COSTEP plans to develop a bi-national automotive industry cluster for the Rio South Texas region

13 hours ago 19

MCALLEN, Texas – The Council for South Texas Economic Progress (COSTEP) is working with its partners in the Rio South Texas region to set up an automotive industry cluster.

The group held a meeting at the Cambria Hotel in McAllen recently to kick off the project. The keynote speaker was Elisa Crespo, president of the Metropolitan Automotive Cluster of Central Mexico, who has mapped out a similar cluster for the Mexico City region.

Adam Gonzalez, COSTEP’s CEO, emceed the event. He gave his definition of a cluster.

“It’s really a geographic concentration of companies, academic institutions, governmental agencies, economic development organizations that are coming together in the development of a specific industry,” Gonzalez said.

“And what are the key benefits? Really, it’s to lead the strategic actions within the sector, promote the technological and industrial development and foster public and private collaboration, which is something that we’ve been trying to do now for a long time, and attract investment. That is really the focus, trying to generate more employment, higher paying jobs, higher tech jobs for our region.”

Editor’s Note: Here is an interview the Rio Grande Guardian secured with COSTEP CEO Adam Gonzalez at the conclusion of the auto cluster meeting:

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COSTEP defines Rio South Texas as the Rio Grande Valley, Laredo and the ten municipios across the Rio Grande/Bravo. He said the region is already rich in automotive operations.

“We have over 140 automotive manufacturing operations, bi-nationally, here in this region, that produce parts for all kinds of auto parts that get exported into, the interior of Mexico, OEMs in Mexico, OEMs in the U.S. And we have not capitalized on that,” said COSTEP CEO Adam Gonzalez.

“I don’t think it has been because we don’t desire to do that, but it has been because we have not come together as a region to promote those assets as a region.”

OEM stands for Original Equipment Manufacturer.

“Since 2020 COSTEP has been very passionate and very committed to promoting primarily the infrastructure in the region, our bridges, our crossings, our ports, our young workforce, the educational system, our hospital system, and the relationships that we have here,” Gonzalez continued.

“But I don’t think that’s been enough. I think that with an auto cluster, we could promote the talent that works those specific manufacturing operations, and not only promote them here nationally, but internationally, so that we can leverage other auto clusters, let’s say in Europe and in Mexico, primarily in order to attract and expand the companies that manufacture here locally and be able to export more product.”

Gonzalez said he had heard Tamaulipas was working on developing an automotive industry cluster. He said it only made sense to join forces.

“People need to know exactly what we do, how we do it, and the capacities that that we have in this region. So that’s why we’re bringing everybody together here,” Gonzalez said. “We are calling it the Rio South Texas Region Bi-national Auto Cluster. It will probably be the first bi-national cluster here, but not to be the last. The plan is to eventually expand into an aerospace, electronics, energy, and medical.”

Gonzalez gave a power-point presentation on the work of COSTEP and the rationale for an auto cluster. In his wrap-up remarks he said:

“In conclusion, we want to establish ourselves as a model of the region to integrate and connect the infrastructures that we have, the talent, the industry and the shared vision, to position South Texas and Northern Tamaulipas the world class financial, automotive hub that they are meant to be.”

He said that “might look intimidating”, but…

“We have this talent. We have the institutions, we have the economic development organizations, the businesses, the manufacturing operations here, where we can put this together.

“It is that something that grows overnight. When I was talking to Elisa, she mentioned she is in her 13th year, and it wasn’t easy. But it’s doable. if we pull together.”

Mexican perspective

René Xavier González, head of new business development and marketing for Sidee Industrial Development in Matamoros, gave a Mexican perspective to the idea of a bi-national auto cluster initiative.

He said some companies may need convincing about the data they share but he thinks there will be buy-in.

“Sometimes there are issues about confidentiality and security. A lot of companies would rather kind of keep kind of a low profile,” González said.

“But the fact that everybody’s here, the fact that everybody is representing all the individual EDCs is already a huge win for COSTEP. Cobifer is here. We’re representing CODEM, the Matamoros business community. It is very encouraging to see.”

Gonzalez continued:

“From the Matamoros side, we’re in. We just need steps. Like, okay, give us a data registry, make sure that it’s in Spanish. My job would be to talk to the 30 members of CODEM, sell them on the idea and make sure that this is something viable, something that benefits their individual business.

“So, for example, in order to become part of the cluster, the individual manufacturing companies have to be have to register and pay a fee. So, for example, my job with the three automotive manufacturing companies that I have in my industrial park, I have to go tell them, this is why this benefits you. You have to sign up for this. So, the more informed that we all are, the better that we can actually help sell (the project).