Business TrendsAffecting McAllen &
Reynosa
City of McAllen
The City of McAllen and M.E.D.C. work withGlobal Companies planning a strategic move orexpansion to service their industry from a cost
competitive market.
18 Year History
Since 1988 We Have Recruited:
Companies Jobs Square Footage Occupied To Date
McAllen Metro 229 20,000 16,000,000Reynosa Metro 310 100,000 25,000,000Total: 539 120,000 41,000,000
International Relationships
The City of McAllen & M.E.D.C. maintains a strong international relationship with Mexico. We work closely with Mexican officials in Reynosa, Tamaulipas, to attract new investment, develop infrastructure, enhance workforce education and training, and promote the construction of worker housing.
International Clients
CANADA:EMU PlasticsProgressive Molded ProductWindsor Mold
DENMARK:Unomedical, Inc.
ENGLAND:BSN MedicalTI Group Automotive Systems
CHINA:Ganzhou China/Import Export
FINLAND:Nokia Mobile PhonesPerlos Inc.
FRANCE:Cinch ConnectorsHutchinson AutomotivePechiney PlasticsValeo Electornics
GERMANY:Autech DraexlmaierLandis & GyrSiemens EnergySiemens VDOKern Liebers
KOREA:LG Electronics (Zenith)
International Clients
ITALY:Haemotronic
JAPAN:AlcomAlps AutomotiveBigston CorporationFujitsu TenGSWJVCMatsushita Electronic MikuniPanasonic Service CompanySharpShin Etsu Polymers
MEXICO:Galvotec AlloysSabritasSelect Elastics
NORWAY:Kongsberg Automotive
SWITZERLAND:Siemens-Landis & Gyr
SWEDEN:Atlas Copco GroupKuehne & Nagel
TAIWAN:King’s Prosperity Industries
UNITED STATES:Bissell, Inc.Black & DeckerBrunswickC.R. BardCorning ScientificDelphi AutomotiveEaton CorporationEmersonEscalade SportsHoffman EngineeringJabilJohnson ControlsKimballMaytagR. R. DonnellySymbol TechnologiesTRW
McAllen Residents
Reynosa Residents
TI Automotive
MikuniDelphi
Corning Cable Systems
Fujitsu TenSymbol Technologies
ARC AutomotiveDraexlmaier
National Worker Deficit
• Shortages of labor constitutes the foremost challenge confronting U.S. manufacturers
• In 2005 90% of manufacturers surveyed by the National Association of Mfg. reported moderate to severe shortages of production workers and 65% indicated a moderate to severe shortage of scientists and engineers; 54% say this is causing moderate to high negative impact on customer service.
• NAM estimates U.S. mfg. will face a deficit of 10 million workers by 2020.
• According to a recent article in Forbes magazine it was stated that currently there is a person turning 60 yrs of age every 7 seconds in the U.S. and in 3 years 40% of the existing work force will reach retirement age.
Future National Worker Deficit
APPROACHING DEFICIT OF WORKERS: THE NATIONAL PICTURE
Future Texas Workforce
APPROACHING DEFICIT OF WORKERS: THE VIEW FROM TEXAS
0
200000
400000
600000
800000
1000000
1200000
1400000
2000 2005 2010 2015 2020 2025 2030 2035 2040
Future McAllen Workforce
Greater McAllen Region Working Age Population (Ages 18-64)
Population Density
Source: CIESIN, Columbia University
Population
10 Million People Within a 150 Mile Radius
Population with College Education 2000 % Share
0.0 5.0 10.0 15.0 20.0 25.0
Acuña
Agua Prieta
Tecate
Nogales
Tijuana
Matamoros
Juárez
Nuevo Laredo
Piedras Negras
Reynosa
Mexicali
Guadalupe
Guadalajara
Chihuahua
Torreón
Monterrey
Population with High School Education 2000 % Share
0.0 5.0 10.0 15.0 20.0 25.0
Acuña
Juárez
Nuevo Laredo
Piedras Negras
Agua Prieta
Matamoros
Chihuahua
Tecate
Reynosa
Tijuana
Guadalajara
Torreón
Monterrey
Mexicali
Guadalupe
Nogales
75
85
95
105
115
125
135
145
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Reynosa
Juarez
Chihuahua
Tijuana
Matamoros
Laredo
Unit Labor Cost
L
P
L
WULC
0
50
100
150
200
250
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Reynosa
Juarez
Chihuahua
Tijuana
Matamoros
Laredo
Export Market Share
• Companies have found a way to compete with low cost areas outside North America by encouraging customers to custom order with a short turn around time (24-72 hours)
• Increases customer satisfaction, reduces finished goods inventory, increases margins
