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UTB-CBIRD Report: “At the Crossroads” Conclusions & Recommendations 152
INITIATIVE 1:
ACCELERATED ECONOMIC DEVELOPMENT
In this report’s binational community survey (Section 3), leaders from both
Cameron County and Matamoros report that future job growth will come from
established service-based industries including healthcare, education, and
conventions/tourism/entertainment. Emerging technology-based industries
considered important are medical, advanced telecommunications, computer &
information systems, environmental conservation, and energy efficiency and
conservation.
Service sector industries do not produce wealth -- rather they depend on and
grow based on the strength of such “wealth producing” industries as
manufacturing, life sciences, and computer & information technologies. As of
early 2003 telecommunications, computers, and information technologies are
not, and are not likely to be in the near future, the wealth generating industries
they were during the past decade as these industries are currently characterized
by layoffs, bankruptcies, declining stock prices, and shrinking profit margins.
Strategies for Action
Because of their centrality to the border region in a manner that is unmatched by
other national or global locations, this report suggests four targets for regional
and binational collaboration for accelerated economic development:
⇒ Manufacturing and Maquiladoras
⇒ Transportation Services and Logistics & Distribution
⇒ Health Services and Life Sciences
⇒ Border Security
Manufacturing and Maquiladoras
Maquiladora operations that focus on labor intensive and low value-added
operations are moving from Mexico to Asia, primarily China and India. The
message is clear, neither Cameron County nor Matamoros and the surrounding
border region can rely on low wage workers to attract and retain manufacturing
industry. As emphasized in Section 5, the best way for area manufacturing to
compete in the 21st Century is though more value-added and just-in-time
manufacturing. As stated by the President of Consejo Nacional de Maquiladoras
de Exportacion de Mexico (CNM), manufacturing clusters need to be developed
in such industries as electronics, plastics, and steel stamping supported by such
industries as software, design, and logistics along with supportive infrastructure
including quality technical education, industrial parks, and professional services
of finance, marketing, and technology development.
Public/private Cameron County and Matamoros community leaders should
consider the development of a Maquiladora Incubator Network that would link
both sides of the border to (1) nurture and grow locally-based Maquiladoras
suppliers and (2) accept spin-off technologies and processes from Maquiladoras
as they become more technology-intensive. Facilitating the growth of regional
suppliers as start-up companies on both sides of the border would also benefit
the Maquilas as they work to become more just-in-time efficient to compete with
China and other offshore locations.
Improved Logistics & Distribution efficiencies -- decreasing time and cost – are
crucial to the sustainability and growth of Maquiladoras. These increased
Una Region, Un Futuro
The shared borders of
the U.S. and Mexico
figure prominently into
the new cabinet-level
Department of
Homeland Security
(DHS) and all the
relevant agencies along
the border will be
affected… with all border
agencies reporting to the
same management
chain… increased
enforcement should be
synonymous with
increased facilitation as
we are likely to see more
staffing, technology, and
improved facilities at the
border… Port inspection
functions… will also
move to the new DHS, a
sign of the governments
concern with bio-terror
agents traversing our
shared borders.
Garrick Taylor
Director of Policy Development
Border Trade Alliance
Industrial Community,
January 2001, p. 7