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.

Arrowhead Center invites the public to attend a Networking Mixer, that will introduce the recently expanded on-campus Incubator as a novel way to support the commercialization of faculty, staff and student research in addition to the small business community already being served. Most importantly, it will introduce the entrepreneurial community to the resources and services available at Arrowhead Center.

Join us to learn about Arrowhead business acceleration services: how we can help you turn your idea into a product, start or grow a business, develop and market a technology, or find new applications for research. Tour our newly renovated facility and network with like-minded thinkers.

When:

Thursday, February 23, 2012

Hors d’oeuvres and drinks served at 4:00pm.

Welcome and Opening Address begins at 4:10pm.

Barbara Couture, NMSU President

Garrey Carruthers, Vice President for Economic Development

Where:

Arrowhead Technology Incubator, Genesis Center C, 3655 Research Drive, (click here for map) on the New Mexico State University campus.

For more information contact Zetdi Runyan at (575) 646-7833, or email zrunyan@nmsu.edu.

By Marvin Tessneer

Sapphire Energy is constructing an integrated algal bio-refinery (IABR) to produce green crude oil on a site near Columbus, N.M., in Luna County, the first commercial facility in the country, according to a company newsletter. Sapphire, which is headquartered in San Diego, also operates a 22-acre test and development facility in Las Cruces’ West Mesa Industrial Park.

 Sapphire has scheduled a multi-year project to produce green crude. The first production phase will start this summer. By 2014, the company expects the Columbus IABR facility to produce 100 barrels, or 1 million gallons of fuel a year, according to Sapphire.

The Columbus IABR facility is expected to provide 700 jobs during construction and 30 permanent jobs for continued operations. Sapphire has designed raceway ponds at Columbus to grow algae that will cover 100 to 300 acres. In the energy business, the operation is termed “farming under water.”

Government agencies believe Sapphire is on the right track to grow and harvest algae and produce green crude. The U.S. Department of Energy has awarded the company a $50million grant and the U.S. Department of Agriculture has guaranteed a $54.5million loan, according to Sapphire.

Most people consider green mass seen on ponds “green gunk.” But Sapphire is developing that green gunk, or algae, into a renewable and sustainable transportation fuel that will help reduce the nation’s dependence on foreign petroleum.

“All of us on the research and development side are rooting for Sapphire to have tremendous success at its commercial demonstration facility at Columbus,” said Pete Lammers, New Mexico State University biochemistry professor.

Algae are a micro-organism that combines sunlight and carbon dioxide from the air as sources of energy to produce green crude oil. Scientists report algae can produce 10 times or more energy per acre than other bio-fuels crops. Algae don’t compete with food crops. Land at the Columbus site is marginal for crops, and the water is brackish and not suitable for irrigation.

The algal green crude is termed “drop-in” fuel in the industry. The Sapphire newsletter reported, “Sapphire Energy has cultivated algae that create renewable crude oil that can be processed in existing refineries into jet fuel, diesel and gasoline. These drop-in replacement fuels are molecularly identical to petroleum-based fuels and are compatible with existing infrastructure and engines.”

Top national and state economists will unveil their economic forecasts for 2012 at the inaugural Economic Outlook Conference sponsored by the College of Business at New Mexico State University and Wells Fargo Bank. The free conference takes place from 3:30-5:30 p.m. Jan. 12 at the Corbett Center Student Union on the NMSU campus.

“Wells Fargo’s decision to co-host its economic forecast conference in Las Cruces reflects the growing importance this region has on the overall state economy,” said Garrey Carruthers, dean of the NMSU College of Business and vice president for economic development.

“Wells Fargo is proud to partner with NMSU to present this inaugural economic outlook event,” said Lisa Riley, regional president for Wells Fargo New Mexico. “The purpose of this event is to deliver the very latest information concerning the United States and New Mexico economies. Recent history, current state and future paths of each of these economies will provide the business owner or executive with the best information available to plan for the coming year.”

Delivering the national economic forecast for Wells Fargo will be Eugenio Alemán, a senior economist and vice president for the company. Alemán will discuss the country’s strengthening economy as job creation rises and the housing market stabilizes. He also will discuss the challenges still facing the nation’s economy, particularly the risk posed by a potential collapse of the euro.

