McAllen ranks in top 11 cities for beating the recession; longest period of job growth
June 17th, 2010
McAllen Economic Corporation Blog
McAllen, TX ranked No. 11 in the United States for beating the recession, according to the June 2010 MetroMonitor released by the Brookings Institute. The report indicates: “Of all the cities in the ranking, McAllen has experienced the longest period of job growth, gaining jobs over the last four quarters.”
Click here to read article.
Showing posts with label MEDC. Show all posts
Showing posts with label MEDC. Show all posts
Thursday, June 17, 2010
Tuesday, June 15, 2010
Mexico ranked most cost competitive for industry; McAllen takes top spot in the U.S. market
Mexico ranked most cost competitive for industry; McAllen takes top spot in the U.S. market
June 14th, 2010
McAllen Economic Development Corporation Blog
Leave a comment Based on the low costs of doing business and business’ ability to compete on the global scale, Mexico ranked No. 1 in overall competitiveness according to a recent report released by KMPG. This organization is a “global network of professionals in the audit, tax and advisory business. The study found that Mexico represents the lowest cost country for companies. The McAllen Economic Development Corporation has a team of industrial specialists focused on recruiting and expanding manufacturing, warehousing, logistics operations in Mexico, specifically Reynosa.
For the U.S., KMPG ranked McAllen as the most competitive city in the United States and Canada, based on low cost of business. There are hundreds of companies on the U.S. side that supply the manufacturing sector in Reynosa, Mexico. Click here to read the full report.
June 14th, 2010
McAllen Economic Development Corporation Blog
Leave a comment Based on the low costs of doing business and business’ ability to compete on the global scale, Mexico ranked No. 1 in overall competitiveness according to a recent report released by KMPG. This organization is a “global network of professionals in the audit, tax and advisory business. The study found that Mexico represents the lowest cost country for companies. The McAllen Economic Development Corporation has a team of industrial specialists focused on recruiting and expanding manufacturing, warehousing, logistics operations in Mexico, specifically Reynosa.
For the U.S., KMPG ranked McAllen as the most competitive city in the United States and Canada, based on low cost of business. There are hundreds of companies on the U.S. side that supply the manufacturing sector in Reynosa, Mexico. Click here to read the full report.
Monday, April 19, 2010
Texas home to some of the most successful Foreign Trade Zones
Texas home to some of the most successful Foreign Trade Zones
April 19th, 2010
McAllen Economic Development Corporation
The McAllen Foreign Trade Zone, No. 12, continues to recruit companies and lease industrial space looking to save money and take advantage of 24-hour security and tax benefits. Since 1970, the McAllen Foreign Trade Zone (MFTZ) has aimed “To provide continued customer satisfaction and value driven supply chain management services along with a positive and rewarding work environment.”
A recent report was submitted to Congress regarding the nation’s Foreign Trade Zones. The McAllen Foreign Trade Zone was the first inland port to come to fruition.
To view the full congressional report, click here
April 19th, 2010
McAllen Economic Development Corporation
The McAllen Foreign Trade Zone, No. 12, continues to recruit companies and lease industrial space looking to save money and take advantage of 24-hour security and tax benefits. Since 1970, the McAllen Foreign Trade Zone (MFTZ) has aimed “To provide continued customer satisfaction and value driven supply chain management services along with a positive and rewarding work environment.”
A recent report was submitted to Congress regarding the nation’s Foreign Trade Zones. The McAllen Foreign Trade Zone was the first inland port to come to fruition.
To view the full congressional report, click here
Tuesday, March 16, 2010
NAI Rio Grande Valley's own Mike Blum weighs in on the importance of border infrastructure and why it is crucial to the growth of McAllen/Reynosa
NAI Rio Grande Valley's own Mike Blum weighs in on the importance of border infrastructure and why it is crucial to the growth of McAllen/Reynosa
McAllen Economic Development Corporation
Building up the infrastructure between the Rio Grande Valley of Texas and Northern Mexico has long been a goal for citizens and public officials. Even with the recent opening of the Anazalduas International Bridge, the fastest growing area on the U.S.-Mexico border faces challenges, in part to the burgeoning population.
Mike Blum, former city planner for the City of McAllen and current partner and managing broker for NAI Rio Grande Valley offered his insight and opinion on “Building Up Border Infrastructure.”
Click here to hear the full report from the Ron Whitlock Reports show.
McAllen Economic Development Corporation
Building up the infrastructure between the Rio Grande Valley of Texas and Northern Mexico has long been a goal for citizens and public officials. Even with the recent opening of the Anazalduas International Bridge, the fastest growing area on the U.S.-Mexico border faces challenges, in part to the burgeoning population.
