I-69/TTC Public Comment period ends March 19, 2008

U.S. highway 281 is one of the potential routes under consideration for the I-69/Trans-Texas Corridor project. There have been many stories about what TTC-69 will be all the way from a 1200 foot wide highway, rail, utility corridor to the current plan of upgrading existing highways to handle current and future U.S./ Mexico traffic with the possible addition of special toll lanes on highways specifically for truck traffic. In all the meetings with TxDOT personnel we have been repeatedly assured existing highway lanes will not be tolled under this project.

When you look at the current and future projections under the latest TXDOT NAFTA Corridor Study released fall 2007, you can see the importance of the communities in the McAllen metro area to have a strong voice in shaping the plans for this highway project. According to this Study, Highway 281 has the third largest AAWT (Average Annual Weekday Truck) Daily volume and exceeds that volume on those study segments of U.S. Highway 59 from Laredo to Houston; Interstate 20 from I-10 to Louisiana; Interstate 30 from Ft Worth to Texarkana; and has over twice the AAWT traffic of U.S. 77 from Brownsville to Victoria.

By 2030 traffic truck traffic on Highway 281 is projected to increase from a current 929,295 Daily Truck VMT (Vehicle miles traveled) to 2,543,045 Daily Truck VMT if we do nothing to the highway infrastructure. This is the largest projected truck traffic growth on all Texas NAFTA corridors exceeding I-35 projected increase by 149%.

To insure the continued growth and quality of the transportation infrastructure it is important that TXDOT hear our opinion on the need to upgrade U.S. Highway 281. It is not too late for you to voice your opinion on where the I-69/TTC project should be located. Politics are not favoring our Highway 281 and if we do not make a strong statement we could see this important highway infrastructure located elsewhere. Public input can shape the final decisions for the proposed I-69/Trans-Texas Corridor project.

The public can still provide comments after the hearings, through the project website www.keeptexasmoving.com or by mail to I-69/TTC, P.O. Box 14428, Austin, TX. The deadline to submit comments for inclusion in the Tier One Final Environmental Impact Statement is March 19, 2008.

High Tech Robotics Company Locates U.S. Headquarters In McAllen

(McAllen, Texas) – Cosmos USA, a world leading design and manufacturer of high tech automation solutions for manufacturing, has opened a new operation in the McAllen area. Cosmos USA enables companies to utilize advanced automation techniques to decrease labor cost while increasing the quality of production and the flexibility for companies to offer a wider variety of products.

Keith Patridge, President and CEO of the McAllen Economic Development Corporation, states that “given the looming shortage of workers in the US, and the consistent reduction in labor content in products, companies are moving towards more automation.” Mr. Patridge further mentions that the future of the McAllen and Reynosa region is rapid response manufacturing and one important tool is automation and robotics that perform a greater variety and of tasks at a higher speed than we as humans can achieve. We are proud to have Cosmos USA as a new international member to our manufacturing community and their presence will greatly enhance our region’s ability to respond quickly to change and, as a result, offer a greater variety of products with short delivery times that companies in China cannot match.” This speed to market is key to sustainability in manufacturing operations of today.

Mr. Yoshimura, President of Cosmos Japan states that “I am very pleased with the community support for our new venture in McAllen. Cosmos USA provides a platform for rapid response manufacturing in the Rio Grande Valley and Northeastern Mexico through state of the art robotics that make assembly activity more competitive and flexible.”

Yvette Landgraf, Director of Cosmos USA received her Mechanical Engineering degree from the University of Texas – Pan American in 1997 and has extensive experience in maquiladora manufacturing including plant start up and operations as well as a deep understanding in electronic subassembly and final product assembly of consumer electronics. “By offering local design, engineering and technical support for our automation solutions, we are confident that Cosmos USA can tailor the right solution for the growing electronics companies in our region.”


Media Contact Information: Yvette Landgraf 956 429 1991 ylandgraf@crosspointglobal.com

China Faces Inflation

Good News for McAllen, TX – Reynosa, Tamps., Mexico

Higher wages, reduced exporter tax breaks, and an increased value in the yuan have led to inflation in China. More and more U.S. manufacturers have been outsourcing to China over the past decade due to lower labor costs, which results in a lower cost to U.S. consumers for the finished product. Because of the inflation in China, companies have discovered that China is not as cheap as it used to be and they are struggling to find ways to cut costs.

The following factors are driving companies out of China: workers leaving their jobs for better pay, the steady rise of the yuan vs. the dollar making U.S. goods cheaper, the value-added tax subsidy dropping from 13% to 5%, freight costs from Chinese ports to Los Angeles rising sharply because of increased demand for ships, and as the Federal Reserve cuts rates (causing the dollar to drop), American price competitiveness is increasing. In some sectors in China, wages for high-skill professionals are even doubling. Since companies cannot maintain the competitive advantage they once had in China, they have to look at other locations.

The higher wages, higher exchange rates and higher transportation costs for those shipping from China to the U.S. is good news for McAllen, TX – Reynosa, Tamps., Mexico as our strategic geographic location appeals to companies, especially those that have been outsourcing to China. Our region offers low wage rates, an available workforce, lower transportation costs and faster speed to market, which means companies can find ways to keep a competitive advantage by relocating to our region.

Keith Patridge, President and CEO for McAllen Economic Development Corporation, says “Our strategic geographic location offers many advantages to companies all over the world. Our region has one of the largest markets in the world on the north side of town and a $2.80 fully fringed wage rate on the south side of town.” Patridge continues, “Companies can cut costs, offer custom products and have a faster speed to the North American market compared to anywhere else in the world.”

The McAllen Economic Development Corporation is a not-for profit organization under contract with the City of McAllen to create jobs and generate revenues for the citizens of McAllen by attracting new industry and helping existing companies to expand.