Manufacturing Trends – Speed to Market and Customization
This fundamentally changes how companies compete in the Global Marketplace
• Past Minimum Requirements
• Cost control, Total quality, Continuous Improvement
• Future Current Requirements
• Flexibility
• Collaboration
• Boundary spanning organization, and
• Rapid response Extended Production Enterprise
• Past Minimum Requirements
• Cost control, Total quality, Continuous Improvement
• Future Current Requirements
• Flexibility
• Collaboration
• Boundary spanning organization, and
• Rapid response Extended Production Enterprise
Rapid Response Manufacturing Center
Viper Pro SLA System
Emerging New Global Logistic Routes/Distribution Trends
New Global Shipping RoutesNew Global Shipping Routes
• 25% cost reduction over traditional routes
• Avg 3 day reduction over traditional routes
• Distribution of globally produced products from one point
• Makes Texas the “3rd Coast”Provides direct connectionfrom one of the largest Cities in the world to thepopulation centers of Texas.
Distance from Reynosa To: Miles KmMonterrey 140 225Manzanillo 833 1341Altamira 316 508Mexico City 636 1024
Current Distribution Channels
Mexico Produced Goods
Current Asia
Goods arrive at
U.S. Ports
Current South
American goods
arrive at U.S. Ports
Current European
goods arrive at U.S. Ports
The requirement to ship complete orders to customers require companies to have multiple distribution centers – Products must be
moved to those cities to be staged for sale
Emerging Distribution Channels
Inventory maintained in piece part state – manufactured per
customers specification – shipped directly to
customers regional DC; stores, or home.
Estimated cost reduction of a minimum 12% over
current system.
Ports of Manzanillo And Lazaro Cardenas
Port of Altamira
Regional Multi-Modal Center for South
Texas
• Procure funding to construct a Regional-Multi Modal Center adjacent to the McAllen Foreign Trade Zone, and only minutes from the Pharr/Hidalgo ports of entry, and the soon to be constructed Anzalduas Bridge.
• Funds will be used to build upon existing infrastructure and to improve the flow of Northbound goods through Hidalgo County to major U.S. population centers throughout the U.S..
Project Description
• Establish a Regional Multi-Modal Center to achieve the following:
• Improve the cost competitiveness of our local manufacturers
• Minimize wear and tear on Texas and national highways
• Reduce fuel consumption
• Reduce truck emissions
• Create Direct and Indirect jobs for our community
• Establish alternate mode of transport for auto assembly plants
• Support efforts to establish south Texas as a major North American
• logistics and distribution hub with global access through Mexico ports (3rd Coast concept)
Strategic Objective
•Enhanced motor carrier
•Non-conventional intermodal
What is Bi-Modal Transportation?
Contractors will pick up loaded trailers from shippers and take
them to a train assembly terminal in the McAllen Foreign Trade Zone
Road Railer Technology
RoadRailer's® unique air ride system lifts the trailer as it is backed over the bogie. It then lowers the trailer and lifts and locks the tires above the tracks.
Air Ride System
Contractors hookup and deliver trailers, providing premium service for their customers.
Local Delivery
Immediate:
- Road Railer assembly facility
- Cross docking
- Equipment Storage / Maintenance
Long Term:
- “Double Stack” container services
- RVSC overflow / Constructive Placement
- Container Freight Station
Multi-Use Facility
Ware Rd
23rd St
Proposed Site
Military Highway
FTZ
Legend
Hub Cities
Port Cities
Rail Traffic
Truck or RailTraffic
Existing Rail
Intermodal Intermodal YardYard
Anzalduas International Trade Bridge
2007
Reynosa, Mexico
Sharyland PlantationSharyland Plantation
N
State Highway
Monterrey Federal Highway
Monterrey Federal Highway
Del Norte Del Norte IndustrialIndustrial
Villa Florida Villa Florida IndustrialIndustrial
Proposed AssemblyPlant Site
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