Fifty years ago, the Rio Grande Valley of South Texas was a rural, agriculture-based economy characterized by sporadic growth. Today, the area is being transformed into a major international trade area by developing first-rate commercial, retail, office, industrial, medical, retirement and educational facilities. The promotion of international and retail trade, tourism and manufacturing is among the most successful along the U.S.-Mexico Border.

The Rio Grande Valley includes the four southern-most counties in Texas: Cameron, Hidalgo, Starr and Willacy. It is in the geographic center of the region most recently termed the Rioplex, which includes the four Rio Grande Valley counties and the Northern Mexico border cities between Matamoros and Ciudad Mier.

The principal cities of McAllen, Brownsville and Harlingen combine to form the northern half of the Rioplex and is among the most rapidly growing region in America. In fact, the McAllen-Edinburg-Mission MSA ranked fourth fastest growing MSA in the U.S. between 1990 and 2000. The 2000 Census places the population of the RGV at 978,369, a 39.6% increase over 1990. Put simply, the RGV’s population is larger than eight states.

The southern half of the Rioplex includes the Mexico border cites of Matamoros, Rio Bravo and Reynosa, which contribute at least another 1.4 million to the region’s population. This brings the total population of this bi-national, bicultural, bilingual, international metropolitan area to 2.4 million.

Statistics vary according to source, but all agree that Hispanics represent from 83% to 87% of the U.S. population; U.S. residents under 35 years of age make up between 40% and 50%. The population, although diverse, is defined by two dominant demographic criteria: Hispanic and young.

McALLEN...The Jewel in the Valley Crown!
McAllen is indeed the "Jewel in the Valley Crown." This is not to imply the other Valley communities are not doing well. It is just apparent that McAllen, economically, is running like a finely tuned engine. Consider these facts:

The McAllen, Mission, Edinburg MSA and Reynosa, Mexico comprise a dynamic community with a combined population of 1.4 million. During the past two decades, this area has made bold advances, with unprecedented growth in both population and industrial attraction. The McAllen MSA is ranked

• 4th fastest growing MSA in America by percent change in population (U.S. Census 2000).
• #1 county in Texas by percent change in population (U.S. Census 2000).
• 25th best place to do business or advance a career in the U.S. (Forbes Magazine, 2001).
• #1 in mid-size cities for growth and development in the South (Southern Business Magazine 2001).
• Top 50 automotive supplier locations. (Southern Business Magazine 2001).

McAllen is represented by 37 of America’s top 100 retailers. More than 80 of Fortune 500’s global manufacturers have operations in McAllen/Reynosa. Included among them are: AT&T, Bissel, Black & Decker, BMW, Delco, Drexel Meyer, Eaton, Emerson, GE, Johnson Controls, Nokia, R. R. Donnelley & Sons, Panasonic, Siemens, Sony, Symbol, TRW, West Bend and Whirlpool.

In 2000, from among the top 20 cities in Texas, McAllen ranks 4th in per-capita sales tax collections, 6th in the percent change in population, 12th in retail sales and 15th in population.

• County bank deposits grew from $2.6 billion to $4.8 billion in the 1990’s, while McAllen’s share grew 68%, from $1.6 billion to $2.5 billion of the total.
• County retail trade grew from $2.57 billion to $ 4.90 billion, while McAllen’s retail sales grew 74%, from $1.86 billion to $2.37 billion of the total.
• Á McAllen’s retail totals accounted for 48% of all retail sales in Hidalgo County, even though McAllen represents just 19% of the county’s population.
• McAllen is the retail center of South Texas and Northern Mexico, drawing from a consumer base of over 10 million people. This sector has become the driving force in McAllen’s economy, growing a staggering 138% over the last 10 years, to over 2 billion and employing 27% of the workforce.

The McAllen area has also been successful in attracting new call centers employing over 4,200 people due mostly to the fact that the Valley boasts the 7th largest pool of available labor in the country, and it’s bilingual, too. A few of the call centers that have established in the past two years are Convergys, TicketMaster, West TeleServices, Western Wireless and Teleperformance.

In Hidalgo County, cross-border cargo and vehicular traffic increased 214% and 69% respectively during the decade of the 1990’s from 228,133 to 715,305 cargo trucks and from 10.92 million to 18.45 million automobiles. US/Mexico trade crossing the international bridge in Hidalgo County increased from $5.0 billion in 1994, pre-NAFTA, to $12.56 billion in 2000.

Single-family home sales by McAllen MLS Realtors in 2000 was 1,003. The average selling price for these new homes was $80,020

Cumulative single-family permits in McAllen reached 788 in 2000. On the basis of permit value, the average new home cost is $70,101. 2001 looks like it will have 885 permits, with costs averaging $69,728.

Building permit values in the Rio Grande Valley cities rose from $264 million in 1990 to an all-time high of $825 million in 2000. Building permits, Valley-wide are projected to exceed $994 million by the end of 2001.

McAllen MSA’s share of total building permits was $161 million and $434 million for 1990 and 2000 respectively. McAllen leads the Valley with $84 million and $179 million respectively.