At Wells Fargo, Alemán forecasts national, regional and international economic trends. His primary focus is the United States, including interest rates and the economies of Texas and Arizona. He also is an expert on the economies of Mexico, Brazil and Argentina. Within that area, his specialties include the economies of border towns that trade with Mexico and the maquiladora-manufacturing sector along the U.S.-Mexico border. He is based in Charlotte, N.C.

After Alemán’s presentation, NMSU economist Jim Peach will provide the state’s economic forecast. Peach will explain how the national economy affects New Mexico and also will focus on economic growth prospects for the state.  “Three sectors of the state economy – government, energy and construction – will be key factors in both the short- and long-run recovery in New Mexico,” Peach said.

To register for the event, contact Judy Wetzel at 575-521-6849 or at judith.a.wetzel@wellsfargo.com.

WRITER: Janet Perez, 575-646-4120, perezjm@nmsu.edu
CONTACT: Sara Patricolo, 575-646-2066, spatrico@nmsu.edu

Small business owners can learn more about how health care reform affects them at the Spring 2012 Domenici Institute Forum. The forum takes place from 4-5 p.m. on Jan. 17 at the KRWG-TV studios on the campus of New Mexico State University. The event is free and open to the public.

Dr. Bob Graboyes, senior fellow for health and economics for the National Federation of Independent Business Research Foundation, will discuss the Patient Protection and Affordable Care Act and what it means for small businesses.

“Small businesses are dealing with numerous challenges in this difficult economy, including health care reform,” said Garrey Carruthers, dean of New Mexico State University’s College of Business and director of NMSU’s Domenici Institute. “Through this Domenici Institute Forum, small business owners in the region will have the opportunity to learn from a nationally prominent expert how health care reform is expected to impact them.”

At the forum, Graboyes will discuss 12 needed reforms to the health care legislation that are of importance to small businesses.  In addition to his work with the National Federation of Independent Business, Graboyes teaches health care professionals in master’s and doctoral programs at Virginia Commonwealth University, the University of Virginia and George Mason University. Graboyes was an economist at the University of Richmond, the Federal Reserve Bank of Richmond, Va., the Virginia Department of Taxation and Chase Manhattan Bank.

The Domenici Institute Forum is an extension of the university’s yearly Domenici Public Policy Conference. The goal of the forums is to engage the public and encourage them to discuss and take part in issues of public interest, specifically, important policy matters.

The forum will be taped for broadcast, so those attending must arrive on campus by 3:30 p.m. and be at the KRWG studios in Milton Hall by 3:45 p.m. Taping will begin promptly at 4 p.m. For those who cannot attend the forum, KRWG will broadcast the proceedings at 7 p.m. Jan. 19, 5 p.m. Jan. 21 and 11 a.m. Jan. 22. For more information and a parking guide, log onto http://domenici.nmsu.edu.

By Todd G. Dickson

State Higher Education Secretary Jose Garcia and Public Education Secretary-designate Hanna Skandera say they intend to make the public schools and higher education work together to provide a better trained work force.

Speaking before the Mesilla Valley Economic Development Alliance (MVEDA) Tuesday, Jan. 3, Garcia and Skandera said they also will make the educational system more accountable. Their appearance in Las Cruces was followed up by Gov. Susana Martinez meeting with a large group of regents, governing board members and post-secondary institution presidents in Socorro to discuss the state’s new higher education funding formula.

The new formula will reward New Mexico’s higher learning institutions based on outcome measures that reflect student achievement and preparedness for New Mexico’s work force, as opposed to basing the allocation of funding on measurements like the size (square footage) of each institution. Also, the current formula funds colleges and universities based on courses and degree programs started. The new formula would be based on courses and degree programs completed.

Garcia said this is about more than making better use of the state’s support of higher education. The idea is to put the money into where there are gaps, especially in skill sets needed in high-tech professions.

