CHAPTER 11
ECONOMIC DEVELOPMENT
Economic Analysis
The purpose of this chapter is to provide the most recent available economic data for the
City of Harlingen as of September 2001. Economic data are available from a variety of
sources and time horizons. The source and effective date for economic data are
documented in the narrative and tables in this chapter. Wherever possible, statistics
relating specifically to the City of Harlingen are presented. Some data were available
only at the county, Metropolitan Statistical Area (MSA), or zip code level.
Employment and Unemployment
Many industries have moved to the Harlingen area in the past several years. The civilian
labor force has been increasing over the years, and so has the number of people employed
in Harlingen, as shown in Table 11-1. Additionally, the number of unemployed persons
in the City of Harlingen has decreased from 1,955 in 1990 to an annual average of 1,671
in 2000. Figures rating employment for the entire Brownsville-Harlingen MSA indicate a
very high unemployment rate. The Texas Labor Market Review's July 2001 edition
ranked Texas' 27 Metropolitan Statistical Areas by unemployment rate for the month of
July 2001. The Brownsville-Harlingen Metropolitan Statistical Area ranked 26th out of
27 with an unemployment rate of 10.8%. The rate for the City of Harlingen was 6.2% and
the rate for the State of Texas was 5.2 %.
Employment Estimates
Nonagricultural Wage and Salary Employment Estimates are monthly employment
estimates based on a sample of Texas employers selected through the Current
Employment Statistics Program. Employment statistics for the Brownsville-Harlingen
MSA are presented in Table 11-2. The total non-farm employment has grown 43.1
percent since 1990, faster than the county growth rate of 28.9 percent. The largest growth
in number of employees has been in services, followed by government, particularly local
government. These categories include employment in health care and education.
Industrial Classifications
The North American Industry Classification System (NAICS) supersedes the Standard
Industrial Classification used in reports from the economic census prior to 1997. While
many of the individual SIC industries correspond directly to industries as defined under
the NAICS system, most of the higher level groupings do not. Particular care should be
taken in comparing data for retail trade, wholesale trade, and manufacturing, which are
sector titles used in both NAICS and SIC, but cover somewhat different groups of
industries. Because of these changes, it is not be possible to construct time series that
include data for points both before and after 1997.
NAICS groups the economy into 20 broad sectors, up from the 10 divisions of the SIC
system. Many of the new sectors reflect recognizable parts of SIC divisions, such as the
Utilities and Transportation sectors, broken out from the SIC division
Table 11-1
EMPLOYMENT STATISTICS FOR
CAMERON COUNTY AND CITY OF HARLINGEN
1990 AND 2000
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Cameron County
Civilian
Labor Force
1990
Annual
Average
2000
Annual
Average
City of Harlingen
Percent
Change
90,866
118,802
30.7%
Unemployed
13,236
(12.7%)
11,311
(8.7%)
-14.5%
Labor Force
104,102
130,113
25.0%
Employed
1990
Annual
Average
2000 Annual
Average
19,286
Percent
Change
25,215
30.7%
1,955
1,671(602%)
(9.2%)
-14.5%
21,241
26,886
26.6%
Source: Texas Workforce Commission 2001 "Harlingen City Civilian Labor Force Estimates Actual Series, 1990 - Current"
Table 11-2
BROWNSVILLE-HARLINGEN MSA
NON-AGRICULTURAL EMPLOYMENT
1990-2000
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Industry
Average
Average
Number
Number of Decennial Decennial
of
Employees Change % Change
Employees
2000
1990
Total Goods Producing
14,100
16,800
2,700
19.1%
Construction & Mining
2,300
4,200
1,900
82.6%
11,800
12,600
800
6.8%
Durable Goods
4,900
5,300
400
8.2%
Nondurable Goods
6,900
7,300
400
5.8%
Manufacturing
Total Service Producing
62,200
92,400
30,200
48.6%
3,200
5,500
2,300
71.9%
20,600
26,200
5,600
27.2%
3,600
4,100
500
13.9%
17,000
22,100
5,100
30.0%
3,700
3,900
200
5.4%
Service
17,400
31,900
14,500
83.3%
Total Government
17,300
24,900
7,600
43.9%
1,200
2,300
1,100
91.7%
16,100
22,600
6,500
40.1%
Total State Government
2,100
3,800
1,700
81.0%
Total Local Government
14,100
18,800
4,800
34.3%
76,300
109,200
32,900
43.1%
Transport & Public Utilities
Trade
Wholesale Trade
Retail Trade
Finance, Insurance, Real Estate
Total Federal Government
Total State & Local
Total Nonfarm
Source: Texas Workforce Commission
Transportation, Communications, and Utilities. Similarly, the SIC division for Service
Industries has been subdivided to form several new sectors.
