On Tuesday, Feb. 7, Mesilla Valley Economic Development Alliance guests filled the Tuscany Room at Lorenzo’s de Mesilla during the organization’s monthly luncheon. During the luncheon, Davin Lopez, MVEDA CEO and president, gave a mid-year update on MVEDA’s activities.

“The past six months has had a lot of positive momentum,” Lopez said. “In fact, we have had the fastest start ever in regard to job creation.” Lopez said in the organization’s first half of its fiscal year, MVEDA has helped create 484 economic-based jobs. “I don’t see this slowing down,” he said.

In the past 18 months, MVEDA has brought $550 million in investments to southern New Mexico as well as 3,000 construction jobs that have already started and 1,000 permanent jobs have been announced. “We only announce a job if the investment is on the ground and work is being done,” said Lopez, adding that of the 1,000 permanent jobs, 700 of them are already in place.

MVEDA judges its success based off of leads, prospects and growth of existing businesses. Since last year, Lopez said leads have been up 120 percent and prospects have increased by 500 percent.

“We talked to existing business in southern New Mexico and asked them if they were planning on hiring more people in 2012. And 55 percent of them said yes,” Lopez said. “Overall, the demand in southern New Mexico has increased because of international trade and expansion of government companies.

Again, we are seeing a lot of momentum.” Though the government is a contributing factor, Lopez said the private sector is also playing a big role. “They are the ones creating those jobs I talked about,” he said.

Some of MVEDA’s biggest projects include Union Pacific, which has subcontracted 10 businesses for its phase I of construction. Seven of those 10 companies are from New Mexico.

Another big accomplishment has been in border logistics, creating an overweight zone that allows trucks from Mexico to come into the U.S. within a few miles and drop-off loads. “I can’t say the names because I will leave that for Gov. (Susana) Martinez to announce, but two companies have committed to moving to southern New Mexico because the over­weight zone bill was passed,” said Lopez, adding that MVEDA is also focused on marketing North America to other countries because of its unique shipping advantages from Union Pacific and overweight zone.

Other areas of interest for MVEDA include unmanned aerial vehicles, Spaceport America, areas of high technology and the New Mexico State University Physical Science Laboratory as well as renewables, such as bio-mass, water conservation and recycling.

“Over the last 18 months, there has been a $1 billion investment in southern New Mexico. We want you to know things are happening here,” Lopez said.

MVEDA’s upcoming events include the Southwest Aerospace & Defense Trade Compliance Forum April 4-5 at Hotel Encanto de Las Cruces. For more information, visit www.mveda.com.

This month’s meeting will be held in the Tuscany Room at Lorenzo’s de Mesilla, 1750 Calle de Mercado in Mesilla. The meeting will begin with a hot entree buffet.

Luncheon cost is $20.00 per person, payable by cash, check or major credit card. Due to space limitations, reservations are required. Please confirm your attendance no later than Thursday, February 2^nd by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

Fred Shepherd

Article courtesy of the Las Cruces Sun-News

LAS CRUCES – After more than eight years with the Mesilla Valley Economic Development Alliance, Business Development Manager Fred Shepherd has left the organization. In an e-mail he sent out to MVEDA members, Shepherd reports that he left to perform regional marketing for H&R Block.

“Although I was not looking, it was an offer that I felt I could not pass up, however, it was a very difficult decision as it meant leaving MVEDA,” Shepherd writes. “Although I am leaving MVEDA, I will still be based in Las Cruces and I plan to be involved in the community.”

MVEDA is a public/private organization that works to bring companies to Doña Ana County and to help those already here expand. Davin Lopez is the president and CEO, Les Baldock is the operations manager, Jaclyn AaronsCooke is the research analyst and Sandi Metz is the organization’s executive assistant.

Shepherd is a native of Utah who moved to Las Cruces in 2003 and started with MVEDA as a research analyst.

“I have truly enjoyed my eight-and-a-half years at MVEDA and was able to experience a lot of personal growth … as we labored to improve the local economy and create thousands of job opportunities,” Shepherd said.

