Texas: Record Border Crossings And Big Industrial Business
TEXAS – The trade flow to and from Mexico profoundly impacts warehouse and distribution demand across Texas and supports close to 500,000 jobs statewide.
CBRE recently released a study on Mexico’s growing manufacturing sector and how it impacts warehouse and distribution demand across Texas.
Product mix varies across the border, but certain sectors dominate the general trade flow. Machinery and appliances, electronics and motor vehicles, including parts, dominate trade flow in both directions.
At the same time, certain sectors are specific to particular regions and influence industrial market demand in different ways.
In Texas, El Paso imports a large quantity of electronics and appliances; Laredo heavily imports vehicles, while McAllen imports the most produce into the US.
Land ports of entry comprise 85 percent of total trade with Mexico representing $452 billion via a steady parade trucks and railcars. Of that number, 75 percent, a whopping $337 billion, crosses through Texas.
Most of the traded product typically continues on to additional destinations in the supply chain, but face certain margins.
Considering that 82 percent of weight and 62 percent of the value of goods travel less than 500 miles between origin (in this case, the border) and its next destination, most markets in Texas fall inside the supply network that connects the U.S. and Mexico.
Specifically, goods can easily reach the Dallas-Fort Worth and Houston markets—recognized as global logistics hubs—and can push trade quickly throughout the US and abroad.
The triple net is that the benefits of growing trade with Mexico ripple throughout the Texas industrial sector and its statewide economy, and translate into economic growth and job creation nationwide.
This article originally published by Real Estate Center at TAMU.
