Posts Tagged ‘Frontier Airlines’

It is with a great deal of excitement that I present to you MVEDA’s First Quarter results of the 2011-’12 Fiscal Year.  It seemed it would be very difficult to match the performance level and results of our last fiscal year, one of MVEDA’s best years ever.  In the last fiscal year we experienced our second best year ever in terms of job creation.  It was by far our best year ever in terms of capital investment made into the region.  Additionally, it was our best year ever in terms of average salaries created which is a direct impact on wealth creation for the region and its residents (please see attached FY 11 Annual Report).   But if this first quarter is any indication of how the rest of the year will proceed then we will have just as much success to look forward to and with great anticipation.

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

Article courtesy of the Las Cruces Sun-News

LAS CRUCES – National call center company Vangent recently laid off about half of its staff at its Las Cruces call center, but reports that it plans to refill those positions.

“Right now, we have 45 still on the job,” said Vangent Vice President Doug Divelbiss. “We’ll be hiring back the other ones.”

No timetable for more hiring, though, has been announced.

Arlington, Va.-based Vangent opened its Las Cruces call center at 1630 Hickory Loop – the location that used to house Frontier Airlines until it was vacated in 2009 – on July 21.

Divelbiss said the company originally brought in about 100 workers, but as it figures out its staffing needs, had to cut back, although he said that staffing will again rise.

“We really like Las Cruces,” he said. “We like this size of town, with a college.”

Vangent reports it has been serving clients in the federal government since 1973 and has more than 7,000 employees worldwide. Its website reports that it has worked with the Department of Commerce, the Department of Defense, the Department of Education, NASA and other clients.

Article courtesy of the Las Cruces Sun-News

By Brook Stockberger

LAS CRUCES – Another dormant commercial location will again be alive with the buzz of Las Cruces workers. Arlington, Va.-based Vangent announced that it plans to hire 120 employees as it takes over the empty location at 1630 Hickory Loop, vacated in 2009 by Frontier Airlines.

Vangent operates call centers, so, if you’re looking for a job, warm up your vocal cords and spruce up your résumé, because the company plans to hold job fairs starting Wednesday next week at the Workforce Connection office, 226 S. Alameda St.

“This is another great opportunity to refill lost jobs,” said Davin Lopez, president and CEO with the Mesilla Valley Economic Development Alliance.

The news comes after the recent announcement that the large Rea Magnet Wire building on the West Mesa Industrial Park had been sold to Alaska Structures, which also has occupied parts of the years’-empty Parkview Metals buildings.

“I’m excited; this is great news for Las Cruces,” said Las Cruces Mayor Ken Miyagishima. “I’m so proud of our community and economic development team.”

The job fairs will take place from 11:30 a.m. to 5 p.m. on Wednesday and Thursday as well as from 8 a.m. to 5 p.m. on Friday.

Lopez said a delegation from Las Cruces first met with the company in February in Washington D.C. “They are a third-party contract center that does work for a variety of industries, including the federal government,” Lopez said.

Vangent reports it has been serving clients in the federal government since 1973 and has more than 7,000 employees worldwide. The company did not give specifics on the function of its Las Cruces facility, but its website reports that is has worked with the Department of Commerce, the Department of Defense, the Department of Education, NASA and other clients.

Vangent will hire entry-level customer service representatives, senior representatives, supervisors, quality monitors, operations representatives, workforce management specialists and a trainer. The company offers temporary and full-time employment. It did not disclose wage information, but reports it offers “competitive pay, benefits and flexible schedules.”

For all positions, a high school diploma or GED is required and applicants must pass a typing test of at least 20 words per minute. Everyone who is hired also must pass a security clearance and a pre-employment drug test.

“Our unemployment (rate) is already down and this will help that even more,” Miyagishima said. “I can’t stress enough the teamwork at MVEDA, the city and county and university on (economic development).”

Vangent said it chose Las Cruces “due to a well-educated workforce, an area free from extreme weather and easy access to major metropolitan centers in New Mexico, Texas and Arizona. In addition, Vangent has received valuable support from the Mesilla Valley Economic Development Alliance and members of their board of directors.”

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

Happy New Year and welcome to 2010.  As we start a new year it is always important to reflect upon the past year’s events, both the challenges and the opportunities, and use these experiences to change strategies and/or direction where they are needed to become more productive and successful.