Mike Blum, former city planner for the City of McAllen and current partner and managing broker for NAI Rio Grande Valley offered his insight and opinion on “Building Up Border Infrastructure.”
Click here to hear the full report from the Ron Whitlock Reports show.
Monday, January 18, 2010
MEDC/MFTZ Trains for a Marathon Year of Economic Development
MEDC/MFTZ Trains for a Marathon Year of Economic Development
Friday, January 15th, 2010
By Keith Patridge, President/CEO of McAllen Economic Development Corporation www.texasborderbusiness.com
It seemed like a great idea back in November when staff decided to sign up for the Fiesta Marathon Relay in McAllen. Twenty employees from the McAllen Economic Development Corporation and Foreign Trade Zone formed four teams of five to conquer the 26.2-mile relay early on a Sunday morning in mid-December.
This race became the buzz in the office as several employees met on weekends to train and run laps around the trade zone after business hours. And on race day, we all gathered at the start line before sunrise to take on this marathon.
MEDC/MFTZ staff, joined with friends and family, stood along the race route to cheer on our teams and offer words of encouragement during that foggy, cold morning. Less than six hours later, we all completed the race and despite some soreness, it proved to be a great day. The mileage challenged us, but it drove home the importance of teamwork, efficiency and strategy. It also reminds us of the expression that sometimes in life -and business- it is a marathon, not a sprint. And while we sprint when we have to, this past year tested the endurance of everyone in business.
Economic development in 2009 was a long, grueling marathon. The slow economic conditions have caused some companies to be more cautious and hesitant, but it doesn’t mean we give up. This “marathon” challenges the MEDC team to be patient, more innovative and aggressive.
We have talked about the auto plant for some time, and it is still moving forward. McAllen continues to be in that race and hopefully we will have some positive news to report in 2010. And although the year has proved slower than usual, we have secured 18 new companies in Reynosa and McAllen, plus existing companies added 723,000-square feet of industrial space in the McAllen MSA and in Reynosa.
Also, we have seen an influx of companies transferring divisions and their corporate headquarters to McAllen. In part because of the region’s large local workforce, strategic location and low costs of doing business, Fujitsu-Ten, Panasonic, Hi-Tec and ALPS have located their North American corporate headquarters to McAllen. Bettcher has transferred all of its North American corporate and manufacturing operations to McAllen and Reynosa. Hutchinson Manufacturing has also started transferring several divisions to McAllen.
For more than 17 years, the MEDC team has worked with ALPS, a global leader and manufacturer of electronic and automotive components. Over time, we have helped the company relocate families, hire local students from South Texas College and University of Texas-Pan American and expand their McAllen/Reynosa operations.
Recently, MEDC, along with officials from STC, UTPA, Mission Economic Development Authority and Hunt Valley Development, traveled to ALPS’ headquarters in Japan to meet with Mr. Masataka Kataoka, president/CEO of ALPS and tour their advanced technology and manufacturing centers. Mr. Kataoka announced that ALPS will bring their North American headquarters to McAllen, along with an additional division and 40 more jobs.
This represents a great opportunity to strengthen the partnership we have forged with ALPS over the years. We will continue working with company officials to help them create a global headquarters in McAllen.
The management teams of ALPS and all of our companies have become more like family to us, as we have known many of them for almost 20 years. Like training for a marathon – or even a fun relay- economic development and partnerships take practice and commitment.
And the MEDC team is committed to creating economic opportunity in the Rio Grande Valley and Northern Mexico. If you know of a company that is interested in learning about the advanced manufacturing opportunities in McAllen/Reynosa, contact the MEDC team today at 956.682.2875 or info@medc.org.
Keith Patridge is President and C. E. O. of McAllen Economic Development Corporation.
Friday, January 15th, 2010
By Keith Patridge, President/CEO of McAllen Economic Development Corporation www.texasborderbusiness.com
It seemed like a great idea back in November when staff decided to sign up for the Fiesta Marathon Relay in McAllen. Twenty employees from the McAllen Economic Development Corporation and Foreign Trade Zone formed four teams of five to conquer the 26.2-mile relay early on a Sunday morning in mid-December.
This race became the buzz in the office as several employees met on weekends to train and run laps around the trade zone after business hours. And on race day, we all gathered at the start line before sunrise to take on this marathon.
MEDC/MFTZ staff, joined with friends and family, stood along the race route to cheer on our teams and offer words of encouragement during that foggy, cold morning. Less than six hours later, we all completed the race and despite some soreness, it proved to be a great day. The mileage challenged us, but it drove home the importance of teamwork, efficiency and strategy. It also reminds us of the expression that sometimes in life -and business- it is a marathon, not a sprint. And while we sprint when we have to, this past year tested the endurance of everyone in business.