More information about MVEDA can be found online at mveda.com and at nmborderplex.com.

Let me first start off by saying that the “job” of job creation in economic development takes an organized and consolidated approach and it requires the efforts of many groups working together.  In this respect I want to recognize all the team players that make this possible here in Doña Ana County.  They include the New Mexico Economic Development Department, the New Mexico Partnership, the Border Industrial Association and of course our partners at both the City of Las Cruces and Doña Ana County.  They also include our educational and training partners at NMSU and DACC.  And of course it takes the support of all of MVEDA’s private sector partners.

COMPLETED PROJECTS AND SUMMARY OF ACTIVITY

As of September 30, 2011, MVEDA has assisted in the creation of two new locates representing 279 new jobs to Las Cruces.  They include:

• Vangent, a back office support center based in Arlington, VA.  The company announced the decision in early July of this year and have currently hired over 90 employees to date.
• L&M Radiator, a manufacturer of industrial radiators that recently relocated out of El Paso to Las Cruces.

With these two locates, we are far ahead of production levels compared to this same time last fiscal year in terms of project completion, square footage absorption, employment numbers and capital investment.

MARKETING & BUSINESS DEVELOPMENT

As a result of the several locates that have taken place over the last nine months, the MVEDA staff had spent considerable time and energy in project management functions.   Entering the new fiscal year, we have now returned our focus to the marketing efforts of the organization and the re-building of our project pipeline.  Although lead and prospect generation is slower year-to-date compared to this same time last fiscal year, we are once again beginning to see new opportunities.

We have been quite aggressive in our marketing efforts and reaching out to target markets where we believe there is potential for near term growth opportunities.  At MVEDA’s Board Strategic Planning Retreat in June, the staff outlined the following primary targets:

• Unmanned Aerial Vehicles/Systems (UAV/UAS):  The Las Cruces International Airport is the only municipal airport in the US where UAV’s can be tested in the public airspace.  Along with the expertise in systems operations provided by the Physical Science Laboratory, the Las Cruces region becomes a unique opportunity for UAV companies seeking to not only test but to conduct R&D and assembly operations.

• Logistics & Warehousing:  The announcement of Union Pacific this past fiscal year affords us incredible future growth opportunities and we are taking steps to position ourselves for success in this area.

• Renewable Energy:  Over the past 12 months, MVEDA and the region have experienced tremendous success in the development of solar projects.  We continue to aggressively seek out opportunities in this area.  However, we are seeing a shift in new interest from bio-mass companies exhibited by the growth in research in new fuel related agricultural crops.

• El Paso Market:  Over the last 18 months, Las Cruces and Doña Ana County have benefited greatly from growth pressures in El Paso that are squeezing the industrial base.  Early results have included Alaska Structures and L&M Radiator expanding into Las Cruces as well the recent announcement of TE Connectivity’s consolidation into Santa Teresa.

This quarter, we have also participated in prospect trips to Chicago, Boston, Washington DC and San Francisco.   More recently MVEDA also participated in Virgin Galactic’s Industry Day at Spaceport America and the ISPCS conference.

As evident from the above, we are experiencing renewed growth and interest in the region, primarily in the manufacturing sector.  Eighteen months ago, the City of Las Cruces had over 360,000sf of industrial space sitting idle.   Of that space, 300,000sf is now occupied by Alaska Structures in our West Mesa Industrial Park.  Vangent has taken over the former Frontier Airlines reservations center and L&M now occupies the former Multi-Plastics facility.

The Union Pacific project at Santa Teresa further positions Doña Ana County to be a major hub for future distribution and logistics companies.   More recently, but falling within our 2^nd Quarter activity, TE Connectivity officials along with Governor Susana Martinez announced their plans to consolidate their operations in Santa Teresa thereby making their Doña Ana County facility their largest North American distribution center.  We also expect one to two more announcements before the end of the calendar year.

Again, we cannot accomplish our goals without the support of our partners and stakeholders.  We thank each of you for your continued support and we look forward to continuing the mission of job creation for Doña Ana County and New Mexico.

