Brownsville (Texas) Market & Community profile 2014-2015

Page 1


Brownsville Economic Development Council’s Mission:

To lead, facilitate, and promote the economic and industrial development for the Brownsville-Matamoros BORDERPLEX and to build economic prosperity and create employment opportunities in the region by utilizing the resources and expertise of public/private institutions in collaboration with the Greater Brownsville Incentives Corporation.

Market and Community Profile 2


About this Report The Brownsville Market and Community profile covers information essential to relocating, starting and expanding your business in Brownsville, Texas, the Metropolitan Statistical Area (Cameron County) and Matamoros, Tamaulipas. This report considers local conditions – the economy, education, unemployment rates, crime, health care, among others – and compares these conditions to the state and nation. The profile provides a shared base of knowledge from available data and information sources to address the community’s current and future opportunities and challenges. Whether you are an existing business looking to relocate to Brownsville, an entrepreneur looking for some guidance on starting a business in Brownsville or a Brownsville-based company looking to understand local business resources, you will find the report to be an indispensable tool. As your first point of contact for doing business in Brownsville, the Brownsville Economic Development Council (BEDC) has a variety of resources in addition to this publication that can assist you in your business success. This is a dynamic document it is continually edited and updated by the BEDC. To find out more about what we can do for you, please call the BEDC at (956) 541-1183 or visit www.bedc.com.

Why Choose Brownsville? The Brownsville-Matamoros Borderplex offers an opportunity for the local and foreign investor. Brownsville is located on the southernmost tip of Texas, separated by the Rio Grande River from its Mexican sister city, Matamoros, Tamaulipas. The area has become a hub for international trade and commerce due to its ideal geographic location,

solid infrastructure and logistics, valuable resources, pro-business climate, a young and skilled workforce on both sides of the border, low labor costs, and the region’s overall low cost of living. Recently the Port of Brownsville was ranked 1st among the nation’s top 25 foreign trade zones for exports to foreign countries (Foreign-Trade Zones Board’s 74th annual 2013 report to Congress), Brownsville-Matamoros is positioned for the best import-export operations in the global market, with its largest trading partners being the United States, Canada, Mexico, and Europe, all of which have increased their investments in the region. Brownsville is also attracting interest from new markets in South America and Asia. Brownsville was recently named “Top 10 Small American Cities of the Future 2013/14” – FDI Strategy” (Foreign Direct Investment FDImagazine 2013) and ranked number 10 in Forbes list of “Best Cities for Future Growth” in 2013. Brownsville is attracting global attention from companies that cannot help but become part of the promising prosperity that awaits them in the Brownsville/Matamoros Borderplex. In addition to the countless business and investment opportunities, the Brownsville-Matamoros region presents a hybrid of two cultures and languages that make this place unique and exciting. Both cities are historically rich and passionate about the arts, culture, and education. With a year-round pleasant climate and close proximity to water allowing for most kinds of sports and outdoor activities, it is no wonder why people consider Brownsville to be the perfect place to live, learn, work, and play. Market and Community Profile 3


USA

Gulf of Mexico

Location Brownsville is strategically located on the southernmost tip of Texas, separated by the Rio Grande River from its Mexican Sister city, Matamoros, Tamaulipas.

Market and Community Profile 4


Table of Contents

1 Population Population Demographics

8

2 Employment Employment & Unemployment Top 20 Employers in Brownsville Employment by Sector Median Household Income

9 11 12 13

3 Trade Activity Brownsville/South Padre Island Airport Port of Brownsville Brownsville Border Bridge Crossings Top Export Countries for Texas Mexico Top Exports & Imports to Brownsville

14 15 16 18 19

4 Quality of Life

`

Cost of Living Bank Deposits Sales Tax Building Permits

21 23 25 26

5 Education Primary & Secondary Education Brownsville Education Attainment Higher Education University of Texas at Brownsville & Texas Southmost College Texas State Technical College

28 28 29 30 31

6 Housing

32

7 Utilities

33

8 Crime & Safety

34

9 Climate

35

Market and Community Profile 5


10 Matamoros, Tamaulipas

36

POPULATION

Brownsville continues to be the largest city in the Rio Grande Valley. The Rio Grande Valley comprises the following 4 counties: Cameron, Hidalgo, Starr, and Willacy County. According to the U.S. Census Bureau and Mexico’s National Institute for Statistics and Geography (INEGI), these 4 U.S. counties, along with their Mexican neighbors, Matamoros, Reynosa, and Rio Bravo, make up a combined population of 2.67 million. A strategic location with a young population, high birth rates, low cost of living, international trade, inbound migration, and a pro-business climate are the main elements contributing towards a growing population. According to the U.S. Census Bureau, between 1980 and 2010, Brownsville’s population has more than doubled, from 84,997 to 175,023. “The Valley,” as most people refer to it, is considered to be among the country’s largest metropolitan areas. In 2012, the Milken Institute ranked the BrownsvilleHarlingen MSA as No. 29 out of 200 largest metros in the U.S. This region is currently the 3rd largest market in Texas, the 23rd largest market in the country, and it is considered the largest U.S./Mexico border region in America.

