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Matamoros Industrial Profile Print E-mail

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Number of Maquiladoras: Click Here To Register   
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Electricity Rate: Click Here To Register   
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KEY INDUSTRIES

  • Auto / Truck Parts
  • Electronics
  • Transportation
  • Toys
  • Home Appliances

MAIN COMPANIES

  • Zenith
  • Delco
  • Fischer Price
  • GM
  • AT&T

RECENT ACTIVITY : Matamoros

  • Fontaine Fifth Wheel concluded 120,000 sf expansion
  • Delphi Automotive expanded into new 70,000 sf plant
  • KS Centoco of Canada expanded into new 60,000 sf facility
  • Milwaukee Electric Tool opened a new plant
  • US Hanger opened a new plant

ADVANTAGES

  • Access to deep-water port facilities at Brownsville and Corpus Christi for ocean cargo
  • Good bridge infrastructure: the existence of four international bridges in Matamoros
  • Established manufacturing environment
  • Highly trained, available labor force that is internationally competitive
  • Managers may benefit from an excellent quality of life in Brownsville, Texas

DISADVANTAGES

  • Heavy union presence
  • Underdeveloped real estate market
  • Weak but growing local supplier network: maquiladoras may be forced to seek support from San Antonio or Monterrey's suppliers

Overview

Matamoros is one of the oldest cities on the U.S./Mexico border and has a long history with foreign manufacturing and trade. Even in the early pre-Civil Wars years Matamoros was an important trading center. That remains true today, but the city has been outpaced by other locations on the border and by Monterrey. Key to this trend is the lack of a well developed real estate market. Many of the more aggressive developers are not active in Matamoros, instead choosing to focus on Reynosa. However, good transportation routes into the U.S., growing supplier base and large maquiladora population make Matamoros an interesting site to consider.

The City

POPULATION

Approximately, 418,141 persons live in Matamoros and its immediate surrounding areas. The city is experiencing an impressive growth rate of 15% annually, accelerated by immigration into South Texas. The presence and continuos growth of the city's 127 maquiladoras continues to attract people to the area. INEGI 2000

STATE DESCRIPTION

Tamaulipas is located on the Gulf coast and its continental position reveals an economic base in fishing, trade and oil exploration. Important cities include Ciudad Mante, Matamoros, Nuevo Laredo, Reynosa, and the state capital Ciudad Victoria.

CITY LOCATION

The City of Matamoros, Mexico, is located directly across Brownsville, Texas on the southern bank of Rio Grande at an altitude of 30 ft above sea level. It covers over 1,300 square miles and is located at the extreme northeast corner of the state of Tamaulipas, Mexico.

REGIONAL INFLUENCE / INDUSTRIAL ACTIVITY

Port facilities and refineries for PEMEX are the dominant influence within the business community in Matamoros. PEMEX, Mexico's state run oil monopoly, has long-standing roots in Matamoros with workers and union power and is the dominant business employer followed closely by the maquiladora industry.

Tamaulipas is best known as a corridor for transportation and trade between Mexico and the U.S. Matamoros, a major agricultural center is now becoming an important industrial center.

PROXIMITY TO KEY CITIES

Land Distance from Matamoros to:

Miles
US Destinations
Chicago
Dallas
Detroit
Houston
Indianapolis
Denver
Memphis
Kansas City
Los Angeles
San Antonio
Mexican Destinations
Mexico City
Monterrey, Mex

The Workforce

DEMOGRAPHIC IMPACT

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EMPLOYMENT CONSIDERATIONS

The availability of the workforce in Matamoros increased during the last few years as a result of increasing supply of labor combined with several plant closures. Employment has decreased 16.13% since January 2000, going from 61,906 workers in 118 plants, to 51,922 in 127 plants while demographic projections still point to above average growth rates in the population (5% annually), as a result of increasing trade, border migration and higher birth rates.

It is important to note that, during the last few months, the closure trend has been reverted and new maquiladoras have been established in the city. Nevertheless a constant migration of workers from surrounding agricultural areas ensures abundant labor force for local industries. BEDC (Brownsville Economic Development Council)

Even though maquiladora activity decreased from its high 2000 levels, the industry is still very strong, absorbing 23% of the city’s economically active population. Furthermore, Matamoros accounts for14% of the total maquiladora employment along the Texas-Mexico border. INEGI march 2004

UNEMPLOYMENT PERCENTAGE

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The Operation

WAGE RATES - 2003-2004

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Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD

Annual base wage rates for Matamoros are above average among the maquiladoras in border cities. Matamoros was the first border city to enact a forty hour work-week in its maquiladoras, due to pressure from Mexican labor unions. Costs are slightly higher here due to union concessions and plant competition for skilled and semi-skilled workers.

INDUSTRIAL COSTS dollar @ 11 pesos

Electricity
Natural gas
Water

* CFE.-June 2004 ** CRE.-June 2004 *** Pemex June 2004

INDUSTRIAL REAL ESTATE

Four major industrial parks serve Matamoros, Alianza industrial park, CIMA industrial park, CYLSA industrial park, and Del Norte industrial park with adequate available space in all four of them. Most new development is south and west of the city’s center and port facilities. Manufacturing facilities in Matamoros are typically block and metal skinned structures, with refrigerated air conditioning throughout the offices and manufacturing areas. Construction times for build-to-suits typically run six to eight months to achieve substantial completion.