Other sectors represent combinations of pieces from more than one SIC division. The
new 'Information' sector includes major components from Transportation,
Communications, and Utilities (broadcasting and telecommunications), Manufacturing
(publishing), and Services Industries (software publishing, data processing, information
services, motion picture and sound recording). The Accommodation and Food services
sector puts together hotels and other lodging places from Service Industries and eating
and drinking places from Retail Trade.
Figure 11-1
CITY OF HARLINGEN EMPLOYMENT, UNEMPLOYMENT AND
UNEMPLOYMENT RATE
ANNUAL AVERAGES, 1990 TO 2001
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Source: Texas Workforce Commission. Harlingen City Civilian Labor Force Estimates Actual Series 1990-Current
* 2001 is July year-to-date average
Comparability of the 1992 and 1997 Economic Censuses
The 1997 Economic Census is the first census to present data based on the new North
American Industry Classification System (NAICS). Previous census data were presented
according to the Standard Industrial Classification System developed some 60 years ago.
Due to this change, comparability between census years is limited.
In 1990, the retail trade industry employed the largest number of people in Harlingen,
with 3,722 employees (Table 11-3). The next largest industry in terms of numbers of
employees was professionals and related services, which includes health services,
educational services. The statistics contained in Table 11-3 use the old Standard
Industrial Classification (SIC) industry definitions.
Table 11-3
EMPLOYED PERSONS 16 YEARS AND OVER, BY INDUSTRY
FOR CAMERON COUNTY
1990
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Industry
Agriculture, Forestry, Fisheries,
Mining
City of Cameron
Harlingen County
1990
1990
529
3,927
912
4,917
1,407
840
5,907
5,192
Transportation
606
3,371
Communication, Other Public
Utilities
547
2,117
Wholesale Trade
811
4,095
Retail Trade
3,722
17,875
Finance, Insurance, and Real Estate
1,019
4,179
Business and Repair Services
872
3,966
Personal, Entertainment, and
Recreation Services
1,098
5,239
1,743
2,336
974
6,130
11,722
3,920
901
3,875
Construction
Manufacturing:
Nondurable Goods
Durable Goods
Professional and Related Services:
Health Services
Educational Services
Other Professional and Related
Services
Public Administration
Source: (1990 Data from 1995 Report) Texas Employment Commission, UTPA CEED State Data Center Affiliate
US Census' County Business Patterns and Zip Code Business Patterns
Table 11-4 presents data gathered from the US Census' County Business Patterns Zip
Code Business Patterns.
ZIP Code Business Patterns presents data on the total number of establishments,
employment and payroll for more than 40,000 ZIP Code areas nationwide. In addition,
the number of establishments for nine employment-size categories is provided by detailed
industry for each ZIP Code. Industry data contained in the US Census' County Business
Patterns Zip Code Business Patterns uses the newer North American Industry
Classification System (NAICS).
Zip codes 78550, 78551, 78552 and 78553 are associated with the city of Harlingen,
according to the United States Postal Service (USPS). Zip codes are networks of streets
served by mail carriers or just individual post offices and are a tool for mail delivery.
They also change periodically as required to meet USPS operational needs. Table 11-4 is
a summary of data gathered from the US Census' County Business Patterns Zip Code
Business Patterns Industry for ZIP Codes 78550, 78551, 78552 and 78553 in 1998.
Table 11-5 and 11-6 present payroll data and number of businesses for Cameron County
as gathered from the US Census' County Business Patterns 1999 by NAICS Industry
Code.
