NewsTop StoriesTrucking

Borderlands: Manufacturing sector in Austin is booming

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: manufacturing sector in Austin, Texas, is booming; GDP from freight transport in Mexico fell last year; reverse logistics firm opening Fort Worth facility; and CBP finds massive load of drugs in auto parts shipment.

Texas capital has range of factories incoming

With new factories slated from tech giants such as Samsung and Tesla, along with a dozen or so announced facilities from other companies in the pipeline, manufacturing in Austin, Texas, is booming.

While Austin has had a strong manufacturing base for decades, the past 17 months have seen a string of victories for the area, most recently Continental AG, Plastikon Industries, Simwon, CelLink, Viking Supplynet, American HVAC Metal Supply Inc. and Lanter Delivery Systems.

Ed Latson, founder and CEO of the Austin Regional Manufacturers Association (ARMA), said the region’s unique workforce is one of the main things attracting new factories.

“I think what’s unique about Austin compared to the rest of Texas is our advanced manufacturing workforce,” Latson told FreightWaves. “There’s a lot of electronics and instrumentation and semiconductors being built here, which has really created a dynamic workforce that is appealing to a lot of these advanced factories that are coming in, like Tesla.”

Latson founded ARMA in 2013 as a trade association focused on strengthening the Central Texas manufacturing community through advocacy, workforce development and networking.

ARMA members include some of the largest employers in the Austin area like Samsung, Applied Materials, NXP, ICU Medical and National Instruments, as well as 250 small and medium size companies from sectors such as food and beverage, bio/pharmaceuticals, automotive, printing and metal fabrication.

“There’s about 1,800 manufacturers in the Austin [metro region],” Latson said. “It’s a very high tech community. About 50% of it is computer and electronics products. We also have a really strong bio/pharmaceutical and medical device manufacturing cluster as well.”

When Latson started ARMA nine years ago, Austin already had a strong manufacturing presence, he said.

“There were already strong players here,” Latson said. “There was already about $12 billion in annual output being produced by area manufacturing companies. That output has grown to about $14.5 billion annually.”

FreightWaves SONAR platform includes the outbound tender market share index that measures the relative percentage of outbound tender volumes in each market in the U.S., adding up to 100. The Austin market accounted for .36% of the total outbound truckload demand recently and is up significantly compared to previous years.

To learn more about FreightWaves SONAR, click here.

Austin’s manufacturing output is expected to grow significantly when Tesla’s (NASDAQ: TSLA) $1 billion gigafactory begins production by early next year.

Another recent win for Austin was Samsung’s announcement it would build a $17 billion semiconductor chip plant in Taylor, Texas, about 29 miles northeast of the city. The facility is scheduled to open by the end of 2024.

Latson said Samsung’s new factory in Taylor highlights the United States reassessment of its supply chain.

“We’ve been exposed in this country for not having enough domestic resources to make chips,” Latson. “There’s a lot of interest in having more domestic presence in manufacturing, as well as shortening supply chains, looking for local and regional suppliers that you can have personal relationships with.”

GDP from transport in Mexico fell sharply last year

Gross domestic product (GDP) from freight transport in Mexico fell 10.1% year-over-year in 2020, according to an annual report titled “Knowing the freight transport industry” from the Mexican government.

The overall national GDP fell 8.2% in 2020, dragged down by the effects of COVID-19 on factories and other economic activities, the report said. 

Freight transport still contributed 3.3% of GDP to the Mexican economy last year. The trucking sector recovered quickly when the economy reopened in June, boosted by freight from the automotive, mining and construction industries.

Employment in Mexico’s trucking industry fell 1.5% year-over-year in 2020 to about 982,000 jobs, with the disruption caused by the pandemic subtracting about 15,000 jobs. 

Reverse logistics firm opening Fort Worth facility

goTRG, which works with manufacturers and retailers to manage logistics for returned goods, is set to open a 250,000-square-foot facility in Fort Worth, Texas.

The Miami, Florida-based company operates 15 facilities across six states, as well as a facility in Canada. The facility in Fort Worth, which will create 200 jobs, is goTRG’s first facility in Texas.

“We are thrilled to open our next reverse logistics center in the Dallas area, where there is significant workforce talent and easy access for transporting products,” CEO and founder Sender Shamiss said in a statement.

CBP finds massive load of drugs in auto parts load 

U.S. Customs and Border Protection officers at the Port of Nogales, Arizona, discovered a record amount of methamphetamine Wednesday, according to a release.

Officers at the Mariposa commercial port of entry seized 3,280 pounds of meth hidden inside a shipment of auto parts from Mexico while inspecting a tractor trailer.

Officers seized the drugs and vehicle, while the truck driver was arrested and turned over to Homeland Security Investigations.

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Truck driver convicted in deadly Colorado crash gets 110 years

Samsara’s journey from the cloud to Wall Street

Nuvocargo raises $20.5M to boost US-Mexico trade

6 Comments

  1. I get paid over $87 per hour working from home with 2 kids at home. I never thought I’d be able to do it but my best friend earns over 10k a month doing this and she convinced me to try. The potential with this is endless.
    Here’s what I’ve been doing…► 𝗪𝘄𝘄.𝗝𝗼𝗯𝘀𝟳𝟬.𝗰𝗼𝗺

  2. Google pays for every Person every hour online working from home job. I have received $23K in this month easily and I earns every weeks $5K to 8$K on the internet. Every Person join this and working easily by open just open this website and follow instructions
    COPY This Website OPEN HERE….. ____𝐖𝐰𝐰.𝐒𝐞𝐥𝐟𝟐𝟓.𝐜𝐨𝐦

  3. Do You want to get good income at home? do you not know how to start earnings on Internet, there are some popular methods to earn huge income at your home, but when people try that, they bump into a scam so I thought i must share a verified and guaranteed way for free to earn a great sum of money at your home. Any of you interested should read the given article
    ……. 𝐖𝐰𝐰.𝐖𝐨𝐫𝐤𝐉𝐨𝐢𝐧𝟏.𝐜𝐨𝐦

  4. I made over $700 per day using my computer in part time. I recently got my 5th paycheck of $19632 and all i was doing is to copy and paste work online. this home work makes me able to generate more cash daily easily. simple to do work and regular income from this are just superb. Here what i am doing.

    Try now…….🔥🔥🔥………. http://Www.PAYCASH1.com

  5. ● PART TIME JOBS▬▬▬▬▬ ● My last salary was $ 3,500 for working 12 hours a week online. My sister’s friend has been averaging $ 8,0000 for several months now, and she works about 30 hours a week. I can’t believe how easy it was when I tried it. The potential with it is endless. That’s what I do check this site >>> …..www.live124.com

    1. [ JOIN US ] My last pay test was 💵$2500 operating 12 hours per week on line. my sisters buddy has been averaging $15000💵 for months now and she works approximately 20 hours every week. i can not accept as true with how easy it become as soon as i tried it out.
      copy and open this site .…………>> 𝗪𝘄𝘄.𝗡𝗘𝗧𝗖𝗔𝗦𝗛𝟭.𝗖𝗼𝗺

Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Florida, Maryland and Texas. Contact nmahoney@freightwaves.com