Population Statistics Population Stats. Brownsville Brownsville

BrownsvilleMSA* MSA* Brownsville Texas Texas UnitedStates States United Population % Population Change% Δ Brownsville Brownsville BrownsvilleMSA* MSA* Brownsville Texas Texas UnitedStates States United Population Population Growth Growth Brownsville Brownsville Texas Texas USA USA

1980 1980 84,997 84,997

1990 1990 98,962 98,962

2000 2000 139,722 139,722

2010

2,013 2010 2014 175,023 175,023 175,023 181,860 406,220 415,557 406,220 417,276

209,727 209,727 14,229,191 14,229,191 226,545,805 226,545,805

260,120 260,120 17,044,714 16,986,335 249,464,396 248,845,816

335,227 335,227 20,851,820 26,059,203 20,851,820 25,145,561 25,145,561 26,448,193 281,421,906 308,745,538 316,869,000 281,421,906 308,745,538 316,128,839

%%ΔChange 20002000-2013 2013 25.3% 30.2%

2020 2020 Projection Projection 200,000 N/A

23.9% 24.5% 25.9% 26.8%

491,465 491,465 30,858,449 30,858,449

12.6% 12.3%

324,927,000 324,927,000

44,872,038 44,872,038 377,350,000 377,350,000

1980 1980

1990 1990

2000 2000

2010 2010

2013 2014

0.0% 0.0% 0.0% 0.0%

16.4% 16.4% 19.5% 19.4%

64.4% 64.4% 46.5% 46.5%

105.9% 105.9% 76.7%76.7%

105.9%114.0% 83.1% 85.9%

0.0% 0.0%

10.1% 9.8%

24.2% 24.2%

36.3.9% 36.3%

39.9% 39.5%

2040 2040 Projection Projection 250,000 N/A 594,027 594,027

*Brownsville MSA (Metropolitan Statistical Area) consists of Cameron County, which includes the city of Brownsville, Harlingen, La Feria, Los Fresnos, Palm Valley, Port Isabel, Rio Hondo, and San Benito; the towns of Bayview, Combes, Indian Lake, Laguna Vista, Los Indios, Primera, Rancho Viejo, Santa Rosa, and South Padre Island. Data Source: U.S. Census Bureau

Market and Community Profile 6


POPULATION

Percentage Population Growth 120.0%

114.0% 105.9%

100.0% 85.9% 80.0%

76.7% 64.4%

60.0%

46.5%

40.0%

0.0%

39.5%

2010

2014

24.2%

16.4%

20.0%

36.3%

19.4% 9.8%

0.0% 1980

1990

Brownsville

2000 Texas

USA

P OP UT L AT ION : BROWN SV IL L E M SA & BROWN SV ILLE Brownsville

Brownsville MSA*

406,220

417,276

175,023

181,860

2010

2014

335,227 209,727

260,120

84,997

98,962

1980

1990

Source: U.S. Census B

139,722 2000

Market and Community Profile 7


POPULATION Brownsville Demographics

Male 2000

2013

% Change

Median Age

Male

65,783

84,053

27.8%

27

Female

73,939

93,742

26.8%

29

Sex

Ethnicity

2013

% Change

Total Hispanic or Latino (of any race)

127,535

166,015

30.2%

Mexican

103,297

161,065

55.9%

Puerto Rican

215

273

27.0%

Cuban

159

175

10.1%

Other Hispanic or Latino

23,864

4,502

-81.1%

Not Hispanic or Latino

12,187

11,780

-3.3%

White Alone

10,826

9,142

-15.6%

2000

2013

% Change

0-19

53,410

66,324

24%

20-34

30,949

36,448

18%

35-54

32,863

42,896

31%

55-64

9,218

14,743

60%

65+

13,282

17,384

31%

Total

139,722

177,795

27%

Source: U.S. Census

47%

53%

2000

Age

Female

Mexican

Puerto Rican

Cuban

Other Hispanic or Latino

White Alone

7%

6%

87%

Age Groups 0-19

20-34

8%

35-54

55-64

10% 37%

24% 21% Market and Community Profile 8

65+


EMPLOYMENT Employment & Unemployment

The Brownsville Metropolitan Statistical Area (MSA) has a workforce that has experienced a continuous increase in employment numbers with the exception of the economic recession in 2008, which inevitably affected employment levels throughout the country. In 2014, Brownsville ranked no. 9 in Job Growth on Forbes list of Best Places for Business and Careers. As shown in the graph below, the number of jobs in the Brownsville MSA came back up to pre-recession levels after a slight decrease in 2009. In the years 2010 and 2011, the number of jobs increased though the unemployment rate remained high. It may seem paradoxical to see these two figures going the same direction. Typically when employment numbers raise, unemployment rates drop, however there are exceptions. At the same time that more people are becoming employed, the civilian labor force pool is also growing due to our increasing student graduate population, as well as the influx of individuals migrating to Brownsville seeking employment.

