MCALLEN, Texas – Reynosa is already benefiting from supply chain disruptions in Asia caused by the coronavirus pandemic.

This is the view of McAllen-based customs broker Jorge Torres and INDEX Reynosa President Humberto Martinez.

INDEX is the trade association for the maquiladora industry in Mexico.

Jorge Torres

Asked if re-shoring is already happening due to supply chain disruptions, Martinez said: “Definitely. At this point we are bringing in companies from Asia to Reynosa, specifically. Across the country of Mexico, the same thing.”

Martinez said the supply chain disruptions in Asia are already causing “a lot of issues.”

He said: “Just to give you an idea. We have a six month lead time and some suppliers have a one year lead time, to supply the components. It is incredible what I going on right now. The effect of the pandemic is impacting the entire world.”

Martinez said the maquila plant he manages is growing as a result.

“Some of the suppliers have already relocated. I am bringing companies in from Asia in order to avoid the transportation costs. McAllen is helping to bring companies in also.”

Martinez said the McAllen operations for his Reynosa-based maquila is grown from 46,000 square feet to 130,000 square feet.

Humberto Martinez

Asked how big the maquiladora industry is in Reynosa right now, Martinez said: “We have 152 maquila companies and they employ around 145,000 workers.”

Martinez said he expects those numbers to get bigger in the coming months.

Customs broker Torres is president and co-founder of InterLink Trade Services. He recently co-hosted a webinar on the subject of the USMCA trade agreement. The other co-host was McAllen Economic Development Corporation.

During the presentation, Torres spoke about supply chain disruptions. Asked by the Rio Grande Guardian International News Service whether Reynosa was already benefiting, Torres said: 

“Yes, obviously, with USMCA, with the changes to the automotive industry, with the pandemic, with re-shoring, yes there are companies looking to move operations to Reynosa and other parts of Mexico. We are seeing a shift in production from China and even other Asian countries so that they meet the supply demands from their customers, from the market,” Torres said.

Podcast

Here is a podcast on Torres’ remarks about supply chain disruptions. The remarks were made during the InterLink/McAllen EDC webinar.


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