Rio South Texas: At the Heart of the North American Supply Chain

North America represents roughly 25% of the global consumer market, and the Interstate 69 corridor, which bisects the United States north to south and connects it with Canada and Mexico, is one of its main supply chain arteries. Many of North America’s largest industrial hubs are located along this route and key international crossings feed this North American supply chain artery. COSTEP recently analyzed the 2019, 2020, and 2021 truck crossing counts on the U.S.-Canada and the U.S.-Mexico borders. The U.S.-Canada points of entry of the I-69 corridor analyzed include Detroit and Port Huron in Michigan, and Buffalo-Niagara Falls in New York. The U.S.-Mexico points of entry of the I-69 corridor were Laredo, Hidalgo/Pharr, Brownsville, Progreso, Rio Grande City, and Roma, all located in the Rio South Texas region.

In 2019, the Michigan/New York State region saw 3,254,623 inbound truck crossings, while the Rio South Texas region saw 3,412,118, making both the busiest international truck-borne trade regions on their respective borders. The difference was minor, only 157,485 trucks, or 4.8%. The outbreak of the pandemic negatively impacted trade in 2020, but to a varying extent. For the Michigan/New York State, 2020 truck crossings dropped significantly, down to 2,917,738. The 2020 Rio South Texas region truck crossing totaled 3,387,816, meaning the decline was much less severe, and difference between the two regions grew to 470,078 trucks, or 16.1%, in favor of Rio South Texas. As the North American economy rebounded in 2021, both received a resurgence of activity, with Michigan/New York State seeing 3,147,251 truck crossings, and Rio South Texas’ total rising to 3,739,519. However, these numbers also reflect a further expanding gap of 592,268 trucks, or 18.8%, in favor of Rio South Texas.

Directly comparing the 2021 numbers to 2019 shows that, in 2021, Michigan/New York State was still down 107,372 trucks, or -3.3%, compared to 2019. By contrast, in 2021, Rio South Texas was up 327,401 trucks, or 9.6%, above the 2019 figures, squarely placing the Rio South Texas region at the Heart of the North American supply chain.

If you are looking to manufacture in North America for North America, look at what Rio South Texas has to offer. Our team at COSTEP would be glad to assist you, so please visit us at www.costep.org or follow us at @COSTEP to learn more.

Contact: Matt Ruszczak, info@costep.org

SOURCE: Council for South Texas Economic Progress