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RGV Economic Report 2015

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RGV Economic Report 2015 Overviews Prepared by 1 “Notable Statistics” 2013 • McAllen had the 17th fastest growing employment in the nation during the recovery - Brookings, 2013 • McAllen is the second least expensive urban area in the Cost of Living Index - C2ER, 2013 • The McAllen region ranks 3rd nationwide (in percentage) to have more jobs than before the recession: - U.S. Bureau of Labor Statistics, 2013 2012 • McAllen, TX ranked 3rd most affordable city in the nation to live in- Kiplinger, 2012 • McAllen MSA ranked #1 in the nation for long term job growth- U.S. Bureau of Labor Statistics, 2012 • McAllen MSA #3 Among Top Mid-Sized Cities in the U.S. for Jobs- Forbes, 2012 • McAllen MSA ranked #18 Best Performing City in the Nation - Forbes, 2012 • McAllen MSA ranked #7 Fastest Growing U.S. City - CNN Money, 2012 • Texas / Mexico corridor was named a Top Region to Watch in 2012 for automotive manufacturing revival - Forbes, 2012 • McAllen MSA was ranked as the best housing market in the nation - Market Watch – The Wall Street Journal, 2012 PREPARED BY NAI RIO GRANDE VALLEY 2 Texas Counties Mexico Cities 0 to 100 401 to 800 0 to 100 401 to 800 101 to 250 801 to 1,500 101 to 250 801 to 1,500 251 to 350 1,501 to 2,000 251 to 350 1,501 to 2,000 351 to 400 2,001 to 2,300 351 to 400 2,001 to 111,293 Pop. Density per Square Mile Density1997 Est. Mexico/2001 per Proj. US Source: Claritas & Michael J. Blum Company Square Mile Population Santa Fe Stanton-Lerdo Bridge P P America's-Cordoba Bridge P P P Ysleta-Zaragosa Bridge 10,609,246 Depicted are two rectangles 200 miles wide by 500 mile long. Del Rio Bridge P P Eagle Pass Bridge The upper rectangle a population of Columbia-Delores Bridge P Laredo #3 (UC) P P Laredo 1 & 2 10.6 Million++ I-69 I-69 ´Central ´East Roma Bridge Rio Grande City Bridge P P Los Ebanos Anzalduas -Ferry Proposed Hidalgo P Bridge Progreso Bridge Pharr Los Indios The lower rectangle that extends P Bridge Bridge P P P P Gateway & Proposed B&M Bridge Port Bridge P P Los Tomates Bridge (UC) into Mexico and includes the border Population region encompasses a population of 56,612,540 56.6 million++ Source: US Census & NAI Rio Grande Valley 3 PREPARED BY NAI RIO GRANDE VALLEY Rio Grande City Trade Area Map PREPARED BY NAI RIO GRANDE VALLEY 4 Demographic Surprise Hidalgo and Cameron Counties had a combined population of 1,266,000 which makes it larger population than Rhode Island, Montana, Delaware, South Dakota, Alaska, North Dakota, Vermont, District of Colombia and Wyoming. RIO GRANDE VALLEY PREPARED BY NAI RIO GRANDE VALLEY 5 Population Forecasts 3,000,000 2,561,700 2,500,000 2,098,300 2,000,000 1,832,000 1,492,100 1,458,000 1,500,000 1,266,101 953,000 1,000,000 774,769 729,700 640,300 539,100 500,000 406,220 - 2010 2020 2030 2040 Hidalgo Cameron Total 2010 Census, Texas Data Center Projections PREPARED BY NAI RIO GRANDE VALLEY 6 PREPARED BY NAI RIO GRANDE VALLEY PREPARED BY NAI RIO GRANDE VALLEY 8 McAllen MSA Population 2010 Population % of Total McAllen 129,877 16.8% Edinburg 77,100 10.0% Mission 77,058 9.9% Pharr 70,400 9.1% MSA 774,769 100.0% PREPARED BY NAI RIO GRANDE VALLEY 9 Future Texas Workforce Surplus Workforce vs. Deficit of workers The View From Texas (The Effect of Baby Boomers leaving the workforce) PREPARED BY NAI RIO GRANDE VALLEY 10 Rio South Texas Working Age Population Future (McAllenAges 18-64 USWorkforce Only) 1,400,000 1,360,000 1,250,000 1,200,000 1,130,000 1,000,000 1,000,000 910,000 810,000 800,000 730,000 630,000 600,000 550,000 400,000 200,000 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 PREPARED BY NAI RIO GRANDE VALLEY 11 29 Years of Retail Sales History Brownsville & McAllen ($Billions) $7.00 $6.00 $5.78 $5.56 $5.55 $5.58 $5.04 $5.00 $5.00 $4.00 $3.70 $3.60 $3.46 $3.53 $3.30 $3.20 $3.02 $3.00 $2.25 $2.12 $1.94 $1.86 $1.95 $2.00 $1.74 $1.80 $1.31 $1.08 $1.00 $0.78 $0.54 $- Devaluation Devaluation 2007 2008 Recession 2009 2010 2,012 2013 Billions ofdollars Billions 1984 