This project was undertaken to assist South Texas industries in improving export to nearby Mexican maquiladoras (factories). The maquiladora program is based on co-production by two plants under a single management, one on each side of the border. Activities addressed four objectives: (1) to determine the dollar value, quantity, and source of the different component parts, materials, supplies, technical design services, equipment and repair services, transportation service, brokerage, and other services purchased by plants operating in the Mexican border area; (2) to determine the potential that South Texas manufacturers, wholesalers, and service companies from Brownsville to Laredo have for supplying maquiladoras with parts, materials, and services and the problems to be overcome in becoming suppliers; (3) to develop a computerized database for matching South Texas manufacturers with maquiladoras; and (4) to determine the general feasibility of establishing one or more business incubators to assist development of a South Texas maquiladora supply industry. Based on results of the study, it was recommended that a task force of representatives from the South Texas manufacturing community and the maquiladora industry, community leaders, public officials, educational leaders, and state and federal agency officials be established to develop and support six specific initiatives for information gathering and dissemination, coordination, and direct technical assistance. (MSE)