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UTB-CBIRD Report: “At The Crossroads” Economic Development 86
Figure 5. 1. Cameron County, Location Quotient – All Clusters, 2000
Textiles & Apparels
Health Services
Transportation Equipment
Government
Logistics & Distribution
General & Personal Svcs
Retail Trade
Recreation & Leisure
Food Products
Electronics
Agribusiness
Wholesale Trade
Industrial Supplies
Construction
Business Services
Telecom Services
Finance & Real Estate
Materials
Transportation Services
Higher Ed. & Research
Utilities
Mass Media
Chemicals & Plastics
Consumer Goods
Aerospace & Defense
Energy Resources
Biotechnology
Industrial Machinery
Mining
Software
Semiconductors
Telecom Equipment
Computers & Peripherals
0.00 1.00 2.00 3.00 4.00 5.00
1.75
1.54
1.45
1.37
1.21
1.21
1.12
1.08
1.08
0.97
0.91
0.71
0.68
0.66
0.64
0.63
0.61
0.58
0.57
0.51
0.48
0.42
0.34
0.25
0.19
0.10
0.09
0.07
0.05
0.02
0.01
0.00
Figures 5.1 and 5.2 show that the most important cluster (by Location Quotient)
in Cameron County’s economy has been Textiles & Apparels manufacturing.
This industry, once an example of America’s technological leadership, has
evolved into a fully mature industry in which labor costs are the primary location
criteria. The quest for low-wage labor that once drove the industry from the
Northeast to the South and eventually into the Rio Grande Valley is now driving it
to Asia (primarily China) and to Latin America. In 2000, Textiles & Apparels
registered the highest location quotient of any cluster in Cameron County;
however the 4,400 workers employed in 2000 is a 22% decline from 1999,
Figure 5.2. Major companies have closed their Cameron County operations
including Fruit of the Loom (1,000 workers), Allison Manufacturing, William
Carter, VF Imagewear, Haggar, and Levi Strauss (630 workers). While Cameron
County fared better than the rest of the nation in this industry, regional
employment steadily declined from 1995 to 2000. The average annual wage for
4.24
National Average
= value of “1”
Source: Minnesota IMPLAN Group, Bureau of Labor Statistics, and Texas Labor Market Information
1Fred Dickey, Los Angeles Times quoted in “Workers Hang On By a Thread,” Austin American
Statesman, January 12, 2003, p. J1-6.
Una Region -- Un Futuro
In announcing six plant
closures in Southern U.S.,
Levi Strauss said it was
becoming a “marketing
company,” and that the
future production… would
be by contract
manufacturers… that
would take place in 50
countries, including
Bangladesh and China
[but not including the
United States].
Fred Dickey
Los Angeles Times 1