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Business Trends Affecting McAllen & Reynosa. City of McAllen The City of McAllen and M.E.D.C. work with Global Companies planning a strategic move or.

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Presentation on theme: "Business Trends Affecting McAllen & Reynosa. City of McAllen The City of McAllen and M.E.D.C. work with Global Companies planning a strategic move or."— Presentation transcript:

1 Business Trends Affecting McAllen & Reynosa

2 City of McAllen The City of McAllen and M.E.D.C. work with Global Companies planning a strategic move or expansion to service their industry from a cost competitive market.

3 18 Year History Since 1988 We Have Recruited: Companies Jobs Square Footage Occupied To Date McAllen Metro ,000 16,000,000 Reynosa Metro ,000 25,000,000 Total: ,000 41,000,000

4 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.

5 International Clients CANADA: EMU Plastics Progressive Molded Product Windsor Mold DENMARK: Unomedical, Inc. ENGLAND: BSN Medical TI Group Automotive Systems CHINA: Ganzhou China/Import Export FINLAND: Nokia Mobile Phones Perlos Inc. FRANCE: Cinch Connectors Hutchinson Automotive Pechiney Plastics Valeo Electornics GERMANY: Autech Draexlmaier Landis & Gyr Siemens Energy Siemens VDO Kern Liebers KOREA: LG Electronics (Zenith)

6 International Clients ITALY: Haemotronic JAPAN: Alcom Alps Automotive Bigston Corporation Fujitsu Ten GSW JVC Matsushita Electronic Mikuni Panasonic Service Company Sharp Shin Etsu Polymers MEXICO: Galvotec Alloys Sabritas Select Elastics NORWAY: Kongsberg Automotive SWITZERLAND: Siemens-Landis & Gyr SWEDEN: Atlas Copco Group Kuehne & Nagel TAIWAN: King’s Prosperity Industries UNITED STATES: Bissell, Inc. Black & Decker Brunswick C.R. Bard Corning Scientific Delphi Automotive Eaton Corporation Emerson Escalade Sports Hoffman Engineering Jabil Johnson Controls Kimball Maytag R. R. Donnelly Symbol Technologies TRW

7 McAllen Residents

8 Reynosa Residents TI Automotive MikuniDelphi Corning Cable Systems Fujitsu TenSymbol Technologies ARC Automotive Draexlmaier

9 National Worker Deficit Shortages of labor constitutes the foremost challenge confronting U.S. manufacturers In % 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 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.

10 Future National Worker Deficit APPROACHING DEFICIT OF WORKERS: THE NATIONAL PICTURE

11 Future Texas Workforce APPROACHING DEFICIT OF WORKERS: THE VIEW FROM TEXAS

12 Future McAllen Workforce Greater McAllen Region Working Age Population (Ages 18-64)

13 Population Density Source: CIESIN, Columbia University

14 Population 10 Million People Within a 150 Mile Radius

15 Population with College Education 2000 % Share

16 Population with High School Education 2000 % Share

17 Unit Labor Cost

18 Export Market Share

19 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

20 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

21 Rapid Response Manufacturing Center

22 Viper Pro SLA System

23 Emerging New Global Logistic Routes/Distribution Trends New 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 “3 rd Coast” Provides direct connection from one of the largest Cities in the world to the population centers of Texas. Distance from Reynosa To: Miles Km Monterrey Manzanillo Altamira Mexico City

24 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

25 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

26 Regional Multi- Modal Center for South Texas

27 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

28 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 (3 rd Coast concept) Strategic Objective

29 Enhanced motor carrier Non-conventional intermodal What is Bi-Modal Transportation?

30 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

31 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

32 Contractors hookup and deliver trailers, providing premium service for their customers. Local Delivery

33 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

34 Ware Rd 23 rd St Proposed Site Military Highway FTZ

35

36 Legend Hub Cities Port Cities Rail Traffic Truck or Rail Traffic

37 Existing Rail Intermodal Yard Anzalduas International Trade Bridge 2007 Reynosa, Mexico Sharyland Plantation N State Highway Monterrey Federal Highway Del Norte Industrial Villa Florida Industrial Proposed Assembly Plant Site


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