Brownsville MSA Employment 2014*

150,234 148,102

2012

146,112 144,131

2010

142,142 137,494

2008

135,933 134,040

2006

133,357 129,893

2004 115,000

129,998 120,000

125,000

130,000

135,000

140,000

145,000

150,000

155,000

Number of People Employed

Source: Texas Workforce Commission and Bureau of Labor Statistics

Market and Community Profile 9


EMPLOYMENT Employment & Unemployment

Brownsville MSA Labor Force & Employment Civilian Labor Force

Employment

Employment Growth Rate

170,000

2%

165,000

1%

160,000

1%

155,000

0%

150,000

-1%

145,000 140,000

-1%

135,000

-2%

Brownsville MSA Employment and Unemployment Employment

Unemployment

Unemployment Rate

160,000

15%

140,000

13%

120,000

11%

100,000

9%

80,000

7%

60,000

5%

40,000

3%

20,000

1% -1%

0

Source: Texas Workforce Commission and Bureau of Labor Statistics

Market and Community Profile 10


EMPLOYMENT Top 20 Employers in Brownsville

Top 20 Employers

Employer

Sector

Employees

1

Brownsville Independent School District

Education

7708

2

Caring For You Home Health

Medical/Healthcare

2,632

3

Cameron County

Government

2,040

4

University of Texas at Brownsville

Education

1,625

5

Keppel Amfels

Manufacturing

1,400

6

City of Brownsville

Government

1,200

7

Abundant Life Home Health

Medical / Healthcare

1,200

8

Wal-Mart

Retail

1,055

9

H-E-B Grocery

Retail

975

10

Valley Regional Medical Center

Medical / Healthcare

786

11

Valley Baptist Medical Center

Medical / Healthcare

738

12

Maximus

Call Center

700

13

Teleperformance

Call Center

564

14

Stripes

Gas / Food / Retail

550

15

ESCO Marine

Manufacturing

520

16

Brownsville Public Utilities Board

Utilities

498

17

All Star Metals

Manufacturing

430

18

Trico Technologies

Manufacturing

420

19

Texas Southmost College

Education

401

20

National Electric Coil

Manufacturing

311

Source: Brownsville Economic Development Council

Brownsville has many assets that make it an area well poised for significant job growth and economic development. In July 2014, Brownsville ranked No. 17 on the list of Most Recession-Recovered Cities out of 150 largest cities in the U.S. Some of the critical factors that place Brownsville at an advantage include the ever-growing skillful workforce on both sides of the U.S. / Mexico border, a burgeoning student population at the local university and technical college, and the international trading ports that facilitate trade for both countries. Recently, FDI Magazine identified Brownsville as the “Number one cost-effective city for foreign-direct investment in North America.” With Mexican investments just across the border and foreign investments coming from overseas, Brownsville’s workforce and employment numbers will continue to grow, and the unemployment rate drop. The Brownsville MSA employment population is dispersed through various industries. The top three industries that make up most of the employment population include: Education & Health Services, Government and Trade, transportation and utilities.

Market and Community Profile 11


EMPLOYMENT Employment by Sector

Employment by Sector Comparison 140,000 120,000 100,000

2000

80,000

2013

60,000 40,000 20,000 0

Employment by Sector

Education & Health Services Total Government

22.9%

Trade, Transportation, & Utilities Leisure & Hospitality

19.0%

Professional/Business Services Manufacturing

25.3%

Financial Activities

10.2% 2.5% 0.8%

4.0% 2.8%

4.2%

8.5%

Other Services Mining, Logging, & Construction Information

Source: Texas Workforce Commission and Bureau of Labor Statistics

Market and Community Profile 12


EMPLOYMENT Income

Brownsville MSA

Brownsville Income and Benefits (in 2013 inflation-adjusted dollars)

Estimate

Income and Benefits (in 2013 inflation-adjusted dollars)

Estimate

Total households

49,344

Total households

117,836

Less than $10,000

7,451

Less than $10,000

16,851

$10,000 to $14,999

4,836

$10,000 to $14,999

10,959

$15,000 to $24,999

7,648

$15,000 to $24,999

18,618

$25,000 to $34,999

6,267

$25,000 to $34,999

15,201

$35,000 to $49,999

7,007

$35,000 to $49,999

16,261

$50,000 to $74,999

7,698

$50,000 to $74,999

18,618

$75,000 to $99,999

3,454

$75,000 to $99,999

8,838

$100,000 to $149,999

3,010

$100,000 to $149,999

8,131

$150,000 to $199,999

1,135

$150,000 to $199,999

2,357

$200,000 or more

2,121

$200,000 or more

839

Median household income (dollars)

32,105

Median household income (dollars)

33,179

Mean household income (dollars)

47,321

Mean household income (dollars)

48,645

Market and Community Profile 13

P


TRADE ACTIVITY Brownsville/South Padre Island International Airport

Airline Activity Brownsville/ South Padre Island International Airport 2014*

93,238

81,589 93,383 89,770 89,000 87,705 83,410 85,521 93,852 91,450 77,244 67,623

2012 2010 2008 2006 2004 0

104,552 103,769 84,278 82,165 79,366 81,722 91,444 90,077 75,295 66,060

40,000

80,000

120,000

Enplaned Passengers

160,000

200,000

Deplaned Passengers

Air Cargo Brownsville/ South Padre Island International Airport 2014*

3

2

2012

3

2

2010

4

2

2008

4

2006

4 4

5

2004 0

1

2

3

4

5

9 6

7

8

9

Pounds of air cargo Enplaned, Deplaned, & Transfers in Millions Source: Brownsville South Padre Island International Airport Note: * includes data up to October 2014

Market and Community Profile 14


TRADE ACTIVITY Port of Brownsville Port of Brownsville: Waterborne Cargo 6

Metric Tons in Millions

5 4 3 2 1 0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

Waterborne Cargo Note: * includes data up to June 2014

Waterborne Cargo: by Product Classification (2012)

