|
Only have a minute? Listen instead |
The COVID-19 pandemic and consequent business closures, both mandated and voluntary, took a heavy toll on the Rio Grande Valley’s economy just like it did throughout the rest of the United States, in the first part of this decade.
Fortunately, the Valley has been able to rebound from those setbacks, with some changes that suggest continued progress and improvement — not only in the economy but in residents’ lives. That’s welcome news for local residents, including some who might have wondered if their fortunes might improve if they left the area.
The summer 2026 Border Business Briefs, written by Francisco Aldape, Maroula Khraiche, Andre V. Mollick and Jean Baptiste Tondji with the Robert J. Vackar College of Business and Entrepreneurship at the University of Texas Rio Grande Valley, notes many facets of the Valley economy that stand out, and suggest better days are ahead for the region.
As staff writer Francisco E. Jimenez reported this week, the report’s authors note that the Valley’s population is younger than both the state and national average. Our median age is 31.8 years, compared to 36.3 statewide and roughly 39 years nationwide. This indicates that the local pool of workers have more years to offer current and prospective employers. One fact that often is overlooked is that younger workers, whose school matriculation was more recent, might have been exposed to more current information than their older peers and thus more able manage the increasing rate of technological advances in the workplace.
Another highlight of the report is the unique interconnectedness between economic elements on both sides of the border, and how they support each other. It helps counter any argument that the maquiladora system of manufacturing plants in Mexico deprives U.S. workers of factory jobs here. The authors note that the system creates more jobs north of the border, particularly in trade, logistics, transportation and government services.
Maquilas create a unique system in which companies on either side of the border complement rather than compete with each other.
The report also notes perhaps the best economic trend in the region, which is a steady diversification of the economy. The authors note that the Valley’s history is largely agrarian, with more recent growth in the retail and service sector, along with the manufacturing element of the maquiladoras. Unfortunately, wages tend to be low in such industries.
Recent major developments include industrial expansion, ranging from an aluminum recycling facility in Mission to SpaceX and related aerospace operations. It has boosted high-tech investment in the area, which offers better-paying jobs.
A diverse economy also helps protect the region from the effects of downturns in any one area of the economy. Bad weather that reduces crop harvests aren’t as devastating to the overall economy if the industrial, trade and service elements aren’t as heavily affected.
This progress is welcome. It could, as the authors conclude, “translate inter higher wages, greater productivity, and improved living standards across this integrated cross-border economy.”