Table 11-4
ESTABLISHMENTS BY INDUSTRY FOR 1998
ZIP CODES 78550, 78551, 78552 AND 78553
HARLINGEN AND SAN BENITO, TX
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
NAICS
Code
Industry Description
Total
Total
Number of Establishments by Employment-size
EstablishClass
ments
1,824
1-4 5-9 10- 2019 49
50- 100- 250- 500- 1000
99 249 499 999 or
more
901 380 255 198
47
31
8
1
3
11
Forestry, fishing, hunting,
and agriculture support
7
5
0
1
1
0
0
0
0
0
21
Mining
1
1
0
0
0
0
0
0
0
0
22
Utilities
3
0
0
1
1
1
0
0
0
0
23
Construction
155
90
26
19
18
2
0
0
0
0
31
Manufacturing
68
23
11
15
6
5
5
1
1
1
42
Wholesale trade
101
48
27
16
6
3
1
0
0
0
44
Retail Trade
357
158 102 51
31
6
8
1
0
0
48
Transportation &
warehousing
56
24
7
7
12
6
0
0
0
0
51
Information
32
13
2
3
6
6
2
0
0
0
52
Finance & Insurance
149
88
35
12
13
0
1
0
0
0
53
Real estate & rental &
leasing
79
50
16
7
6
0
0
0
0
0
54
Professional, scientific &
technical services
128
76
27
17
6
1
1
0
0
0
55
Management of companies
& enterprises
11
4
1
3
3
0
0
0
0
0
56
Admin, support, waste mgt,
remediation services
73
44
13
8
5
1
1
1
0
0
61
Educational services
15
8
0
1
4
1
1
0
0
0
62
Health care and social
assistance
257
115
49
42
25
8
11
5
0
2
71
Arts, entertainment &
recreation
15
8
3
3
0
1
0
0
0
0
72
Accommodation & food
139
38
17
34
42
6
2
0
0
0
services
81
Other services (except
public administration)
95
99
191
110
48
19
13
1
0
0
0
0
Construction
7
3
2
0
2
0
0
0
0
0
Unclassified establishments
9
8
1
0
0
0
0
0
0
0
Source: U.S. Census Bureau County Business Patterns (NAICS) by Zip Code
Table 11-5
CAMERON COUNTY EMPLOYEES, PAYROLL, AND ESTABLISHMENTS BY
INDUSTRY 1999
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
NAICS
Industry
Total
Number
of
Employees
Annual
Payroll
($1,000)
Number of
Establishment
83,540
$1,554,247
5751
149
$2,557
85
11
Forestry, fishing, hunting,
and agriculture support
21
Mining
3
$19
3
22
Utilities
287
$12,527
17
221 Utilities
287
$12,527
17
3,454
$62,272
406
621
$12,239
121
500
$11,755
22
2,333
$38,278
263
12,106
$252,378
246
311 Food Mfg
2,063
$34,570
41
315 Apparel manufacturing
4,563
$84,396
16
321 Wood product mfg
191
$2,954
8
322 Paper mfg
159
$4,071
3
325 Chemical mfg
154
$3,800
12
23
Construction
233
Building, developing &
general contracting
234 Heavy construction
235 Special trade contractors
31-33
Manufacturing
326
Plastics & rubber products
mfg
358
$7,930
10
327
Nonmetallic mineral product
mfg
404
$10,072
14
1,333
$30,196
28
345
$8,239
16
Computer & electronic
product mfg
373
$7,249
7
335 Electrical equip, appliance &
183
$3,631
3
332 Fabricated metal product mfg
333 Machinery mfg
334
component mfg
336
Transportation equipment
mfg
337
Furniture & related product
mfg
1,435
$45,455
24
107
$1,607
10
191
$3,596
21
Wholesale trade
3,537
$81,259
361
421
Wholesale trade, durable
goods
1,743
$38,884
236
422
Wholesale trade, nondurable
goods
1,794
$42,375
125
13,406
$209,095
1111
1,800
$42,458
157
339 Miscellaneous mfg
42
44-45
Retail trade
441 Retail trade
442
Furniture & home furnishing
stores
383
$6,733
50
443
Electronics & appliance
stores
221
$4,360
35
444
Bldg material & garden equip
& supp dealers
890
$17,657
75
2,851
$42,425
132
630
$8,948
72
1,128
$12,885
143
1,412
$15,217
197
307
$3,818
58
3,805
$43,452
54
453 Miscellaneous store retailers
480
$5,794
113
454 Nonstore retailers
219
$5,348
25
4,194
$102,247
293
113
$3,029
9
2,164
$58,982
146
113
$2,463
10
445 Food & beverage stores
446 Health & personal care stores
447 Gasoline stations
448
Clothing & clothing
accessories stores
451
Sporting goods, hobby, book
& music stores
452 General merchandise stores
48-49
