McAllen's Economy Features Several Highlights

McAllen Continues to Rank Nationally

McAllen, TX is continuing to show strong activity at the economic level. McAllen’s business cycle index, a gauge of the region’s current economic conditions, rose 5.7% and employment increased 5.3% according to the latest statistics released by the Federal Reserve Bank of Dallas. The increase is due to manufacturing, government and services in leisure and hospitality, and education and health. Another successful year-to-date is confirmed by the McAllen Economic Development Corporation with 6 companies committed, creating 1,105 jobs in our region. Through the Business Retention and Expansion Program, 230 new jobs were created bringing the total job creation count to 1,335.

Keith Patridge, President and CEO of McAllen Economic Development Corporation, comments, “We continue to have a strong economic activity level in our region which is evident in not only the committed companies, but also because around 50 companies have visited our region since the start of the year. McAllen continues to grow economically due to our low cost of living, career opportunities, and our strategic North American Location.”

Other economic indicators in McAllen are also not following the national trends. The housing market in McAllen recorded 184 homes purchased (Federal Reserve Bank of Dallas), and is the best on record for home sales in January. McAllen also ranked 97 out of 100 of the largest metropolitan areas in terms of foreclosures per total number of household (RealtyTrac). Another factor contributing to the economic activity level is McAllen’s low cost of living, ranked as the 5th lowest in the Nation in the latest ACCRA’s Cost of Living Index.

Patridge agrees, “With national rankings such as Forbes Magazine ranking McAllen as one of the Nation’s Best Cities for Jobs as a result of ranking 2nd in the Nation for Income Growth and 1st for Job Growth, we are looking for our region to continue to see steady long-term growth.”

Business Retention and Expansion Important in U.S. and Mexico

85% of New Jobs Come From Business Retention and Expansion

The McAllen Economic Development Corporation has taken a new approach in recruiting new investment to our region. Since 2001, MEDC has been actively working with companies in the McAllen MSA through the Business Retention and Expansion Program (BRE) on the U.S. side, which allows the staff to stay informed with the needs of local businesses. Due to the different obstacles and opportunities for growth among each company, the MEDC staff is able to help identify what challenges may lie ahead and are able to react to meet industry needs. Through the implementation of the BRE Program, Workforce Solutions, South Texas College, The University of Texas Pan America and the MEDC staff are working as a team to help our existing companies grow.

Janie Ramos, Vice President of U.S. Recruitment and Business Retention and Expansion, comments, “Our economic prosperity thrives on revenues generated by local businesses. As a company grows, we understand they need more than gratitude.” Ramos continues, “Our goal is to identify a company’s needs and concerns and foster expansion opportunities by tapping into potential local resources which could increase the company’s competitiveness and improve our community’s quality of life.”

Since the BRE Program was initiated to establish a working relationship with existing businesses in the McAllen MSA, 85% of new jobs in the region have come from existing businesses. Due to this success, the MEDC implemented a similar BRE program in Reynosa in August of 2007.

Ralph Garcia, Vice President of Business Recruitment for the McAllen Economic Development Corporation commented, “Because of the great success that we have seen with the BRE program in the McAllen MSA, we see the value of having a similar program in Reynosa. With more than two hundred plants to consider, we see great opportunities that can leverage new growth for our region.” Garcia continues, “As an economic development organization we have the responsibility to attract new investment and also take the initiative to invest in our existing business by providing them with the necessary solutions and support needed to help them grow.”

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.
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