Companies Transferring Manufacturing Operations To Reynosa

Our Region Receiving More Awareness

New jobs and a boost to our economy come from not only new companies but also expansions of companies and from companies transferring manufacturing operations to our region. Since January 2008, several companies have released statements regarding transferring their manufacturing operations to their plant in Reynosa, Tamps., Mexico due to lower costs and available workforce.

Some of the companies that have announced shifts of production to Reynosa include Entorian, Standard Motors and Fisher and Paykel. CEO of Entorian, Wayne Lieberman, was quoted in an article in the Austin Business Journal, explaining the shut down of manufacturing facilities in California to transfer capacity to the lower cost facility in Reynosa and mentions that 60 jobs will be transferred. Standard Motors closed operations in Puerto Rico and Long Island City and increased production in Reynosa due to lower costs in our region, which is expected to save the company $9 million in 2009. Fisher and Paykel closed its dishwasher plant in New Zealand, its refrigerator factory in Australia, and its cooking appliance factory in California to shift its production to Italy and purchased the Whirpool factory in Reynosa in order to save an estimated $50 million a year, due to consolidated operations and cheaper labor. They moved to our region primarily because of the competitive labor force and the proximity to the North American markets.

Keith Patridge, President and CEO of McAllen Economic Development Corporation, states, “Other locations can’t compete with our lower costs and available workforce which is why we’re seeing so many companies restructure in order to reduce costs.” The Reynosa plants will be producing more units so more jobs will be created. Some companies transfer their employees and others look for new labor in the region. Our economy benefits not only from added jobs but also in the retail and housing sectors because the people that transfer will be purchasing homes, shopping and dining in our region.