At the MVEDA luncheon, Garcia noted that Intel decided to expand its Arizona operations, but not its plant in Rio Rancho. Yet, New Mexico spends more per graduate than Arizona, he said. Garcia said he took it as signal that New Mexico is not producing the kind of work force that is needed for the United States to be competitive globally.

“The central goal of New Mexico’s higher education institutions should be to graduate the students New Mexico’s economy will depend on for decades,” Martinez said. “In an increasingly competitive global economy, this formula will help us deliver the graduates we need for the jobs of tomorrow, and it serves to intently focus our attention on the achievement of our students.”

Under the formula, institutions would receive funding for graduating students in “STEHM” (Science, Technology, Engineering, Health Care and Mathematics) fields. A recent study disclosed that New Mexico’s economy will require nearly 50,000 employees with STEHM degrees by 2018 and nearly 95 percent of those jobs will require post-secondary education. “For the first time in the history of New Mexico, the younger generation is less educated than the generations before,” Garcia said. “This new formula is our opportunity to make sure today’s students are tomorrow’s successful employees.”

Meanwhile, Skandera said the schools will be changing, too, with a focus on making graduates better prepared for the work force or higher education once they complete school. Skandera said the schools will be more realistically assessed than the guaranteed failure rates offered by No Child Left Behind standards, which she said has only resulted in schools putting resources into helping borderline students rather than helping struggling students.

“Education is about setting up our kids for success,” Skandera said. “Let’s honor the successes we see and work on the areas we need to.”

At the MVEDA luncheon, a local success story was also highlighted. The Arrowhead Park Early College High School (APECHS) on the New Mexico State University campus will get a boost from a $345,090 W.K. Kellogg Foundation grant for the public-private workforce development advocate. The school, created by a school-business partnership called the Bridge of Southern New Mexico gives students the chance to learn in a higher education environment and earn college credits.

APECHS can tout that none of its students have dropped out, said Tracey Bryan, president and CEO of The Bridge. She said the cooperative efforts between the public schools, higher education and the business community is what spurred Kellogg to give the significant grant.

Distribution of the grant money includes $45,000 to NMSU’s Enlace Program that helps minority students succeed in higher education, $45,000 to NMSU and the University of New Mexico education research centers, $37,090 to the Arrowhead Center where the school is housed and $10,000 to the Service Learning Program at the NMSU College of Education. But the bulk of the Kellogg grant will be used to increase the student capacity at APECHS and to begin work on setting up four more early college high schools in Doña Ana County, according to the grant announcement.

Bryan said the Kellogg grant is a significant award, but The Bridge also has been getting grants from other private foundations and local businesses to help the APECHS effort. Through APECHS and other efforts, Las Cruces Public Schools is seeing good progress on reducing its dropout rate overall, Bryan said, “and the sky’s the limit” for future progress.

Skandera touted APECHS as an example of how to improve schools. “We didn’t point fingers in Las Cruces,” she said. “We sat down and said how do we get there, and we partnered.”

By Samantha Roberts

As 2011 comes to a close, businesses are rushing to make end-of-the-year deadlines, including renewable energy certificates (REC) for solar that will change in 2012.

F&A Dairy Products will be expanding its solar systems, adding four 100kilowatt units to the existing unit the dairy installed in May. “The four additional units will fuel different parts of the complex and will be located next to the existing unit,” said Bob Snyder, vice president of New Mexico operations for F&A Dairy. Snyder said the dairy decided to add the additional solar now, so it could take advantage of incentives that will expire in 2011.

“RECs are at a peak right now,” said Mellow Honek, a managing member of Sunspot Solar Energy Systems, which installed the panels at the dairy. “They are great right now, but they will still be good next year. The incentives are not going away, but will be changing. “I would definitely recommend other people (add solar). It’s a step in the right direction toward energy independence. And we have an abundance of sunshine here.”

“We thought if we were going to do it, it better be this year,” Snyder said. “The panels significantly offset the energy we use. “Solar does create enough energy to make a difference.”

Though the dairy uses too much energy to be entirely generated by solar, Snyder said the panels will help “take out some of the peaks.” “This is just to offset costs,” he said. “A dairy is a big place, and we use a lot of utilities to process the milk into cheese.”

