What Toyota’s $3.6B San Antonio expansion could mean for the Rio Grande Valley

Shifting supply chains could bode well for the Rio Grande Valley to attract companies trying to stay in the Toyota manufacturing ecosystem, and workforce training needs to prepare for that potential reality, McAllen Economic Development Corporation President and CEO Elizabeth Suarez said during a recent workforce training conference. 

Suarez, who also leads the McAllen Chamber of Commerce, told the Rio Grande Valley Business Journal that her goal is that the $3.6 billion San Antonio plant expansion and its decision to relocate some of the Tacoma truck assembly business from Tijuana, Mexico in Baja California to Texas could open the door in South Texas. 

Toyota expects to build 150,000 Tacoma trucks each year targeting its expansion for 2030. One of the biggest markets for Tacoma sales is already Texas. While the San Antonio campus already has about two dozen on-site suppliers, there are still some labor intensive part manufacturers further away. The Federal Reserve Bank of Chicago estimates that auto parts manufacturers’ supply chain is roughly within 400 miles as part of the just-in-time delivery model. 

“We’re hoping for that plant to boost connectivity to suppliers in our area,” Suarez said. “Workforce needs to be ready as our communities compete as a mega region.”