| Reynosa Industrial Profile |
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KEY INDUSTRIES
MAIN COMPANIES
RECENT ACTIVITY
ADVANTAGES
DISADVANTAGES
Overview Reynosa has been one of the most active manufacturing locations in Mexico since 2000. The city has continued to attract new companies and while retaining the expansion projects for companies already established in town. Overall, the area provides a solid location for manufacturing in Mexico. However, Reynosa is one of the more expensive cities to do business and is beginning to experience some growing pains. Once the Anzalduas International Bridge opens (June 2009) some of this pressure will be relieved, but it is just one of many steps that Reynosa needs to remain competitive in the coming years. It should be mentioned that McAllen is doing an excellent job of supporting companies from the U.S. side by offering a growing warehouse/distribution center and improving the areas infrastructure. The Rio Grande Valley has the opportunity grow and thrive for many years to come. The Workforce POPULATION Reynosa is the third largest city on the U.S./Mexico border with 526,888 people according to the 2005 census. However, current population estimates put the actual number closer to 700,000 people in the city and immediate area. Growth is rapid, with a 4.85% 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. LOCATION Reynosa is located at the north of the Mexican Republic, 60 miles west of Brownsville, Texas, along the U.S./Mexico border at an altitude of 125 ft. above sea level. The approximate land area is 3,156.34 square kilometers. The Rio Bravo (Rio Grande River) is the boundary between Reynosa and McAllen. The city sits on flat, grassy terrain on the banks of the Rio Grande River. The climate is hot and humid almost the entire year with occasional heavy rains in the summer, average annual precipitation is 26 inches. High temperatures from May to August often surpass 100° F and low temperatures in December and January can reach 14° F. REGIONAL INFLUENCE Reynosa in the last two years became the oasis of the Maquiladora industry by ignoring the crisis that underwent the sector in the rest of the country. Only Nuevo Laredo attracts more attention in the Rio Grande Valley due to its role as the largest transportation hub in North America. Reynosa occupies the second place in share of Maquiladora employment along the Texas-Mexico border with 19%. Reynosa also has the biggest growth in employment in all the Texas-Mexico Border in 2004 with 3,608 new employees. (2004 INEGI - February 2008) The city has a diverse economic base, which includes oil and natural gas resources, livestock, agriculture, tourist trade and industry. Recent growth is partially the product of excessive congestion at Nuevo Laredo and perceived labor issues in Matamoros. However, this growth has begun to strain the already inadequate availability in housing. Two international bridges serve McAllen and Reynosa: the McAllen-Hidalgo Bridge and the Pharr-Reynosa Bridge. On the U.S. side Hwy 281 is the key route heading towards San Antonio. The planned construction of a new border crossing, the Anzalduas International Bridge, promises to make a huge impact on the area’s growth potential. Not only will Anzalduas open the westside of Reynosa for direct access to the U.S. without having to cross town, but may also take some of truck traffic away from Nuevo Laredo as it will connect directly with the highway to Monterrey and the NAFTA Highway leading to Mexico City.
PROXIMITY TO KEY CITIES
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Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD
INDUSTRIAL COSTS dollar @ 11 pesos/USD
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(CRE, CFE June 2004)
INDUSTRIAL REAL ESTATE
Ten major industrial parks serve Reynosa. With the exception of MaquilPark, all 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.
Range Average
| Range | Average | |
| Industrial land purchase price: | ||
| New construction (including land): | ||
| Lease rates for existing space (5-yr): |
Industrial Parks
- Stiva Alcalá
- Colonial
- Parque Industrial del Norte
- El Puente
- MaquilPark
- ProLogis
- Parque Industrial Reynosa (North and South)
- Reynosa Industrial Center
- Villa Florida
TRANSPORTATION
Reynosa's overall accessibility and adequate transportation system makes it attractive to maquiladoras who are serving customers throughout the U.S. on a JIT basis. McAllen, Texas possesses one of the largest Foreign Trade Zones in the United States, an added attraction for companies with components inbound from countries outside of the NAFTA zone. The major east-west route circling Reynosa, known in Mexico as a periferico, keeps most commercial traffic outside of the population centers, but overall the system needs improvement.
Reynosa is connected to major U. S. cities by highway 281, which has been designated the future I-69 corridor, linking Mexico through the U. S. to Canada. Highway 281 provides easy access from McAllen to interstate highways I-35 and I-37.
