Posts Tagged ‘MVEDA’

Article courtesy of the Las Cruces Sun-News

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – “Las Cruces, manufacturing hub!”

Well, southern New Mexico’s largest city might not gain that moniker anytime soon, but the reality of an operating Spaceport America north of town and the start of construction on a $400 million Union Pacific Railroad facility south of town, has spurred increased interest in Las Cruces among manufacturing and logistics companies.

According to a recent quarterly report, the Mesilla Valley Economic Development Alliance says that 65 percent of all new leads are in the manufacturing sector.

“This is a great area to be growing in because manufacturing/logistics generally involves paying local people and local suppliers to make things that people outside the region pay for,” said Christine Logan, economic development administrator for the city of Las Cruces.

L&M Radiator and Alaska Structures both moved into town and created manufacturing jobs. That was welcome news that came on the heels of a stretch last decade in which Las Cruces lost Parkview Metals, Rea Wire Magnet Wire and manufacturing jobs with Taylor Precision Products. “Both of these companies moved from El Paso to Las Cruces,” Logan said. “A big factor was that we had facilities here that they could move into and expand their operations. A recurring theme in the city’s economic development efforts has been the need for existing industrial space.”

Minnesota-based L&M had a facility in El Paso, but outgrew that location and turned its eyes north across the state border. “Our business has seen a tremendous amount of growth over the last year,” L&M Radiator President Dan Chisholm said when the company decided to move. L&M, which makes cooling systems for heavy machinery, is leasing about 52,000 square feet of manufacturing and warehouse space on South Valley Drive.

In addition, TE Connectivity, an electronics component manufacturer, will relocate 100 jobs to its Santa Teresa plant from El Paso. “In the next three years, we’re hoping those 100 jobs grow to 250,” said Jerry Pacheco, vice president of the Border Industrial Association.

According to the city’s most recent economic development report, the manufacturing business category makes up just 1 percent of the businesses and 4 percent of the jobs.

Still, Davin Lopez, president and CEO with MVEDA, said that the area is increasingly showing up on companies’ radar. MVEDA works to bring companies to Doña Ana County and to help those already here expand. “We continue to see manufacturing leads increase as a percentage of total leads developed,” Lopez said. “This category also includes logistics companies. Whereas this category accounted for approximately 39 percent of all leads in the last fiscal year, we have seen it grow to 65 percent of in the first quarter of this year.”

Both Logan and Lopez said that the Union Pacific facility in Santa Teresa plays a major role. “Over the past 12 to 18 months, we have received greater interest from manufacturing and logistics firms due to the Union Pacific announcement,” Lopez said. “A $400-million-plus investment catches attention both regionally and nationally.

“It has enabled us to not only showcase opportunities in and around the Santa Teresa region but also to bring greater attention to the Las Cruces region where we happened to have existing facility space that fits the needs of some of these companies,” he said.

“We are getting more attention lately because, No. 1, we had vacant facilities to accommodate companies,” Logan said. “No. 2, there is pent-up demand for manufacturing space since no one wanted to expand or relocate in the worst of the economy and, No. 3, the proximity to the Union Pacific intermodal facility makes this a great place to locate a manufacturing facility.”

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

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

Christopher A. Erickson, Ph.D.

Dr. Christopher Erickson will be the featured speaker at the November meeting of the MVEDA Business on the Border Forum. The luncheon will be held on Tuesday, November 1, 2011 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.

In his “Update and Outlook for the Las Cruces Economy” Dr. Erickson 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, October 27 by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

Article courtesy of the Las Cruces Bulletin

By Todd G. Dickson

Part of the state’s spaceport deal with Virgin Galactic is that the company set up its headquarters in New Mexico, and Las Cruces appears to be that place.

Carolyn Wincer, Virgin Galactic’s head of travel and tourism, told the City Council Monday, Oct. 3, that the company will soon be opening an office in Las Cruces as the base of its operations in New Mexico.  A location has been picked, but Virgin isn’t releasing it yet.

Virgin is ramping up its preparations for when the company begins flying tourists into suborbital space 70 miles above Earth’s surface, perhaps even as soon as next year. The company is currently testing the carrier flyer and spaceship, which is launched in mid-air.

Wincer said more than 70 flight tests have made of Virgin’s first spaceliner, including 16 solo glide flights of SpaceShipTwo, a six-passenger version of the two-seater that was the first piloted rocket vehicle to reach suborbital space in 2004. The hybrid rocket engine that will be propelling the passengers and pilots is going through a series of tests, which Wincer said she wasn’t allowed to say much about for proprietary reasons.

Some 500 experienced test pilots have applied to fly for Virgin Galactic, she said. Meanwhile, more than 500 potential passengers have put down deposits for the $200,000 tickets, totaling close to $16 million, she said.

British business magnate Richard Branson is investing more than $200 million into development of the Virgin Galactic fleet, while the total start-up budget for Spaceport America is $209 million. Located 45 miles north of Las Cruces, Spaceport America has a two mile runway ready for the flights and work is near completion on the Hangar Terminal Facility that will house Virgin Galactic’s fleet of spaceliners.

