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cameron county/matamoros - blue - The University of Texas at ...

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UTB-CBIRD Report: “At <strong>The</strong> Crossroads” Economic Development 106<br />

from a primarily agrarian economy to becoming one the principle worldwide<br />

competitors in labor-intensive industries.<br />

Summary<br />

Cameron County manufacturing sector as a whole and M<strong>at</strong>amoros maquiladoras<br />

in particular, can no longer compete in the global economy solely on the basis <strong>of</strong><br />

inexpensive labor. If current trends continue, the Lower Rio Grande Valley region<br />

will continue to see increasing competition for emerging industrial powers,<br />

especially those in Southeast Asia and China. As a result, the Cameron County-<br />

M<strong>at</strong>amoros region needs to devise a cluster-based str<strong>at</strong>egy built on cross-border<br />

cooper<strong>at</strong>ion targeting higher-value added niche industry clusters and<br />

components. Without adequ<strong>at</strong>e numbers <strong>of</strong> highly skilled labor, the region will<br />

stagn<strong>at</strong>e and fall further behind in its ability to cre<strong>at</strong>e wealth and higher value<br />

jobs and to employ and retain its young workforce.<br />

<strong>The</strong> Cameron County/M<strong>at</strong>amoros border region is <strong>at</strong> a crossroads, and despite<br />

the best efforts <strong>of</strong> the region, the coming years will include a painful transition<br />

with further job losses in labor-intensive industries such as Textiles & Apparels.<br />

In addition to the following discussions centered on (1) Transport<strong>at</strong>ion Services<br />

and Logisitics & Distribution, (2) Health Services & Life Sciences following are<br />

brief snapshots <strong>of</strong> niche manufacturing industries th<strong>at</strong> possess the potential to<br />

ease th<strong>at</strong> transition.<br />

Construction Machinery & Equipment<br />

⇒ A component <strong>of</strong> the Construction cluster, Construction Machinery &<br />

Equipment includes establishments engaged in manufacturing heavy<br />

machinery and equipment <strong>of</strong> a type used primarily by the construction<br />

industries, such as bulldozers, concrete mixers, cranes, conveyors and<br />

conveying equipment, and hoists.<br />

⇒ Both n<strong>at</strong>ionally and locally, this component cluster is growing <strong>at</strong> a rapid r<strong>at</strong>e.<br />

From 1995 to 2000, Construction Machinery & Equipment added 15,000<br />

jobs, producing a 10% growth r<strong>at</strong>e, fueled by the n<strong>at</strong>ion’s booming real<br />

est<strong>at</strong>e sector. Although locally employment in this component cluster<br />

remains limited, employing fewer than 100 workers, rapid popul<strong>at</strong>ion growth<br />

throughout the Lower Rio Grande Valley and northern Mexico is expected to<br />

drive demand for all components in Construction. In addition, local wages in<br />

Construction Machinery & Equipment are 66% higher than the average<br />

priv<strong>at</strong>e wage in the <strong>county</strong>.<br />

Metal Works & Stampings<br />

⇒ A component <strong>of</strong> the Industrial Supplies cluster, Metal Works & Stampings<br />

includes establishments engaged in manufacturing die-castings <strong>of</strong><br />

aluminum (including alloys), nonferrous die-castings, fabric<strong>at</strong>ed pl<strong>at</strong>e work,<br />

sheet metalwork, iron and steel forgings, metal stampings, and<br />

electropl<strong>at</strong>ing.<br />

⇒ While this component cluster employed only 160 workers in Cameron<br />

County in 2000, it is part <strong>of</strong> the much larger Industrial Supplies cluster.<br />

Products manufactured in this component cluster supply parts to other<br />

heavy manufacturing industries. Wages in Metal Works & Stampings exceed<br />

Cameron County’s average priv<strong>at</strong>e wage by nearly 70%.<br />

Tools & Machine Parts<br />

⇒ A component <strong>of</strong> the Industrial Supplies cluster, Tools & Machine Parts<br />

includes establishments engaged in the manufacture <strong>of</strong> special dies and<br />

tools, cutting tools, machine tools, pumps and pumping equipment,<br />

Una Region -- Un Futuro<br />

Cameron County-<br />

M<strong>at</strong>amoros region<br />

needs to devise an<br />

economnic<br />

development str<strong>at</strong>egy<br />

built on cross-border<br />

cooper<strong>at</strong>ion targeting<br />

higher-value added<br />

industry clusters and<br />

components.<br />

We need to invest in our<br />

universities and technical<br />

schools on both sides <strong>of</strong><br />

the border, and these<br />

institutions need to be<br />

better linked to the<br />

regional manufacturing<br />

clusters. We need policy<br />

th<strong>at</strong> stimul<strong>at</strong>es the<br />

knowledge base and<br />

innov<strong>at</strong>ion. We have to<br />

work to increase quality<br />

and make our engineers<br />

more technical. It is<br />

more than producing<br />

products. We need<br />

research and ideas linked<br />

to industry needs.<br />

Rolando Gonzalez-<br />

Barron, President<br />

Consejo Nacional de<br />

Maquiladoras de Exportacion de<br />

Mexico (CNM)<br />

President, GOBAR SYSTEMS<br />

2002

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