Honek said the amount of solar the dairy will have after construction on the additional panels is completed in March 2012 will be equivalent to 100 solar systems on mid-sizes houses. “To my knowledge, the one 100-kilowatt unit the dairy has now is the largest commercial system on a privately owned building in New Mexico,” Honek said. “The system after everything is completed will be five times that size.”

Honek said installing all of the panels will take about 1,300 man hours. “The dairy has been a great customer, and they are a perfect example of a company that is making an investment in a major resource we have here,” Honek said. “Powering a portion of their plant using solar shows what is possible for businesses to do to reduce long-term energy costs.”

The dairy doubled in size a little more than one year ago and now employs about 140 people. “We are constantly making changes,” Snyder said. “Our goal is to get both plants running to full capacity.”

F&A Dairy distributes its products to Toucan Market and other distributors. Locally, Dion’s Pizza is a purchaser of F&A Dairy products.

The Future of Dairy in New Mexico

F&A Dairy is one example of growth the dairy industry in New Mexico has seen over the past few years. “Southern New Mexico is a major player in the dairy market,” said Jeff Witte, director/ secretary for the New Mexico Department of Agriculture (NMDA).

“Southern New Mexico dairies have an abundant milk supply,” Snyder said. “Farmers are leaving California and coming to New Mexico and the Texas panhandle.”

Milk production in New Mexico averages more than 600 million pounds per month, according to the NMDA. New Mexico currently has 173 dairy farms, with a large number of them in eastern New Mexico. There are 20 processing plants in the state.

“Dairy in New Mexico saw growth in the eastern portion of the state from 2008 to ’09,” said Robert Hagevoort, extension dairy specialist with New Mexico State University. Hagevoort said cheese plants in Clovis, N.M., and Dalhart, Texas, spurred this growth. “There are benefits in New Mexico for the dairy industry,” Hagevoort said. “There is a lot of agriculture in New Mexico, so farms can grow the feed that dairies need, and they, in turn, can supply the farms with fertilizer. “There is a natural free flow from each one.”

Hagevoort said dairies also use marginal farmland so they don’t compete with other crops. However, dairies are struggling with drought conditions, high feed costs and corn prices that are increased from ethanol demands. “Depending on world economy, the future of dairy in New Mexico is still great,” he said. “It all depends on larger economic factors beyond our control. Linking energy to food policies doesn’t make any sense.”

MVEDA, the Greater Las Cruces Chamber of Commerce, the Hispano Chamber de Las Cruces, and the Bridge of Southern New Mexico are pleased to kick-off 2012 by co-hosting a conversation with the Cabinet Secretaries on their work in building a strong, well-prepared workforce.

Secretary Skandera

Previously, Skandera served as Florida’s Deputy Commissioner of Education under former Governor Jeb Bush, working to advance middle and high school reforms that instituted greater accountability, incentives for high performance and the end of social promotion. Her work led to scores that improved dramatically across ethnic groups, with Hispanic students outperforming all students in 31 other states. Florida has been recognized nationally as one of the only states to narrow the achievement gap for poor and minority students. She also served as a senior policy advisor and Deputy Chief of Staff at the U.S. Department of Education and as former California Governor Arnold Schwarzenegger’s Undersecretary for Education.

Secretary Garcia

Jose Z. Garcia has been on the faculty at New Mexico State University for more than three decades.  He has conducted research and lectured throughout Latin America, specializing in questions of political instability.  Dr. Garcia directed the Center for Latin American and Border Studies at NMSU for 13 years.  In recent years his research has focused on the U.S.-Mexico border.  He is one of the founding members of the Paso del Norte Water Task Force, a non-governmental, tri-state, bi-national organization created in the late 1990s, grouping together irrigation district and water utilities managers with environmental groups, citizens, and academics, to stimulate greater cooperation toward more efficient regional water management in the Paso del Norte region.  Dr. Garcia was chair of the organization from 2010-2011.  He has also taught a course in New Mexico politics for many years.  After receiving a BA from Occidental College, Dr. Garcia was awarded a Fulbright fellowship to Ecuador.  He received an MA from the Fletcher School of Law and Diplomacy at Tufts University, and a PhD from the University of New Mexico.