Transportation &
warehousing
481 Air transportation
484 Truck transportation
485
Transit & ground passenger
transportation
488
Transportation support
activities
1,356
$27,442
95
492 Couriers & messengers
222
$5,151
14
493 Warehousing & storage
210
$4,982
14
1,167
$33,174
66
(E)
$0
8
(C)
$0
9
686
$24,433
41
51
Information
511 Publishing industries
512
Motion picture & sound
recording industries
513 Broadcasting &
telecommunications
52
Finance & insurance
2,635
$71,985
354
522
Credit intermediation &
related activities
1,789
$44,996
168
523
Security, commodity
contracts & like activity
(C)
$0
25
524
Insurance carriers & related
activities
685
$20,963
159
1,248
$22,536
282
531 Real estate
750
$13,862
215
532 Rental & leasing services
498
$8,674
67
Professional, scientific &
technical services
2,085
$54,122
372
Professional, scientific &
technical services
2,058
$54,122
372
Management of companies
& enterprises
491
$22,654
25
Management of companies &
enterprises
491
$22,654
25
Admin, support, waste mgt,
remediation services
3,293
$49,651
184
561
Administrative & support
services
3,118
$46,050
172
562
Waste management &
remediation services
175
$3,601
12
Educational services
2,462
$45,235
48
2,462
$45,235
48
Health care and social
assistance
18,924
$360,771
642
Ambulatory health care
services
9,426
$170,855
419
(H)
$0
6
2,050
$29,557
44
(H)
$0
173
Arts, entertainment &
recreation
725
$10,010
68
712
Museums, historical sites &
like institutions
(C)
$0
4
713
Amusement, gambling &
recreation industries
507
$7,517
58
Accommodation & food
services
8,898
$89,678
514
1,608
$18,790
77
Real estate & rental &
leasing
53
54
541
55
551
56
61
611 Educational services
62
621
622 Hospitals
623
Nursing & residential care
facilities
624 Social assistance
71
72
721 Accommodation
Food services & drinking
places
7,290
$67,888
437
Other services (except
public administration)
4,097
%55,616
576
811 Repair & maintenance
1,194
$20,566
201
812 Personal & laundry services
1,130
$13,225
128
Religious, grantmaking,
813 civic, prof & like
organizations
1,773
$21,825
247
722
81
95
Auxiliaries (exec corporate,
subsidiary & regional mgt)
317
$17,411
17
99
Unclassified establishments
89
$2,050
81
Note: Employment-size classes are indicated as follows: C-100 to 249; E-250 to 499; H-2,500 to 4,999
Source: U.S. Census Bureau County Business Patterns 1999
Major Employers
The major employers in the Harlingen area are listed in Table 11-7. The top five
employers in the city include the Harlingen Consolidated Independent School District,
the Valley Baptist Regional Medical Center complex, Fruit of the Loom apparel
manufacturing firm, local government, and Walmart. In total, the 44 major employers
employ approximately 13,084 employees.
Table 11-6
CAMERON COUNTY TOTAL EMPLOYEES, ESTABLISHMENTS AND
PAYROLL
1993 TO 1999
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Total Employees
Annual Payroll
Total
Establishments
1993
70,087
$1,066,127
5,294
1994
71,283
$1,124,515
5,417
1995
73,532
$1,178,672
5,530
1996
74,964
$1,244,371
5,639
1997
73,307
$1,361,404
5,696
1998
79,534
$1,432,482
5,673
1999
83,540
$1,554,247
5,751
Source: U.S. Census Bureau County Business Patterns 1993 through 1999
Table 11-7
MAJOR EMPLOYERS
CITY OF HARLINGEN
3RD QUARTER 2001
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Company
Number of
Employees
Product
Harlingen CISD
2,550 School District (unconfirmed)
Valley Baptist Medical Center
2,376 Hospital
Fruit of the Loom
962 Undergarments
CIty of Harlingen
780
Wall-Mart Superstore
487 Dept./Grocery Store
Texas State Technical College
480 Technical College
H.E.B.
