Drug cartels responsible for as many as 22,000 reported deaths in Mexico over the past three years have put manufacturing plants along the border on notice but have not impeded business activity, say economic-development and plant officials.

The violence has not affected any U.S. citizens visiting the plants, known as maquiladoras, and is primarily targeted at individuals involved in the drug trade, says K. Alan Russell, whose El Paso, Texas, company The Tecma Group operates maquilas throughout Mexico.

"It is certainly a very dangerous environment if you're in the wrong business, but the data tells us we're not the ones being targeted," says Russell, Tecma's co-founder and president. "There's certainly the possibility of a random carjacking or getting caught in the crossfire of these violent acts that we hear about; however, I've said a number of times it's probably on the same level as being struck by lightning."

Russell says none of his clients have closed plants or left the area because of drug-related violence, though he says it's difficult to determine whether the company has lost potential business because of the situation. In fact, The El Paso Regional Economic Development Corp., or Redco, has completed 11 deals for new operations in Juarez in the past 11 months, according to Redco President Bob Cook.

Russell and Cook say most plants in the region that have closed or moved have done so because of economic conditions.

Maquila Workers Face Dangers

Cook characterizes the rare instances of crime in the manufacturing community as "opportunistic" incidents conducted mainly by small-time criminals who are taking advantage of the Mexican government's focus on corruption.

"What's happened is with all the focus on these organized-crime elements and the fact that the government at the local level has made an effort to get rid of corruption, it's created an environment where opportunistic criminals have tried to undertake their criminal activity when law enforcement is elsewhere," Cook says.

Despite reports that the violence has had little, if any impact, on U.S. business travelers, maquila workers have been directly and indirectly impacted by the increased criminal activity. Gunmen made off with uniforms and at least five trucks on April 11 from an operation owned by oilfield services company Schlumberger Ltd. in Reynosa, Mexico, which borders McAllen, Texas., according to a report in The (McAllen) Monitor. IndustryWeek could not reach a Schlumberger representative for comment.

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