Davin Lopez

President and CEO

Mesilla Valley Economic Development Alliance

On Thursday, Aug. 11, the Mesilla Valley Economic Development Alliance met with community members to discuss the 2010-11 fiscal year for the organization.  Though the economy may be in distress, MVEDA showed growth in the Mesilla Valley.

“I am proud to present the results of MVEDA’s 2010-11 fiscal year, which by almost all accounts has been a record setting year,” said Davin Lopez, president and CEO of MVEDA. “Not only has it been MVEDA’s second-best performing year in terms of job creation and square footage absorption, but the organization also far exceeded any past operating year in terms of capital investment and wealth creation.”

Charged with bringing companies to the Mesilla Valley and increasing the wealth of Doña Ana County, MVEDA works with other entities such as the City of Las Cruces, Doña Ana County, local chambers of commerce as well as a diverse group of leaders from the business community.

“With an additional three solar projects in Doña Ana County with total investments upwards of $100 million, a recent groundbreaking for a major multi-unit residential development in Santa Teresa, and the future industry potential that Spaceport America offers, should make us all stop and wonder whether or not national headlines are accurate … or, at the very least, relevant to our region,” Lopez said.

Over the past fiscal year, 45 companies actively looked into relocating to Las Cruces with several of them completing the process and moving into vacant buildings. Some of these companies include Vangent, Samson, NRG, L&M Radiator, Products USA and NextEra Energy.

In early June, MVEDA hosted an open house for L&M Radiator, a manufacturer that recently announced its move to Las Cruces. L&M plans to transfer or hire more than 100 employees, Lopez said.

“Less than a year ago, Alaska Structures expanded in Las Cruces’ West Mesa Industrial Park and now occupies more than 300,000 square feet in two facilities and employs more than 300 workers,” Lopez added.

The year generated more than 580 jobs, contributed to more than 270,000 square feet in commercial real estate absorption, with capital investments totaling more than $540 million. The average salary for the new jobs exceeds $47,000 per year, which is almost 28 percent above average wages for Doña Ana County.

Since January 2003, through the most recent fiscal year, MVEDA has assisted in the expansion or location of 68 projects in Doña Ana County – including Union Pacific – creating more than 3,200 jobs with an annual payroll in excess of $96 million.

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – Manufacturing is not dead. That was the message Davin Lopez, president and CEO of the Mesilla Valley Economic Development Alliance, gave a breakfast audience at Hotel Encanto de Las Cruces on Thursday. MVEDA’s annual breakfast allows the private/public entity to give report for the recently completely fiscal year.

“It’s a tough time to talk about the economy,” Lopez said. “(And) we’ve been feeling it for the last couple of years.”

Still, the economic development group reports that lead development remains strong and there has been a “significant” jump in terms of manufacturing.

“Almost 45-percent of our leads are in manufacturing and logistics,” Lopez said. “We are hearing that heavy manufacturing is coming back to America.”

He pointed to the addition of Alaska Structures at the West Mesa Industrial Complex. The Anchorage-based company which makes shelters for the military as well as commercial customers, moved into a 184,000-square foot building that used to house Rea Magnet Wire, and also uses about 100,000 square feet at the previously empty building at 8500 Mountain Vista Parkway where Parkview Metal Products used to reside.

“If you think back 12 to 18 months ago, think of all those facilities sitting vacant,” Lopez said.  In fact, he said the Las Cruces area could use more spec buildings. “The biggest challenge we have going forward is we need more buildings,” Lopez said.

In addition, capital investment has jumped considerably in Dona Ana County, spurred by the recently begun Union Pacific Railroad project in Santa Teresa, but also ahead of the pace of the past several years even without Union Pacific.

New officers

Gary Lenzo with Century Bank is MVEDA’s chairman of the board as the new fiscal year begins, stepping in for Citizen’s Bank’s George Ruth, who will now serve as past chairman of the board.  ”I have some big shoes to fill,” Lenzo said.

In addition to Lenzo and Ruth, other officers include: Vice Chair Kiel Hoffman, Pioneer Bank; Secretary Dolores Connor, City Councilor; Treasurer Jim McGonnell, Memorial Medical Center; Executive Committee Member at Large Jack Darnall, Verde Realty.

