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UTB-CBIRD Report: “At The Crossroads” Economic Development 90
county, Table 5.1. However, as of 2002 call centers and the
telecommunications industry in general are experiencing a dramatic downturn
that includes extensive layoffs and corporate bankruptcies as envisioned growth
has failed to materialize.
At the Crossroads
The strength of at least two of Cameron County’s clusters, Transportation
Equipment, and Logistics & Distribution (and indirectly others such as Health
Services, Retail Trade, Recreation & Leisure, and Electronics) are closely linked
to the strength of maquiladoras located in Matamoros and Tamaulipas.
Therefore it is of major concern that many maquiladoras have moved from
Mexico to China -- these are primarily Mexico’s lowest wage and lowest valueadded
maquila operations. Stronger more synergistic relations between U.S.
firms and Mexican operations are illustrated in the automotive industry with
components flowing across the border between related facilities. A more
complete industry overview of Manufacturing and Mauqiliadoras begins on page
88.
Also of concern is the reality that Logistics & Distribution along the border is
becoming increasingly affected by national and regional security concerns that
will impart competition across several points of entry. Border crossings are
becoming increasingly efficient and streamlined. Earlier inefficiencies that have
benefited some U.S. border communities, like Cameron County, will be
eliminated over time. In the future, goods will stop in Cameron County only when
there is value to be added. Distribution of trucked goods will take place further
north along the I-10 corridor. A more complete industry overview of
Transportation Services and Logistics & Distribution begins on page 101.
Cameron County has many Health Service providers resulting in a strong cluster
LQ with relatively high wages. However, continued expansion in this sector will
require more value-added services and the expansion of the paying customer
base – those with reliable employment. Local educational institutions also have
a key role to play, as the nation endures a general nursing shortages as well as
shortages of rural and bilingual doctors. A more complete industry overview of
Health Services & Life Sciences begins on page 115.
Wage Analysis by Cluster
Economic development strategy frequently focuses on job creation, measured as
a total number of new positions, without regard to the wages earned; however,
such a focus can lead to an expanding economy without expanding opportunity.
Low wage or part-time employment is, of course, an essential component of any
economy, providing entry-level and flexible opportunities for the young and for
those with family or other commitments. However, as a general rule, raising
local wage rates needs to be considered a primary goal of any regional economic
development strategy. 1
1 Using the data provided by IMPLAN, Civic Economics analyzed wage information by cluster and by
individual SIC. These analyses were performed only for private-sector employment. Two primary
wage comparisons are emphasized:
The first compares the average annual wage paid in each cluster in the County to the overall
average wage for the County. This analysis, in combination with location quotients and shift-share,
provides information required for the identification of target clusters for recruitment and retention
efforts. By developing higher wage sectors, economic opportunity and community prosperity are
enhanced.
In the second, the average annual wage paid in each cluster in the County is compared to the
average annual wage for that cluster for the State of Texas. This analysis identifies whether the
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