370
Rio Grande State Center
356 Mental Health
Advanced Call Center
Technologies
333 Call Center
U.S. Border Patrol
270 Government
Su Clinica Familiar
265 Health Care Clinic
Q. C. Onics
236 Electrical Assembly
Southwestern Bell Telephone
222 Telephone Service
Acetylene Oxygen Company
210 Misc. Gases
Gorges Quick to Fix
175 Meat Processing/Packing
Marine Military Academy
175 Private School
Dillard's Department Store
156 Department Store
Valley Morning Star
156 Newspaper
Retama Manor
150 Nursing/Convalescent Home
Anderson, Greenwood & Co.
150 Industrial Valves
Immigration & Naturalization
Service
150 Government
Tex-Steel
148
Varmicon Industries
144 Concrete
South Texas Hospital
140 Hospital
Valley Diagnostic Clinic
136 Health Services
Luby's
130 2 Restaurants
Time Warner Communications
127 Communications
Boggus Ford - Harlingen
125 Auto Dealership
Texas State Bank
122 Bank
Earthgrain Baking Company
121 Bakery Products
Valley International Cold
120 Cold Storage
City Government (all
departments)
Grocery Store (3stores
combined)
Steel Doors & Frames
(unconfirmed)
Storage
Industrial Fab of the Valley, Inc.
104 Pipe Fabricator
L & F Distributors
100 Beer Distributors
Tadim, Inc.
100 Plastic Injection Molding
Atlantic Durant
85 Metal Stamping
Chili's
82 Restaurant
Sears Roebuck & Company
80
7-Up/RC Cola/Big Red Bottling
75 Soft Drinks Distributor
Tri-Pak Machinery
75 Packaging Machinery
Southern Union Gas
69 Natural Gas Distribution
Harlingen Country Club
65 Country Club
Valley Co-op Mill
64 Agricultural Chemicals
Gibbs Texas Die Casting
64 Die Casting
Valley Eye Center
61
Kellogg Motors
53 Car Dealership
Lockheed Martin
Department Store
(unconfirmed)
Physicians & Surgeons /Eye
Clinic
N/A* Aeronautics & Astronautics
* Information not released
Source: Harlingen Area Chamber of Commerce 9/30/01
Industry Trends and Projections
This section provides information about potential employment growth by industry sector
as shown in Table 11-8, and by average annual employment statistics. The primary
source for this section is the Standardized Occupational Components for Regional
Analysis and Trends in Employment System (SOCRATES), developed by the Career
Development Resources (CDR) with technical and data support from the Texas
Workforce Commission.
SOCRATES
The objective of the CDR SOCRATES system is to provide the Cameron County
Workforce Development Board with a documented, detailed regional economic plan for
targeting industries and occupations. The targeting process is not an economic forecasting
model, however, it uses employment projections in its analysis.
The two primary sources of data are the Covered Wages and Employment database,
derived from Unemployment Insurance (UI) administrative records and the employment
projections developed by the TWC Labor Market Information unit.
Industry data for SOCRATES are classified under the Standard Industrial Classification
(SIC) coding system.
Industrial Evaluation
One component of SOCRATES is the Industrial Evaluation Model (INDEVAL).
INDEVAL aids labor market analysts in prioritizing industries with the greatest
employment potential from among an entire regional economy by examining and ranking
those industries based on selected economic indicators. For the Cameron County region
the following indicators and weightings were chosen:
· Local Employment Change 1997-2000 (15%)
· Local Number Of Establishments Change 1997-2000 (5%)
· Local Employment 1st Qtr 2000 (15%)
· Local Number Of Establishments 1st Qtr 2000 (10%)
· Local Employment Projections 2008 (15%)
· Local TWC Job Openings 1999 (10%)
· Local Average Wages 1st Qtr 2000 (10%)
· Texas Potential New Hires 1999 (10%)
· National Aggregate Hourly Index 1st Qtr 2000 (5%)
· National Employment Projections 2008 (5%)
The final product of the INDEVAL model is an ordered list of industries. These represent
industries that are significant to the local economy and that are likely to have an
increasing demand for workers, many of whom are still in the education pipeline.
Based on the data and weights presented above, industries in the region were ranked as
shown in Table 11-8. With different weightings or alternative analyses a different list
would be produced.
