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