Waterborne Cargo

2012 Total

2012%

Metallic Ores Nonmetallic Minerals, Except Fuels

30,760.44

0.6

363,356.58

6.7

Nonmetallic Minerals, Except Fuels

Chemicals & Allied Products

44,160.88

0.8

Chemicals & Allied Products

Petroleum & Coal Products

2,749,827.81

50.6

Petroleum & Coal Products

Primary Metal Products

2,012,647.27

37.0

Primary Metal Products

Waste & Scrap Materials

214,645.24

4.0

Waste & Scrap Materials

Total

5,433,235.44

100

Metallic Ores

Source: Port of Brownsville

Market and Community Profile 15


TRADE ACTIVITY Brownsville Border Bridge Crossings

Vehicle Crossings

Rail Crossings

Northbound

Southbound

Jun-14

Jun-14

Apr-14

Apr-14

Feb-14

Feb-14

Dec-13

Dec-13

Oct-13

Oct-13

Aug-13

Aug-13

Jun-13

Jun-13

0

200

400

0

600

5

Pedestrian Crossings

Truck Crossings

Jun-14

Jun-14

Apr-14

Apr-14

Feb-14

Feb-14

Dec-13

Dec-13

Oct-13

Oct-13

Aug-13

Aug-13

Jun-13

Jun-13

100

15

Thousands

Thousands

0

10

200

Thousands

300

400

0

10

20

30

Thousands

Source: Rio Grande Valley Partnership

Market and Community Profile 16

40


TRADE ACTIVITY Brownsville Border Bridge Crossings

Total Crossings Thousands

Brownsville Border Bridge Crossings 14,000 12,000 Vehicle Crossings

10,000

Pedestrian Crossings

8,000

Truck Crossings

6,000

Truck Crossings

4,000 2,000 0 2007

YEARLY CROSSINGS

2008

2009

2010

2011

2012

2013

2014*

2007

2008

2009

2010

2011

2012

2013

2014*

Northbound

7,500,014

5,512,292

4,002,230

4,074,893

3,709,400

4,487,407

4,784,585

2,585,549

Southbound

4,081,138

5,231,131

4,138,648

3,380,174

3,846,507

3,276,389

2,544,864

1,743,872

11,581,152

10,743,423

8,140,878

7,455,067

7,555,907

7,763,796

7,329,449

4,329,421

Northbound

2,537,734

2,493,451

2,086,622

2,366,925

2,109,895

2,104,561

2,117,807

1,263,387

Southbound

1,266,339

1,839,580

2,026,537

1,986,628

1,928,719

1,850,098

1,781,808

1,068,146

3,804,073

4,333,031

4,113,159

4,353,553

4,038,614

3,954,659

3,954,659

2,331,533

Northbound

180,425

186,248

135,113

177,687

177,986

190,204

177,008

218,762

Southbound

120,645

182,414

167,717

185,590

187,714

201,189

190,815

113,829

301,070

368,662

302,830

363,277

365,700

391,393

391,393

332,591

Northbound

6,536

80,147

36,134

42,453

39,398

43,044

43,632

47,681

Southbound

38,323

72,609

40,981

47,037

45,246

53,608

41,981

50,089

44,859

152,756

77,115

89,490

84,644

96,652

96,652

97,770

Vehicle Crossings

TOTAL Pedestrian Crossings

TOTAL Truck Crossings

TOTAL Truck Crossings

TOTAL

Note: *Includes incomplete data set, data up to August 2014 Source: Texas Center for Border Economic and Enterprise Development; U.S. Customs & Bridge Operators

Market and Community Profile 17


TRADE ACTIVITY Texas Top 20 Export Countries

Top Export Countries for Texas Rank 1

Partner Mexico

2013 $94,438,397,422

2013 Market Share 33.8%

2

Canada

$23,858,926,718

8.5%

3

Brazil

$10,035,107,244

3.6%

4

China

$10,303,454,835

3.7%

5

Netherlands

$9,597,287,714

3.4%

6

South Korea

$7,761,451,730

2.8%

7

Colombia

$5,631,163,427

2.0%

8

Singapore

$6,383,402,734

2.3%

9

Venezuela

$6,924,634,125

2.5%

10

Japan

$4,673,937,868

1.7%

11

Belgium

$4,321,680,141

1.5%

12

Chile

$4,269,918,433

1.5%

13

Taiwan

$3,470,912,384

1.2%

14

Saudi Arabia

$3,977,654,964

1.4%

15

United Kingdom

$4,234,524,630

1.5%

16

France

$3,826,827,729

1.4%

17

Nigeria

$2,169,857,279

0.8%

18

Argentina

$2,593,649,545

0.9%

19 20

Peru Turkey

$2,623,662,119 $2,582,426,859

0.9% 0.9%

2013 Exports of NAICS Total

In thousands [$ USD]

Source: Office of Trade & Economic Analysis, International Trade Administration

Market and Community Profile 18


TRADE ACTIVITY Brownsville’s Top 20 Exports to Mexico

Brownsville's Top 25 Exports to Mexico – 2014 RANK

SITC

TRADE VALUE

PRODUCT DESCRIPTION

1

33460

Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations

1,196,845,360

2

78439

Other parts and accessories

228,223,762

3

22220

Soya beans

220,088,972

4

82119

Parts of the seats of subgroup 821.1

154,529,918

5

79299

Civilian Aircraft, Engines and Parts

139,474,716

6

68913

Tantalum, unwrought (including bars and rods obtained simply by sintering); waste and scrap; powders

115,920,996

7

77642

Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits

97,827,402

8

76160

Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus

84,976,219

9

68421

Aluminium bars, rods and profiles

79,021,627

10

59899

Other chemical products and preparations

74,195,844

11

76412

Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network)

73,021,224

12

69969

Articles of iron or steel, n.e.s.