“We are the new Texas. Bilingual, Bicultural and Pro Business.”

Local Markets of South Texas See Bright Spot

Strategic Location, Young Workforce and Growing Population Are Factors in Growth

At a time when the national economy is slowing, there is a bright spot for the local market of South Texas. McAllen Economic Development Corporation reports that the first two months in 2008 have been busy. Since January, the MEDC staff has worked with twenty-five new companies or prospects which have the potential of creating about six thousand jobs in our region. Of those twenty-five companies, four have committed; which is right on schedule according to MEDC’s goal of committing two companies per month. The four committed companies will bring over seven hundred jobs to our region, utilize one hundred thousand and forty-five square feet and represent the automotive industry, a logistics company, an insurance claims services company and a data center. There is a wide variety of industries represented by the companies that are visiting, including the automotive industry, materials fabrication and handling, metal and wood fabrication, call centers, produce, recycling companies, plastics manufacturing, aviation, and sewing industries.

Keith Patridge, President and CEO of McAllen Economic Development Corporation, says, “In the past when the market softens in the United States we have always seen an increase in companies looking at our area as a way to reduce their costs and be more competitive.” Patridge also comments, “We wondered if this would still be true and so far that is exactly what we are seeing. If the activity continues at this level we will have a great year for growth.”

As new companies move into the area they typically will relocate anywhere from three to five families that purchase or lease housing and add to our local economic activity. With our strategic location, young workforce and growing population, the South Texas market fundamentals are still encouraging.

The McAllen Economic Development Corporation is a not-for profit organization under contract with the City of McAllen to create jobs for McAllen by attracting new industry and helping existing companies to expand.
"We are the new Texas. Bilingual, Bicultural and Pro Business."

Telamon Corporation Opens Facility in McAllen, TX

Telamon Corporation Aggressively Pursuing Growth

Telamon Corporation has established a 30,000 square foot facility located in McAllen, TX. They initially established in the McAllen, TX – Reynosa, Tamps., Mexico region to support supply-chain needs of their telecommunication customers Emerson, Alcatel-Lucent and AT&T. Becoming a part of the McAllen and Reynosa areas is an important initiative for Telamon Corporation and they are committed to an expanding presence in the logistics market. Through the McAllen, TX location, Telamon imports finished telecom cabinets from Reynosa for distribution throughout the US; and supports an operation to bring component elements from the Asian markets into the U.S. and the products are then dispersed to customer sites in the U.S. and Reynosa, Mexico from the McAllen location. .

Telamon Corporation, established in 1985, is a $450 million Indianapolis-based company with over 300 full time employees. Telamon is uniquely positioned as a Minority Business Enterprise (minority-owned company- a Corporate Plus member of the National Minority Supplier Diversity Council- NMSDC); and exceeds the highest Quality standards as evidenced by their ISO9001; 2000, TL9000, and TS 16949 (Automotive) certifications and industry awards for Quality performance and Customer Service. Telamon is a Greek word for “support”, and they maintain the image of a servant company; their customer needs are their only priority.

The McAllen facility is aggressively pursuing growth and can provide Specialized Integrated Supply Chain programs developed to uniquely meet individual customer program needs, for both; domestic and international support to any industry. Telamon’s flexibility is its strength, allowing cost effective assembly, engineering, cross-docking, pick/pack, and transportation management design for any volume, or product mix.

Telamon Corporation is a “Diversity-Provider of Supply-Chain Solutions” and has a method of meeting their customer’s needs through the distinct concept of Honesty, Harmony, Speed and Simplicity (H2 S2). Please contact Telamon Corporate Logistics for more information 317-818-6813.

Going Green Becoming Popular in Our Region

Companies Work to Reduce Their Environmental Footprint

A new way for businesses to reduce their environmental footprint is developing in the McAllen/Texas – Reynosa, Tamps., Mexico region. According to the McAllen Economic Development Corporation, product remanufacturing, warranty repair and mass customization has become more than just a trend for companies. Several companies are already utilizing these techniques by setting up a manufacturing plant in McAllen MSA or Reynosa, Tamps., Mexico. When a consumer returns the product to the store where they purchased it, either because they changed their mind or because of defects, the product is then shipped to a plant in our region. The “cycle” or “loop” is closed when the manufacturing plants receive the product and it is then taken apart and examined for defects. If possible, the product is repaired and will be put back on the shelves as a refurbished product. If the product can’t be repaired then the pieces are unassembled and recycled for future use, nothing is dumped in the local landfills. Bissell Inc., who has a plant locally, has been a leader in how companies are going green by utilizing product remanufacturing.

President and CEO of McAllen Economic Development Corporation, Keith Patridge, comments, “We are seeing an increase in companies wanting to ‘Go Green’ globally and several companies have found a way to reduce their environmental impact by reusing what they can.” Patridge continues, “Companies are adding reuse operations in McAllen, Texas –Reynosa, Tamps., Mexico because of our strategic geographic location. By going green, companies are not only reducing their environmental footprint, but they also are saving money.”

In fact, major retailers such as Costco Wholesale Corporation are already offering easy ways for their customers to help reduce their environmental impact. Costco offers their Trade-In and Recycle Program, an internet service that enables customers to turn in old electronic devices, from gaming systems to computers, even old monitors and old printers, in exchange for Costco merchandise discounts. By visiting http://www.costco.com/, the customer would enter their product information, for example a 1st generation Nano IPod with 1 GB of memory, and the calculated trade-in-value would be $20.

The McAllen Economic Development Corporation is a not-for profit organization under contract with the City of McAllen to create jobs and generate revenues for the citizens of McAllen by attracting new industry and helping existing companies to expand.
"We are the new Texas. Bilingual, Bicultural and Pro Business."

How important is it for companies to reduce their environmental footprint?