The vital link between education and workforce and economic development has been highlighted by The Bridge of Southern New Mexico.  The Bridge is working alongside Secretary Skandera and Secretary Garcia to create stronger linkages from public education to post-secondary education to give New Mexico a prosperous, sustainable future for business by building a strong, well-prepared workforce.

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, December 29^th by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

WRITER: Janet Perez, 575-646-4120, perezjm@nmsu.edu

CONTACT: Sara Pirayesh Sanders, 575-646-7036, npirayes@nmsu.edu

If you’re a small business owner or entrepreneur in need of assistance, New Mexico State University’s Arrowhead Center can help.

The Arrowhead Center currently is accepting applications from small business owners and entrepreneurs for its Entrepreneur Venture Program taking place this spring. The deadline to submit an application is Jan. 16. Those selected will receive specialized support and resources to help their businesses reach the next level of development.

The services that Arrowhead Center’s Entrepreneur Venture Program offers are becoming even more critical in this sluggish economy.

“Entrepreneurship and innovation are topics on the national stage, with an emphasis on job creation through startups,” said Sara Sanders, entrepreneurship director at the Arrowhead Center. “New Mexico needs to be a part of that conversation. Over the past decade, New Mexico’s entrepreneurial activity has not grown; in fact, it has decreased. The Arrowhead Center aims to help change that reality through programs such as this.”

According to the Kauffman Foundation’s 2010 Index of Entrepreneurial Activity, New Mexico was one of three states to record the largest decreases in entrepreneurial activity rates over the past decade. New Mexico ranked below Wyoming and just ahead of Alaska. For the year 2010, however, New Mexico fared better, scoring an estimated 320 per 100,000 adults starting new businesses. That was comparable to Arizona and far ahead of West Virginia’s number of 170 per 100,000.

Services for the Entrepreneur Venture Program are customized to fit startups and established businesses alike. The program’s services include business plans, marketing studies, feasibility studies, financial analyses and industry analyses. Businesses accepted into the program are chosen based on a variety of factors, including the degree to which they contribute to economic development in New Mexico.

Since it was established in 2004, the Arrowhead Center has completed more than 300 business research projects involving more than 300 undergraduate and graduate students. It also has fostered the spin-off of a university genetics-testing laboratory that has resulted in a new for-profit corporation, and completed several state-level economic studies.

For more information on the Entrepreneur Venture Program, call 575-646-7036 or visit http://www.arrowheadcenter.org.

The first session is scheduled for December 9, from 8:30 a.m. to 12:30 p.m. at the New Mexico State University Albuquerque branch, 4501 Indian School Rd. NE.

New Mexico 9000 was created by the Economic Development Department to provide training and assistance to New Mexico businesses in preparing for ISO 90001:2008. Training will be broken into six half-day sessions over a 3-6 month period.

“This is a great opportunity for New Mexico businesses to access new customers, become more efficient and lower their operating costs,” said Jon Barela, New Mexico Economic Development Cabinet Secretary.

The New Mexico 9000 training program has been completed by 155 companies, creating over 1,000 new expansion jobs.

Trained professionals will conduct ISO 9001:2008 classes in:

• Internal Auditing
• Writing Standard Operating Procedures
• Writing Work Instructions
• Understanding the Standard

ISO is a general Quality Management System. Companies like Intel, Boeing and many other companies are requiring that their first tier suppliers be ISO 9001 certified. In turn, those suppliers are requiring that their suppliers are ISO 9000 certified. In addition, government agencies, such as the Department of Defense, NASA and NNSA are also requiring ISO certification of their providers.

ISO 9000 standards have been adopted by 178 countries. There are now more than 1 million companies worldwide that have registered to the ISO standards. Costs associated with obtaining, maintaining, and renewing ISO registration are tax deductible. The cost of the New Mexico 9000 training classes is based on annual company sales revenue, ranging from $550 to $3,300 for the training.

For more information, or to register for the program, contact the New Mexico Manufacturing Extension Partnership, at (505) 262-0921 or via e-mail, at info@newmexicomep.org.