72,825,221

13

77835

Parts of the equipment of heading 778.34

72,595,285

14

89399

Other articles

67,342,686

15

78432

Other parts and accessories of bodies (including cabs)

60,680,365

16

77220

Printed circuits

60,476,139

17

89319

Articles for the conveyance or packing of goods, n.e.s.; stoppers, lids, caps and other closures

57,203,832

18

87193

Other optical devices, appliances and instruments

56,243,616

19

77258

Plugs and sockets

56,167,190

20

57431

Polycarbonates

55,783,312

Source: Texas Center for Border Economic & Enterprise Development

Market and Community Profile 19


TRADE ACTIVITY Brownsville’s Top 20 Imports from Mexico

Brownsville's Top 25 Imports from Mexico – 2014 TRADE VALUE

RANK

SITC

PRODUCT DESCRIPTION

1

78439

Other parts and accessories

582,066,044

2

77865

Ceramic dielectric fixed capacitors, multilayer

375,427,808

3

82119

Parts of the seats of subgroup 821.1

276,336,346

4

78432

Other parts and accessories of bodies (including cabs)

199,716,986

5

93100

Special transactions and commodities not classified according to kind

187,435,221

6

33460

Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations

169,813,213

7

77834

Electrical lighting or signalling equipment (excluding articles of subgroup 778.2), windscreen wipers, defrosters and demisters, of a kind used for cycles or motor vehicles

120,347,274

8

52236

Other inorganic acids

111,451,092

9

23211

Styrene-butadiene rubber (SBR); carboxylated styrene-butadiene rubber (XSBR)

109,890,249

10

77261

Boards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of subgroup 772.4 or 772.5, for electrical control or the distribution of electricity

104,453,216

11

77121

Static converters (e.g., rectifiers)

102,012,648

12

72393

Parts for boring or sinking machinery of heading 723.37 or 723.44

93,561,891

13

77885

Parts of the equipment of heading 778.84

84,457,316

14

76211

Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles - combined with sound-recording or reproducing apparatus

83,894,375

15

77835

Parts of the equipment of heading 778.34

83,006,551

16

89961

Hearing-aids (excluding parts and accessories)

72,807,768

17

71620

Motors (other than motors of an output not exceeding 37.5 W) and generators, direct current

70,618,398

18

77255

Other switches

68,734,001

19

66492

Multiple-walled insulating units of glass

66,627,808

20

78433

Brakes and servo-brakes and parts thereof

65,754,100

Source: Texas Center for Border Economic & Enterprise Development

Market and Community Profile 20


QUALITY OF LIFE Cost of Living Cost of Living Index – 2013 Annual Average Data Urban Area and State

Composite

Grocery

Housing

Utilities

Transportation

Health

Miscellaneous

(100%)

(13.56%)

(27.02%)

(10.30%)

(12.35%)

(4.64%)

(32.17%)

U.S. Average

100

100

100

100

100

100

100

Brownsville, TX

89.9

90.3

75.5

96.4

97.3

97.4

95.1

Las Vegas, NV

100.8

96.8

100.4

85.4

101.2

103.6

106.8

McAllen, TX

88.2

83.5

79.4

100.0

94.8

88.8

90.8

San Diego, CA

130.0

101.9

200.3

97.7

113.6

109.9

104.9

Seattle, WA

117.8

100.3

137.7

96.6

116

120.3

115.6

Phoenix, AZ

96.0

93.6

96.9

97.6

95.8

96.0

95.7

St. Louis, MO

94.3

98.9

74.0

113.4

102.7

101.4

98.2

Denver, CO

104.2

93.7

116.3

101.3

95.0

103.9

103.4

San Francisco, CA

161.6

119.5

295.6

95.1

115.2

120.1

116.8

Dallas, TX

95.9

92.6

76.0

106.9

102.5

99.3

106.7

New York, NY

171.6

119.1

322.5

124.1

112.2

110.5

119.6

Miami, FL

107.6

100.2

118.8

95.7

110.7

104.6

104.7

Atlanta, GA

95.3

91.4

87.7

92.1

102.3

102.7

100.0

Boston, MA

139.7

125.8

176.5

144.4

104.4

126.3

130.2

Charlotte, NC

95.7

101.9

84.3

106.6

98.7

98.3

97.3

Detroit, MI

95.6

85.7

91.9

104.1

102.8

100.5

96.6

Corpus Christi, TX

92.1

83.2

83.4

113.5

96.3

92.1

94.4

San Antonio, TX

88.8

81.7

80.0

82.7

95.7

83.9

96.9

Source: ACCRA Cost of Living 2013- ANNUAL AVERAGE DATA This is the overall cost of living index, which takes into account grocery, housing, utilities, transportation, health and miscellaneous expenses. The nationwide average score is 100. Therefore, if this result has a score of 110, it is 10% higher than the U.S average.

Market and Community Profile 21


QUALITY OF LIFE Cost of Living Cost of Living Index Comparison 2013 Cost of Living Index

Brownsville

Brownsville

Texas

Overall Index

89.9%

92.9%

Grocery

90.3%

90.8%

Housing

75.5%

85.4%

Utilities

96.4%

94.1%

Transportation

97.3%

96.0%

Health

97.4%

94.8%

Misc.

95.1%

97.8%

Texas

120% 100% 80% 60% 40% 20% 0% Overall Index

Grocery

Housing

Utilities

Transportation

Health

Misc.

