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.”

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.
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