Bryn Davis, New Mexico operations manager for Sapphire Energy and former past chairman of the board, was presented with a special award for all the work he has performed for MVEDA through the years.  ”I know I’m on the phone with him a lot,” Lenzo said.

Brook Stockberger can be reached at (575) 541-5457.

L&M Radiator photo courtesy of Fred Shepherd

Article courtesy of the Las Cruces Bulletin

By Samantha Roberts

The Mesilla Valley of Economic Development Alliance (MVEDA) has been busy this month with meetings, events and behind-the scenes work. The organization, which was incorporated in 1994, is “a public/private sector economic development partnership that serves Dona Ana County,” according to its mission. MVEDA partners with entities in southern New Mexico, such as the City of Las Cruces, Dona Ana County, New Mexico State University, Dona Ana Community College, the Las Cruces Public Schools, the Village of Hatch and the New Mexico Economic Development Department.

“We have begun a business connection series,” said Fred Shepherd, MVEDA business development manager. “We are trying to put together events that address what companies want to see and hear about.”

In addition to monthly business luncheons, MVEDA has other tools in its toolbox, such as business resource guides, assistance programs, business start-up help, educational opportunities and business consultations.

Newest to its resources, MVEDA offered a “commuter package” in collaboration with the City of Las Cruces to L&M Radiator, a worldwide manufacturer of MESABI flexible core heat exchangers that has decided to relocate its El Paso office to Las Cruces. The company purchased the old Coca-Cola bottling plant at 2100 S. Valley Drive.

“We have 60 current employees that will stay with us, and it will be up to them if they chose to move to Las Cruces or stay in El Paso, but we thought this was a nice way to at least show them what Las Cruces has to offer,” said Production Manager Tom Baumchen, in regards to the open house event.

L&M Radiator chartered two buses Saturday, June 4, filled with employees and their families to introduce them to the City of the Crosses. In addition to MVEDA, guests were allowed to peruse several vendors’ booths, including Dona Ana Community College (DACC), Las Cruces Public Schools, the City of Las Cruces, home loan companies, newspaper options and many others. Guests were also treated to a lunch and tour of Las Cruces before going back to Texas.

“We hope this event is the first of many of its kind,” Shepherd said. “We learned a lot from this first experience. For example, someone asked us about child care, and we didn’t have the information to provide them that day, but in the future we will know. And it is obvious, people moving to Las Cruces want to know the best place for their kids to go to school or where they can be safely kept.”

Other than booths, the participants also enjoyed guest speakers, including Margie Huerta, president of DACC, who was able to facilitate a brief question-and-answer session and recognize Las Cruces for its many wonderful opportunities.

“We are excited about the move, and it just came at the right time,” Baumchen said. “The reason for moving here was to continue a longtime partnership we have with TMS Machine Shop, and we found a building that could house both companies.”

Baumchen said the move has already started and anticipates three shifts per week to be operating by Friday, June 17. “We should be all moved over and settled in by the first or second week of August. Overall, we are very eager about being in Las Cruces and thrilled about the tremendous turnout today,” said Baumchen, hinting that an upcoming “phase two” is in the works for the company.

After L&M moves its final belongings to Las Cruces, Baumchen said he anticipates about 30 more hires. “We are bringing 60 people with us, and have already hired 30 more, but I anticipate that with the way work is coming in, we will add another 30 in the near future,” he said.

For Davin Lopez, MVEDA President and CEO, this event helped answer an important question. “For people moving here, where does quality of life fit in?” Lopez asked at the monthly Business on the Border luncheon Tuesday, June 7. “In addition to that, we at MVEDA want to help connect the fact that companies and their people are wanting to move here and are moving here, and how that will impact our local economy.”

L&M Radiator is not the only company making big changes in the area. Keith Beck, vice president and general manager of the Jacobs Technology’s NASA Test and Evaluation Contract (NTEC) at the NASA White Sands Test Facility (WSTF), also gave an update at the Business on the Border luncheon about what is going on at WTSF.

