAllen.

Mr. Kataoka hopes to start an exchange program for Rio Grande Valley students and instructors to study at the ALPS facility in Japan with potential job opportunities within the McAllen/Reynosa operations. He unveiled the idea to representatives from STC and UTPA.

“During our time in Korea we made contacts with very high-level universities with strong programs for commercialization of research and technology, and it is our intent to develop these relationships for the benefit of regional technology-based entrepreneurship endeavors” said Dr. Miguel Gonzalez with UTPA. “And the opportunity to meet with the ALPS leadership in Japan was priceless as we saw and experienced cutting-edge advanced manufacturing technology at all levels in their operations. This trip will translate to new lessons and techniques in our manufacturing and engineering classes at UTPA.”

Officials from South Texas College, who have worked closely with ALPS for several years on trainings and grants, were also pleased to hear ...

Click Here to Read More

Border Bank Hits Billion Dollar Mark

Border Bank Hits Billion Dollar Mark
By Kent Paterson
(Scroll down to learn more about Texas Border Business's New official Guest Writer)
Texas Border Business

In a milestone of sorts, the North American Development Bank (NADB) recently exceeded the billion dollar mark in financing projects for the US-Mexico border region. Chartered as a result of the environmental side agreement to the North American Free Trade Agreement, the NADB provides loans and grants to both US and Mexican communities.

The latest projects funded by the bank include road paving in Tijuana, wastewater treatment and systems in Nuevo Laredo and storm water systems in El Paso, Texas. In El Paso, the bank has agreed to purchase $53 million in 20-year municipal revenue bonds at a 5.38 percent interest rate.

Juan Antonio Flores, NADB spokesperson, told Frontera NorteSur the deal was a good one for the Texas border city, since 35 percent of the interest payments on the loan will be reimbursed to El Paso by federal stimulus funds. “They get interest brought down,” Flores said.

The NADB official said construction of the system, which should help El Paso withstand flooding disasters like the one that struck the city in 2006 as well recharge the stressed Bolson Hueco Aquifer, is expected to commence in January 2010.

Besides the Tijuana road paving contracted out to the Cemex Company, the NADB has agreed to finance a $22 million water and wastewater project for both the Baja California border city and Playas de Rosarito to the south.

The NADB has been especially active on the Mexican side of the border. In Nuevo Laredo, for instance, a $57.7 million wastewater treatment plant and system was inaugurated last week in a ceremony attended by Tamaulipas Governor Eugenio Hernandez Flores, Nuevo Laredo Mayor Ramon Garza Barrios and NADB Deputy Managing Director Hector Camacho.

The new wastewater treatment system is expected to reduce contamination of the Rio Grande shared by both Mexico and the US.

The San Antonio-based bank channeled $25.4 million for the project, including $20 million in grant funds from the Border Environment Infrastructure Fund, which is supported by funding from the US Environmental Protection Agency (EPA). The new wastewater treatment system is expected to reduce contamination of the Rio Grande shared by both Mexico and the US. Additionally, NADB is providing $84 million to Nuevo Laredo for storm water collection and street paving purposes.

“There’s always been a greater need in Mexico and the terms of loans are affordable in Mexico.”

“In addition to the obvious environmental benefits for Nuevo Laredo, these projects will also help from an economic development standpoint and strengthen competitiveness,” the NADB’s Hector Camacho said in a statement.

According to Flores, several factors are behind the surge in NADB funding in northern Mexico, including a greater willingness on the part of Mexican governments to take on debt, the availability of matching funds from the EPA and the Calderon administration’s drive to increase wastewater treatment capacity in the country.

“We’re more active in Mexico,” Flores said. “There’s always been a greater need in Mexico and the terms of loans are affordable in Mexico.”

NADB loans, which charge Mexican clients between 8.6 and 10.5 percent in interest, are less expensive than those offered by commercial banks south of the border, Flores said. Although the NADB rates would be considered high for US communities, which get lower interest rates from the bank because they are pegged to the US Treasury indexes, current bank interest rates for Mexico are “still good” for the country, he maintained.

In the entire border region, the NADB is helping fund 132 environmental infrastructure projects valued at $1.07 billion...

Back in the Paso del Norte borderland, NADB funding of nearly $23 million in grants from the EPA-sponsored Border Environment Infrastructure Fund is in the pipeline for four water quality and wastewater treatment projects in Dona Ana County, New Mexico. A project planned for the town of Anthony south of Las Cruces, New Mexico, includes arsenic removal.

