COSTEP Expands Development Opportunities for Mexican Industry

The Rio South Texas region is seeking to strengthen its industrial ties with Mexico to attract investment, develop suppliers, and reinforce North American manufacturing integration. With a manufacturing base spanning the automotive, electronics, medical, aerospace, and energy sectors, along with 143 industrial parks and 19 border crossings, the area encompassing South Texas and northern Tamaulipas is advancing a binational collaboration strategy amid shifting trade conditions and tariff uncertainty.

Adam González, CEO of COSTEP (Council for South Texas Economic Progress), presented the region’s manufacturing and logistics capabilities during the Business Automotive Meeting (BAM) 2026. The region encompasses seven counties in South Texas and maintains ties with municipalities in northern Tamaulipas, stretching from Nuevo Laredo to Matamoros.

González explained that the area is commonly associated with transportation, warehousing, and cross-border trade operations, although it has a manufacturing history dating back to the 1960s. Today, it is home to companies producing components and systems for various industries, creating opportunities to expand cooperation between Mexican and U.S. businesses.

Rio South Texas Is Home to Automotive, Electronics, and Medical Device Manufacturers

According to the industrial inventory presented by González, the region has 177 registered companies associated with the automotive and auto parts sector, 95 in electronics, 81 in home appliances, and 58 in medical devices. Its industrial base also includes metalworking, plastics, packaging, aerospace manufacturing, and equipment for the energy sector.

In the automotive segment, manufacturing capabilities include electronic circuit boards, steering wheels, wiring harnesses, sensors, braking and safety systems, air conditioning equipment, suspension components, and galvanized steel sheets. In electronics, companies manufacture ballasts, radios, batteries, televisions, power supplies, and accessories for heating, ventilation, and air conditioning systems.

Medical device manufacturing includes specialized applications and equipment, hospital furniture, and stretcher components. In the aerospace sector, the region participates in the production of turbines, landing gear, electrical connectors, avionics components, and signal transmission systems. These activities are complemented by suppliers of equipment and services for oil, gas, power generation, and renewable energy.

González emphasized that the presence of international companies in the region has grown steadily over several decades. According to the information presented, companies from more than 22 countries have established operations along this border corridor, where the proximity of manufacturing plants, suppliers, and commercial border crossings enables production activities to be organized on both sides of the border.

The region's industrial infrastructure includes 143 industrial parks, of which 109 are located in the seven South Texas counties and 34 in northern Tamaulipas. This distribution provides space for manufacturing facilities and logistics operations connected to regional supply chains.

Connectivity is another major asset of the region. COSTEP identifies 19 border crossings in the area extending from Laredo to Matamoros and Brownsville, along with seaports, airports, and highway corridors connecting industrial centers in Mexico and the United States.

During the conference, González highlighted the importance of the World Trade Bridge in Laredo as one of the main land ports of entry for freight transportation between the two countries.

According to the figures presented, the region also has nine international airports and highway connections to cities such as Dallas, Houston, San Antonio, Monterrey, Querétaro, and Mexico City. This network facilitates the movement of goods and connections to industrial markets and consumer centers in both countries.

COSTEP Promotes Supplier Development and Binational Investment Amid Trade Changes

Aerospace development in South Texas is also part of the regional strategy. González highlighted activities associated with SpaceX and the jobs linked to this industry, as well as opportunities to strengthen technical training and collaboration between businesses and educational institutions.

COSTEP is developing an inventory of higher education capabilities, laboratories, and training programs to facilitate connections among employers, suppliers, and academic institutions.

The organization aims to provide companies with access to information about the region's industrial and educational capabilities, helping them identify potential business partners, suppliers, and talent pools. The goal is to use this information to establish productive partnerships rather than limiting collaboration to cross-border trade and transportation operations.

Amid tariff changes and the review of North American trade rules, González indicated that companies should explore binational production models that leverage the manufacturing capabilities available in Mexico and Texas.

"Integrating processes and suppliers can provide alternatives for organizing supply chains, provided that operations comply with the applicable rules of origin and other trade regulations."

COSTEP, a nonprofit organization dedicated to economic development in South Texas, offered to collaborate with Mexican companies and organizations interested in identifying investment and expansion opportunities.

González explained that the priority is to strengthen connections on both sides of the border so that "regional industry can adapt to trade changes and expand its operations across North America."