The Rio Grande Valley of South Texas today looks vastly different from the valley it was even a decade ago.
Transformed from a rural, agriculture-based economy into a major hub of international trade, the RGV is home to many companies you may have never heard of…as well as some you probably know.
And these companies are on the hunt for skilled workers to help them grow their businesses and expand their influence in the region.
Why the Rio Grande Valley?
Many reasons, but one of the biggest is the rapid growth that the area has been experiencing.
According to Igor Ryabov, a sociology professor at the University of Texas Rio Grande, Valley (UTRGV) the region “grows approximately 20 percent per decade, which is quite impressive for the United States.”
The Rio Grande Valley
Made up of the four counties of Cameron, Hidalgo, Starr, and Willacy situated along the southernmost border of Texas, the Rio Grande Valley is part of a region termed the “Borderplex”.
It is geographically centered in the middle of the“Borderplex” – which includes, in addition to the four counties, the Northern Mexican border cities that lie between Ciudad Mier and Matamoros.
Experts are forecasting economic growth in the region due to an expected addition of 31,300 jobs to the area over the next five years with real GDP expanding by 3.85% annually.
With an eye to the future, organizations within the RGV are making significant investments into its current and future workforce by:
- Expanding Career and Technical Education (CTE) and Continuing Education (CE) offerings for workforce development
- Helping to broaden the reach of these programs by increasing state investments into community college funding programs
- Maintaining existing state funding for programs including Apprenticeship Texas, Skills Development Fund, and Jobs and Education for Texans (JET) grant program
This investment into the workforce will not only meet the needs of companies in the region today but will draw even more companies to the region as they seek to grow in a competitive landscape.
How?
By developing exceptional retail, office, industrial, medical, commercial, and retirement facilities and by supporting educational and business initiatives throughout the region.
McAllen
In the center of the RGV lies McAllen.
Only 8 miles from the U.S.-Mexico Border, McAllen acts as a direct link between international and U.S. markets.
Recognizing the significance of its contribution to the region, the City has invested heavily in community projects and economic development efforts.
In short, the McAllen area is undergoing a transformation from a small border city to a major region for international trade.
Key growth indicators:
- Last year, MoveBuddha ranked McAllen #17 as one of the most popular large cities to relocate
- Dave Ramsey ranked McAllen #6 in 2018 among the best places to retire
- In 2018, McAllen was listed #1 in the list of boomtowns for cities with rising salaries
- NET ranked McAllen as a “Top 10 City in The US With The Biggest Influx of People, The Most Work Opportunities, And The Hottest Business Growth”
- Resonance Consultancy ranked McAllen #34 in their list of the Best American Small Cities
- In 2018 SmartAsset Magazine listed McAllen as the nation’s number one most affordable place to retire
Just some of the companies calling McAllen their home include:
- Maglio Companies – fresh produce
- Grand Rapids Foam Technology – polystyrene foam products
- TexAir Company of South Texas – HVAC contractors
- Villanueva Construction – residential construction
- Cantu Construction – commercial and residential construction
- Superior Alarms – security
- MJs Oil Field Supply – oil refinery
- Baker Distributing Company – HVAC, refrigeration and food service
- Pantera Film Studios – video and film production
- International Company of Marble – flooring
- Bettcher Manufacturing – presses
Harlingen
Harlingen is a major port city situated in the heart of the Rio Grande Valley, approximately 36 miles east of McAllen.
In response to the growth, the city is investing heavily to increase the port’s cargo volume capacity.
This means:
- both deepening and widening the shipping channels
- expanding the existing railyards
- rebuilding docks that can handle liquid bulk product
In response to these infrastructure projects, we’ll see smaller warehouses being built in and around the ports.
These warehouses are usually leased by contractors and material suppliers to support the larger port projects.
In addition to port infrastructure spending, Harlingen is seeing development in the retail, office, medical, commercial and industrial industries.
Key growth indicators:
- Texas A&M College Station, offering programs in technology, engineering, biomedical sciences, and other skilled positions.
- La Plaza Mall expansion, adding 50+ stores and another 245,000 square feet to the retail site.
- Free Trade International Bridge at Los Indios, just south of Harlingen that provides fast and easy access between the U.S. and Mexico
- Cold storage inspection facility at the Los Indios bridge encourages more produce haulers to use the rail bridge
- Existing U.S. Highway 83 was designated and renamed to Interstate 2 allowing more product to move in and out of the region
Just some of the companies making Harlingen their home include:
- United Launch – Spacecraft launch services to U.S. government
- ACT – call center
- Bass Pro Shops – fishing and sporting goods
- Cardone Industries – automotive parts
- Emerson – automation solutions
- Valley Baptist Medical Center
- Bee First – home health and hospice
- Harlingen Medical Center – health care services provider
- Haraway Construction – residential, commercial and investor construction
Brownsville
Brownsville is situated near the southernmost tip of Cameron County, a mere 8 miles from the U.S.-Mexico border.
Mike Willis, executive director of South Texas Manufacturers’ Association, in a labor market report for April 2018 issued to Workforce Solutions says that:
“In the McAllen and Brownsville MSAs, the Manufacturing sector has very quietly added a total of 1,000 new jobs in the past year – an annual growth rate of 9.3 percent.
“At three or four percent of the total employment, manufacturing remains one of the smallest sectors in the RGV, along with Construction and Energy. That being said, we are finally beginning to see this sector show signs of significant growth.”
Willis anticipates that the economic outlook should only continue to improve.
“Bear in mind that the largest new manufacturing plant in several years, Stanley Black & Decker in Mission, is just beginning their startup, and has plans to hire another 400 or so people in the next year, based on their press release.”
Key growth indicators:
- Approval of expansion of the Port of Brownsville to increase the depth of its shipping channels. This would make it one of the deepest ports in the Gulf of Mexico, fueling competition with other national ports.
- SATA owned multi-million dollar manufacturing plant of high-tech auto parts
- University of Texas Rio Grande Valley (UTRGV) medical school
Everyone knows about SpaceX, but did you know about these companies making Brownsville their home?
- Trico Products – windshield wipers
- Dixie Tool Company – industrial equipment supplier
- Duro Bag Manufacturing – plastic fabrication
- Baker Distributing Company – HVAC, refrigeration and food service
- Rich Products Corporation – food products supplier
The Rio Grande Valley is experiencing massive growth, yet it’s often been called the best-kept secret by industry insiders.
If you’re searching for an opportunity to grow your portfolio the Rio Grande Valley should be on your radar.
And while the region is certainly growing, it’s important to partner with a development firm with deep connections in the industry before jumping into the retail or multi-family marketplace.
Why?
Because it will shorten your learning curve about the market and you’ll discover opportunities for investment that aren’t always on the open market.
The team at RubiGroup Capital has the connections and expert knowledge of income-producing real estate, always with our ear to the ground when it comes to projects as well as plans and changes that affect the retail and multi-family development marketplace.
If you are an accredited investor, contact us today to find out how you can profit from the explosive growth and investment taking place in the Rio Grande Valley.