Source: ACCRA Cost of Living 2013 Annual Average data

Market and Community Profile 22


QUALITY OF LIFE Bank Deposits

Amount of Bank Deposits made in Brownsville MSA $4,400 Millions of Dollars

$4,300 $4,200 $4,100 $4,000 $3,900 $3,800 $3,700 $3,600 $3,500

2007

2008

2009

2010

2011

2012

2013

2014

Series1 $3,874,912 $4,072,490 $4,294,093 $4,169,598 $4,170,403 $4,159,841 $4,113,431 $4,150,072

Number of Bank of Offices in Brownsville MSA 90 85 80 75 70 No. of Offices

2007

2008

2009

2010

2011

2012

2013

2014

82

85

83

84

86

84

82

78

Source: Federal Deposit Insurance Corporation

Market and Community Profile 23


QUALITY OF LIFE Bank Deposits

Bank Deposits for all FDIC-Insured Institutions in Brownsville MSA Commercial Banks

Savings Institutions

Number of

All Institutions (Total)

Number of

Number of

Institutions

Offices

Deposits in millions

Institutions

Offices

Deposits in millions

Institutions

Offices

Deposits in millions

2000

10

51

$2,281

1

9

$235

11

60

$2,516

2001

12

54

$2,425

1

9

$255

13

63

$2,680

2002

13

53

$2,560

1

8

$242

14

61

$2,802

2003

13

57

$2,891

1

7

$237

14

64

$3,128

2004

14

64

$3,396

0

0

$0

14

64

$3,396

2005

14

71

$3,493

0

0

$0

14

71

$3,493

2006

14

74

$3,768

0

0

$0

14

74

$3,768

2007

15

82

$3,875

0

0

$0

15

82

$3,875

2008

16

85

$4,072

0

0

$0

16

85

$4,072

2009

17

83

$4,294

0

0

$0

17

83

$4,294

2010

17

84

$4,169

0

0

$0

17

84

$4,169

2011

18

86

$4,170

0

0

$0

18

86

$4,170

2012

19

84

$4,159

0

0

$0

19

84

$4,159

2013

20

82

$4,113

0

0

$0

20

82

$4,113

2014

18

78

$4,150

0

0

$0

18

78

$4,150

Source: Federal Deposit Insurance Corporation Note: Data as of June 30 of the corresponding year

Market and Community Profile 24


QUALITY OF LIFE Sales Tax

Total Local Sales Tax Allocation $40 $35

Millionsof Dollars

$30 $25

$25.5

$26.6

2004

2005

$30.1

$31.8

2006

2007

$33.7

$30.7

$30.7

$31.9

2009

2010

2011

$33.3

$33.8

$35.4

2012

2013

2014

$20 $15 $10 $5 $0 2008

Source: Texas Comptroller of Public Accounts

Sales Tax Allocation Comparison

Last 12 Months: Jan. 13 - Dec. 14 Previous Year: Jan 12 - Dec. 13

Thousands of Dollars

$4,000 $3,600 $3,200 $2,800 $2,400 $2,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: Texas Comptroller of Public Accounts Note: taxes collected on sales made two months or more prior to the allocation payment.

Market and Community Profile 25


QUALITY OF LIFE Building Permits

Infrastructure helps determine the success of manufacturing and agricultural activities. Investments in water, sanitation, energy, housing, and transport also improve lives and help reduce poverty. There has been a substantial rise in commercial construction, showing signs of economic growth — not quite where it was before the recession, but getting better. The city’s building inspection department reports that it issued building permits for $70 million worth of commercial construction projects for September 2014.The kinds of permits the department issues include, permits for signs, swimming pools, demolition, carports, garages, as well as, for residential and commercial construction, repairs, re-roofing, and additions.

Brownsville Building Permits

Commercial Building Permits Residential Building Permits

$400 $350

Millions

$300 $250 $200 $150 $100 $50 $0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014*

Sources: City of Brownsville Building Permits Department; Rio Grande Valley Partnership *incomplete data set

Market and Community Profile 26


QUALITY OF LIFE Building Permits

140

$120,000

120

$100,000

100

$80,000

80

$60,000

60

$40,000

40

$20,000 Nov

Oct

Sep

Aug

Jul

Jun

Jun

May

Apr

Mar

Feb

0

2014 Jan

20 Dec

Number of Dwelling Units

Value

$0

Number of Dwelling Units

Average Value per Dwelling Unit

Date

Units

Percent Change

Value ($)

Percent Change

2013 - Jan

99

43.5

95,500

2

Feb

85

37.1

118,600

19.6

Mar

81

-16.5

131,900

51.4

Apr

66

-28.3

108,500

10.7

May

84

-5.6

84,900

-13

Jun

65

-12.2

92,300

-9.2

Jul

109

26.7

97,300

8.5

Aug

60

-29.4

106,100

5.4

Sep

65

-5.8

104,000

-13.1

Oct

71

-4.1

104,900

-3.7

Nov

67

6.3

89,500

-20.1

Dec

130

170.8

92,500

1.5

2014 - Jan

71

-9

102,200

14.2

Feb

75

-11.8

92,700

-21.8

Mar

79

-2.5

98,500

-25.3

Apr

111

68.2

86,700

-20.1

May

94

11.9

90,200

6.2

Jun

95

48.4

84,300

-6.1

Jun

95

48.4

84,300

-6.1

Jul Aug Sep Oct Nov

92 102 64 87 48

-15.6 72.9 0 22.5 -26.2

90,500 79,300 94,300 92,800 107,900

-6.2 -26.4 -10.6 -11.5 22.3

Source: Real Estate Center Texas A&M University

Market and Community Profile 27

Average Value Per Dwelling Unit

Units

Brownsville MSA Single-Family Building Permits


EDUCATION Primary & Secondary Education Access to education is key to our success. Our community is committed to offering our residents with a high quality education. Our region continuously strives to raise the standards of its education system. The Brownsville Independent School District (BISD) was awarded the Broad Prize for Urban Education in 2008, an annual $1 million award that honors school districts across the U.S. making the greatest progress in raising student achievement. In addition, three Brownsville Independent School District elementary schools are finalists for the 2015 National Excellence in Urban Education award. BISD high schools have also developed 8 magnet academic programs in an effort to align their curriculum to 21st century career forecasts and individual student’s interest. BISD is the largest employer in the Rio Grande Valley, with approximately 7,708 employees working for 60 schools serving 49,772 students.