Economic development in 2009 was a long, grueling marathon. The slow economic conditions have caused some companies to be more cautious and hesitant, but it doesn’t mean we give up. This “marathon” challenges the MEDC team to be patient, more innovative and aggressive.
We have talked about the auto plant for some time, and it is still moving forward. McAllen continues to be in that race and hopefully we will have some positive news to report in 2010. And although the year has proved slower than usual, we have secured 18 new companies in Reynosa and McAllen, plus existing companies added 723,000-square feet of industrial space in the McAllen MSA and in Reynosa.
Also, we have seen an influx of companies transferring divisions and their corporate headquarters to McAllen. In part because of the region’s large local workforce, strategic location and low costs of doing business, Fujitsu-Ten, Panasonic, Hi-Tec and ALPS have located their North American corporate headquarters to McAllen. Bettcher has transferred all of its North American corporate and manufacturing operations to McAllen and Reynosa. Hutchinson Manufacturing has also started transferring several divisions to McAllen.
For more than 17 years, the MEDC team has worked with ALPS, a global leader and manufacturer of electronic and automotive components. Over time, we have helped the company relocate families, hire local students from South Texas College and University of Texas-Pan American and expand their McAllen/Reynosa operations.
Recently, MEDC, along with officials from STC, UTPA, Mission Economic Development Authority and Hunt Valley Development, traveled to ALPS’ headquarters in Japan to meet with Mr. Masataka Kataoka, president/CEO of ALPS and tour their advanced technology and manufacturing centers. Mr. Kataoka announced that ALPS will bring their North American headquarters to McAllen, along with an additional division and 40 more jobs.
This represents a great opportunity to strengthen the partnership we have forged with ALPS over the years. We will continue working with company officials to help them create a global headquarters in McAllen.
The management teams of ALPS and all of our companies have become more like family to us, as we have known many of them for almost 20 years. Like training for a marathon – or even a fun relay- economic development and partnerships take practice and commitment.
And the MEDC team is committed to creating economic opportunity in the Rio Grande Valley and Northern Mexico. If you know of a company that is interested in learning about the advanced manufacturing opportunities in McAllen/Reynosa, contact the MEDC team today at 956.682.2875 or info@medc.org.
Keith Patridge is President and C. E. O. of McAllen Economic Development Corporation.
Monday, January 11, 2010
McAllen MSA posts highest annual growth rate in 2009
TWC: McAllen MSA posts highest annual growth rate in 2009
MEDC Blog
January 4th, 2010 No comments A recent report from the Texas Workforce Commission indicates that the McAllen MSA has 9,300 jobs, followed by the Dallas-Plano-Irving area
with 7,200 jobs. The McAllen-Edinburg-Mission MSA posted the highest percentage of over-the-month growth with 1.0 percent.
Overall, the annual growth rate for total nonagricultural employment decreased throughout Texas; however, the McAllen MSA maintained a positive and the highest annual growth rate of 1.2 percent. Recently, numerous outlets have featured the McAllen MSA has one of the top metros for growth in employment and small business opportunities. See all of the recent rankings here.
View the full Texas Workforce Commission Report by clicking here.
MEDC Blog
January 4th, 2010 No comments A recent report from the Texas Workforce Commission indicates that the McAllen MSA has 9,300 jobs, followed by the Dallas-Plano-Irving area
with 7,200 jobs. The McAllen-Edinburg-Mission MSA posted the highest percentage of over-the-month growth with 1.0 percent.
Overall, the annual growth rate for total nonagricultural employment decreased throughout Texas; however, the McAllen MSA maintained a positive and the highest annual growth rate of 1.2 percent. Recently, numerous outlets have featured the McAllen MSA has one of the top metros for growth in employment and small business opportunities. See all of the recent rankings here.
View the full Texas Workforce Commission Report by clicking here.
Wednesday, December 9, 2009
Rio Grande Valley better understood in Asia than in other parts
Patridge: Rio Grande Valley better understood in Asia than in other parts of Texas Picture: McAllen Economic Development Corporation President and CEO Keith Patridge. (File photo: RGG/Joey Gomez)
McALLEN, Dec. 8 - Industrialists and political leaders in China, Japan and South Korea often know more about the Rio Grande Valley than those in Houston, Dallas or Austin.
That’s the view of McAllen Economic Development Corporation President and CEO Keith Patridge.
“Every time I go to Austin or Dallas or Houston I am struck by how little people know about the Rio Grande Valley. They know less than many people in China or Japan or Korea. They think they know about us but when you ask them when they were last here they will say, ‘oh, I was there 20 or 30 years ago.’ All they think is, we’ve got a bunch of orange trees down here,” Patridge said.