Table 11-8
TOP-RANKING INDUSTRIAL EVALUATION (INDEVAL) SECTORS
FOR CAMERON COUNTY
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
RANK
SIC
INDUSTRY
1
58
Eating & Drinking Places
2
73
Business Services
3
80
Health Services
4
17
Special Trade Contractors
5
83
Social Services
6
82
Educational Services
7
42
Trucking & Warehousing
8
59
Miscellaneous Retail Stores
9
70
Hotels & Other Lodging Places
10
54
Food Stores
11
15
General Building Contractors
12
65
Real Estate
Source: INDEVAL Ranking in Standardized Occupational Components for Regional Analysis and Trends in Employment System
(SOCRATES) Cameron Co. Local Workforce Development Board Regional Narrative Labor Market Plan (6/15/2001).
Industry Employment Projections
In 1998 the Cameron County region total employment for all industries was 107,961.
That number is expected to grow to 126,269 by the year 2008. That is an expected
increase of 18,308, or a 17.0 percent increase in employment. Table 11-9 shows industry
employment projections for Cameron County. The industries that reflect the largest
projected growth by percent include durable goods manufacturing (23.5 percent) and
wholesale trade and government (20.5 and 21.7 percent respectively). The industry with
the highest growth in numbers is Services, with a projected increase in employment of
8,254 employees.
Table 11-9
CAMERON CO. WORKFORCE DEVELOPMENT BOARD
INDUSTRY EMPLOYMENT PROJECTIONS
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Industry Title
Annual
Average
Employment
1998
Agriculture/Foresty/Fishing
2008
Change in Projected
Employment Growth
Rate
1998-2008
1,504
1,729
225
15.0%
352
406
54
15.3%
Construction
3,318
3,818
500
15.1%
Durable Goods Manufacturing
5,242
6,474
1,232
23.5%
Nondurable Goods Manufacturing
7,107
8,189
1,082
15.2%
Transportation
3,821
4,390
569
14.9%
Communications & Utilities
1,181
1,358
177
15.0%
Wholesale Trade
3,868
4,662
794
20.5%
19,795 22,985
3,190
16.1%
Mining
Retail Trade
Finance, Insurance, & Real Estate
Services
Government
4,226
628
17.4%
50,834 59,088
3,598
8,254
16.2%
9,303
1,659
21.7%
107,961 126,269
18,308
17.0%
7,644
Total, All Industries
Source: Standardized Occupational Components for Regional Analysis and Trends in Employment
System (SOCRATES); 6/15/2001 Cameron Co. Local Workforce Development Board Regional Narrative Labor Market Plan
International Trade
Texas is the country's second largest exporting state after California. Texas maintained its
perennial position as the nation's largest exporting state to Mexico, accounting for 47.6
percent of all US shipments to Mexico in 1999.
Harlingen, located at the southern tip of Texas is a strategic transportation and
international trade center with easy access to markets in Texas, Mexico and the world.
A state of the art international bridge (the Los Indios Free Trade Bridge) is located just 10
miles from Harlingen. Harlingen is a 25 percent owner in the bridge in a partnership with
the San Benito (25 percent) and Cameron County (50 percent). This four-lane
international crossing is one of the largest and most modern ports of entry in South
Texas. In 2000, there were 511,937 Free Trade Bridge crossings into Mexico. (Harlingen
Area Chamber of Commerce)
Texas A&M International University provides border trade data that track the flow of
U.S.-Mexico goods by U.S. Customs border ports and commodity code on a monthly
basis. The U.S.-Mexico trade activity through Port 01 represents a compilation of all
ports of entry in Cameron County and all modes of export (for example air, truck and
rail). U.S.-Mexico exports through Port 01 totaled nearly $6.3 billion U.S. Dollars in
2000.
Major Export Commodities
In 2000, Texas' exports to Mexico totaled nearly $52 billion US dollars. Table 11-9
shows total dollar amounts by industry for Texas exports to Mexico in 2000.
