Posts Tagged ‘Las Cruces NM MSA’

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.

Reports released by the New Mexico Taxation and Revenue Department indicate that the Dona Ana County economy continued to struggle during the third quarter of 2009.  According to the report, total reported gross receipts for all industries were flat when compared to the third quarter of 2008.  For the first three quarters of 2009, total reported gross receipts are 2.4% lower compared to 2008.

Total reported gross receipts from retail trade showed improvement during the third quarter, increasing 4.3% when compared to the third quarter of 2008. Year-to-date total reported gross receipts from retail trade for 2009 are down 2.7% compared to 2008.

The construction sector continues to be very soft.  Although there were no additional job losses between the second quarter and third quarters of 2009, total reported gross receipts from construction and mining were 16.9% lower in the third quarter of 2009 as compared to 2008. Year-to-date total reported gross receipts in construction and mining for 2009 are down 9% compared to 2008.

Compared to the third quarter of 2008, new single family residential permit valuations issued in the county increased 21.6% for the third quarter of 2009, but are down 12.3% through the first three quarters of 2009 compared to 2008. According to data from the Las Cruces Association of Realtors Multiple Listing Information Service for the month of September, 2009 the number of new and existing home sales increased 21.9% compared to the month of September, 2008. In comparison, the average sale price dropped 12.1%, from $228,447 to $200,738.

According to data from the U.S. Bureau of Labor Statics, Dona Ana County’s unemployment rate in September, 2009 was 6.9%, down from 7.3% in June. This is significantly lower than the national rate of 9.8%, and lower than the state rate of 7.7%.  A recent report by the Milken Institute ranking the Las Cruces MSA in the top ten best performing small metros seems to indicate that this trend may continue.

Using a variety of sources, MVEDA tracks and reports changes in labor force, employment, construction permits and total reported gross receipts on a quarterly and annual basis. These economic indicator reports are available on MVEDA website.  The report for the third quarter of 2009 is attached and will be posted on the website in the near future.

Detailed New Mexico gross receipts tax files are available on UNM’s Bureau of Business & Economic Research website. Current and historical labor force data for Dona Ana County (Las Cruces NM MSA) are available on the Bureau of Labor Statics’ website.

Reports just released by the New Mexico Taxation and Revenue Department indicate that the Dona Ana County economy continued to soften during the second quarter of 2009.  According to the report, total reported gross receipts for all industries fell 3% when compared to the second quarter of 2008.  The reduction was less than the 4.3% reduction recorded in the first quarter. Total reported gross receipts for retail trade were 10% lower when compared to the second quarter of 2008.

The construction sector continues to soften, but not as severely as during the first quarter. Total reported gross receipts were 4.3% lower in the second quarter of 2009 as compared to 2008. New residential permits issued in the county were 17.1% lower and total permit valuations (all classifications) fell 11.6%

According to preliminary data from the Bureau of Labor Statics, Dona Ana County’s unemployment rate in June, 2009 was 7.3%. This is lower than the national rate of 9.5%, but higher than the state rate of 6.8%.

Using a variety of sources, MVEDA tracks and reports changes in labor force, employment, construction permits and total reported gross receipts on a quarterly and annual basis. These economic indicator reports are available on MVEDA website.  The report for the second quarter of 2009 will be released in the near future.

Detailed New Mexico gross receipts files are available on UNM’s Bureau of Business & Economic Research website. Current and historical labor force data for Dona Ana County (Las Cruces NM MSA) are available on the Bureau of Labor Statics’ website.