Patridge said the MEDC held seminars in Japan and South Korea just over a month ago. “There was a lot of interest and as a result several companies are looking at major investments in the Valley. I can tell you, they know where McAllen, Texas is. They know more about us than our brethren in Austin or north Texas,” Patridge said.
Patridge made his comments in a wide-ranging interview about economic development along the border with the Guardian and Ron Whitlock Reports, KVEO-TV’s flagship political talk show that airs every Sunday morning.
Patridge mentioned the lack of knowledge many Texas business and political leaders have about the Valley in response to a question about the importance of the Valley Legislator Tours that are hosted every two years by the Rio Grande Valley Partnership. Last week, the Partnership’s legendary President and CEO, Bill Summers, passed away and concern has been raised as to whether the tours will continue without him.
“The Valley Legislator Tours are vital,” Patridge said. “The big thing these legislative visits allow us to do is change the perception of, oh, the poor Rio Grande Valley. The perception that we do not have anything; that we have the worst education and the worst unemployment; that we are simply coming to Austin with our hat in our hand wanting money because we are poor.”
Patridge said Summers was a visionary with a pure heart.
“Bill did not want to show the legislators how poor we are. He wanted to show them how dynamic we are and how quickly we are growing. He would tell them, we do not need money to take care of problems; we need money to take care of growth,” Patridge said. “The Legislator Tours are really critical. I wish we could get them all down here.”
State Rep. Armando “Mando” Martinez, D-Weslaco, agreed. Like Patridge, Martinez said Summers was an impossible act to follow.
“I have thought long and hard about this and clearly we have to cultivate Bill’s vision and ideas. We have to keep the regional approach that he preached. We need to do everything we can to keep going what Bill has put together. We need someone to replace Bill who is aggressive but with a personality like Bill’s who can work with others,” Martinez said.
One of the ideas Summers proposed long before most economic development leaders in the Valley was the creation of a Valley-wide Metropolitan Statistical Area, or MSA. Patridge said he was working on a proposal to take that idea one stage further and create a NAFTA MSA that would combine key statistical information on McAllen and Reynosa, or Brownsville and Matamoros. Right now, the United States and Mexico only recognize the population on their respective sides of the border.
“Can you imagine taking Austin, Texas, and saying, you cannot consider anything south of Town Lake? The people in Austin would say you are nuts. That is what they are doing to us when they do not include the population in Reynosa,” Patridge said.
Patridge said he has spoken with staff in the offices of U.S. Sens. Kay Bailey Hutchison and John Cornyn and U.S. Reps. Rubén Hinojosa and Henry Cuellar about his proposal. He said the response was favorable. He said he has also spoken to economic development officials in Arizona and California and they like the proposal too.
The vehicle through which the population statistics on both sides of the border could be obtained would be the North American Development Bank, which operates in both the U.S. and Mexico, Patridge said.
“NADBank is the perfect vehicle to fund the collection of that data. You would get a true snapshot of this region as an economic unit. We could then address ways of making sure this economic unit is successful,” Patridge said.
Patridge concluded by saying that, despite the recession, McAllen-Reynosa is on track to grow because of its central location and relatively low wage costs.
“Draw a line north of McAllen and you will find 80 percent of the people of the United States living east of that line. If you are producing products in Tijuana and your customers are 2,000 miles east and diesel is $5 a gallon, it just does not make sense. I believe McAllen-Reynosa is the Memphis of North America,” he said.
“Put it another way. Where else in the world do you have an instance where, on the north side you have the largest market in the world and on the south side some of the most competitive labor rates, $2.20 an hour, fully-fringed?”
Rio Grande Guardian
Ron Whitlock, of KVEO-TV's Ron Whitlock Reports, contributed to this story. The show airs every Sunday on Channel 23, immediately following Meet The Press.
Saturday, November 7, 2009
McAllen named one of top places for Logistics
McAllen named one of top places for LogisticsNovember 6, 2009
Recently Expansion Solutions Magazine awarded the McAllen Economic Development Corporation with the 2009 Award for Excellence for its strategic link for logistics.
McAllen, TX, strategically located on the US-Mexico border, is a fast-growing metro area that also is home to numerous Fortune 500 companies. McAllen is also home to Foreign Trade Zone #12.
Tuesday, October 20, 2009
Video: Increasing business in a recession is the goal of the McAllen Economic Development Corporation
Increasing business in a recession is the goal of the McAllen Economic Development Corporation with a strategy that they claim will create jobs here in the Valley.
