Toyota Expands in TMASC Region

Toyota’s reinvestment and expansion in the TMASC region is one of several recent signs that TMASC’s strength as an advanced manufacturing platform continues to grow. As OEMs work to implement new strategies to compete for larger market share, firms are expressing their commitment to the region in the form of additional investment, employment and product lines.
One such example is Haldex, who is expanding its facility in Monterrey Mexico in order to consolidate North American production of its Consumer Vehicles Systems. Meanwhile, since 2009, Caterpillar has announced separate new manufacturing facility investments in Seguin, Waco, and now Victoria, Texas, representing a total of nearly 2,000 direct jobs and well over $200 million in capital investment. Caterpillar’s new projects represent product lines from specialized work tools and diesel engines to hydraulic excavators.
Increase in Toyota OEM Investment in San Antonio, Texas
On August 6, 2010, Toyota Motor Manufacturing, Texas, Inc. (TMMTX) held a special “line-off” ceremony to mark the beginning of Tacoma pickup truck production in San Antonio.  The consolidation of all of Toyota’s U.S. production of Tacoma trucks in San Antonio represents significant growth within the TMASC region, with the addition of 1,000 jobs to the TMMTX facility and an additional $100 million investment to enable production alongside the Toyota Tundra pickup line. Total investment in the TMMTX plant now reaches $1.4 billion.
Beyond direct Toyota investment and new hires, Tacoma production will have a critical impact on the area’s broader automotive industry.  New sourcing demands created by Tacoma production will secure the efficient operation of the 21 on-site suppliers and is expected to grow local supplier workforce by over 800 jobs.  Meanwhile, the Tacoma line will increase the capacity and overall strength of the supply chain capacity in the region.
Atsushi “Art” Niimi, Executive Vice President and member of Toyota Motor Corporation’s board of directors, as well as new TMMTX president Chris Nielsen, the first non-Japanese plant president, were on hand for the event. Before an audience of hundreds, Niimi said “We are investing in the future, and the future is now.” Niimi added that TMMTX’s response to the difficult events of the past year had “prepared this plant for the best of times, which we celebrate today.”
Nielsen said that he hopes the plant will reach its peak production level of 200,000 trucks per year by the end of August, with additional volume possible should market demand increase.
Opportunities for Ongoing Investment
The addition of new production such as the Tacoma line and Caterpillar lines reflect new demand for Tier 1 suppliers as well as production further upstream in the supply chain. Moreover, the processes and positions required by these plants mean further attraction of related workforce and skills – an opportunity for education organizations to boost technical and professional programs with local private partners.

Toyota’s reinvestment and expansion in the TMASC region is one of several recent signs that TMASC’s strength as an advanced manufacturing platform continues to grow. As OEMs work to implement new strategies to compete for larger market share, firms are expressing their commitment to the region in the form of additional investment, employment and product lines.

One such example is Haldex, who is expanding its facility in Monterrey Mexico in order to consolidate North American production of its Consumer Vehicles Systems. Meanwhile, since 2008, Caterpillar has announced separate new manufacturing facility investments in Seguin, Waco, and now Victoria, Texas, representing a total of nearly 2,000 direct jobs and well over $200 million in capital investment. Caterpillar’s new projects represent product lines from specialized work tools and diesel engines to hydraulic excavators.

Increase in Toyota OEM Investment in San Antonio, Texas

On August 6, 2010, Toyota Motor Manufacturing, Texas, Inc. (TMMTX) held a special “line-off” ceremony to mark the beginning of Tacoma pickup truck production in San Antonio.  The consolidation of all of Toyota’s U.S. production of Tacoma trucks in San Antonio represents significant growth within the TMASC region, with the addition of 1,000 jobs to the TMMTX facility and an additional $100 million investment to enable production alongside the Toyota Tundra pickup line. Total investment in the TMMTX plant now reaches $1.4 billion.

Beyond direct Toyota investment and new hires, Tacoma production will have a critical impact on the area’s broader automotive industry.  New sourcing demands created by Tacoma production will secure the efficient operation of the 21 on-site suppliers and is expected to grow the local supplier workforce by over 800 jobs.  Meanwhile, the Tacoma line will increase the capacity and overall strength of the supply chain capacity in the region.

Atsushi “Art” Niimi, Executive Vice President and member of Toyota Motor Corporation’s board of directors, as well as new TMMTX president Chris Nielsen, the first non-Japanese plant president, were on hand for the event. Before an audience of hundreds, Niimi said “We are investing in the future, and the future is now.” Niimi added that TMMTX’s response to the difficult events of the past year had “prepared this plant for the best of times, which we celebrate today.”

Nielsen said that he hopes the plant will reach its peak production level of 200,000 trucks per year by the end of August, with additional volume possible should market demand increase.

Opportunities for Ongoing Investment

The addition of new production such as the Tacoma line and Caterpillar lines reflect new demand for Tier 1 suppliers as well as production further upstream in the supply chain. Moreover, the processes and positions required by these plants mean further attraction of related workforce and skills – an opportunity for education organizations to boost technical and professional programs with local private partners.

Logistics services, such as warehousing and distribution, which support these latest investments also now will have greater capacity to serve additional operations seeking to take advantage of TMASC’s efficient manufacturing platform.

It’s important to keep in mind that many companies operating in the TMASC region, such as the Chrysler Fiat 500 plant, are planning for exports to emerging Latin American auto markets. Export activities require professional services from translation and creative to strategic marketing and sales. These ancillary activities are growth opportunities for professional services firms in cities such as Austin, San Antonio, Houston, Monterrey, and San Luis Potosi.

The TMASC region continues to develop as a strategic location for the world’s premier manufacturers. Contact Bexar County Economic Development at (210) 335-0872 for market and industry details, and for connections to regional partners to begin evaluating how TMASC can support your long-term business growth.

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August 23, 2010 | No Comments »

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