Wincer said Virgin has already hired more than 100 people, many of them Americans, because large-scale rocketry falls under the International Traffic in Arms Regulations passed after the 9/11 attacks.

As work continues to make sure the spaceliner is safe for its passengers – with Branson and his family to take the first non-test flight – the company is now focusing on preparing the on-ground experiences, said Wincer, who has worked for Branson’s resorts in the past.

Virgin plans to fly at least twice a day with each passenger arriving two days before their flight. Those passengers also are expected to bring family, friends and others during their visit, she said.  Virgin is currently assessing what kind of “tourism infrastructure” is available, she said, and talking to its future passengers about what kind of experiences they would like to have during their stays.

Wayne Savage, who chairs the Greater Las Cruces Chamber of Commerce’s Commercial Space Committee, said his group is working on issues, such as supporting the tourism experience, but even more critical is trying to make the city a central location for providing supply chain services and other support of the spaceport operations and the companies like Virgin Galactic.

“The good news is that our spaceport is quickly becoming a functioning reality,” Savage said. Operational contracts have recently been awarded to companies that have done work with White Sands Missile Range, he said.

The next day, Pat Hynes, director of the New Mexico Space Grant Consortium, talked about the upcoming International Symposium for Personal and Commercial Spaceflight (ISPCS) to the Mesilla Valley Economic Development Alliance (MVEDA). More than 500 people – including those key players in developing the private space industry – are expected to attend ISPCS Wednesday and Thursday, Oct. 19-20, at the New Mexico Farm & Ranch Heritage Museum, 4100 Dripping Springs Road.

Hynes told those attending the MVEDA luncheon Tuesday, Oct. 4, at the Hotel Encanto de Las Cruces, that there are a number of opportunities for local businesses to make connections at ISPCS.

 Prior to the conference, there will be a Growing Community Partnership Luncheon Tuesday, Oct. 18, at the Commercial Space Exhibit Hall, which will be located inside the museum. The $50 luncheon includes a talk by Allan Lockheed, son of the aviation pioneer who created what is now Lockheed Martin. Hynes said Lockheed will talk about how the space industry will coalesce around Spaceport America – an industry that is currently supported by $60 billion just in government spending. Though a “heavy business conference” attracting attendees from all over the world, ISPCS also will hold panels on creating the supply chain support, Hynes said.

So important is the question of establishing reliable sources of materials, equipment and facilities near Spaceport America that Virgin Galactic also is holding a supply chain meeting the day before ISPCS, Hynes said. “The supply chain is an indicator of the growth of the industry,” she said.

Because ISPCS has become the main annual gathering for those trying to open up this new industry, Hynes said she makes a point to expose them to local and New Mexico products, from its chile to its wines.

One in-state resource that the conference will look at is a center for gliding at Moriarty. Many of the spaceport’s vehicles will glide in for landings, such as Virgin Galactic, she said. Also, research has been conducted at Spaceport America’s sounding rocket launch facilities on winged rocket boosters that glide back to the ground for potential reuse, instead of simply falling away.

The two-day ISPCS costs $649 with discounted rates for active military – $329 – and students – $150. Last year, ISPCS brought in more than $1 million of local economic activity, Hynes said. “That’s a lot of economic impact for this area and this year’s conference will be three times that,” she said.  The proceeds from the conference pay for launches from Spaceport America of student experiments, which Hynes said is very expensive.

The good news is that our spaceport is quickly becoming a functioning reality.

Article courtesy of the Las Cruces Sun-News

By Brook Stockberger/Business Editor

How difficult is economic development in southern New Mexico? For one thing, liqueur licenses are too expensive, some with purchase prices as high as $700,000, said Mike Espiritu, executive director of the Otero County Economic Development Council.

“I cannot get a grocery store in Alamogordo because of the price of a liqueur license,” Espiritu said. “A liqueur license is an economic development issue, (but) the legislation hasn’t been changed since the early 1980s.”

Davin Lopez, CEO and president of the Mesilla Valley Economic Development Alliance said that competition is intensifying in the Southwest.

“Arizona has put its flag in the sand and said, ‘We’re back in business,’” Lopez said. “And, on the other side, we have Texas (working hard.)”

So what should the state with the lowest population in the Southwest do to build momentum in job creation? Here in southern New Mexico, a spirit of cooperation has taken hold among competitors. And while it’s not exactly Macy and Gimble shaking hands in “Miracle on 34th Street,” Lopez, Espiritu and John Mulcahy, executive director of the Sierra County Economic Development Organization, have made the effort to work together for the good of the region.

The three men spoke about economic development during MVEDA’s monthly luncheon on Tuesday at Hotel Encanto de Las Cruces.

“We devote time to regional development,” Lopez said. “While I’d rather not lose a deal, I’d want to lose it to these guys rather than Arizona or Texas.”

Lopez said that MVEDA has recently finished one of its best fiscal years ever for capital investment and in other areas. Still, there is a lot of work to be accomplished, including efforts for Spaceport America.

“Virgin Galactic has been using our office for a series of companies they’ve been meeting with,” Lopez said.

“Davin and I have been working on spaceport needs,” Mulcahy said. “We met with contractors last week.”

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