Manufacturing and Related Activities
While manufacturing jobs are disappearing in much of the country, the Lower Rio Grande Valley continues to see employment growth is occurring in the maquiladoras, the U.S. side has captured its share of expansions in industries such as food processing, wood products and related manufacturing, and metals. The region’s advantage relative to other U.S. locations is demonstrated by positive regional shift-shares in several industries, with continued modest growth forecast for the coming decade.
The region’s strong base of existing industry and aggressive local economic development initiatives make manufacturing a viable target for the region. This sector is also a fit from a workforce standpoint due to the potential partnerships with organizations such as the South Texas Manufacturing Association and other existing training programs. However, the sophisticated needs of many of today’s manufacturing require local leaders to view the industry in a light. What was once of as the transforming of raw material is now increasingly a matter of design, process control, and assembly. As a result, workforce training must move in a direction that supports advanced manufacturing processes that cut across industries. In this way, the labor force will be prepared to respond to major investment decisions in both traditional and emerging industries. Such an approach would, for example, help position the region to capitalize on longer-term opportunities, such as the potential development of a spaceport in Willacy County and continuing expansion of the aerospace industry in neighboring Cameron County.
The following targets within this cluster on the existing strengths and growth trends in the WorkFORCE Solutions service area:
- AUTOMOTIVE SUPPLIERS. Within manufacturing, the automotive industry is worthy of specific emphasis. Forecasts for the region predict a loss of roughly 100 jobs in this sector in the coming decade. However, this forecast does not account for local conditions which would favor continues expansion of the industry. With more than 2,500 workers employees in Transportation Equipment (NAICS 336) in the four-county region in 2004, the Lower Rio Grande Valley has a strong base for capturing part of the additional supplier growth expected as an outgrowth of Toyota’s planned investment in San Antonio. The region’s general strength in manufacturing, coupled with the presence of a number of automotive-related maquiladoras and the aggressive approach of the McAllen Economic Development Corporation in recruiting automotive suppliers make this sub sector a viable target for workforce investment.
- LOGISTICS. The Valley is extremely well-positioned to benefit from the explosive growth in logistics employment. The presence of numerous major manufacturers on both sides of the border and the availability of inexpensive industrial land make the Valley a logical hub for distribution and logistics operations. The region’s relatively low location quotient (below 1.0) suggests there is still room for growth in the industry. At the same time, a strong regional share suggests a local advantage. Furthermore, concerns about security procedures enacted in the make of 9/11 and the impact of labor disputes, such as the southern California dockworkers strikes, have pushed importers to explore new trade routes via Mexico which are likely to benefit the border region. From a workforce development standpoint, logistics is a good target for training investment as it provides opportunities for semi-skilled occupations given the increasing level of technology use in the industry.
TRUCKING. In addition to the growing demand for logistics operations, the continued flow of good through the region creates a strong demand for trucking. The region is forecast to add roughly 900 jobs during the next decade in
Truck Transportation (NAICS 484). Meeting with local trucking consortium suggests an immediate need for roughly 200 positions.
(Workforce Solutions TIP Strategies, 2004)
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