In the midst of reports of migrants crossing the U.S.-Mexico border in large numbers to evade U.S. Border Patrol, companies are actively expanding their presence on both sides of the border corridor.
Take, for instance, the region encompassing Brownsville, Texas, and Matamoros, Tamaulipas, Mexico. Fisher Dynamics, a Michigan-based manufacturer of seating systems for OEMs, has been operating in Brownsville for the past 25 years, employing approximately 1,450 people. Recently, the company announced a $77 million investment to build a second plant in Matamoros, potentially creating 1,400 additional jobs at the Las Ventanas industrial park.
In the Borderplex region, spanning El Paso, Texas; Las Cruces, New Mexico; and Ciudad Juarez, Chihuahua, Mexico, Eaton, an Ohio-based power management company, disclosed an $80 million investment to expand its manufacturing footprint in El Paso. This move aims to generate over 600 new skilled manufacturing jobs as part of a broader $150 million investment to enhance electrical power distribution solutions across North America.
Taiwan-based Tesla supplier Hota Industrial Manufacturing is also contributing to the Borderplex region with a new $99 million plant in Santa Teresa, New Mexico. The facility, announced in September, is expected to employ 350 individuals and is strategically located for efficient transportation logistics. Hota received a $3 million award from the Local Economic Development Act (LEDA) Job-Creation Fund to support land, building, and infrastructure costs.
As the Santa Teresa point of entry on the border experiences increased commercial activity, with a record-breaking 160,000 trucks processed in 2022, the region’s economic competitiveness is on the rise.
In a “Need to Know” podcast episode by the Wilson Center, Mexico Institute Director Andrew Rudman highlighted the pivotal role of the border in the economies of the 10 border states—six Mexican and four U.S.—which, combined, would constitute the fourth-largest economy globally. He emphasized the need for a modern border infrastructure to facilitate efficient cargo and people screening, suggesting the use of technology, including AI, to expedite the movement of goods.
Rudman also discussed the changing business landscape since the pandemic, with companies adopting a “just in case” approach, storing more inventory on the U.S. side due to uncertainties in border crossings. However, he stressed the importance of minimizing additional costs and maximizing efficiency.
The podcast further delved into the impact of the transition from NAFTA to USMCA, reporting a 44% increase in the value of two-way agricultural trade since July 2020. Workforce considerations were highlighted as crucial for the competitiveness of the borderzone, particularly as reshoring and near-shoring trends continue to grow.
Examples such as ICON Aircraft, a California-based company with a manufacturing facility in Tijuana, showcase successful cross-border collaboration, with the company celebrating the production of its 200th A5 aircraft in September. ICON Aircraft CEO Jerry Meyer emphasized the benefits of insourcing manufacturing, citing increased control and quality standards.
In summary, the border region emerges as a dynamic economic hub with ongoing investments and strategic expansions, requiring modern infrastructure and innovative solutions to optimize cross-border business operations.
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