MCALLEN, Texas - Human Resources managers in the Rio Grande Valley’s manufacturing sector are going to have their work cut out trying to find experienced workers in the coming years, predicts Mike Willis.
The executive director of South Texas Manufacturers Association says this is because “there are going to be thousands and thousands of new manufacturing jobs coming this year and in the next few years.”
All the more reason, Willis said, for members of his association to complete the group’s Wages and Benefits Survey.
“You can benchmark your wages, and not just your wages, your benefits. I can tell you, having worked with Workforce Solutions… I double checked with them the other day, there really is no good place to get information on benefits and business practices in your industry.”
Willis made his comments during STMA’s monthly meeting at DoubleTree Suites by Hilton in McAllen.
After Willis ran through many of the manufacturing projects coming to the region, he joked: “All the HR managers just threw up their lunch. I've been working on this for a while: we are finally seeing the manufacturing industry start to boom in the Valley, and that means competition for labor, and that's where the wage survey plays a big role.”
Ralph Garcia, COO of McAllen Economic Development Corporation, agreed. He said:
“I think it's really important that the HR managers start looking at their pay scales, because (as) this investment evolves, you're going to see it… everybody’s going to be looking for employees. UTRGV, right now, they graduate about 1,500 engineers every year, and a lot of those engineers, we are losing them. They've been leaving the Valley. They're going to Houston. They're going to Dallas. They’re going to Austin because of the opportunities there, and they're doing recruitment here. They're coming here, and the companies are recruiting them straight out of the university. That's why our employers need to kind of step up and start looking at this. You also need to look at the pay scales because you need to make sure that you're competitive, not just in this region anymore but at the state level. You need to be looking at that seriously.”
Garcia continued: “I’m not saying that you have to raise your rates to the extreme, but be competitive, because a lot of times when you as an individual look for those opportunities, you also, I hope, look at the cost of living in those communities. And if that's a factor for you, going to Austin or going to Houston may seem attractive, but when you look at the cost of living in those markets, it's different. It's different from the Valley. So take that into consideration. Just really look at that, because that's going to be important going forward.”
Willis praised McAllen EDC for landing a big manufacturing project, which Garcia referenced in his presentation.
French high-tech auto manufacturing firm Valeo is to build a state-of-the-art facility within the McAllen Nearshoring Industrial Park on Ware Road in south McAllen. The company is investing $225 million over the next five years for a 337,000 square-foot facility that will create up to 500 new jobs in the region. Production is expected to begin in 2027.
“I have done a lot of work with the EDC over the years. I have had the opportunity to sit down with them and site selectors and senior company officials and all that. It can be a frustrating job. McAllen EDC has been on the short list for all kinds of big companies, such as single automotive companies, in years past. It is really good to see a really top-end advanced manufacturing company like Valeo coming this way.”
As he ran through the new manufacturing projects on the horizon, Willis said: “I’m not trying to scare you or give your HR managers depression.”
In Reynosa, Willis said LG is investing $100 million on an expansion project that will add 500 jobs. Another firm is building a 150,000 square foot plant in Reynosa. “They're going to be making probably switch gears for power management in data centers. That's going to be several jobs there,” Willis said.
The STMA executive director then referenced Indian tech giant Zoho.
“They're in still the process of remodeling the Echo Hotel in Edinburg to make it a training center/administrative site. But they bought 1,000 acres of land on 281 in Edinburg. They’re going to do a lot of different kinds of stuff. They are, primarily, a software development company. But if I remember right, they have a robotics division too. I don't there have been any announcements yet, but I would be highly surprised if there is not going to be some manufacturing up there at some point in the future,” Willis said.
MEDC’s Garcia confirmed this would be the case.
Willis then focused on the lower end of the Valley.
“SpaceX has 4,000 employees right now. They're hiring 4,000 more in 2026. They’ve already recruited some of our graduates from the AMT program at South Texas College. So that's going on.”
