Reyna: Why Clusters Are Essential 

The concept of industry clusters was introduced in 1990 by Harvard professor Michael Porter in his influential book Competitive Advantage. Porter argued that regions and nations don’t win by competing solely on price—they win by leveraging what they do better than anyone else: their competitive advantage.

The RioPlex region holds a strategic position at the intersection of two major economies—the U.S. and Mexico—and sits at the southern tip of Texas, itself the world’s eighth-largest economy. Geographic and economic leverage presents an opportunity waiting to be fully realized.

What Is a Cluster?

A cluster is more than just a concentration of similar businesses, and it has been around for hundreds of years, even before the term was coined. For example, in the 13th century, Florence, Italy, was renowned for its concentration of wool, textiles, and banking. In fact, banking is derived from that area because businesspeople would sit on “banco” – bench or table – and henceforth, banks.

In modern terminology, clusters come to represent ecosystems that connect with their community through colleges, universities, industry, and labor. When these stakeholders come together, they solve problems more efficiently, spark innovation, and accelerate growth. They work with a determined focus.

Why Clusters Matter

Industries in a cluster speak with a unified voice. They advocate together for:

• Improved infrastructure (water, electricity, transportation)
• Specialized workforce development
• Strategic public investments

Clusters also supercharge supply chains, making materials, parts, and services more readily available and responsive to demand. Innovation thrives when ideas are tested and refined in a collaborative environment.

Beyond that, clusters fuel entrepreneurship. Businesses that serve clustered industries—such as IT, HR, logistics, and niche manufacturing—emerge naturally, creating a ripple effect of job creation and opportunities.

RioPlex Has What It Takes

Porter’s Diamond Model has four key conditions that contribute to the formation of competitive clusters. The RioPlex region is marketing itself around these foundations:

• Skilled Labor: A driven workforce with the talent to support industries like aerospace, tech, and advanced manufacturing.
• Education: The University of Texas Rio Grande Valley, Texas A&M, South Texas College, Texas Southmost College, and Texas State Technical College are producing tomorrow’s leaders.
• Infrastructure: Ports, airports, rail crossings, and international bridges connect the region seamlessly to North American and global markets.
• Demographics: The region’s greatest asset is its young; hungry for an opportunity, ready to learn, build, and grow.

The Power of Industry Concentration

Today’s consumers don’t wait. In a world where “order today, receive tomorrow” is the standard, supply chains must evolve. Clusters make that speed possible by embedding agility into the local economy. Just as Amazon transformed retail, clusters can help RioPlex industries compete at that level of responsiveness.

Clusters attract related industries. Imagine a robust automotive cluster with logistics, software, R&D operations, and tooling shops. This kind of industry concentration unlocks opportunities for startups, specialists, and next-gen suppliers—each adding new value to the ecosystem.

Furthermore, Clusters create healthy competition. Companies benchmark one another, sharpen their performance, and, in some cases, create entirely new markets. This “blue ocean” thinking pushes the region forward and attracts venture capital, tech investment, and entrepreneurial energy.

Government’s Role: Remove Obstacles, Create Opportunity

Government is a critical partner in cluster development. That’s why Hidalgo County Judge Richard F. Cortez launched the Prosperity Task Force, focused on building the region’s human capital and strategic readiness. But as a region, more must be done:

• Expand water sources and energy infrastructure
• Upgrade bridge crossings, roads, and highway systems that are currently being addressed
• Advocate for trade policies that reflect the region’s cross-border advantage

Public policy must evolve to support economic growth and enable the business community to do what it does best: foster greater prosperity.

Automotive Cluster

The birth of an automotive cluster in the region is a clear indication that we are ready to compete at any level. It signifies that the area can coordinate across various sectors, including education, logistics, technology, and entrepreneurship, to support any industry. Additionally, it would serve as a live case study demonstrating that when a region aligns its assets with global trends, it becomes a destination for investment, opportunity, and greater prosperity. The area can now claim that an automotive cluster has been born and is ready to serve the needs of the auto industry in the region. Let’s all get behind this brave initiative.

Editor’s Note: The above guest column was penned by Mario Reyna, chairman of the RioPlex and coordinator of the Prosperity Task Force. The column appears in the Rio Grande Guardian with the permission of the author.

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