In regard to the number of people who will be out of work due to departments closing and contracts ending, Beck said a majority of the personnel will be maintained.

“We do a lot of stuff that has to do with testing. Anything that goes into space has to go through testing,” Beck said. “We have 420 employees now and as new jobs come, we look to hire internally first. The fiscal year is looking good, and we don’t anticipate another big hit coming anytime soon.”

Beck also said WSTF is constantly looking at new partnerships to create jobs, such as working with Spaceport America.  “We are currently working on scenarios that Spaceport America could be interested in,” he said. “For example, we are working with nitrous- oxide testing with the (Federal Aviation Administration). We will also have the ability to train people at Spaceport America or provided services as simple as rebuilding a valve on their car so they can get it fixed locally instead of shipping it away.”

At WSTF, Beck is responsible for all rocket propulsion testing, materials and component testing and the processing of flight hardware for the Space Shuttle and International Space Station as well as commercial and military systems. He holds a bachelor’s degree in mechanical engineering from Christian Brothers University and a master’s degree in engineering management from the University of Tennessee and is a registered Professional Engineer.

The next Business on the Border luncheon will be held from 11:30 a.m. to 1 p.m. Tuesday, July 5, at Hotel Encanto de Las Cruces, 705 S. Telshor Blvd. The meeting will begin with a hot entrée buffet followed by a brief update by MVEDA staff. Luncheon cost is $20 per person and open to the public.  For more information, call MVEDA at 525-2852.

For example, currently this fiscal year MVEDA has been involved in efforts that have assisted in the creation of 216 new jobs as well as the retention of 42 jobs within the City of Las Cruces with the total capital investment estimated in new construction and equipment estimated at $40mm.  Utilizing IMPLAN economic impact analysis, a 3^rd party statistical software that measures direct, indirect, and induced economic impacts, new tax revenue to the City of Las Cruces would exceed $700,000 during the construction phase and over $226,000 per year in subsequent years should employment levels be maintained.  Likewise, the increased tax revenue to the State of New Mexico as a result of these projects is estimated at over $2.3mm during the construction phase and over $347,000 in subsequent years.  Our educational institutions also benefit as a result of these economic based projects.  Las Cruces Public Schools property tax revenues could grow by as much as $200,000 per year.

Also, MVEDA is working closely with a handful of projects that have considerable impact to Dona Ana County; primarily with Union Pacific’s $400mm refueling station and intermodal ramp which would create over 3,000 construction jobs and eventually over 500 permanent, high wage jobs in Santa Teresa.  The impact of this project would create $19.9mm to the State of New Mexico and $3.5mm to Dona Ana County in new gross receipts and compensating tax paid on construction services alone.   As the State of New Mexico is currently faced with large budget deficits, the identification and creation of a new tax base becomes even that much more critical.  As evident from the above discussion, the attraction of economic based industry to the State and County is the solution.

Economic development practitioners and leaders around the United States value economic based industry growth and it is for this reason that competition continues to grow.  And even during these challenging economic times, and even with budget deficits, we see that States and regions across the country are investing more in their economic development efforts.  For example, just to the south of Dona Ana County in Horizon City (a suburb of El Paso), the city has adopted a new tax to build an economic development fund.  This is in addition to the State of Texas’ Enterprise Fund which provides the State with deal-closing dollars to attract industry.  Recently, Arizona legislators began a special legislative session to begin consideration of business tax cuts and the creation of a $25mm closing fund to attract new business to their State.   On a recent trip to Atlanta, MVEDA met with several national site selectors and two messages became clear.  First, that there would be an exodus of companies from California, and second, that Arizona and Texas had firmly placed their flag in the ground as the business friendly destination.   With less than a month left in New Mexico’s 60-day legislative session, we are hopeful that the State of New Mexico remains aggressive in the pursuit of economic development.  For this reason the Dona Ana County Legislative Coalition has been supporting the following economic development issues:

1.    Support of a State economic development recruitment budget by expanding the New Mexico Partnership beyond present funding levels, with the purpose of creating new private sector employment opportunities, creating new jobs for New Mexicans and expanding business in the State.  Currently, past year funding has been at $1.1mm.  This is a significant decrease in funding from when the program began in 2003. It is also a small budget in comparison to neighboring cities, much less other State recruitment budgets.  The Partnership also provides lead generation flow to smaller communities that do not have their own marketing budget to work with.  Rural communities that have benefited from the Partnership’s involvement have included Clovis, Roswell, Gallup, and Dona Ana County to name just a few.   To compare this funding level against some of our neighbors;

o    El Paso, TX has a recruitment program funded at about $1.5mm, and

o    The Greater Phoenix Economic Development Council has a recruitment program funded at about $4mm.

2.    Support of retaining existing economic development incentives to include:

o    Funding the State’s Job Training Incentive Program,

o    Maintaining the Technology Jobs Tax Credit, the Manufacturing Investment Tax Credit, and Rural Jobs Tax Credits.

3.    Support of regional border issues which comprise New Mexico’s second largest existing industrial base:

o    Reinstatement of the Locomotive Diesel Refuel Tax Exemption to make southern New Mexico more competitive against Texas as a bi-modal, transportation and logistics hub.

o    Creation of an Commercial Overweight Zone which will assist in attracting new logistics and distribution companies to New Mexico, &

o    Creation of a border infrastructure fund to plan, design and construct border infrastructure to allow for pro-active economic development planning.

Regardless of the outcome at the State level, we still have tremendous economic growth opportunities here in Dona Ana County.  This stems from a direct industry focused marketing approach that leverages the unique assets of the region.  They include our border logistics and port of entry with Mexico, our proximity to White Sands Missile Range, our natural assets in solar, a strong agricultural region, and the continued development of an aerospace industry with Spaceport America as its anchor.  As illustrated in the Lead Generation chart, MVEDA continues to receive diversified industry interest lead first by manufacturing and logistics, followed by renewable energy, and increased growth in the aerospace and food processing sectors.  We have also recently seen a renewed interest in high tech companies looking at the area.

In terms of performance output versus past years, MVEDA has assisted in the creation of 237 new jobs in Dona Ana County as of March 1 of this fiscal year which places us well ahead of job creation numbers in each of the past previous two years, only overshadowed by the positive economic climate of 2007-’08.  However, there remains a strong potential that we will see a handful of projects close before the end of the current fiscal year which would then create a record year for MVEDA.

As also illustrated in the Completed Projects chart, as of March 1^st we have already surpassed past years’ results in the industrial square footage taken off the marketplace and in the total capital investment that these projects have brought to Dona Ana County.

In addition to economic based industry attraction, MVEDA is working on solutions to connect local businesses to the opportunities that economic based industry brings to the region.   Therefore we were pleased to announce our first “Business Connection Series” on Monday, March 7, 2011 where SunEdison provided local vendors, suppliers, and sub-contractors with a pre-bid briefing on their 12 MW solar project at the West Mesa Industrial Park.  We are hopeful that this will be the first in a series of localized economic-based business building opportunities.

Additionally, in conjunction with the Border Industrial Association (BIA), MVEDA hosted a Business Incentives Workshop for the southern New Mexico industrial base and the CPA firms that service them.   The workshop which also counted towards CEP credit was provided by Moss Adams, a MVEDA Partner and covered, not only the details of applying for state incentives, but federal incentives as well.

As evident, even with the budget challenges at the State level, we are optimistic about the future of economic development in Dona Ana County and appreciate the continued support of all of our partners and stakeholders.

Our guest speaker on Tuesday was Fred Mondragon, the Cabinet Secretary of Economic Development, who shared some economic data on the status of New Mexico and Southern New Mexico’s economies, and also provided some words of advice as to how we might keep the momentum moving forward in Dona Ana County.  The Secretary outlined and highlighted several success stories for Dona Ana County that included (click on graphic to view presentation):

• A September 2010 unemployment rate in Las Cruces 2% below the national average and more than ½ percent below the State’s average,
• Site Selection Magazine and Business Facilities ranked New Mexico in their Top 10 nationally for:

o    #2 in Solar Energy Manufacturing Leaders,

o    #3 in Workforce Training Leaders,

o    #5 in Alternative Energy Industry Leaders,

o    #6 in Cost of Labor, and

o    #8 in Economic Growth Potential.

