Posts Tagged ‘Business on the Border’

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Thank you to all who attended Tuesday’s Business on the Border Luncheon where Dr. Chris Erickson from NMSU provided his economic outlook and forecast for Las Cruces and the region.  Dr. Erickson presented employment information illustrating that although Las Cruces has fared better than both the national average and New Mexico as a whole, in terms of employment growth, we are still behind our peak employment numbers experienced in the mid 2000’s.  Dr. Erickson stated that it will take approximately three years to catch back up to those previously experienced levels.   Dr. Ericson also commented that although it appears that the country as a whole is moving out of the current recession, which has lasted a staggering 20 months, we must nevertheless not rule out the possibility of a double dip recession.  If you are interested in a copy of Dr. Erickson’s presentation, it can be downloaded by clicking the graphic.

From an economic development perspective we enter the new fiscal year cautiously optimistic.  Over the past fiscal year, MVEDA has developed over 100 leads and over 45 initial site visits.  We also carry forward a strong pipeline of projects which we believe have a strong chance of closing in the coming fiscal year.   We are also experiencing much more diversification amongst the types of industries that have expressed interest in the region.  MVEDA’s top 10 active prospects include 3 manufacturing companies, 2 aerospace companies, 2 renewable energy companies, one food processing company as well as one high tech company.   Together these 10 prospects potentially could create the need for over 2,000,000sf of space and create as many as 600 to 700 jobs.

We are also beginning to see some recurring themes in terms of the anecdotal data we pull from prospects.  For example, whereas over the past fiscal year it appeared financing was the leading driving indicator of a business’ locate decision; we are now seeing more inquiries once again surrounding work force needs.   Additionally we are receiving more inquiries for build-to-suit opportunities as opposed to existing inventory.  Both questions lead us to believe that access to capital is slowly becoming more available which should bode well for economic development initiatives.

This past fiscal year, we also showed success in developing opportunities within the rural areas of the County.  MVEDA conducted site visits to Hatch, Rincon, Anthony, Chaparral, Santa Teresa and Sunland Park amongst other locations.  We are proud to say that one of these actually led to the “locate” of Universal Plastics in Anthony, NM.

Although optimistic, we cannot lose sight that there is still much to do to spark economic development within the state and region. The MVEDA Board of Directors and staff met last week to outline our strategic plans for the new fiscal year.  At the session, MVEDA updated its regional economic development SWOT analysis and recognized that although we have been successful in addressing many of our economic development weaknesses, there are several new arising threats and barriers that we must be aware of.   They include:

1. Uncertainty of a new administration:  A new administration always puts pause in private sector decision making.  Will the next administration be business friendly?
2. Uncertainty of business attraction incentives:  Recently the State has been experiencing budgetary challenges with its most “tried and true” incentive; Job Training Incentive Program (JTIP).  Recent changes have lowered the reimbursable amount on JTIP funding in urban areas (ie…Las Cruces) from 50% to 30%.  Incentives such as JTIP are the only tools most economic development programs across New Mexico have to be competitive in business attraction.  Will they be further reduced?
3. Regional and Local Incentives:  Serious consideration needs to be placed into the development of localized incentives for economic development.  Communities throughout the country, especially in Texas have economic development funds by which they can tap into for job creation.
4. Border competitiveness:  Recently El Paso announced the acquisition of 1,000 acres of land in Tornillo for the development of an industrial park with a port of entry which they will break ground on in 2012.  How will this affect our port of entry and future economic development opportunities in Santa Teresa?

These are challenges that MVEDA recognizes and, as an organization, must consistently retool our marketing efforts and plan strategically to deal with new challenges that arise.  And we can only hope that a “double dip” by the national economy is avoidable.

I look forward to seeing everyone at our next Business on the Border Luncheon where MVEDA will be providing a year end re-cap.  We will also have a guest speaker from the New Mexico Small Business Assistance Program which is a program that leverages technology and expertise at our National Laboratories and can provide up to $20,000 in technical support to companies in the region.

The July meeting of the MVEDA Business on the Border Forum will be held on Tuesday, July 6, 2010 from 11:30 AM until 1:00 PM at the Hotel Encanto de Las Cruces, 705 S. Telshor. The meeting will begin with a hot entree buffet followed by a brief update by MVEDA staff.

Christopher A. Erickson, Ph.D.

Dr. Christopher Erickson will be the featured speaker at the luncheon.  In his “Update and Outlook for the Las Cruces Economy” he will discuss the outlook for Las Cruces next year and beyond. He will also discuss the outlook for the state and national economy.

Dr. Erickson has served on the faculty of the NMSU Department of Economics and International Business since 1987. He is a frequent speaker on financial economics, macroeconomics and the border economy. His primary teaching interest is money and banking. He is the author or co-author of numerous articles on financial economics, including supplemental money and banking text that has been adopted on more than 100 college campuses. He is the Executive Editor of the New Mexico Business Outlook, the e-newsletter of the College of Business at New Mexico State University.