Action 4 News
VallyCentral.com
Friday, October 16, 2009
McAllen ranked one of the best places to launch a business
McAllen ranked one of the best places to launch a business
McAllen Economic Development Corporation Blog
October 15th, 2009
According to a CNN Money report, the McAllen MSA is one of the best small to medium metro areas to launch a small business. McAllen was ranked among the top 25 metro areas for fastest small business growth. McAllen was also ranked 16th among the best places to launch a small business for 2009. Read the full report here.
Good news for entrepreneurs and investors looking for a new market to enter. This announcement comes just prior to the Rio South Texas Small Business Summit. This event, sponsored by the Governor’s Office for Small Business Advocacy, will provide current and future small business owners to network with potential clients and engage in a variety of seminars. The event will be Thursday, Oct. 22 at the McAllen Convention Center.
There is still time to register- click here to register for this event.
McAllen Economic Development Corporation Blog
October 15th, 2009
According to a CNN Money report, the McAllen MSA is one of the best small to medium metro areas to launch a small business. McAllen was ranked among the top 25 metro areas for fastest small business growth. McAllen was also ranked 16th among the best places to launch a small business for 2009. Read the full report here.
Good news for entrepreneurs and investors looking for a new market to enter. This announcement comes just prior to the Rio South Texas Small Business Summit. This event, sponsored by the Governor’s Office for Small Business Advocacy, will provide current and future small business owners to network with potential clients and engage in a variety of seminars. The event will be Thursday, Oct. 22 at the McAllen Convention Center.
There is still time to register- click here to register for this event.
Manpower: McAllen one of the best for employment
Manpower: McAllen one of the best for employment
McAllen Economic Development Corporation Blog
October 16th, 2009
Manpower recently has ranked the McAllen MSA (McAllen, Edinburg, Mission) as one of the strongest areas for employment growth during 4th quarter 2009. From the companies that Manpower surveyed, responses indicate that there could be as much as a net employment outlook of an additional 10-percent.
Q409+MEOS+Strongest+&+Weakest
McAllen Economic Development Corporation Blog
October 16th, 2009
Manpower recently has ranked the McAllen MSA (McAllen, Edinburg, Mission) as one of the strongest areas for employment growth during 4th quarter 2009. From the companies that Manpower surveyed, responses indicate that there could be as much as a net employment outlook of an additional 10-percent.
Q409+MEOS+Strongest+&+Weakest
Thursday, October 15, 2009
Meet-and-greet connects local businesses with big corporations
Meet-and-greet connects local businesses with big corporations
October 15, 2009 7:30 AM
Sean Gaffney
The Monitor
McALLEN — Abel Garcia emerged triumphant from a small classroom Wednesday afternoon, one step closer to landing a lucrative contract to recycle plastics for a big-time maquiladora.
For local suppliers like McAllen-based 3gm Extrusion, where Garcia is managing director, finding work with manufacturers in Reynosa is often frustrating and sometimes impossible. Top corporate executives who make decisions are usually unwilling to open the door to relative unknowns.
But Wednesday, at a meet-and-greet organized by the McAllen Economic Development Corp., Garcia skipped several rungs on the corporate ladder and snagged a chance to pitch his firm’s services to the leadership of Minneapolis-based Pentair a mere 24 hours later. All that remained was to prove to the maker of water circulation and filtration products that 3gm could recycle plastics for Pentair’s three maquilas.
“The hardest part for us is to get to the decision-makers. Going up the ladder from the bottom to the top doesn’t work,” Garcia said. “Cold calling — you’re not getting anyone on the phone or getting a call back.”
Nearly 20 suppliers tried to woo Pentair executives at South Texas College’s Technology Campus on Wednesday. The company is trying to trim costs by using local suppliers.
Officials from the economic development corporation and STC organized the event, which they said could help add jobs on both sides of the border.
“The disconnect we have is when a company moves to a region with opportunities to expand but doesn’t have the local connections,” said Gerald Stinson, manager of the National Institute for Metalwork Skills program at STC. “We introduce them to our small businesses.”
A wide downturn in manufacturing assailed Reynosa’s maquilas in 2008, leading to broad job losses and an overall slowdown in production. At the same time, many companies have tried to cut costs by consolidating U.S. factories at their Reynosa counterparts, taking away U.S. jobs but boosting employment across the border.
Local experts hope that when manufacturing recovers to pre-recession levels, Reynosa’s maquilas will employ more laborers and make more products than they did before the economic freefall.
Pentair, which makes pumps for Coca-Cola soda fountains and pool accessories and an array of other products, has cut hundreds of jobs at its maquilas. But the company also shut down three plants in the U.S. and moved the production to Reynosa, boosting employment and offsetting much of the job loss, said Alba Nelly Peña, Mexico sourcing manager for the company.
