Pharr EDC Sees a Manufacturing Powerhouse in South Texas

Workforce investment, support for existing employers, and cooperation across city lines can help the Valley capture greater industrial opportunities.

MCALLEN, TEXAS — South Texas can compete for a larger share of advanced manufacturing and international investment by working together as a region, according to Francisco Mendez of the Pharr Economic Development Corporation. His message is straightforward: support the companies already investing here, prepare workers for new opportunities, and build connections across city boundaries.

“I would tell you that South Texas is a powerhouse,” Mendez said. “I think we really have not even scratched the surface of what we can do.”

Speaking with Pro Texas Industry during a Skills Development Fund grant event at Rio Bank in McAllen, Mendez highlighted the connection between employee development and business growth. He attended in support of Emerson and Index Fresh, two employers he described as important partners in Pharr’s business community.

“We’re very proud of them. We’re proud of being part of their history,” he said.

The event recognized a $169,087 Texas Workforce Commission grant supporting training for 87 employees at ALPS Logistics, DENSO TEN, Emerson Tool, and Index Fresh. Workforce Solutions serves as the grant recipient and coordinator, with UTRGV’s Texas Manufacturing Assistance Center developing and delivering the instruction. 

For Mendez, companies’ decisions to expand and invest in their employees demonstrate a commitment that economic development organizations should actively support. He emphasized retention, growth, and workforce investment as important elements of a strong local business community.

That commitment also shapes how Pharr approaches prospective investors. Mendez described the city’s Global Hub as a platform to assist small businesses, support expansion, and help international companies establish a U.S. presence.

For businesses entering the market, he pointed to the advantages of starting in a border community near an international bridge. But he emphasized that successful recruitment also requires practical assistance and coordination.

“This is partnership,” Mendez said.

He described Pharr EDC working with UTRGV, Workforce Solutions, employers, and local stakeholders to help companies develop a plan for success. Depending on their needs, that support can involve economic incentives, workforce training, recruiting, and assistance with legal or financial matters.

“Everything we put on the table is to support them so they can be successful,” he said.

Mendez believes the same cooperative approach should extend throughout South Texas. He called for closer relationships between neighboring communities, arguing that city-to-city competition can obscure the benefits that industrial investment brings to the wider region.

With Valley communities located minutes apart, a company’s growth in one city can create opportunities for workers and businesses in others. Mendez sees particular potential in advanced manufacturing, artificial intelligence, data centers, and aerospace supply chains.

“They don’t need to be next to SpaceX. They can be in the Valley,” he said of businesses supporting the aerospace industry.

His point broadens the opportunity beyond the location of any single major project. Communities across South Texas can pursue supplier operations and services that help meet the demands of expanding industries.

For Mendez, the next step is to connect those capabilities more effectively. By investing in people, supporting employers, and approaching recruitment with a regional perspective, South Texas can strengthen its position as a destination for manufacturing and international business.

“The growth opportunities are huge,” he said. “All we have to do is work closer together.”