Mexico: the World's Most Competitive Business Location

McAllen, Texas is the Most Competitive Business Location in the Midwest United States

Jun 02, 2010, 16:20 ET from Rio South Texas Economic Council

EDINBURG, Texas, June 2 /PRNewswire/ -- In its latest report analyzing the cost of doing business around the world – Competitive Alternatives 2010 – KMPG has ranked Mexico as the most cost competitive location among developed nations in all industry sectors.  Monterrey and Mexico City ranked first and second respectively among global cities with populations of 2 million or more. McAllen, Texas was ranked as the most competitive city in the U.S. Midwest region.

Competitive Alternatives 2010 compared the key costs of doing business in 100 cities and 10 developed countries. Costs examined for this comparative study included:  labor, facilities, utilities, transportation, taxes and other factors such as the cost of laying off workers.

The four largest cities in America – New York, Los Angeles, Chicago and Dallas-Fort Worth – formed the baseline score of 100 for comparing business costs in other countries and cities. Mexico offered an overall 18.2% cost advantage.

Mexico ranks first in all industry sectors

In different industry sectors, Mexico also ranked number one, offering these overall cost savings:

  • Manufacturing – 13.7%
  • Corporate and IT Services – 38.6%
  • Research & Development – 38.9%

Advantages offered in particular segments within these categories were particularly dramatic. Compared to the baseline of 100, Mexico scored as follows:


  • Medical devices – 79.3
  • Pharmaceuticals – 83.6
  • Metal components – 84.0

R & D

  • Product testing – 58.6
  • Biotechnology – 62.7
  • Clinical trials – 63.9

Corporate & IT Services

  • Back office/call centers – 46.6
  • Web and multimedia – 65.9
  • Software design – 68.3

McAllen most competitive location in Midwest United States

McAllen, Texas ranked as the most cost efficient American city for doing business in the Midwest United States and ranked second among all U.S. cities studied. In the study, McAllen was included in the Midwest/Western Canada region and was ranked 3rd in that category behind Winnipeg and Saskatoon, Canada.

"Rio South Texas, which encompasses McAllen and Northeastern Mexico, is now being recognized for its many advantages, including being among the most competitive and cost efficient locations in the world," said Bill Martin, Chair of the Rio South Texas Economic Council (RSTEC).  "This KMPG study quantifies what RSTEC has been saying for nearly two years. These numbers offer convincing reasons why companies are – and should be – looking here first to locate and expand their operations," Martin added.

With a population of over 3.4 million, Rio South Texas is the third largest market in Texas, the 23rd largest market in the United States and the largest U.S./Mexico border region in America.

RSTEC was formed in 2008 to attract private sector investment, economic diversification and business expansions to Rio South Texas. The organization represents all economic development interests in the region.


Gwendolyn McCormack


SOURCE Rio South Texas Economic Council