Record Border Crossings Mean Big Business for Industrial

A map shows the 500-mile radius ripple effect of Mexican trade.

HOUSTON—Trade with Mexico has more than doubled since 2000 and has nearly quadrupled since the mid-1990s. Today, a total close to $1.5 billion worth of goods are being traded every single day with the United States’ southern neighbor. The trade flow to and from Mexico profoundly impacts warehouse and distribution demand across Texas and supports close to 500,000 jobs statewide. CBRE recently released a study on Mexico’s growing manufacturing sector and how it impacts warehouse and distribution demand across Texas.

Mexico’s maturing manufacturers are sending more goods through South Texas ports–a half trillion more when measured in US dollars. Because of trade agreements, competitive wages and close proximity to an improved US consumer market, manufacturing in Mexico is thriving with investment and output well above pre-recessionary levels. This is once again boosting trade between the neighboring countries, in both directions, through raw materials and finished goods. In 2015, Mexico was the third largest total trading partner with the US and the country is quickly closing the relatively small gap with now number one China and number two Canada.