New survey maps 315 manufacturers along the binational border from Brownsville to Laredo

The Council for South Texas Economic Progress, or COSTEP, is on a mission to attract more manufacturers to the U.S.-Mexico border between Brownsville and Laredo. 

But for years, it was unclear how many manufacturing operations and which types were already here — especially in the border cities of Reynosa and Matamoros, where most companies operate. 

So COSTEP began surveying manufacturing companies and found there were at least 315 manufacturers, 267 of which operate in Northern Tamaulipas and 48 in South Texas. 

COSTEP CEO Adam Gonzalez said while he knew there was a big automotive parts sector and plastic injection molding operations in the region, he didn’t realize that there were companies that manufactured products for the semiconductor industry — two in Reynosa and one in Matamoros. 

“Semiconductors were an eye-opener for me,” Gonzalez said. “If we’re already doing this, it’s a great opportunity to try and look at expanding that higher-tech manufacturing so we can get those side effect jobs here.” 

The goal is not to shift jobs back into the U.S., but encourage companies to invest along the border in the twin plant model, he said. Especially because products overseas are subject to higher tariffs, and goods manufactured in Mexico fall under the free trade deal of the United States Canada Mexico Agreement (USMCA). Thousands of jobs in Mexico along the border often mean hundreds in the U.S. in the Rio Grande Valley. 

The survey does not include manufacturing companies with logistics, trucking, or warehousing operations alone because COSTEP wanted to focus on companies that produce goods. It also doesn’t include food manufacturers, but will do so in the near future.

The survey does not include all manufacturing operations, as SpaceX declined to participate. 

The publicly available database is expected to go live on COSTEP’s website in the coming weeks. 

Company names were not released publicly, but are expected to be shared with economic development professionals who are willing to sign non-disclosure agreements. 

Brownsville and Reynosa had the largest manufacturing clusters with 15 and 152 companies, respectively.

Metalworking, tooling, and electronics accounted for nearly two-thirds of manufacturing production. Metalworking refers to Computer Numerical Control, or CNC machining, an automated manufacturing process that uses high-precision tools, metal stamping, metal casting, metallic coatings, and robotic welding. The top three sectors that manufacturers build products for include auto parts, electronics, and appliances. 

The number of workers employed at each operation was not available in COSTEP’s public report, but there are more than 130,000 individuals in the maquiladora industry between Matamoros and Reynosa, according to Index Reynosa, a maquila trade group. 

The next step is to conduct a survey of the available workforce development programs for manufacturing, ensuring that the available certificate programs align with the existing job market. 

One advantage for the Valley is that the median age is younger than the national average, but increasingly companies are asking about the skills of the talent — not just for a young workforce — Gonzalez said. 

“A lot of places in the United States are running out of workforce, young people are leaving or they have left. So the aging population, or the grey tsunami is upon them. So companies are looking at where do we go next? Either we attract the young workforce here or they have to relocate,” he said.