In the entire border region, the NADB is helping fund 132 environmental infrastructure projects valued at $1.07 billion, according to a bank tally issued this month. In terms of the geographic breakdown of the projects, about 70 percent are situated in Mexico and 30 percent in the United States, according to Flores.

About Mr. Paterson
Kent Paterson Editor - A veteran journalist, Kent Paterson has covered the borderlands, Mexico and Latin America for more than two decades. A frequent contributor to Radio Bilingue and other public radio programs, his stories have appeared on hundreds of stations throughout the world. He has written for publications including Ecoamericas, New Mexico Business Weekly, Crosswinds, Pacific News Service, and more. Kent is the author of the award-winning book The Hot Empire of Chile, a history of the New Mexico chile pepper industry. Kent’s work has been recognized by numerous awards from the New Mexico Associated Press Broadcasters Association, New Mexico Press Women and the national Radio-Television News Directors Association. TBB

Visit Texas Border Business Website

© Copyright 2005 Texas Border Business (as it appeared in the December 2009 issue)

MEDC aims to connect local suppliers; increase business in challenging economic times

MEDC aims to connect local suppliers; increase business in challenging economic times


Tuesday, October 13th, 2009
Texas Border Business
http://www.texasborderbusiness.com/News/1005902

In an effort to drive business locally and build connections within the supply chain, more than 20 supplier companies from throughout the Upper Valley and Northern Mexico will meet with representatives from Pentair on Wednesday, Oct. 14, 2009 from 8 am to 5 pm. Pentair is a global water systems and technology provider with more than 15,000 employees in 20 countries.

Pentair already has three divisions in Reynosa and continues to be successful in this market. As Pentair seeks to reduce costs, company officials hope to localize its supply base by using services and ordering commodities from companies within a 24-hour delivery radius. Time slots filled within two weeks as local companies try to find new business opportunities during a time when manufacturing has slowed around the world.

This innovative event, sponsored by the McAllen Economic Development Corporation and South Texas College, is a first-time event in which potential suppliers have the one-on-one networking opportunity with a specific company. South Texas College officials hope this will provide students with a glimpse of the McAllen/Reynosa manufacturing sector and provide networking opportunities for future job seekers.

The event will be held the STC Technical Campus at the intersection of Military Highway and Ware Road on Wednesday, Oct. 14, from 8 a.m. to 5 p.m. Representatives from Pentair, along with suppliers and officials from the McAllen Economic Development Corp, the Reynosa Association of Maquiladoras and Manufacturers and South Texas College will be available to interview.

MIKE BLUM: McAllen Managed by Common Sense Principles | Rio South Texas

BLUM: McAllen Managed by Common Sense Principles

SPECIAL REPORT
Texas Border Business
By Roberto Hugo Gonzalez
Picture: L-R: Laura Warren, President of McAllen Rotary Club south, Mike Blum, Managing Broker with NAI Rio Grande Valley

“We’ve got our struggles; things are not perfect, but compared to other places in the country the Valley is doing pretty well,” Mike Blum, Partner and Managing broker for NAI-RGV stated during a presentation at the McAllen Rotary Club south.

He also said that the employment losses in the nation will increase during October or November to 10 percent. “Manufacturing employment dropped to the lowest that it has been in years.” He added. Unemployment rate nationally in August was 9.7 percent so indicated his power point presentation.

In long term unemployment, the number of people unemployed 27 weeks or more is 24.9 million in the nation. “Those aren’t really great facts, but they are the facts.” he said. He also pointed out that locally there has been a good change in the unemployment rates. He reminded club members that a few years ago the unemployment rate for Hidalgo County was 18 percent. “So 11 percent is good under the circumstances,” he stated. He added that McAllen’s unemployment is 7.4 percent. The combined figures for unemployment in Hidalgo and Cameron Counties totaled 11.5 percent.

He said those figures are only a little bit worse than the national stats. He went on to say that in the building permits things are a lot different. In 2006, Hidalgo County registered 6,400 single family permits issued; in 2007 it dropped to 4,800 permits and in 2008 to 2,900 permits. “Huge drop off in single family home permits,” Blum stated.

According to him, McAllen is different due to community and business leaders that have made amazing decisions since 100 years ago. He added that McAllen has had a treasure chest of people of all walks of life and all economic stages that adopted a philosophy and a shared vision as well as a common sense set of guiding principles. “Those principles were: if it is good for business and good for the city, they did it,” he said.