• Regionally, Las Cruces ranked in the following areas:

o    5^th in U.S. in projected 2009-2011 employment growth rates.

o    8^th in Milken’s 2010 Best-performing small cities,

o    #9^th in Business Week’s top recovering job markets for 2010, &

o    Dona Ana County ranked 14^th Best County in the nation for job growth over the last nine years by Money Magazine.

The Secretary also praised many of the strides Southern New Mexico has made with respect to:

• The aerospace industry, where he cited Spaceport America and the selection of NMSU as an FAA Center of Excellence for Commercial Space Transportation as the anchors that will spur this industry forward in New Mexico,
• The alternative/renewable energy industry with three new solar projects taking place in the County, the announcement of Johnson Plate and Tower this past January and with Sapphire Energy located at the West Mesa Industrial Park.
• And of course our Borderplex growth at Santa Teresa which has seen cross border goods increase by 256% over the past five years.

Finally, his words of advice to local leadership moving forward were to:

1.    Continue our economic diversification,

2.    Build on regional and local strengths,

3.    Think globally, and

4.    To support less unfortunate communities in the region.

Given that Tuesday was Election Day, it is only appropriate that we discuss both the success we have had in economic development and job creation, but more importantly to focus on the future building blocks we need as a region so that we may continue to grow our economy.   As I have mentioned many times in the past, Southern New Mexico is blessed with some very strong assets by which we can grow upon.  But we need to assure that the tools and legislative support is available to do so.  This includes maintaining a strong State economic development marketing effort, maintaining existing incentives, as well as expanding those incentives to support Southern New Mexico growth in the areas of aerospace, border logistical support, alternative energy, and food processing.   And although in Dona Ana County, we look towards the State to support us in many of these efforts, we must also realize that as a community we are equally responsible for taking steps to prepare ourselves to attract growth and that comes in the form of education, infrastructure, and capacity building.  In this respect, MVEDA continually provides assessment and analysis on the challenges facing economic development in our region.  Although MVEDA’s primary focus is on marketing and attracting economic-based jobs to the region, we nevertheless find it necessary to engage in capacity building activities that will assist us in our long-term goals.  Currently, MVEDA is implementing and working on several capacity building directives that include:

• Colonias/Rural Area Labor Assessment:   With the support of an intern from NMSU, MVEDA has designed a bilingual workforce survey which we will be distributing to residents in rural areas.  We are receiving support from PICO to assist us in survey response.  Our first effort will take place in November in Anthony, NM.  We hope to expand this to Sunland Park and Chaparral before the end of the fiscal year.
• Labor Identification Program for Santa Teresa based Employers:  Working in conjunction with DACC, we will be marketing employment services offered through DACC to Santa Teresa based employers.  MVEDA’s analysis through conversations with employers indicates that 60% to 70% of the existing workforce in Santa Teresa comes from El Paso.  We are hoping to offer employers a one stop solution and first point of contact through DACC when they have future labor needs.
• Investment Interest in Santa Teresa:  A second challenge with the workforce in Santa Teresa is the ability to convert them to New Mexico residents.  This is due to lack of housing that is within proximity to the employment base.  We have begun collaborating with the Border Industrial Association, the Building Industries Association, and the Las Cruces Association of Realtors to potentially identify new programs that could be offered to promote and encourage more development in the area.
• Spaceport America Economic Development Strategies:   Finally, MVEDA has been involved with Spaceport America and their consultants in trying to identify clear strategies that we can jointly implement that will assist our efforts in developing business opportunities revolving around the Spaceport and the aerospace industry.

We are hopeful that some of these efforts lay additional foundation for growth leading into the next administration and MVEDA will continue to work closely with the Economic Development Department and the New Mexico Partnership as partners in this endeavor.  Again, MVEDA thanks the Secretary for his time and for all the support he has provided to economic development in Dona Ana County.  We wish him well in his retirement from state government which was announced by Governor Bill Richardson earlier today.

