Advanced Logistics has a significant presence in the North American Borderplex. In total, the industry employs more than 74,000 workers. Four of the seven industry components have an employment LQ above 1.0 in El Paso, which includes durable goods wholesalers, truck transportation, support activities for transportation, and logistics consulting services.
There is also a substantial activity for each of these components in Cd. Juárez. Wholesale trade employs over 40,000 workers in Cd. Juárez. There have been a number of positive trends for this industry in the past five and ten years.
El Paso and Las Cruces have seen employment growth in all of the components of advanced logistics. This industry has remained mostly stable, due to the necessary trade that occurs within the region. There are more than 2,500 Advanced Logistics establishments in El Paso and Las Cruces.
The North American Borderplex provides competitive advantages within the following niche markets in Advanced logistics:
The face of warehousing is changing, with a growing number of technological inputs designed to save time and money and smooth the delivery process. Conveyers, automated forklifts and storage and retrieval systems, radio-frequency identification, automation-friendly plastic pallets, and programmable logic controllers are key areas that are transforming warehouse companies.
Supply Chain Analytics
As global competition increases and technology plays a larger role in manufacturing, this niche will become vital to the success of manufacturers in the region, and changes will come from cloud technology, customized best-practice and big data analytics, and innovation software.
Over the Road Transportation
Freight trucks are the main means of transporting goods across the border, and demand will grow along with the manufacturing sector. Expansion of bimodal facilities in Santa Teresa, along with manufacturing and warehousing operations there, should further grow demand. Possible oil exploration and development in Chihuahua, if successful, could place greater demand on freight trucking within the state and northwestern Mexico.
Packaging Design and Services
Design packaging has become increasingly important to manufacturers as they seek to reduce costs and transport goods over long distances more efficiently. Packaging can also help to distinguish products from those of their competitors. Technology has improved the design options of packaging, and demand for this niche should remain steady in the region.
Bimodal Support Services
Santa Teresa’s bimodal transportation hub will spur demand for related support services, ranging from maintenance to supplies and freight logistics.
Current investors operating in this sector include:
- EP Logistics
- Hero Logistics
- Mesilla Valley Transportation
- Omega Trucking
- Santa Teresa Southern Railroad
- Trans-Expedite, Inc.
- Union Pacific