| |||||||||||||||||
 |  |  |  |  |  |  |
Fifty years ago, the Rio Grande Valley of South Texas was a rural, agriculture-based
economy characterized by sporadic growth. Today, the area is being transformed into a
major international trade area by developing first-rate commercial, retail, office, industrial,
medical, retirement and educational facilities. The promotion of international and retail
trade, tourism and manufacturing is among the most successful along the U.S.-Mexico
Border.
The principal cities of McAllen, Brownsville and Harlingen combine to form the northern
half of the Rioplex and are among the most rapidly growing region in America. In fact, the
McAllen-Edinburg-Mission MSA ranked 4th fastest growing MSA in the U.S. between
1990 and 2000. From 2000 and 2006 it ranked 10th.
The Rio Grande Valley is known for production of: Cotton, Grapefruits, Oranges,
Tangerines, Lemons, Limes, Aloe Vera, Onions, Sugar Cane, Cabbage, Carrots,
Peppers, Broccoli, Cantaloupes & Melons.
The citrus industry in particular has brought tremendous attention to Rio Grande Valley,
with many South Texas tourists making it a point to go by a fruit stand to pick up some of
the Rio Grande Valley's famous grapefruits or other citrus products.
One of the most important elements in the economy of the Rio Grande Valley is the
Maquiladora program, in which plants in Mexico engage in labor-intensive assembly and
manufacturing of goods that are then distributed throughout the United States. This
program is ideal for manufacturers looking for major cost reduction in a product that is
labor intensive. It is especially attractive in Mexico for two reasons:
The low-cost (but productive) labor and the lowest possible inventory cost, because the
shipping time is substantially less than to any other "offshore" location.
Some of these industries have a twin-plant operation, usually a highly automated or
technology-oriented U.S. plant and a labor-intensive sister plant on the Mexican side.
Components mass-produced in the U.S. are delivered to the Mexican plant for the
time-consuming hand-assembly operations.
Though desirable from the U.S. standpoint, a plant on the U.S. side is not required. The
Maquiladora program has generated many thousands of jobs along the Texas-Mexico
border, and current emphasis in the Valley is on encouraging suppliers of these firms to
locate in the area.
The passage of the North American Free Trade Agreement, which was implemented in
1994, has not adversely affected the Maquiladora operations, though many restrictions
have been lifted by Mexico.
sources: www.mcallen.org www.texasborderbusiness.com blue.utb.edu
economy characterized by sporadic growth. Today, the area is being transformed into a
major international trade area by developing first-rate commercial, retail, office, industrial,
medical, retirement and educational facilities. The promotion of international and retail
trade, tourism and manufacturing is among the most successful along the U.S.-Mexico
Border.
The principal cities of McAllen, Brownsville and Harlingen combine to form the northern
half of the Rioplex and are among the most rapidly growing region in America. In fact, the
McAllen-Edinburg-Mission MSA ranked 4th fastest growing MSA in the U.S. between
1990 and 2000. From 2000 and 2006 it ranked 10th.
The Rio Grande Valley is known for production of: Cotton, Grapefruits, Oranges,
Tangerines, Lemons, Limes, Aloe Vera, Onions, Sugar Cane, Cabbage, Carrots,
Peppers, Broccoli, Cantaloupes & Melons.
The citrus industry in particular has brought tremendous attention to Rio Grande Valley,
with many South Texas tourists making it a point to go by a fruit stand to pick up some of
the Rio Grande Valley's famous grapefruits or other citrus products.
One of the most important elements in the economy of the Rio Grande Valley is the
Maquiladora program, in which plants in Mexico engage in labor-intensive assembly and
manufacturing of goods that are then distributed throughout the United States. This
program is ideal for manufacturers looking for major cost reduction in a product that is
labor intensive. It is especially attractive in Mexico for two reasons:
The low-cost (but productive) labor and the lowest possible inventory cost, because the
shipping time is substantially less than to any other "offshore" location.
Some of these industries have a twin-plant operation, usually a highly automated or
technology-oriented U.S. plant and a labor-intensive sister plant on the Mexican side.
Components mass-produced in the U.S. are delivered to the Mexican plant for the
time-consuming hand-assembly operations.
Though desirable from the U.S. standpoint, a plant on the U.S. side is not required. The
Maquiladora program has generated many thousands of jobs along the Texas-Mexico
border, and current emphasis in the Valley is on encouraging suppliers of these firms to
locate in the area.
The passage of the North American Free Trade Agreement, which was implemented in
1994, has not adversely affected the Maquiladora operations, though many restrictions
have been lifted by Mexico.
sources: www.mcallen.org www.texasborderbusiness.com blue.utb.edu