Moving the operations to Reynosa cut the company’s production costs by 11 percent. Using local suppliers, the company expected to cut an additional 10 percent. It expects to add another maquila soon.
“We’ve been doing (local) sourcing for the last 15 years,” Peña said. “Pretty much now, everything you’re looking for is in Mexico (or along the border.)”
October 15, 2009 7:30 AM
Sean Gaffney
The Monitor
McALLEN — Abel Garcia emerged triumphant from a small classroom Wednesday afternoon, one step closer to landing a lucrative contract to recycle plastics for a big-time maquiladora.
For local suppliers like McAllen-based 3gm Extrusion, where Garcia is managing director, finding work with manufacturers in Reynosa is often frustrating and sometimes impossible. Top corporate executives who make decisions are usually unwilling to open the door to relative unknowns.
But Wednesday, at a meet-and-greet organized by the McAllen Economic Development Corp., Garcia skipped several rungs on the corporate ladder and snagged a chance to pitch his firm’s services to the leadership of Minneapolis-based Pentair a mere 24 hours later. All that remained was to prove to the maker of water circulation and filtration products that 3gm could recycle plastics for Pentair’s three maquilas.
“The hardest part for us is to get to the decision-makers. Going up the ladder from the bottom to the top doesn’t work,” Garcia said. “Cold calling — you’re not getting anyone on the phone or getting a call back.”
Nearly 20 suppliers tried to woo Pentair executives at South Texas College’s Technology Campus on Wednesday. The company is trying to trim costs by using local suppliers.
Officials from the economic development corporation and STC organized the event, which they said could help add jobs on both sides of the border.
“The disconnect we have is when a company moves to a region with opportunities to expand but doesn’t have the local connections,” said Gerald Stinson, manager of the National Institute for Metalwork Skills program at STC. “We introduce them to our small businesses.”
A wide downturn in manufacturing assailed Reynosa’s maquilas in 2008, leading to broad job losses and an overall slowdown in production. At the same time, many companies have tried to cut costs by consolidating U.S. factories at their Reynosa counterparts, taking away U.S. jobs but boosting employment across the border.
Local experts hope that when manufacturing recovers to pre-recession levels, Reynosa’s maquilas will employ more laborers and make more products than they did before the economic freefall.
Pentair, which makes pumps for Coca-Cola soda fountains and pool accessories and an array of other products, has cut hundreds of jobs at its maquilas. But the company also shut down three plants in the U.S. and moved the production to Reynosa, boosting employment and offsetting much of the job loss, said Alba Nelly Peña, Mexico sourcing manager for the company.
Moving the operations to Reynosa cut the company’s production costs by 11 percent. Using local suppliers, the company expected to cut an additional 10 percent. It expects to add another maquila soon.
“We’ve been doing (local) sourcing for the last 15 years,” Peña said. “Pretty much now, everything you’re looking for is in Mexico (or along the border.)”
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.
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.
Monday, September 28, 2009
The Third Coast, Post 9/11 Shipping Alternative | NAI Rio Grande Valley
The Third Coast
The unique location of the Greater McAllen Alliance corridor positions it as one of the most competitive shipping ports to and from Asia, Europe and South America. Considered by many companies as the third coast, this corridor is the cost effective, post 9/11 shipping alternative. Globally produced goods can be consolidated in one location to serve all North American markets. World events over the last few years have changed the reliability of our traditional logistic systems. Today, smart companies are looking at alternatives.
Shippers have started using the Mexican ports of Manzanillo and Altamira to save time and money. Shipments arriving at these ports are moved by truck or rail to a new dry port in Reynosa, Mexico or distribution warehouses in the greater McAllen area. From here they are shipped to points across North America. This route can save the shipper 20-25% in transportation costs and an average of three days of shipping time. With the increased emphasis on logistics cost and speed to market, it is easy to see the benefits of being able to ship all global production to customers from a single North American location. This virtually eliminates the need for restaging or partial shipments to meet customer demands.
Shipping through this new corridor is faster, cheaper and easier. Just another instance of bridging the Americas (and now the World) for international trade.
Friday, September 18, 2009
McAllen Area is the New Logistics and Distribution Center of North America | NAI Rio Grande Valley
McAllen is the new Memphis, says Patridge
Article from Rio Grande Guardian
By Joey Gomez and Steve Taylor
McAllen Economic Development President and CEO Keith Patridge.
(File photo: RGG/Joey Gomez)
McALLEN, Sept. 18 - The greater McAllen area is the new Memphis, Tennessee, the logistics and distribution center of North America, says McAllen Economic Development Corporation President Keith Patridge.
“Everybody used to call Memphis the center of the U.S. for distribution and logistics. I think we are now the Memphis of North America,” Patridge told the Guardian, in an exclusive interview.
