Reasons to Manufacture in the U.S. Near Port Houston

Tuesday, September 08, 2020

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Adjacent to Houston, Pasadena, Texas, is the ideal location for U.S. or international companies looking to establish manufacturing or assembly facilities within the United States. Located within Pasadena, Port Houston is the largest port on the Gulf Coast, processing more than 247 million tons of cargo annually. Sites are available in and near Port Houston, creating opportunities for companies looking for convenient access to water, rail, highway and air transportation - all of which are available from Pasadena. 

Why Pasadena, TX should be on the shortlist for onshoring companies

Pasadena is located in one of the fastest growing areas of the United States. In addition, Pasadena lies within close reach of one of the nation’s largest concentrations of 152 million consumers within 1,000 miles. 

#1 Immediate port access

Adjacent to Houston, the community offers immediate port access, cutting down on transportation time for companies importing and exporting out of the United States. This is especially beneficial for companies looking to onshore some, but not all, of their manufacturing capabilities. Over 200 private and public industrial terminals exist within the 25-mile-long complex, demonstrating the sheer scope of companies utilizing the port every day. 

#2 Robust transportation system

Ample truck and rail connections allow shippers to economically transport their goods between Port Houston and inland points. The city is served by three freeway systems. Interstate 45 is the closest interstate to the city limits. The main freeway artery is the Pasadena Freeway (State Highway 225). The east side of the Sam Houston Tollway (Beltway 8) runs through the eastern portion of the city.

#3 Access to three airports

Pasadena is approximately a 20-minute drive from Hobby Airport (HOU) and an hour away from George Bush Intercontinental Airport (IAH). In addition, the city is only minutes away from Ellington Airport.

#4 Available property

Pasadena has properties available for sale or lease near the port. They are conveniently located and can easily be set up as a manufacturing facility. This is advantageous for companies looking to immediately benefit from executive orders calling for the purchase of PPE and medical supplies from U.S. manufacturing plants, for example. 

#5 Strong workforce

Over 6.8 million people live in the Houston area, creating a millions strong workforce that is highly skilled. Pasadena, in particular, has a history of manufacturing success and an abundance of skilled workers ready to fill manufacturing positions. 

#6 Incentives and opportunities 

Port Houston also offers business opportunities for Pasadena’s entrepreneurs and anyone looking to invest in the area. The Port has a Free Trade Zone, creating tax incentives. The state of Texas offers numerous incentives and tax breaks to companies creating jobs and growing the economy. 

Why onshore in 2020/2021?

Onshoring is top of mind for business executives who have watched their supply chains be disrupted and product deliveries delayed to COVID-19. 60% of U.S. manufacturing companies surveyed by Thomas reported COVID-19 business disruptions, so this is a widespread issue impacting virtually all industries. 

Onshoring is the logical solution to reducing the risk of future disruptions and delays, at least in part. Though companies may not be looking to move their entire operations back to the United States, opening U.S. manufacturing facilities as part of their global operations certainly is. In addition to companies onshoring directly, 28% of suppliers surveyed reported that they are seeking domestic sources. This will create expansion opportunities for current U.S. manufacturers. 

Political pressure is also being placed on companies. With executive orders issued in August 2020 that require the procurement of PPE, medical supplies and drugs from U.S. manufacturers, there is an additional and immediate need to bring more manufacturing back home. As a result, agencies must start looking at ways to procure these items within the U.S. starting 90 days from the date the order was issued. Medical supply companies within the U.S. stand to benefit and it is likely that some companies will move operations into the country in order to remain a viable option. 

Onshore in Pasadena, Texas and at Port Houston

We invite site selectors and business executives to contact us, and to discover why Pasadena, Texas is ideally suited for manufacturing in the United States. 

 

References

https://porthouston.com/wp-content/uploads/Port-of-Houston-EIS-National-Impacts-4-5-2019-1.pdf

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