Table 11-9
STATE OF TEXAS EXPORTS TO MEXICO
2000
Harlingen's Vision 2020 Comprehensive Plan
Harlingen, Texas
Industry
Electronic Equipment &
Components
Value ($millions)
$14,370.9
Transportation Equipment
$7,478.7
Industrial Machinery & Computers
$4,769.0
Chemicals & Allied Products
$3,447.4
Rubber & Plastics Products
$3,200.6
Fabricated Metal Products
$2,839.6
Petroleum Refining & Related
Industries
$2,705.2
Primary Metal Industries
$2,170.1
Textile Mill Products
$1,588.1
Processed Foods & Beverages
$1,442.3
Scientific Instruments
$1,407.7
Agricultural Production (Crops)
$1,040.3
Paper & Allied Products
$1,032.0
Apparel
$1,016.2
Oil & Gas Extraction
$592.4
Leather & Leather Products
$538.7
Stone, Clay, Glass, & Concrete
Products
$464.2
Miscellaneous Manufacturing
Industries
$324.9
Unclassified Small Shipments
$322.9
Printing & Publishing
$225.3
Scrap & Waste
$166.5
Lumber & Wood Products
$122.6
Furniture & Fixtures
$100.1
Miscellaneous Goods, Not
Elsewhere Classified
$98.3
Agricultural Production (Livestock)
$78.9
Secondhand Goods
$76.7
Fishing, Hunting, & Trapping
$35.7
Mining & Quarrying
$32.6
Metal Mining
$13.9
Forestry
$10.6
Tobacco Products
$5.6
Coal Mining
$1.8
Total:
$51,719.9
Source: BIDC Texas Exports Database Massachusetts Institute for Social and Economic Research (MISER)
Industrial Development
The strength of Harlingen's local economy lies in its ability to attract new industry and
thus create new jobs. The Harlingen Chamber of Commerce is contracted by the City of
Harlingen to do economic development through the use of the City's half-cent economic
development sales tax. Harlingen voters adopted the '4A' taxing designation in 1990. A
'4A' designation allows the creation of a municipal Development Corporation to manage
the funds collected under the taxing designation. The funds are used primarily to facilitate
manufacturing and industrial activity. These monies can be used to provide incentives to
attract businesses (such as low cost land, lease assistance, etc.), fund targeted
infrastructure related to a project, provide job training related to specific companies, and
retain or create new jobs. The amount of money collected annually has risen steadily
since the adoption of the taxing mechanism (see Figure 11-2). The Development
Corporation is a five member group appointed by the City Commission to recommend
projects and money (incentive) allocations to the City Commission for approval. There is
also a seventeen member Harlingen Industrial Foundation Inc. (HIFI) whose job is to
locate and acquire land for economic development.The designation of '4A' has fit well
with the concept adopted by the Chamber of Commerce in their strategic economic plan
developed by the Austin-based Angelou Economic Advisors Inc. in 1997. This strategic
plan entitled Harlingen: A shared Vision for the Rio Grande Valley suggests a 'cluster
approach' to economic development. That method involves recruiting companies that
share similar characteristics that allow them to complement each other. The report
suggested three clusters for Harlingen to emphasize based on existing development and
area trends. Those three clusters are manufacturing, logistics and health care.
Since 1997 almost two dozen manufacturing companies, four telemarketing firms and
two major logistics and distribution centers have moved into the Harlingen Industrial
Park, Harlingen city limits or one of the two Harlingen Enterprise Zone.
Retail and Construction Trends
Two other important economic indicators are retail trade and new construction. Both
have had positive increasing trends in Harlingen in the last decade. According to the State
Comptroller of Public Accounts retail trade has nearly doubled for the City of Harlingen
within that time period. Retail trade in 1990 was reported at $455 million in 1990 and
reaching $812 million in the year 2000 (see Figure 11-3).
Building construction permits for residential construction have also inclined overall in the
same ten year period with the value of annual permits received growing by 140% from
nearly 10 million in 1990 to nearly $24 million in 2000 (see Figure 11-4).
Commercial construction tends to be more volatile and therefore not as good an
economic indicator because one or two large projects can skew the annual permit values.
The past ten years have not shown a definite trend in a direction, but a steady healthy
large dollar investment is evident in each year that indicates a willingness of individual
developers to make substantial capital outlay in the Harlingen economy (see Figure 115).
Economic comparisons to other cities in the Valley are beyond the scope of this chapter
due to outside influences that affect the larger border cities of the region. Those
comparisons are better drawn from studies compiled by economic advisors and available
at the Harlingen Chamber of Commerce.
Goals & Objectives
Goal 11.1
Improve Communication and Cooperation between City of Harlingen
development departments and Chamber of Commerce staff.
Goal 11.2
Seek ways to coordinate with neighboring San Benito and Cameron
County building depts. to report development numbers that will attract developers'
attention.