Brownsville 2012 Primary & Secondary Education

# of Schools

Students

Elementary School

37

24,821

Middle School

11

10,893

High School

8

13,533

Private School

11

3,110

Charter School (Affiliated with BISD)

4

525

Charter School

6

1,743

Total

77

54,625

Source: National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS)

Educational Attainment

Estimate

Percent

Population 25 years and over

98,205

98,205

Less than 9th grade

22,489

22.9%

9th to 12th grade, no diploma

14,043

14.3%

High school graduate (includes equivalency)

21,703

22.1%

Some college, no degree

18,168

18.5%

Associate's degree

5,696

5.8%

Bachelor's degree

11,588

11.8%

Graduate or professional degree

4,419

4.5%

Percent high school graduate or higher

61,673

62.8%

Percent bachelor's degree or higher

16,007

16.3%

Source: U.S. Census Bureau - American Fact Finder

Market and Community Profile 28


EDUCATION Higher Education

Centers of higher education in the Brownsville Borderplex offer our community access to technical, associate, bachelor, master and doctorate degrees. Texas Southmost College (TSC) is an integral component of our community. TSC is a community college that offers associate degrees and certificates in over 50 associate and certificate programs. The University of Texas at Brownsville (UTB) is a public institution that provides unique academic opportunities to over 8,000 students; it is a member of the University of Texas System. UTB utilizes a semester-based academic calendar. UTB currently offers 71 undergraduate bachelor’s programs and 24 graduate programs for Master’s and doctoral degrees. This institution provides the region with high quality education, its in-state tuition and fees are $5,372 (201314); out-of-state tuition and fees are $14,834 (2013-14). Starting fall 2015, UTB will merge with the University of Texas Pan American (UTPA) to become the University of Texas Rio Grande Valley (UT-RGV). In 2014, The Hispanic Outlook in Higher Education magazine ranked UTB as No. 9 in the nation in its yearly review of the “Top 100 Colleges for Hispanics.” In addition, UTB ranked No. 5 (tied with University of California-Santa Barbara, University of Houston) in mathematics and statistics.

Fall 2013 Student Enrollment 10,000 9,000

8,612

8,000 7,000 6,000

5,332

5,000 4,000

3,018

3,000 2,000 1,000 0 UTB

TSC

TSTC

Market and Community Profile 29


m

EDUCATION University of Texas at Brownsville & Texas Southmost College

Texas Southmost College

UT Brownsville Ethnicity

Fall 2014

Ethnicity

Fall 2013

White (Non-Hispanic)

504

White (Non-Hispanic)

44

Black (Non-Hispanic)

81

Black (Non-Hispanic)

5

Hispanic

7,841

Hispanic

2,880

Asian or Pacific Islander

111

Asian or Pacific Islander

12

Native American

10

Native American

2

Other

65

International

0

Other

75

Gender

Gender

Male

3,595

Female

5,017

Age Under 18

Male

1,280

Female

1,738

Age 224

Under 18

441

18-25

5,594

18-25

1,614

25-35

1,666

25-35

607

36-45

763

36-45

244

Over 45

365

Over 45

112

Total Enrollment

8,612

Total Enrollment

3,018

Market and Community Profile 30


EDUCATION Texas State Technical College

Texas State Technical College – Harlingen, TX Ethnicity

Fall 2000

Fall 2010

Fall 2011

Fall 2012

Fall 2013

White (Non-Hispanic)

384

556

490

421

353

Black (Non-Hispanic)

13

38

40

36

37

2,847

5,038

5,131

4,923

4,813

Asian or Pacific Islander

20

44

34

31

37

Native American

2

2

6

6

8

International

0

2

7

7

4

Other

0

99

99

85

80

Male

1,692

2,677

2,710

2,624

2,590

Female

1,574

3,102

3,097

2,885

2,742

TOTAL

3,266

5,779

5,807

5,509

5,332

Hispanic

Gender

TSTC Students Enrolled 6,000

Total Students Enrolled, 5,332

5,500 5,000 4,500 4,000 3,500 3,000 Fall 2000

Fall 2001

Fall 2002

Fall 2003

Fall 2004

Fall 2005

Fall 2006

Fall 2007

Fall 2008

Fall 2009

Fall 2010

Fall 2011

Fall 2012

Fall 2013

Market and Community Profile 31


HOUSING MARKET Sales (Housing units)

Dollar Volume

100

$16

90

$14

80

$12

Housing Units

70 60

$10

50

$8

40

$6

30

$4

20

Home Prices Comparison

Nov-14

Oct-14

Sep-14

Aug-14

Jul-14

Jun-14

May-14

Apr-14

Mar-14

Feb-14

Jan-14

Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

$0

Mar-13

0

Feb-13

$2 Jan-13

10

BRO Average Price

BRO Median Price

TX Average Price

TX Median Price

$300,000 Housing Prices

$250,000 $200,000 $150,000 $100,000 $50,000 $0

Source: Real Estate Center Texas A&M University

Market and Community Profile 32

Dollar Volume (in millions)

Home Sales in Brownsville


UTILITIES Average Number of Services Billed by Utility Electric

Water (10,000 gallons)

Wastewater (8,000 gallons)

49,500 49,000 48,500 48,000 47,500 47,000 46,500 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Total Average Residentail Monthly Charges per Utility

(Based on 1,000 kWH of electric, 10,000 gallons of water, and 8,000 gallons of water consumption)

Electric

$140.00

Water

Wastewater

$120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Source: Brownsville Public Utilities Board (PUB)

Market and Community Profile 33


CRIME & SAFETY The Brownsville Police Department participates in the Uniform Crime Reporting Program, which is the reporting of 7 index crimes, this allows us to measurement and analyze the crime index for the city. In 2013, there were a total of 8,311 index crimes in the City of Brownsville as compared to 10,232 in 2009. The crime index decreased 18.7% from 2009 to 2013. According to the most recent FBI crime report, the Brownsville crime index is 33% lower than the National average.

