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 Reynosa is currently one of the fastest growing cities in the global econimic scene in fct, the magazines investor and Expansion have labeled it one of the 10 best places to invest in Mexico. At the same time, important organizations such as Cofemer and the world Bank have named Reynosa one of the 16 best cities for international business.
Thirty four percente corresponds to 352,512,700 dollars anually. The manufacturing industries receive about 96.9% of the above amount, and the rest is divided among the commercial sector, finnacial services. Main countries with economic investment in businesses located in Reynosa are the United States, Canada, Spain, Holland, Germany, Korea, France, China, and the Virgin Islands.
Reynosa is one of the top five maquiladora markets in Mexico offering 13 industrial parks, and hosting over 350 manufacturing operations. Main sectors include electronics, metal fabrication, automotive and medical device. Reynosa has had excess inventories since 2008. During 2010, vacancies held steady at 12%. With increased activity during 2011, vacancies are expected to drop to 10%.
New companies establishing in Reynosa during 2010 included Topline and J Cox. Existing operations initiated expansions during the second half. These included Kolder, Emerson, Invensys, JMI, LG and Thermo Fisher. While rates have fallen 20-25% since 2008, there was little change during 2010. Developers continue to offer aggressive rates and free rent, ensuring 2011 will remain a tenant’s market.
Increased activity from existing firms is projected for 2011. With pent-up demand and the ability to compare Mexico vs. home markets, many firms are planning expansions or to migrate affiliated companies. Reynosa’s office market is comprised of small projects hosting local service industries. Most are located near major arteries or close to the border and industrial housing communities. No changes in lease rates are expected for 2011. Availability in Reynosa is limited and lease rates remained stable during 2010. Vacancies remained low due to strong demand from Mexican retail tenants. U.S. retailers such as Subway, Wal-Mart, and 7-11 will continue to invest in Reynosa in 2011.
Reynosa is typically one of the final locations included in site selection projects along the U.S./Mexico border. It has a well developed industrial base, growing labor pool and transportation advantages for companies sending their finished good to the East Coast of the U.S. The key drawback of Reynosa compared to Monterrey or Cd. Juarez is the availability of skilled technicians and engineers. However, recruiting highly skilled employees either from Mexico or the U.S. is much easier with the option of living in McAllen, Texas.
Reynosa experienced a period of limited growth from 2006 through 2009 due to labor constraints following the start up of several major operations in the previous years. The city has a long history in the automotive industry with firms like Delphi, TRW, Alcom and Kongsberg . In recent years the electronics and medical industries have also grown rapidly. Due to the influx of new investment over the past ten years the supplier base has expanded, but key support in areas like plastic molding continue to be limited as in other locations across Mexico.
Reynosa presents excellent opportunities for companies expanding manufacturing operations in Mexico in the coming years. Once the Anzalduas Bridge opens to commercial traffic and the southern loop road is completed movement across the city and into the U.S. will become much easier. Labor pressures experienced in the past should also be greatly reduced due to new housing developments and the continued trend toward more value-added operations with fewer employees.
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