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.”