Chronologically Blum pointed out that over a period of 100 years up to now; city leaders have made important decisions that have been great for the city. Back in the early days, during McAllen‘s infancy, the city fathers invited the military to establish a military base called College Heights, off of Houston and Bicentennial. “If you ride through that neighborhood you can see the circular layout and the street pattern like any army base in the United States.

During the early sixties the city bought the privately owned bridge Hidalgo/Reynosa and the rest is history he said. They created foreign trade zone number 12, becoming the first to be inland. “This was a radical departure from normal concepts of foreign trade zones,” he explained.

And in 1979, this city sold the rights to provide health care in the former McAllen General Hospital to the Private Sector. The city got out of this industry when it was the right time to do it. “Thirty years later look at our medical community south and north McAllen or south of Edinburg,” he stated. Blum said that all that happened in the last three decades.

He went to say that the City leaders also invested in education. The city had a site for a future hospital and they made it available to the newly created Texas State Technical College (TSTC) from Harlingen and created a branch in McAllen. He said that they continue to invest in education by the creation of South Texas Community College, which is now South Texas College. “This is an amazing story in itself, they have grown from 600 students to more than 27,000 in a short period of time,” he said.

They also expanded McAllen Miller Airport and now it is about to go through a new expansion. He said it is not a McAllen airport but a regional airport. The city also acquired La Quinta Mazatlan, an old house on a big hill and not only renovated it but created a world birding center and they turned it into a true world class destination for people who come to McAllen.

They acquired land to build a new convention center and they did it with cash, no debt. The city sold land to SIMON to build the Palms Crossing Shopping Center, which made it possible to build the convention center.

He said that on the horizon there is another project, to build an automobile manufacturing plant in the McAllen area. “This is still a deal in process, but it is closer than you can imagine,” he said. According to Blum, these are examples that set the stage for McAllen to be the progressive location that it has become. TBB

New Companies Moving to Edinburg Renaissance Industrial Park this Year | Rio South Texas

New companies moving to Edinburg Renaissance Industrial Park this year
By Ramiro Garza, Jr.
Texas Border Business
Picture of Ramiro Garza, Jr. Executive Director for the Edinburg Economic Development Corporation

The local economy continues to be one of the strongest in the nation through the second quarter of 2009 according to MetroMonitor report by the Brookings Institution.

In fact, the Mcallen-Edinburg-Mission MSA was the only metro that gained jobs in both the first quarter second quarters of this year.

The MetroMonitor report also showed that this MSA was one of three that surpassed their pre-recession peak output by the second quarter of 2009.

While economic activity is down overall compared to previous years, it is good to see these types of reports confirming that this area continues to be in a relatively strong position as we move forward out of this global downturn of the economy.

The key to sustaining this momentum is continuing to maximize our comparative advantage which is our proximity to the Mexican border and coastal area.

And we are doing just that in Edinburg. While we continue to promote ourselves to clusters of industries tied to trade activity from manufacturing to logistics, we are doing that not only in the USA but in Mexico as well.

Most recently, we have had as many leads come out of Mexico as we have from anywhere else. Out of these leads, we have recruited two small manufacturing companies from Mexico to our Renaissance Industrial Park this year.

One is a candy manufacturer called Dulces Ravi from Monterrey, N.L. The other is Muller coating company from Satillo, Coahilia.

The reason these companies are interested to locate here is because they are already exporting to the USA and are looking to have their produce their product here and distributed to penetrate the Hispanic market in the USA.

In working with these foreign companies, we have found that our area has many advantages for them aside from simply serving as a distribution point.

Aside from the economic stability, these companies have found that utility costs are less expensive and they are in a better position to explore different markets in the USA to be able to grow their business.

Many of these companies have been identified by our trade office in Monterrey, N.L. This office serves as a first point of contact when foreign companies are exploring expansions into the USA.

This office in Mexico promotes Edinburg in trade shows and networking events including site visits to companies with growth potential.

It’s a new trend we’re seeing emerging of Mexican manufacturers locating here which is a reverse concept of the trend that we’re familiar with of American companies locating in Mexico.

To us, it’s about maximizing this comparative advantage of our location to bring about new opportunities to facilitate future growth.

Ramiro Garza is the Executive Director for the Edinburg Economic Development Corporation. He is a Texas Border Business guest writer.