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, July 1^st by clicking the button below or by calling the office at (575) 525-2852. The meeting is open to the public.

The June meeting of the MVEDA Business on the Border Forum will be held on Tuesday, June 1, 2010 from 11:30 AM until 1:00 PM at the Hotel Encanto de Las Cruces, 705 S. Telshor. The meeting will begin with a hot entree buffet followed by a brief update by MVEDA staff.

The June Forum will feature Gail E. Houser, Western Regional Director of the National Tooling and Machining Association. The National Tooling and Machining Association is the national representative for the 1,400+ small machining companies located throughout the United States.

Mr. Houser is a professional manufacturing and marketing executive with 35 years experience in custom precision machining, machine tool and capital equipment modernization. His experience includes being a third-generation small business owner in Phoenix.  He and his wife, Denise, relocated to Las Vegas, New Mexico three years ago.

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, May 27^th by clicking the button below or by calling the office at (575) 525-2852. The meeting is open to the public.

MVEDA’s Business on the Border Luncheon on March 2nd featured a commercial real estate update.   The discussion shined a positive light on the economic environment surrounding the real estate market and where we can be looking for opportunities ahead.

The panel consisted of:  John L. Hummer, Owner/Broker with Steinborn TCN Commercial Real Estate; Gil Jones, Associate Broker with NAI 1^st Valley Commercial Real Estate; Donnie Brainard, President/Qualifying Broker with Alameda Property Group; and Rick Stoes, Managing Director for Grubb & Ellis.

Economic highlights from the discussion included:

• National and regional retailers are beginning to show activity,
• Improvement in new store openings and slowing of store closures compared to last year,
• Strip retailers are more aggressive on store openings,
• Stabilization of lease rates,
• Growth at Ft. Bliss expected to boost regional economy by $4 billion annually,
• Significant increase in venture capital money looking to be placed. Majority of which is coming out of Mexico, and
• Conventional financing will continue to be difficult to obtain.

The panelists graciously agreed to let us post their presentations and they can be down-loaded by following these links:

• John Hummer’s presentation (PDF – 570 KB)
• Gil Jones’ presentation (PDF – 935 KB)
• Donnie Brainard’s presentation (PDF – 1.5 MB)
• Rick Stoes’ presentation (PDF – 1.3MB)

As for the first two months of 2010, MVEDA’s lead generation activity has been quite high.  Entering the month of March, our lead generation is 176% higher than this same time last year, and our prospect activity is at 111% of our YTD goals.  In the month of February alone, we had over 14 new leads and 5 site visits by companies interested in the region.  Renewable energy continues to lead the way representing 1/3rd of all our new lead generation, followed by manufacturing and logistics firms.  Over the past couple of months we have also seen some increased interest in the aviation and aerospace sectors.

MVEDA’s marketing efforts remain aggressive.  Since mid-January, MVEDA participated in two prospecting missions with the New Mexico Partnership to Southern California and Dallas regions.  We also attended the Medical Design and Manufacturing Trade Show in Anaheim and participated in the National Security Technology Conference that took place in Las Cruces last week.

Although lead generation and prospecting activity is quite high, the difficulty in closing deals and in job creation surrounds financing.  This became a topic at our Business on the Border luncheon and has been a growing challenge over the past year.  As economic developers, we are being asked more and more to identify financing solutions for our clients which as a result is forcing us to identify alternative financing routes, such as through State and Federal programs, or through equity programs and grants.  Suffice it to say that this will be a continuing discussion, but enables us to retool, as well as, rethink strategies that will create new opportunities and future growth in Dona Ana County.

The December meeting of the MVEDA Business on the Border Forum will be held on Tuesday, December 1, 2009 from 11:30 AM until 1:00 PM at the Day’s Inn Columbus Conference Center, 901 Avenida de Mesilla.  The meeting will begin with a hot entree buffet, followed by an update by MVEDA staff.

Jeff Abrams, Project Manager for the New Mexico Manufacturing Extension Partnership (New Mexico MEP) will be the featured speaker.  The New Mexico MEP is part of a national network which provides technical and business resources to manufacturers who are prepared to expand their capabilities and increase profitability. New Mexico MEP is affiliated with the National Institute of Standards and Technology (NIST).

New Mexico MEP is uniquely positioned to provide a wide variety of services to manufacturers and small businesses throughout the State of New Mexico. Services offered include:

• Lean Systems
• Quality Systems
• Business Services
• Organizational Development
• Information Technology

Luncheon cost is $15.00 per person, payable by cash, check or major credit card. The meeting is open to the public and reservations are not required.