Target Industries
Our analysis identified several cluster of opportunity for the Lower Rio Grande Valley. These clusters and the rationale for selecting them are outlined below.
Manufacturing and Related Activities
- 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
- Partnerships with organizations such as the South Texas Manufacturing Association and other existing training programs
- The region’s general strength in manufacturing, coupled with the presence of a number of automotive-related maquiladoras
- The Valley is extremely well-positioned to benefit from the explosive growth in logistics employment
- The region’s relatively low location quotient (below 1.0) suggests there is still room for growth in the industry
- The continued flow of goods through the region creates a strong demand for trucking
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Healthcare
- The Valley has seen a significant employment growth in healthcare related industries in recent years
- The aging baby boomers, and increasing levels of expenditures per person-translate into continued high rates of employment growth in the industry in the future
- The impact of local initiatives and investment, particularly the work of Valley Initiative for Development and Advancement (VIDA) and the establishment of the Regional Academic Health Center can play an important role in expansion of this cluster
- The industry offers a mix of high wage occupations and entry-level occupations, making it an attractive target for workforce training efforts
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Retail & Hospitality
- The ability to draw shoppers from Mexico, and the growing tourism industry, retail will continue to be an important source of jobs in the region in the future
- Initiatives must focus on improving customer service skills, maximizing career ladder opportunities, and understanding the relationship between retail and the Hospitality/ Tourism cluster
- The Lower Rio Grande Valley offers a wide range of attractions for visitors, from the beaches of South Padre Island to world-class birding to the Los Caminos del Rio corridor to hunting and fishing excursions to daytrips into Mexico
- The region is attractive to a number of markets, such as retirees (including “Winter Texas”) and tourists and business travelers from Mexico
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Business Services
- The business services cluster provides support services to a variety of companies, including both professional services, such as legal, accounting, and marketing, as well as more basic support services, such as document reproduction and data processing
- Business services occupations are a logical target for workforce investment because they are among the highest-paying services occupations and often require specific skills and training
- The Valley has seen strong employment growth in the finance and insurance sector in recent years, adding nearly 1,700 jobs between 1999 and 2004
- This region’s relatively low location quotient in this industry (less than 1.0 in 2004) suggests that there is room for continued growth
- Strong regional share in shift-share analysis implies a locational advantage
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Homeland Security / Law Enforcement
- In the post-9/11 world, security has become a key concern for business and government
- The proximity to Mexico, the presence of three international airports, the significant number of manufacturing operations, and the considerable number of correctional facilities should translate into steady growth in law enforcement and security-related employment
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Construction
- The construction industry is typically the source of significant employment opportunities in high growth areas such as the Valley, and is forecast to add nearly 4,700 jobs in the coming decade
- Also be a worthwhile investment target for training dollars because it offers both low-skill entry level positions and the opportunity for relatively high wages
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(Workforce Solutions TIP Strategies, 2004)