1994 McAllen Brownsville Combined 12 Sales Tax Collection 2008 vs. 2013 $3.85 San Benito $3.99 $33.78 Brownsville $33.69 $21.08 Harlingen $19.68 $1.96 Donna $1.57 $3.07 San Juan $2.55 $7.43 Mercedes $5.73 $11.26 Weslaco $8.98 $13.16 Pharr $11.42 $14.40 Mission $13.06 $16.91 Edinburg $14.22 $60.65 McAllen $58.86 $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Million $$ PREPARED BY NAI RIO GRANDE VALLEY 2013 2008 13 McAllen ranks #2 among these cities in Per capita Retail Sales ACTUAL RETAIL RANK City Gross Sales Total Population Households Per Capita Sales HH Sales Avg HH Income SALES ABOVE HH INCOME 1 Houston $ 72,259,404,380 2,238,797 835,664 $32,276.00 $86,469.45 $67,536 $18,933.45 2 McAllen $ 3,566,361,554 135,689 43,830 $26,283.35 $81,368.05 $57,055 $24,313.05 3 San Antonio $ 28,973,699,397 1,400,026 509,251 $20,695.12 $56,894.73 $60,185 ($3,290.27) 4 Austin $ 17,267,160,650 874,227 361,063 $19,751.35 $47,823.12 $72,437 ($24,613.88) 5 Dallas $ 21,916,157,238 1,269,197 486,820 $17,267.73 $45,019.02 $64,693 ($19,673.98) 6 El Paso $ 8,717,390,875 676,568 229,591 $12,884.72 $37,969.22 $59,859 ($21,889.78) Texas $ 436,592,607,432 26,668,922 9,468,956 $16,370.84 $46,107.79 $70,565 ($24,457.21) McAllen ranks #2 among these cities in ACTUAL retail sales per household. ACTUAL RETAIL RANK City Gross Sales Total Population Households Per Capita Sales HH Sales Avg HH Income SALES ABOVE HH INCOME 2 Houston $72,259,404,380 2,238,797 835,664 $32,276.00 $86,469.45 $67,536 $18,933.45 1 McAllen $3,566,361,554 135,689 43,830 $26,283.35 $81,368.05 $57,055 $24,313.05 3 San Antonio $28,973,699,397 1,400,026 509,251 $20,695.12 $56,894.73 $60,185 ($3,290.27) 6 Austin $17,267,160,650 874,227 361,063 $19,751.35 $47,823.12 $72,437 ($24,613.88) 4 Dallas $21,916,157,238 1,269,197 486,820 $17,267.73 $45,019.02 $64,693 ($19,673.98) 5 El Paso $8,717,390,875 676,568 229,591 $12,884.72 $37,969.22 $59,859 ($21,889.78) Texas $436,592,607,432 26,668,922 9,468,956 $16,370.84 $46,107.79 $70,565 ($24,457.21) PREPARED BY NAI RIO GRANDE VALLEY 14 Hidalgo County Building Permits 2008-2012 2008 2009 2010 2011 2012 Single Family 2,923 2,691 2,915 2,759 2,658 Two Family 74 44 76 52 288 Three and Four Family 279 129 76 106 117 Five or More Family 133 178 297 20 254 Total 3,409 3,042 3,364 2,937 3,317 Source: US Census Data PREPARED BY NAI RIO GRANDE VALLEY 15 Growth in McAllen MSA Labor Force & Employment Between 2005 & 2012 324,356 350,000 286,311 261,157 300,000 240,611 250,000 200,000 150,000 100,000 50,000 - MSA LABOR FORCE MSA EMPLOYED 2005 2012 PREPARED BY NAI RIO GRANDE VALLEY 16 INDICATORS OF ECONOMIC ACTIVITY The Rio Grande Valley IS a powerful economic engine. The Valley labor force grew from 314,000 to 462,000 between 1995 and 2010 and the unemployment rate decreased from 18.4% to 11.6%. There are 165 Ports of Entry in the US. Since NAFTA was adopted in 1994, most of the ports have enjoyed substantial growth in bi-national trade between NAFTA partners. Value you will see that in 2013 the RGV Ports of Entry handled over $38.2 billion in cross border trade placing it 6th nationally. Hidalgo POE’s handled $26.3 billion (7th ) and Brownsville POE’s $11.99 Billion. PREPARED BY NAI RIO GRANDE VALLEY 17 Top 6 NAFTA POE’s Cargo Truck Billion $$ Trade Values $130.56 $105.86 $62.20 $55.19 $47.37 $38.2 Laredo - Texas Detroit - Buffalo- El Paso - Texas Port Huron - RIO GRANDE Michigan Niagara Falls - Michigan VALLEY New York PORTS PREPARED BY NAI RIO GRANDE VALLEY 18 Inter Oceanic Highway Corridor • The importing of Mexican produce for processing in the US is expected to increase materially over the next decade as the opening of a new transportation corridor between Mazatlan – Durango- Monterrey-Reynosa. The new Inter- Oceanic Highway will shorten time by 6- 12 hours. • A “tsunami” of agricultural products is anticipated as a result of the opening of this highway. Much of the Agricultural exports to the US from Mexico now cross at Nogales. It is expected that more than 50% of that trade will cross at the Pharr bridge in the coming years.
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