| Reynosa Industrial Profile |
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KEY INDUSTRIES
RECENT ACTIVITY
ADVANTAGES
DISADVANTAGES
Overview Reynosa is typically one of the final locations included in site selection projects along the U.S./Mexico border. It has a well developed industrial base, growing labor pool and transportation advantages for companies sending their finished good to the East Coast of the U.S. The key drawback of Reynosa compared to Monterrey or Cd. Juarez is the availability of skilled technicians and engineers. However, recruiting highly skilled employees either from Mexico or the U.S. is much easier with the option of living in McAllen, Texas. Reynosa experienced a period of limited growth from 2006 through 2009 due to labor constraints following the start up of several major operations in the previous years. The city has a long history in the automotive industry with firms like Click Here To Register . In recent years the electronics and medical industries have also grown rapidly. Due to the influx of new investment over the past ten years the supplier base has expanded, but key support in areas like plastic molding continue to be limited as in other locations across Mexico. We believe that Reynosa presents excellent opportunities for companies expanding manufacturing operations in Mexico in the coming years. Once the Anzalduas Bridge opens to commercial traffic and the southern loop road is completed movement across the city and into the U.S. will become much easier. Labor pressures experienced in the past should also be greatly reduced due to new housing developments and the continued trend toward more value-added operations with fewer employees. POPULATION Reynosa is the third largest city on the U.S./Mexico border with Click Here To Register people according to the 2005 census. However, current population estimates put the actual number closer to Click Here To Register people in the city and immediate area. Growth is rapid, with a Click Here To Register annual increase from 1990 to 2000. This is accelerated by immigration from southern states into northern Mexico and south Texas. The 2006 U.S. census counted 126,411 in McAllen, Texas, the sister-city to Reynosa and 8 miles north. There are just over 600,000 people in Hidalgo County, Texas including McAllen, Mission & Edinburg. STATE DESCRIPTION Tamaulipas shares borders with Texas to the north, Nuevo Leon to the west, San Luis Potosi and Veracruz to the south, and the Gulf of Mexico to the east. The state’s industrial development occurs on two fronts, the Maquiladora industry to the north and the chemical and petrochemical industries near the gulf port of Tampico/Altamira. TRANSPORTATION & LOGISTICS Two international bridges serve McAllen and Reynosa: the McAllen-Hidalgo Bridge and the Pharr-Reynosa Bridge. However, only the Pharr Bridge located on the eastside of Reynosa allows commercial crossings at this time. Construction is also underway on the Anzalduas International Bridge and is scheduled to open in late 2010, but commercial traffic will not be allowed until 2012. The opening of the Anzalduas International Bridge promises to make a huge impact on the area’s growth potential. This will open up the Westside of Reynosa for direct access to the U.S. where commercial traffic currently has to cross town to get to the Pharr Bridge. At peak times the Pharr Bridge also experiences serious delays on the Mexican side of the border as all traffic funnels into a signal lane before entering the customs areas. The Anzalduas Bridge will also connect the main highway from Monterrey directly to Sharyland, the largest industrial area in McAllen. This will offer a much improved alternative for northbound traffic currently crossing into Laredo, which handles 40% of all northbound cargo. Like almost all of Northern Mexico’s main cities rail service is limited in Reynosa. The closest rail crossing is in Matamoros or Nuevo Laredo. PROXIMITY TO KEY CITIES Land Distance from Reynosa to:
EMPLOYMENT CONSIDERATIONS Reynosa’s maquiladora industry employed approximately Click Here To Register people in 145 plants before the downturn at the end of 2008. The main source of employment is the maquiladora industry with the commercial industry being the second. This is largely due to Reynosa’s location as a border community between Mexico and the United States. SKILL RANKING and EDUCATION The skill level of workers in Reynosa is quite good and comparable to other locations throughout Mexico. The majority of maquiladoras that have located in the Reynosa area still perform basic assembly, though the growing number of electronic manufacturers provide for a growing skill level of technicians. Reynosa’s educational pool consists of 10 universities, most with postgraduate courses, and 12 technical and vocational schools with courses specifically designed for industrial/manufacturing careers. Reynosa is also located close to the largest pool of engineering graduates in the nation: the Instituto Tecnologico de Monterrey in Monterrey, Nuevo Leon. TURNOVER RATES The State of Tamaulipas has historically been known as having high turnover rates. While TeamNAFTA touches on this subject in more depth in our Info Center, general estimates put average turnover around Click Here To Register monthly. The large migratory population does have some impact on the turnover in Reynosa, but overall we believe turnover is more a management issues than due to location. UNIONS While unions operate in every maquiladora in Reynosa, the labor union climate is very favorable to industry. New companies have a choice of selecting one of three union leaders under the CTM or establishing their own in-house union. There has not been a strike or labor conflict in Reynosa since the mid 1980’s. WAGE RATES Wages are the key driver of Mexico’s manufacturing industry. It is, therefore, one of the first and most important topics any company expanding in Mexico will consider. TeamNAFTA touches on the overall wage issues in our Info Center, but we have also provided some sample wages for Reynosa below. While we have access to more detailed wage information, we typically present that information in a tailored report addressing a company’s specific labor needs. Average wages paid in Reynosa: 2007 - 2008
Source: Area industry wage studies and interviews with local managers. INDUSTRIAL COSTS - Dollar @ 11 pesos/USD
(CFE April 2009) INDUSTRIAL REAL ESTATE 15 major industrial parks serve Reynosa. Most are Class “A” with good infrastructure and available land. However, the concentration of maquiladoras in the industrial parks can lead to turnover issues as companies cannibalize other workforces. AVAILABLE SPACE A current survey of industrial parks with a variety of site options reveals the following average prices in U.S. dollars per sq. ft.
Key Industrial Parks
SUPPLIERS and SERVICE COMPANIES Most manufacturers in Reynosa have warehousing for needed supplies or rely on deliveries from South Texas companies. The recent industrial growth experienced by both, Reynosa and McAllen, ensures adequate services for Maquiladora operators. KEY COMPANIES Reynosa is home to the following companies:
Industrial Market Map
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