SECTION 2: TARGETED INDUSTRIES
This report leads, ultimately, to the development of a listing of targeted occupations. Targeted occupations are drawn from targeted industries. Targeted industries are those offering the largest number of good jobs in the Rio Grande Valley. Some of the largest employers in the Rio Grande Valley include public schools, hospitals, health care agencies, restaurants, food stores, and social service agencies. The service industry accounts for 36 percent of the total economy, local government accounts for 20 percent, and trade accounts for 17 percent of the jobs. The percentage of employment in all other industries is in single digits.
INDUSTRY EMPLOYMENT IN 1st QUARTER 2002
Two main factors are influencing the industries and occupations of today. These are, 'technology' and 'globalization.' The use of computers and the Internet is increasing dramatically. More and more functions in businesses are now being performed by using computers, and this trend will keep rising in this century. Globalization has brought with it more competition affecting the type of work being done by employees. The influence of globalization will keep growing as more of the economy is occupied in generating exports or competing with imports using technology.
The skills that are required in today's industries are superior to those required a few years ago. Therefore, it is essential that the work force be trained appropriately. It is important that employers and training providers work hand-in-hand so that the labor force being trained in this region can meet the requirements of the local employers. The total number of persons employed in the Rio Grande Valley in the first quarter of 2002 was 300,431 (Table 10).
Table 10: Total Employment by Major Industry for RGV
Figure 9: Employment by Industry in RGV, 1st Quarter 2002
The year 2002, first quarter employment figures reveal that the service sector is the largest employer for this area, followed by local government (Figure 9). The only other industry with double-digit employment is trade. Figures 10 through 13 give an overview of industry by employment in individual counties of the Rio Grande Valley.
Figure 10: Employment by Industry in Cameron County, 1st Quarter 2002
Figure 11: Employment by Industry in Hidalgo County, 1st Quarter 2002
Figure 12: Employment by Industry in Starr County, 1st Quarter 2002
Figure 13: Employment by Industry in Willacy County, 1st Quarter 2002
| The service sector has increased employment tremendously in the past few years and will keep doing so through this century. |
Employment-by-industry projections for the Rio Grande Valley show a growth of 17.3 percent from 2000 to 2010 (Appendix B). The service industry is expected to grow by 27.2 percent, transportation industry by 21.8 percent, and government by 20.3 percent
over the same period.
Table 11 highlights the top 11 industries in the Rio Grande Valley for the 1st quarter of 2002. These industries are listed as 'Potential Target Industries' because they have the highest employment in the Valley. The Standard Industrial Classification (SIC) and NAICScodes are listed to the left of each industry's name. NAICS (pronounced "nakes") is the new North American Industry Classification System. It replaces the Standard Industrial Classification (SIC) system used to categorize businessesby type of activity in which they are engaged.
This new NAICS structure was developed jointly by the United States, Canada, and Mexico to provide consistent, comparable information on an industry-by-industry basis for all three economies. Each country will use the same detailed definitions to collect, summarize, and publish statistics about its domestic industries. NAICS classification has been added in the current report, as the SIC system will eventually become obsolete. SIC was based on concepts developed when manufacturing, and not services, dominated the American economy. A number of service activities was not separately identified, which has led to the SIC system becoming out-dated.
Furthermore, the North American Free Trade Agreement (NAFTA), effective January 1, 1994, facilitates the international flow of goods, services, and capital. Hence, country-to-country comparability of statistical information is most important, but the SIC system could not accommodate such scrutiny. By referencing industries through this common classification scheme, industrial activities in the Rio Grande Valley region can be compared to state, national, and even international trends.
Data analysis shows that industries listed as 'Potential Target Industries' (Table 11) are the ones that have the highest employment in the Rio Grande Valley. Not all these industries offer high-wage high-skill jobs; therefore, some potential industries are removed and new ones added in their place.
Table 11: FINAL LIST OF TARGET INDUSTRIES
JUSTIFICATION TO MODIFY LIST OF POTENTIAL TARGET INDUSTRIES
Trucking and Warehousing substituted for Eating and Drinking Places: The passage of NAFTA has led to more trade traffic passing through and also generating from the Rio Grande Valley. Engineering and Management Services substituted for Food Stores: Food stores will add jobs, but most of the jobs created in the Food Stores industry will not require training. With greater use of technology in all local manufacturing and service industries, the requirement for more engineering and management services support is increasing. Electronic and Other Electrical Equipment substituted for General Merchandise Stores: With increased maquila activity along the U.S.-Mexico border, electronic and other electrical equipment manufacturing is on the rise. Moreover, general merchandise stores do not require highly skilled, technical workers. Fabricated Metal Products substituted for Apparel and Other Textile Products: Apparel industries have been moving out of the Rio Grande Valley to Mexico and other countries. Several plastics and metal manufacturing companies have been moving into the area; hence, it is important to consider the Fabricated Metal Products industry as a targeted industry for the Rio Grande Valley of Texas.