AVAILABLE SPACE

Industrial parks and industrial properties in Matamoros have the main basic utilities: Water, electricity and natural gas. A thermoelectric CFE power plant is located approximately fifty miles south of Matamoros. A second generation plant, whose grid will support the entire region, is under construction approximately twenty miles to the west of Matamoros.

A current survey of industrial parks in Matamoros, with a variety of site options, reveals the following average prices:

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TRANSPORTATION

Highway

Matamoros is one the key border crossing into the main markets of Central Mexico as well as being the conventional route to eastern portions of the US. On the American side, the city has a direct link with US highway 77 and 83 (future home of I-69). On the Mexican side, the city connects with the newly renovated Mexican interstate highway 101 and 40.

International Bridge Crossings

Matamoros has 4 international bridges. The International Gateway Bridge offers two lanes in each direction. Northbound customs facilities were improved in recent years. This primary tourist and passenger crossing into downtown Matamoros is highly congested during peak daytime hours. The B&M International Bridge, expanded in 1997, offers two lanes for auto and two lanes for commercial transport. This bridge also features one of the few international rail crossings on the US/Mexico border with service provided by Union Pacific and "Transportacion Ferroviaria Mexicana".

The newest of the four bridge access points, The Veterans International Bridge or Los Tomates began operations in 1999 and has continued to be the main route of entry for light to heavy industrial truck traffic. This crossing features two lanes in each direction and connections to Expressway 77 which is a loop around Matamoros. The last crossing, the Free Trade International Bridge, features direct access to the Los Indios Industrial Park.

Airports

Three international airports are located within a 25 miles radius with passenger airline carriers connecting to hubs in Houston, Dallas, San Antonio, Reynosa and México City. Brownsville/South Padre Island International Airport has the largest air cargo facility in South Texas.

Deep Water Port

The Port of Brownsville is a deep-water seaport with a 42-ft. channel. The port is the southernmost terminus of the U.S. inland waterway system, allowing barge transport to Eastern U.S. and the Great Lakes area. The Port has liquid, grain and container handling systems with regular convoy and container trips.

INCENTIVES

It is interesting to note that cities in Mexico (Matamoros included) do not offer incentives by themselves as the State handles those responsibilities. The following is a list of tax rebates or incentives for business improvements within the State of Tamaulipas, Mexico where Matamoros resides.

  • The payroll tax, as collected by the State Government is waived at least for a certain period of time.
  • Acquisition of property tax reduced or eliminated when purchasing real estate.
  • Reduction or elimination of the registration dues of real estate
  • Subsidy on the costs of constructions of buildings.
  • Training and employment subsidies on the wages to local employees provided.
  • Real estate taxes to be paid locally are waived

The Support

SUPPORT SERVICE COMPANIES

Larger plants in Matamoros rely upon support from San Antonio or Monterrey, while Brownsville continues to attract new companies supplying maquiladora operations. A small sample of local suppliers include:

  • Steel Technologies: Steel service center
  • Bright Finishing: Metal finishing
  • Tella Tool: Metal Stamping and tooling
  • Gibbs Die Casting
  • Rio Grande Tooling
  • Olson Metal Stamping
  • Exel Plastics
  • Unique Molded Products
  • Sun Microstampings

The Politics

UNIONS

All maquiladoras are unionized under the Mexican Workers Union (C.T.M.). Within CTM, companies can choose among 3 local unions for their labor supply. All unions encourage on-the-job training that allows Matamoros' workers to remain competitive.

Matamoros unions are pro-business entities and work closely with local companies to promote high productivity, profitability, and quality. Union leaders are cognizant of oversees competition and thus maintain a harmonious working environment with management.

POLITICAL INFLUENCES

Local governments on both sides of the border are staunchly pro-maquila and can generate significant assistance packages through both states if necessary. Tamaulipas has a tradition of supporting the ruling PRI party. The state’s governor, Tomas Yarrington, is a young and charismatic leader who understands the importance of foreign investment to generate jobs and economic growth for the state.

OTHER BIG PLAYERS

COMPANY

ACTIVITY

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TV design and third-party manufacturing

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Automotive stereos

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toys

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locks and assemblies

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dashboards, steering wheels, brake hoses.

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bumpers and dashboards

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cutting, forming and machining steel for heavy earth movers

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plastic injection molding for automobiles.

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connectors, separators, interior antennas

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servos, synchros, printed circuit boards, electrical components

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transformers, relay products, power supplies

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windows, electromechanical elevators for autos

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automotive switches

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window regulators and suspension arms

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acrylic plastic sheets

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automotive sensors for air bags

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wood preserving products

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circuit breakers

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controls and components for electric blankets

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ceramic capacitors

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fluorescent ballasts

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automotive lighting assemblies

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Uniforms

 

 
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