Comparable regions like Memphis, Louisville, Richmond, and New Orleans are not outperforming the Rio Grande Valley because they are bigger. They are outperforming because they capture more value.
They produce more output per worker, have higher concentrations of college-educated talent, and a stronger presence of higher-productivity industries such as finance, insurance, professional services, advanced manufacturing, and large-scale logistics anchored by major institutions and headquarters.
The data reflects this clearly. The Rio Grande Valley sits at $40.9B in GDP, while comparable regions are producing $75B, $90B, and in some cases over $100B in economic output. At the same time, GDP per capita in the region remains significantly below both its peers and the national average.
One of the clearest structural differences is human capital density. Regions with a higher concentration of college-educated workers tend to produce more output per person, and that relationship is well documented. Productivity scales with the density of skills. When that density is lower, overall economic output tends to follow.
Another key difference is industry mix. Higher-performing metros tend to have a stronger presence of industries that generate more value per worker, including advanced manufacturing, professional services, finance, and technology. In contrast, when a larger share of the economy is concentrated in lower-productivity sectors, overall output remains constrained regardless of population size.
This is not a growth problem. It is a productivity problem.
The Rio Grande Valley is already a large and economically active region. The question is not whether we have value it is a question of what kind of value we are producing, and how much of that value we are actually capturing.
Regions our size are generating two times the output. That does not happen by accident. It comes from stronger human capital, a deeper mix of higher-value industries, and the ability to consistently produce and export value, not just circulate it locally.
And that is where the conversation begins to shift.
This is not about pointing out problems as if local leaders do not already understand the region. There are already strong efforts across the Rio Grande Valley focused on education, workforce development, business recruitment, and economic growth.
It is about long-term alignment around a different kind of economic future.
Alignment does not mean every organization or institution needs to operate the same way or follow the same strategy. That is not realistic. What matters is alignment around our identity.
It's about identity not strategy.
A region where education, workforce development, business activity, and economic direction are are moving in the same direction. Not through one centralized plan, but through a shared identity that shapes decisions over time.
If productivity is the engine, then education and skills are the fuel. And that is exactly where artificial intelligence begins to matter.
Artificial intelligence is beginning to reshape how institutions teach, how students learn, how skills are developed, and how quickly those skills can be applied in real-world environments. It has the potential to improve outcomes at the foundation level, from increasing graduation rates through more personalized learning to helping students see clearer and more motivating career paths.
If the goal is to become a region that produces more value, then that identity has to be reflected in how our workforce is developed. Not through a single program or a centralized strategy, but through a shared understanding that the region is building a generation of problem-solvers, builders, and contributors who are capable of operating at a highest level.
That responsibility extends beyond the classroom. It spans the entire regional ecosystem, from education and workforce development to businesses, organizations, and the broader economic development landscape.
Middle schools, high schools, colleges, and training programs play a critical role in developing skills, but they are only one part of the system. The way those skills are applied, valued, and adopted depends on whether the rest of the economy is prepared to receive them.
That requires alignment across both public and private stakeholders.
Businesses, organizations, and local leaders have to be willing to adapt, to recognize new capabilities, and to create environments where those capabilities can be used effectively. Developing talent is one step. Integrating that talent into real economic activity is another.
Artificial intelligence accelerates both sides of that equation.
It changes how knowledge is accessed. It changes the speed at which skills are developed. And it changes what individuals are capable of producing with those skills once they are applied.
A student who once had to wait years to gain access to certain technical skills can now learn faster, test ideas faster, and build faster. Someone with curiosity, discipline, and access to the right tools can begin developing solutions that used to require much more time, much more structure, and much more capital.
If the region’s youth are developing strong AI-centered skills, they will naturally begin to produce value in ways that matter locally, whether that is through startups, innovation, or simply becoming highly skilled employees who push industries and organizations forward.
AI has made it possible for an 18-year-old to develop, test, and deploy solutions in a matter of days that previously required a full team of developers and months of work. That level of capability changes expectations. It changes what individuals are able to contribute, and over time, it changes what an economy is capable of producing.
It lowers the barrier to execution. Over time, that begins to change the composition of the economy itself.
Because once a region begins producing more builders, more technical problem-solvers, and more people who can operate alongside intelligent systems, the effects begin to compound.
Skills feed into productivity.
Productivity feeds into higher-value production.
Higher-value production strengthens businesses, attracts investment, and increases the overall output of the region.
That is how the system evolves.
The Rio Grande Valley already has many of the foundational assets that other regions have built their economies on: trade infrastructure, international connectivity, a young population, and a strategic position in a binational economy.
But assets alone do not determine outcomes. What matters is how effectively those assets are translated into higher-value economic activity.
Editor’s Note: The above commentary was penned by Andy Garcia, president and CEO of Allied Consulting Group. The column appears in the RGG Business Journal with the permission of the author. Garcia can be reached via email at: andy@alliedconsultinggroup.com.
