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.
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