COSTEP drives cross-border manufacturing growth across South Texas and Northern Tamaulipas

In an interview during the Index Nuevo Laredo Forum, Adam Gonzalez, CEO of COSTEP (Council for South Texas Economic Progress), presented the organization’s vision for cross-border collaboration and industrial expansion. 

“COSTEP’s main priority is income generation,” he explained. “We’re a regional organization that covers seven counties from Brownsville to Laredo and ten municipalities in Tamaulipas—from Nuevo Laredo to Matamoros.”

Regional Scope and Manufacturing Focus

COSTEP promotes the South Texas–Northern Tamaulipas corridor as an integrated economic region. Its goal is to raise awareness of the area as a competitive manufacturing destination by showcasing its logistical strengths in Laredo, maquiladora activity along the border, and light manufacturing presence further east.

“We know what we already have—logistics, warehousing, maquiladoras, and light manufacturing,” Gonzalez said. “What we want is to increase the manufacturing base across sectors like automotive, aerospace, renewable energy, medical devices, and electronics.”

This diversification strategy aims to reinforce regional competitiveness and reduce dependency on a limited set of industries.

Twin-Plant Model: A Proven Cross-Border Advantage

The region’s manufacturing ecosystem benefits from over five decades of maquiladora experience and the twin-plant concept, a production model that distributes operations between the two sides of the border for maximum efficiency.

“When it’s a labor-intensive process, it’s located in northern Tamaulipas; when it’s energy-intensive, it’s on the South Texas side,” Gonzalez explained. “That is a great way to leverage both sides of the border as one region.”

This model allows companies to optimize costs, energy use, and logistics infrastructure, creating a compelling environment for new industrial investments.

Challenges and Regional Adaptation

Gonzalez acknowledged that tariffs and shifting administrative policies pose challenges for cross-border commerce. However, he emphasized adaptability and continuity as key principles for economic development entities.

“As organizations on both sides, we need to learn to navigate whatever administration or challenges come our way,” he said. “Commerce must continue in this region. Manufacturing must continue in this region.”

He noted that sustained industrial activity directly supports growth in exports, imports, and logistics, reinforcing the area’s long-term resilience.

Partnerships and Bilateral Collaboration

Events such as the Index Nuevo Laredo Forum play a crucial role in reinforcing bilateral commitment and fostering partnerships between U.S. and Mexican stakeholders. 

“It’s important that we show support for the whole region on both sides of the border,” Gonzalez stated.  “We need our partners on the southern side to create commerce, be productive, and generate jobs for the entire region.”

This cross-border alignment continues to fuel productivity and employment, demonstrating how cooperative frameworks can deliver tangible results across the manufacturing and logistics sectors.