Patridge made his comments after learning of the findings in the latest MetroMonitor quarterly report from the prestigious Brookings Institution. The report shows the greater McAllen area to be among the 20 most vibrant metro areas in the country. In fact, McAllen was one of only three metros to surpass pre-recession peak output in the second quarter of 2009. The others were Austin and Washington.
The report shows only five metro areas with stabilized employment numbers. Of those five, only McAllen posted a gain for the second straight quarter.
The Guardian asked Patridge why things were looking up for greater McAllen.
“I think it's a combination of a lot of things. Number one, it’s our demographics. We have a young and growing workforce,” Patridge said. “Even though the job market is very slow because of the downturn, once the economy comes back we will see the underlying labor shortages that come from the retiring baby boomers coming back. I think that is an important part, demographically we're strong.”
Geography plays a big part too, Patridge said. “We are centrally located in the North American population center, strategically located next to the largest market in the world, with very cost-effective manufacturing facilities just across the river from Reynosa. It also allows us to use the ports in Mexico to source products and components from the rest of the world and bring them in to Mexico, where we can then produce products and then ship them directly to the customer in the U.S,” Patridge said.
Another factor is the exchange rate, Patridge explained. “We are seeing costs go up again in China. Mexico, because of the economic downturn and the Peso to Dollar exchange rate, is actually starting to become more competitive. As the marketplace is constantly changing, right now Mexico is more competitive for the U.S. market than China is,” he said.
“It’s resulting in a lot of companies that are looking at focusing more attention on Mexico and the South Texas area. Because we are so tied in with what happens in Reynosa and Mexico, you'll continue to see this area being very attractive for companies to locate and expand. We are seeing that with our existing companies, they're continuing to expand all the time and it's going to create opportunities for us.”
Patridge does not want to play down the impact of the recession, which he acknowledges has not the global marketplace hard. The Texas Workforce Commission reported a slight decrease in the McAllen-Edinburg-Mission MSA unemployment numbers on Friday. In August, the percentage was 11.4 percent, compared to 11.5 percent in July.
“We have felt the recession down here, but not really at the level of other locations. We are continuing to do pretty well in comparison to other locations. We are continuing to see companies coming in,” Patridge said.
Patridge cited the decision of Panasonic to move its divisional headquarters to McAllen from Knoxville, Tennessee. Alps Electric is moving its design center and much of its corporate support staff to McAllen from other locations across the United States.
“Those are good paying, more executive type, jobs that will help us provide job opportunities for many of our college graduates from both STC and UTPA,” Patridge said. “That's what it's all about. It's being able to not only train our folks here, but also create good paying jobs for them here locally. A lot of that is coming from the downturn and from the need for companies to reduce costs. They have identified that it just makes sense for them to move a lot of those port operations down closer to their plants which tend to be in Mexico.”
The future looks bright, Patridge insisted. “I think we are in a very good position because of our demographics, our workforce, our geographic location and just the trends of companies to reduce inventory and going to more of a build to order-type scenario,” he said.
“You can't do that from China or India. It's going to have to be from North America, and I think we're primed to see that growth. We're excited. You're exactly right. Just as we have an impact that is less than in most areas, I think we will be one of the first to come back also.”
Ramiro Garza, executive director of the Edinburg Economic Development Corporation, agreed with Patridge’s assessment. Garza told the Guardian he was very pleased to see the high marks being given to McAllen-Edinburg-Mission in the Brookings Institution report.
“It's very important because it shows the data that supports the fact that the area continues to do very well compared to other parts of the country. If you look at the report it shows that our metro was the only one that created jobs in the first two quarters of 2009. We are the only metro that is growing in terms of Gross Metro Product, which is really the way the area is evaluated,” Garza said.
Asked what factors led to this particular success, Garza said: “Our proximity to Mexico, the border and the fact that our Valley is stabilized; the fact that our population continues to grow. We are the only area that continues to grow at a rate faster than most areas in the country.”
Garza said Edinburg has several new and exciting projects on the horizon. In the industrial park, two manufacturers from Mexico are set to create about 30 jobs, he said. And the local call center, Tele-Performance, is also adding jobs.
“There is also a long term care facility being built here in Edinburg with about $7 million being invested and about 200 jobs being created on West University. There is a plaza being built on Trenton Road, which we just been approved through the EDC. It's a 30,000 square foot facility,” Garza said.
Write Joey Gomez and Steve Taylor
Article from Rio Grande Guardian
By Joey Gomez and Steve Taylor
(File photo: RGG/Joey Gomez)
McALLEN, Sept. 18 - The greater McAllen area is the new Memphis, Tennessee, the logistics and distribution center of North America, says McAllen Economic Development Corporation President Keith Patridge.