Reynosa has two international bridges and a third in the planning stages. Almost 13% of all northbound Mexican trade crosses through the Rio Grande Valley. Out of the $150 billion that cross through the South Texas Border, 38.5% crosses through the Rio Grande Valley.
Reynosa – Hidalgo International Bridge connects downtown Reynosa with Hidalgo, Texas, just 7 miles south of McAllen. Built in 1967, it has two spans handling non-commercial traffic north and southbound. The present flow of traffic is over 15,000 vehicles per day.
The Pharr International Bridge connects the eastside of Reynosa to Pharr, Texas, 10 miles to the southeast of downtown McAllen. This bridge was built in 1995 and provides service for Reynosa’s commercial traffic. Northbound traffic flow is over 7,000 vehicles per day. Traffic from the industrial areas on the westside of Reynosa currently has to cross town to use the Pharr Bridge.
The planned Anzalduas International Bridge will link Reynosa with McAllen and Mission and will be located 3 miles upstream from the Reynosa Hidalgo Bridge. According to the proposed design, the bridge will have four vehicular lanes and two pedestrian lanes. The bridge will connect Mexican highway 40 to U.S. highway 281, the future U.S. highway I-69. The U.S. issued the presidential permit in July 1999 and Mexico issued diplomatic notes in February 2001. Construction is anticipated to be completed by between 2006 and 2008.Reynosa’s International airport offers passenger and cargo service with daily flights to the most important destination in the country including Mexico City. Mexican Customs and immigration facilities are on site. The McAllen International Airport is a regional transportation center serving the third fastest growing metropolitan area in the U.S. Daily flights to Mexico City, Monterrey, Dallas and Houston.
Southern Pacific Rail offers service to the McAllen foreign trade zone. McAllen currently has no rail service.
The seaport of Altamira is located six hours drive to the south. This port is Mexico’s most important seaport. Altamira started operations on June 1, 1985 with a dock 250 meters long and 12.355 acres for warehousing. Presently, the port has twelve docks and nine terminals.
CUSTOMS
U.S. Customs operates a four-lane bridge with a dedicated truck lane northbound at the Pharr crossing. Brokerage support is plentiful from many Laredo-based customs houses that operate satellite offices in McAllen.
TAXES
Reynosa's tax system is composed of (i) a municipal urban property tax of .006% of the municipal appraisal, (ii) a state payroll tax of 2%, (iii) a federal income tax 32% (ISR), (iv) a federal value added tax 15%, 10% or 0% (ISR), (v) a federal minimum alternative asset tax 1.8% (IMPAC), and (vi) a federal employee profit sharing of 10% of profits (PTU).
The Support
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.
The Politics
UNIONS
The labor union climate in Reynosa is very favorable to industry. Relations between unions and management are peaceful and harmonious. 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.
POLITICAL INFLUENCES
The state’s governor, Eugenio Hernandez Flores, is a young and charismatic leader who understands the importance of foreign investment to generate jobs and economic growth for the state.
The Reynosa mayor is Ricardo Ongay Villareal, which has impulsed the Maquiladora industry along his government, has made the introduction of new plants an easier task.
KEY PLAYERS
Reynosa is home to the following companies:
| Company | Product |
| Click Here To Register | TV manufacturing |
| Click Here To Register | Electrical components |
| Click Here To Register {endif} | Consumer appliances |
| {mosif usertype=registered, publisher,*administrator}CR Bard{else} Click Here To Register | Medical equipment |
| Click Here To Register | Electrical components |
| Click Here To Register | Automotive stereos |
| Click Here To Register | Electrical components |
| Click Here To Register | Automotive products |
| Click Here To Register | Electrical devices and motors |
| Click Here To Register | Car stereos |
| Click Here To Register | Control valves |
| Click Here To Register | Power supplies |
| Click Here To Register | Telephones |
| Click Here To Register | Apparel |
| Click Here To Register | Frozen concentrate citrus juices |
| Click Here To Register | Car radio speakers |
| Click Here To Register | Accessories for mobile phones |
| Click Here To Register | printers |
| Click Here To Register | Telecommunications equipment |
| Click Here To Register | Household goods |
| Click Here To Register | contract manufacturing |
| Click Here To Register | Consumer appliances |
| Click Here To Register | Bathroom fixtures |
| Click Here To Register | Motors |
| Click Here To Register | Medical products |
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