We started 2009 with what I believe were a greater amount of “unknowns” than “knowns”;  fears following a stock market crash, government bailouts, mass foreclosures, growing unemployment rates, and discussions of a recession was the topic of many conversations.   These were the challenges over the past year that all communities, businesses, and economic development agencies had to deal with, not just MVEDA.  As a region, Dona Ana County was not immune to this crisis.  We began the year at 5.5% unemployment and ended the year hovering around 7%.  However, compared to a 7.8% unemployment rate at the State level and a 9.4% rate at the national level (as of November), Dona Ana County actually fared pretty well.  And although we experienced the loss of a large employer with the Frontier Airlines’ reservation center closing here in Las Cruces, we were also balanced by increases in hiring by other service centers including Sitel, CyraCom, and Convergys.  We also experienced some decline in production/manufacturing jobs and the loss of Multi-Plastics.  However, we also experienced an unprecedented level of interest by companies in the emerging alternative energy sector which has led to some key opportunities; earlier in the year eSolar and NRG Energy announced a 92 megawatt solar project for Santa Teresa and earlier today, Johnson Plate and Tower announced their plans to build a wind tower manufacturing facility, also in Santa Teresa.    Sapphire Energy has invested $8 million in its research and development facility at the Las Cruces West Mesa Industrial Park and will invest another $100 million in Southern New Mexico to produce biofuel from algae.  Along with other alternative energy groups who have identified the region for their projects, Dona Ana County could realize up to 200 new jobs and up to $300 million dollars in new capital investments in the years to come as a result of 2009 activity.

At MVEDA, we enter 2010 optimistically.  After dropping out of the top five rankings of the best performing small cities by Forbes and the Milken Institute between 2002 and 2006, the Las Cruces NM MSA has again made the list of the Milken Institute’s top ten “Best Performing Small Cities.”  As Spaceport America comes on-line and if some of the other projects in our pipeline materialize, it should lead to regaining a top five position in the near future.

But we also realize that we have not yet fully escaped the economic crisis of the past year.  We know that economists are now beginning to talk about a recovery.  We know the current holiday shopping season experienced a 3.5% increase over last year’s holiday season illustrating an increase in consumer confidence.  We know from reports that foreclosure numbers will decrease from the levels experienced in 2008 and 2009.   We also know we have a pipeline of projects and companies that we are working with who are considering the region for growth.  We know that there is a growing alternative energy industry with its eyes on New Mexico and that MVEDA has been aggressive in gathering the attention of this industry.  But we also know that we still have a lot more to do.   But at least we enter the New Year with a few more “knowns” than the “unknowns” of 2009.

Yesterday, we held our October Business on the Border Luncheon where Wayne Savage and Pat Hynes presented on the upcoming Leonard R. Sugerman Public Forum and International Symposium for Personal and Commercial Spaceflight (ISPCS) events which will be taking place October 20th to the 22nd at the New Mexico Farm and Ranch Heritage Museum in Las Cruces.  MVEDA will be sponsoring the opening reception for all registered attendees of ISPCS. As economic developers we work very hard and spend time and resources to get in front of industry decision makers and encourage business attraction to our region.  The fact that ISPCS is taking place in our own back yard with industry leaders attending creates a very powerful marketing tool for MVEDA and the region as a whole.

To recap lead generation activity over the past month, MVEDA generated fifteen new leads compared with ten the last month, thereby showing a very healthy pipeline of projects and interest.   Although alternative energy companies continue to make up over 1/3 of all our leads in the past two months, the overall percentage has dropped slightly and we have seen an increase in the percentage of lead generation within the aerospace and food processing sectors.  We currently have 25 new leads in the pipeline for this fiscal year totaling 2,512 potential jobs and over 1 million square feet of potential real estate needs.

As announced last week, Frontier Airlines stated that they would be closing their Las Cruces reservation center towards the end of this year.  MVEDA has already begun to market the facility as a plug-n-play call center to the site selector community and have currently received two inquiries.

In September, MVEDA attended the Industrial Asset Management Council (IAMC) conference in Minneapolis.  This is the premier event for site consultants.  MVEDA co-hosted a site consultant dinner put on by the New Mexico Partnership which received strong attendance.

For the month of October, MVEDA has a very busy marketing and travel schedule consisting of:

• Oct. 12-16: Prospect mission to Washington D.C. to meet primarily with defense related firms and site consultants
• Oct. 20-22: Leonard R. Sugerman Public Forum and ISPCS
• Oct. 26-29: Prospect mission in Los Angeles and attendance at the Solar Power International Show.

Finally, I am happy to say that on September 22, 2009, the County Commission voted unanimously on the passage of the Local Economic Development Act (LEDA) in Dona Ana County.