“Everybody used to call Memphis the center of the U.S. for distribution and logistics. I think we are now the Memphis of North America,” Patridge told the Guardian, in an exclusive interview.
Patridge made his comments after learning of the findings in the latest MetroMonitor quarterly report from the prestigious Brookings Institution. The report shows the greater McAllen area to be among the 20 most vibrant metro areas in the country. In fact, McAllen was one of only three metros to surpass pre-recession peak output in the second quarter of 2009. The others were Austin and Washington.
The report shows only five metro areas with stabilized employment numbers. Of those five, only McAllen posted a gain for the second straight quarter.
The Guardian asked Patridge why things were looking up for greater McAllen.
“I think it's a combination of a lot of things. Number one, it’s our demographics. We have a young and growing workforce,” Patridge said. “Even though the job market is very slow because of the downturn, once the economy comes back we will see the underlying labor shortages that come from the retiring baby boomers coming back. I think that is an important part, demographically we're strong.”
Geography plays a big part too, Patridge said. “We are centrally located in the North American population center, strategically located next to the largest market in the world, with very cost-effective manufacturing facilities just across the river from Reynosa. It also allows us to use the ports in Mexico to source products and components from the rest of the world and bring them in to Mexico, where we can then produce products and then ship them directly to the customer in the U.S,” Patridge said.
Another factor is the exchange rate, Patridge explained. “We are seeing costs go up again in China. Mexico, because of the economic downturn and the Peso to Dollar exchange rate, is actually starting to become more competitive. As the marketplace is constantly changing, right now Mexico is more competitive for the U.S. market than China is,” he said.
“It’s resulting in a lot of companies that are looking at focusing more attention on Mexico and the South Texas area. Because we are so tied in with what happens in Reynosa and Mexico, you'll continue to see this area being very attractive for companies to locate and expand. We are seeing that with our existing companies, they're continuing to expand all the time and it's going to create opportunities for us.”
Patridge does not want to play down the impact of the recession, which he acknowledges has not the global marketplace hard. The Texas Workforce Commission reported a slight decrease in the McAllen-Edinburg-Mission MSA unemployment numbers on Friday. In August, the percentage was 11.4 percent, compared to 11.5 percent in July.
“We have felt the recession down here, but not really at the level of other locations. We are continuing to do pretty well in comparison to other locations. We are continuing to see companies coming in,” Patridge said.
Patridge cited the decision of Panasonic to move its divisional headquarters to McAllen from Knoxville, Tennessee. Alps Electric is moving its design center and much of its corporate support staff to McAllen from other locations across the United States.
“Those are good paying, more executive type, jobs that will help us provide job opportunities for many of our college graduates from both STC and UTPA,” Patridge said. “That's what it's all about. It's being able to not only train our folks here, but also create good paying jobs for them here locally. A lot of that is coming from the downturn and from the need for companies to reduce costs. They have identified that it just makes sense for them to move a lot of those port operations down closer to their plants which tend to be in Mexico.”
The future looks bright, Patridge insisted. “I think we are in a very good position because of our demographics, our workforce, our geographic location and just the trends of companies to reduce inventory and going to more of a build to order-type scenario,” he said.
“You can't do that from China or India. It's going to have to be from North America, and I think we're primed to see that growth. We're excited. You're exactly right. Just as we have an impact that is less than in most areas, I think we will be one of the first to come back also.”
Ramiro Garza, executive director of the Edinburg Economic Development Corporation, agreed with Patridge’s assessment. Garza told the Guardian he was very pleased to see the high marks being given to McAllen-Edinburg-Mission in the Brookings Institution report.
“It's very important because it shows the data that supports the fact that the area continues to do very well compared to other parts of the country. If you look at the report it shows that our metro was the only one that created jobs in the first two quarters of 2009. We are the only metro that is growing in terms of Gross Metro Product, which is really the way the area is evaluated,” Garza said.
Asked what factors led to this particular success, Garza said: “Our proximity to Mexico, the border and the fact that our Valley is stabilized; the fact that our population continues to grow. We are the only area that continues to grow at a rate faster than most areas in the country.”
Garza said Edinburg has several new and exciting projects on the horizon. In the industrial park, two manufacturers from Mexico are set to create about 30 jobs, he said. And the local call center, Tele-Performance, is also adding jobs.
“There is also a long term care facility being built here in Edinburg with about $7 million being invested and about 200 jobs being created on West University. There is a plaza being built on Trenton Road, which we just been approved through the EDC. It's a 30,000 square foot facility,” Garza said.
Write Joey Gomez and Steve Taylor
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