At the State of the Regional Workforce conference on South Padre Island, Elizabeth Suarez, president and CEO of the McAllen Economic Development Corporation, said regional economic development is shifting from recruiting low-wage jobs toward building long-term wealth. She said the goal is no longer just creating jobs.
The McAllen-Reynosa area hosts about 250 maquiladora facilities, roughly 60% on the Mexican side and 40% in the United States. Production has traditionally been in Mexico, with U.S. operations focused on logistics and distribution. That division is now changing because of trade rules under the USMCA, tighter rules of origin and shifting global supply chains.
Suarez pointed to a 33-day study by St. Mary's University that tracked cell phone movement from Reynosa into McAllen. The study found Mexican shoppers generated about $60 million in retail spending in that period. Suarez said sales taxes make up nearly 40% of McAllen's general fund revenue.
Suarez also cited Toyota's $3 billion expansion at its San Antonio assembly plants, which is expected to create up to 10,000 direct jobs. Automotive suppliers make up roughly 10% of the plants in the McAllen-Reynosa area, and demand for local suppliers is growing as automakers adjust to USMCA content requirements.