The MVEDA Board of Directors and Staff want to give special thanks to our key note speakers:

• Francisco Urango, Corporate Vice President and Chief Business Operations Officer for Latin America,for Foxconn.   Foxconn is the largest contract manufacturing company in the world with a significant manufacturing presence in San Jeronimo, next to the Santa Teresa Port of Entry,

• Carissa Bryce Christensen, founder and Managing Partner of The Tauri Group, an analytic and engineering firm based in Alexandria, VA, which provides expertise on the economic, market, technology and policy issues associated with commercial spaceflight, and

• Dr. Lowell Catlett, Regent’s Professor/Dean and Chief Administrative Officer at NMSU’s College of Agricultural, Consumer and Environmental Sciences.  Dr. Catlett is also a national speaker and futurist on trends associated with technologies and their implications on the way we live and work.

Special thanks also go out to our expert panelists that included:

• Juan Massey, Director of Regulatory Affairs at Verde Realty,

• Jerry Pacheco, Executive Director of the International Business Accelerator,

• Andrew Moralez, Executive Director of the New Mexico Border Authority,

• Zoe Gisela Richmond, Director of Public Affairs for Union Pacific,

• Robert X. Martinez, VP of Construction Management for Gerald Martin,

• Keith Beck, VP and General Manager of the Jacob’s Technology Test and Evaluation Center,

• Wayne Savage, Program Manager of Progressive Construction Management, and

• Mark Lautman, Principal of Lautman Economic Architecture Partners, LLC.

For those of you who could not attend, we will be placing parts of the presentations on our website in the coming weeks.

Q1 2010-’11 Activity

MVEDA entered the 2010-’11 Fiscal Year with twelve, high-priority projects, consisting of approximately 1,200 jobs with a realistic chance of closing in the current fiscal year.   Approximately 1/3 of those jobs (as illustrated in the blue on the chart below), consisting of primarily manufacturing and renewable energy companies, show a very strong chance of closing.  What this means to MVEDA’s internal operations is that we have turned much of our attention this past quarter towards the project management needs of our clients.

Additionally, MVEDA continues its aggressive marketing campaign and year to date we have developed 22 new leads consisting of approximately 925 employees and 785,000sf of required space.   In comparison to last year, total new leads are slightly down and we see a shift in industry specific leads especially within food processing which currently represents 25% of all our new 2010-’11 leads as compared to only 3% of total leads for the same period last fiscal year.

Manufacturing/logistics and aerospace also showed some slight growth as a percentage of total leads while renewable energy leads dropped to 21% of total leads YTD 2010-’11 compared with 32% for the same period last fiscal year.  Additionally, whereas a large portion of our renewable energy leads last year were involved in manufacturing, we see a much larger portion of this year’s renewable energy leads involved in renewable energy generation.

With respect to employment trends in the region versus the rest of the United States, the Las Cruces market has fared very well.  In a September 2010 report by Garner Economics LLC, which measured job growth trends amongst 158 U.S. metros, Las Cruces was recognized along with 15 other metros as setting new record employment numbers.  Garner Economics’ report quoted:

“The July 2010 employment numbers also show that sixteen metros have set new records; surpassing July peak employment totals from the previous five years (see map and table).”

As illustrated in the map and table provided as part of the Garner Economics report, Las Cruces NM was ranked 8th amongst these 16 cities in terms of the percentage increase in jobs with over 1,900 new jobs added over July 2009.

In the upcoming months, MVEDA will continue to be active in several events.   Later in October, MVEDA is sponsor to ISPCS as well as to the VC Speed Dating Event put on by the Arrowhead Center.   We will also be attending the BizTech 2010 Expo in El Paso.

Finally, if you were not already aware, the MVEDA staff is now settled into our new offices in the First Community Bank Building in downtown Las Cruces.  Our formal address is: 1st Community Bank Tower, 277 E. Amador, Suite 304, Las Cruces, NM  88001.  We hope you can all stop by and visit us in the very near future.