Offense Murder Rape Robbery Aggravated Assault Burglary Theft Motor Vehicle Theft TOTALS OFFENSE Murder Rape Robbery Aggravated Assault Burglary Theft Motor Vehicle Theft TOTALS

2010 7 31 165 360 1,286 7,784 246 9,879 2013 1 61 136 275 1,140 6,441 257 8,311

2011 2 37 109 353 1,009 7,015 163 8,688

2012 3 38 125 307 1,145 6,986 206 8,810

2013 1 61 136 275 1,140 6,441 257 8,311

2012 3 38 125 307 1,145 6,986 206 8,810

(+/-) -2 23 11 -32 -5 -545 51 -499

% -66.7% 60.5% 8.8% -10.4% -0.4% -7.8% 24.8% -5.7%

Source: City of Brownsville Police Department Note: The seven index crimes are categorized as crimes against persons or property crimes.

Market and Community Profile 34


CLIMATE Weather Activity

Degrees Fahrenheit

2014 Brownsville Climate

74

72

55

53

Jan

61

Feb

Mar

67

Apr

76

72

May

95

93

93

89

85

80

Avg. High

Jun

91 77

77

Jul

Avg. Low

Aug

87 74

80 68

Sep

Oct

73 59

54

Nov

Dec

Historic Avg. High

Avg. Low

Avg. Precip

Record High

Record Low

Jan

72°F

52°F

1.27 in.

93°F (1971)

18°F (1881)

Feb

74°F

55°F

1.12 in.

94°F (1986)

12°F (1899)

Mar

80°F

60°F

1.23 in.

106°F (1984)

28°F (1901) 37°F (1903)

Apr

85°F

66°F

1.54 in.

102°F (1984)

May

89°F

72°F

2.64 in.

102°F (1999)

41°F (1895)

Jun

93°F

76°F

2.57 in.

103°F (1918)

56°F (1919)

Jul

93°F

77°F

2.04 in.

103°F (1897)

57°F (1895)

Aug

95°F

77°F

2.44 in.

104°F (2005)

63°F (1967)

Sep

91°F

74°F

5.92 in.

105°F (2000)

51°F (1909)

Oct

87°F

67°F

3.74 in.

99°F (1900)

35°F (1993)

Nov

79°F

59°F

1.82 in.

98°F (1906)

27°F (1911)

Dec

72°F

53°F

1.15 in.

94°F (1977)

16°F (1989)

Brownsville Annual Precipitation

5.92

Inches of Rain

Month

2.64

2.04

1.54 1.23

1.27

3.74

2.57

1.82 2.44

1.15

1.12

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

`

Source: NOAA

Market and Community Profile 35


MATAMOROS, MEXICO Population

Matamoros & Tamaulipas State Population

Matamoros

Tamaulipas

4,000,000 3,500,000 3,000,000 2,500,000

2,527,328

2,753,222

3,502,700

3,268,554

3,024,238

2,000,000 1,500,000 1,000,000 500,000

363,217

519,226

489,193

462,157

418,141

0 1995

2000

2005

Population Growth

2010

Matamoros

2014

Tamaulipas

45% 38.59%

40%

34.68%

35%

37.31%

30% 25% 15.12%

20%

19.66%

15% 10%

8.94%

5% 0%

29.33%

27.24%

0.00% 1995

2000

2005

2010

2014

Source: National Statistics Institute (INEGI)

Market and Community Profile 36


MATAMOROS, MEXICO Employment

Number of Jobs

103,843

104,124

103,101

102,551

101,700

101,926

101,603

100,000

101,334

101,000

101,670

102,000

101,665

103,427

103,000

103,322

104,000

103,928

104,525

105,000

99,000

Employment by Sector 2014

Electronics Automotive

32%

Automotive

29%

Service Providers

13%

Electronics Motors

10%

Chemicals

7%

Textile

6%

6%

Electronics Automotive

3%

Automotive

7% 32%

Electronics Motors

10%

Chemicals

13%

Textile

29% Plastics

3%

TOTAL

100%

Sources: National Statistics Institute (INEGI); Matamoros Economic Development Committee (CODEM)

Service Providers

Plastics

Market and Community Profile 37


MATAMOROS, MEXICO Maquila Activity

Total No. of Jobs in Matamoros

Maquila Jobs

120,000 100,000

No. of Jobs

80,000 60,000 40,000 20,000 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

Education

# of schools

# of students

# of teachers

454

101,000

3,813

Technical Schools (Continued Education)

7

11,608

839

Higher Education (Colleges)

18

16,648

1,112

Primary Education (Pre-school & Grades 1-12)

Sources: Matamoros Maquiladora Association (AMMAC); Matamoros Economic Development Committee (CODEM)

Market and Community Profile 38


301 Mexico Street, Suite F-1 Brownsville, Texas 78521 Phone: 956.541.1183 and 800.552.5352 Fax: 956.546.3938

www.BEDC.com

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