Willis then discussed Seatrium AmFELS, which recently sold its shipbuilding operation at the Port of Brownsville to Karpower Valley, LLC, an affiliate of Karpowership of Istanbul. Willis said that while 3,500 people have been laid off, he expects the blip to be temporary. “I'm sure that's going to be part of President Trump's effort to help support rejuvenating the ship building industry in the United States. I expect that place is going to have thousands of people at some point in the next few years,” he said.
Next on Willis’ list was Forza Steel, which is also based at the Port of Brownsville. “I think they've gotten their permitting issues squared away, and they're going to start hiring again at the new steel pipe manufacturing facility at the Port of Brownsville. I think that's just a couple of hundred people.”
Willis also referenced Linde, which is building a $100 million air separation plant in Brownsville. “Linde is finishing up their new methane gas plant on Paredes Line Road. They're going to be taking natural gas and making methane, probably for SpaceX,” Willis said.
Willis then spoke about a project first announced by President Trump.
“President Trump and the Port of Brownsville announced the first new refinery in the United States in 50 years. The company's called America First Refining. It's a new company, but it's formed by people with a lot of roots in the industry. So, they know what they're doing. It's actually a $3.5 billion capital investment for the machinery and equipment, the building and all that. It's going to be on a 240-acre site on the southeast side of the port. I'm sure that's going to take a year or more to build and everything, and that's that's going to be another 500 jobs,” Willis said.
“President Trump mentioned $300 billion. He was talking in terms of the balance of trade. It's going to shift. It's going to generate more $300 billion more exports, which is going to help our trade balance. That's kind of what he's focused on with the tariffs and everything else,” Willis said.
Willis then spoke about liquefied natural gas export terminals at the Port of Brownsville.
“Rio Grande LNG was planning to build three or four liquefaction trains. Now they're planning to do eight. So, they're increasing the size of that facility. I think that's going to mean that Bechtel, the contractor that has brought in 4,000 or 5,000 construction people, is going to stay there probably for four or five more years, maybe six more years, building that thing out,” Willis said.
“NextDecade themselves was going to have 175 to 200 technical jobs actually operating the liquefaction facility when it's built. So I'm guessing that's probably going to be 250, years from now.”
Willis then referenced Saronic Technologies.
“It's not official. They haven't made a final decision, but they presented to the Point Isabel school district last week asking for tax incentives. And they enthusiastically approved it. Usually, they’re pretty stingy. Let me rephrase that. They’re very responsible with their tax dollars.”
Willis said Saronic will build unmanned ships for the Department of Defense. “They are going to go on a 600-acre site. It's a $3.2 billion capital investment. Ten thousand jobs are planned. I don't know how many years that is, but that's a bunch of jobs over the next five to ten years, with an average pay of $90,000 a year. A lot of high tech, electronics and electronic jobs.”
Willis said he would bring STMA’s Wage & Benefit Survey along whenever visiting site selectors were in town.
“It was one of the first things that companies wanted to talk about. Where's the workforce? Where's my workforce in the future, if I locate here? Of course, we always brag about our young, rapidly growing population, and that's why STMA has been focused on promoting the industry and creating a talent pipeline in our schools. It has always been our top priority, and we’ve had lots of good programs,” Willis said.
“But, like Ralph (Garcia) said, the mechatronics associate degree program for high-end mechanics/maintenance technicians graduates about 40 students with associate degrees every year. And guess what? 35, 36 of them take jobs at 30 bucks an hour more, at Texas Instruments and other places. But, we've also got people that want to live here, that we can bring back.”
Willis said he has 39 manufacturing companies committed to participating in the new Wage and Benefits Survey.
“In 2024, we had 46. I'm going to try to get to 50 companies, because the more participation we have, the more accurate the data is. With our Wage and Benefit Survey, you’ll have up to date current wage and benefit information to share with corporate.”
Editor's Note: Here is a video recording of South Texas Manufacturers Association Executive Director Mike Willis' monthly report to his members. The video includes McAllen EDC COO Ralph Garcia's presentation on Valeo coming to McAllen:
