Texas Border Business
By Roberto Hugo González
Rick Carrera, Director of Economic Development at COSTEP, Council for South Texas Economic Progress, delivered a presentation during the Pharr Commercial and Investment Tour emphasizing the organization’s role in promoting economic growth in the Rio South Texas region. Under the leadership of CEO Adam Gonzalez, COSTEP focuses on positioning the area as a prime destination for business investments, leveraging its strategic geographic location near the U.S.-Mexico border. Carrera’s presentation highlighted several key focus areas for COSTEP and how they drive economic development across this dynamic region.
COSTEP emphasizes “Rio South Texas,” highlighting the often overlooked but economically vibrant area south of San Antonio. Carrera explained that many businesses outside Texas remain unaware of the economic potential in this region. “When I tell them there’s four hours of drive time south of San Antonio, they’re amazed,” Carrera said, emphasizing the untapped opportunities further south. The area, which includes counties in Texas and municipalities in Tamaulipas, Mexico, has significant economic advantages due to its proximity to U.S. and Mexican markets.
COSTEP’s cross-border collaboration is a central pillar of its strategy. Carrera pointed to partnerships with Mexican counterparts in Tamaulipas and organizations like COBIFER, CODEM, and INDEX, which help promote Rio South Texas as a viable option for companies looking to expand near the U.S.-Mexico border. By attracting the attention of site selectors—consultants tasked with identifying the best business locations—COSTEP ensures that the region is on the radar of international businesses seeking new opportunities. “We work with site selectors regularly,” Carrera said, stressing the importance of familiarizing these key decision-makers with what the region offers.
Carrera also discussed the growing trend of nearshoring, friendshoring, and Mexshoring, where companies seek to move operations closer to the U.S. to avoid supply chain risks. “Our proximity to Mexico is one of our greatest advantages,” he remarked, explaining how Rio South Texas is positioned to capitalize on this movement. With access to major highways, ports, and railroads, the region provides businesses with an efficient logistics network, allowing them to transport goods seamlessly across North America.
The Rio South Texas region boasts a population of nearly 3.7 million, which Carrera noted often surprises outside observers. “Most people don’t even know that there’s anything south of San Antonio,” he said. The large labor force is crucial, attracting businesses looking for a reliable and cost-effective workforce. This, combined with the region’s expanding infrastructure, makes Rio South Texas an ideal location for industries looking to establish or expand their operations.
Carrera outlined the region’s robust infrastructure, which includes an extensive highway system, airport connectivity, and multiple ports such as the Port of Brownsville. These assets make Rio South Texas highly competitive in terms of logistics. Additionally, its proximity to major railroad networks with access to Mexico provides businesses with even more connectivity options. “Our connectivity here is excellent,” Carrera said, pointing to the ease businesses can transport goods efficiently across U.S. and Mexican borders.
COSTEP promotes the availability of industrial parks throughout the region, offering businesses ready-to-develop sites with infrastructure already in place. These parks accommodate a range of industries, from light and advanced manufacturing to automotive, aerospace, and medical sectors. Companies like LG, Nokia, Black & Decker, and Emerson have already established regional operations, showcasing their potential to support high-tech industries.
While COSTEP does not focus on a single industry, Carrera explained that they mainly target light and advanced manufacturing. “We play to our strengths,” he said, noting that the region’s infrastructure and labor force make it particularly attractive to these sectors.
COSTEP uses various tools to promote the region, including FAM (Familiarization) tours, which bring site selectors and business leaders to Rio South Texas to experience the infrastructure and facilities firsthand. Carrera emphasized the value of these tours, noting that once decision-makers see the quality of the warehousing and manufacturing facilities, they are often “sold” on the region’s potential. In addition, the organization’s website (COSTEP.org) provides detailed data and property listings, allowing businesses to access critical information such as labor force statistics and population breakdowns.
Carrera’s presentation underlines the strategic importance of Rio South Texas as a growing hub for business investments. COSTEP is positioning the region as an attractive destination for companies looking to expand their presence in the U.S. and Mexico through its cross-border partnerships, emphasis on nearshoring trends, and the promotion of its connectivity and workforce.
Carrera’s efforts and those of CEO Adam Gonzalez are shaping and driving economic growth and putting this often-overlooked region on the map as a key player in North American commerce. “For us, it’s about promoting, promoting, promoting,” Carrera said, encapsulating the forward-thinking approach COSTEP brings to the region’s economic development.
