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 Rudolph Miles expands border facility in keeping with
NAFTA
Special To The Monitor
Rudolph Miles & Sons Custom Broker's (RMS) warehouse operation recently expanded to 110,000 square-feet, providing
additional cross-border warehouse/logistics capabilities related to the trade opportunities associated with the North American Free Trade Agreement (NAFTA) and its direct impact on the growing Maquiladora industry.The
Miles warehouse facility is located one mile North on U.S. 281 off of the Pharr International Bridge in the Pharr/Las Milpas Industrial Park. Since the
Pharr/Reynosa International Bridge handles all the Northbound truck traffic, the RMS warehouse has provided for convenience and greater reliability in the
logistics of international trans-shipping."Our warehouse expansion enables us to provide advanced logistic capabilities to the Maquiladora industry," said Jim
McNamara, RMS general manager. "Our third party consignment inventory procedures incorporate an efficient bar-cording system giving us superior
performance in inventory control and management," he added. In keeping with the current and future trade demands the warehouse expansion makes RMS in McAllen/Pharr the largest customhouse broker operation in South
Texas. RMS is also known as the largest customshouse brokerage firm to operate along the U.S.-Mexico border and the only approved broker handling all cross-border shipments for General Motors."The warehouse expansion
was designed and built to give us the flexibility needed to meet the service demands of our customers," McNamara said.The warehouse features a
Chicago-style design with a total of 50 truck bays, of which 16 are located within a secured area of the complex, and an additional 30 parking spaces for
over-night trailer storage. The entire complex has concrete paving and provides for perimeter barb-wire fencing with high intensity security lighting.
An electronically controlled access gate is also an additional feature allowing for better coordination and release of conveyances. The warehouse offices are
fully air-conditioned and provide for employee workstations, a private shared office area for the Mexican broker representatives, restrooms, a lounge area,
and a waiting area for the truck drivers. The entire facility was designed and built according to American Disabilities Act guidelines. As the only approved
border wide customhouse broker for General Motors, RMS notes the importance of tariff reductions under NAFTA and its effect on the U.S. automotive industry.According to the NAFTA At Five Years Report, by the
U.S. Council of the Mexico-U.S. Business Committee, NAFTA plays a major role in the increase in trade-related production and employment with Mexico since it was enacted in January 1, 1994. Of the major U.S. industries
benefitting from NAFTA, the U.S. automotive industry expanded their market under NAFTA as Mexican tariffs on all types of motor vehicles and their parts
have been reduced.The NAFTA Report shows that U.S. exportations of motor vehicles to Mexico increased an incredible 1,085 percent since 1993 and reached almost $2 billion in 1997 as indicated by data from the U.S.
Department of Commerce, Office of Automotive Industry Affairs, U.S. Bureau of the Census.In analyzing the automotive production markets, the NAFTA Report noted that U.S. motor vehicle imports from Mexico now
account for 14 percent of all U.S. motor vehicle imports. Sales of Mexican-made vehicles are also important for the U.S. auto industry because they generally contain a high amount of U.S. made content. Over half of the
content of vehicles imported from Mexico are U.S. made. By using Mexico as a source, instead of Asia, U.S. automotive companies have gained a comparative advantage from lower shipping costs, decreased transit time, and
duty-free entry. The NAFTA Report notes that although NAFTA critics claim that NAFTA has led to U.S. job losses and falling wages, the facts prove the
opposite. Total employment in the U.S. motor vehicle industry has grown at a faster rate following NAFTA than in the years prior to the Agreement. According to the U.S. Bureau of Labor Statistics, between 1990 and 1993,
the annual increase in automotive production employees averaged one percent. Since NAFTA's implementation, the annual increase of production workers in
the U.S. auto industry has been five percent.Also according to labor statistics, NAFTA has not driven down the wages of U.S. auto workers as many critics
would like to believe. Wages for auto workers have risen consistently, averaging three percent increases a year from 1991 to 1997.Overall, the council report showed that U.S. trade with Canada and Mexico have reached
record levels under NAFTA. Between 1993 and 1997, total U.S. merchandise trade with NAFTA partners grew by 63 percent. In 1997, U.S. trade with Mexico was recorded at $180 billion and trade with Canada
reached $345 billion making Canada and Mexico the largest and second largest markets for U.S. merchandise exports.Locally, NAFTA's impact on the Rio Grande Valley can be seen in the increased traffic of northbound
trucks into the U.S. According to figures by Texas A&M International University-Texas Center For Border Economic And Enterprise Development in Laredo, Texas, the Rio Grande Valley International Bridges (including
Brownsville, McAllen/Pharr, Progreso, Rio Grande City and Roma) are experiencing healthy signs of increased trade due to the lowering of duty barriers under NAFTA.During the first year of NAFTA's implementation, the
Rio Grande Valley posted a combined total of 1.65 percent growth rate between 1994 and 1995 in Northbound trucks. Most recently, the Valley has recorded a 5.67 percent growth rate in Northbound international shipments
from 233,719 in 1997 to 247,768 in 1998. "Given the tremendous growth in trade, we have surveyed the individual needs of the maquilas and have
incorporated those needs in our warehouse expansion project," said Bill Rich, RMS warehouse/logistics manager. "Our expansion offers a secure area for
transhipping with use of an electronically operated access gate." he added. Spurred by NAFTA and the growing maquiladora industry in South Texas, the
new warehouse expansion enables RMS to streamline the merchandise verification procedures, thereby providing efficient cross-border shipments. Also, by using innovative warehouse bar-code technology, RMS can provide
maquila suppliers who are locating consignment inventories for (Just In Time) basis with faster and more reliable logistics and distribution capabilities.
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