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Economy

12/10/2009 11:07 am

The effects of losing don't go away easy. I've lost fights, games, arguments and who knows what else.

Until now I've never felt the feeling of losing jobs for a small rural community. Our rural communities need jobs, benefits, paved roads, and everything else that comes with economic development. The community of Berino lost this the other day.

I feel horrible because the effects of this lose could be felt for years to come. This was our opportunity to prove to businesses that we mean what we say when we ask them to come here. I don't want this trend to continue.

I need your help. On December 14th the commission will be making a decision on another company interested in moving into DAC. Only this time we aren't talking about 50 jobs over 5 years, we're talking about 175. If we lose this project we will be sending a strong message to other businesses that we don't want them.

The company produces wind towers used to generate wind power. Its current location in Texas isn't fit for their existing needs and won't meet future demands. They pay well and provide benefits. Their hope is to use the Local Economic Development Act to access state economic development dollars. The county commission must approve if this is to happen.

These state dollars are the state's commitment to economic development. If the state is going to spend money this way then I will do everything I can to get that money spent here in DAC. If the state makes this commitment and we don't try to access it, then someone else will and has.

For us in DAC this shouldn't be a debate over how the state has decided to spend its money. That is a debate for the state to have. For what ever reason they have made this decision and it is up to us to try to access it or someone else will.

We are all busy trying to make it through the rest of this year. I know. I'm one of those people. For a second, think about those people praying that they will find a job this year or early next year.

The December 14th meeting is at 9:30am. This is the second item on the agenda. If you can attend to voice your support for economic development, our chances to succeed will increase. If cannot attend, please consider calling your commissioner to voice your support.

These are our opportunities for economic recovery. Please help.

09/23/2009 01:34 pm

If the state is going to be spending money on economic development, I want to do everything we can to get that investment in Dona Ana County.

That's why I've encouraged and worked with our Community Development Director to develop and pass a Local Economic Development Act (LEDA). LEDA is established in New Mexico law and communities who pass it can benefit from money from the state. Without it, that money goes somewhere else.

DAC's LEDA passed by a vote of 5 - 0. Now our local economic development agencies and the state department of economic development can start providing the same level of incentives to companies considering DAC as they offer up north.

The next step is to expand DAC's economic development plan. This is an important step so that we can identify how the county will fulfill the goal of attracting economic based jobs as well as companies who provide conveniences  desired in our communities.

07/29/2009 11:58 am

At our July 28th meeting the Board of Commissioners approved the DAC final budget with $100,000 devoted to the Mesilla Valley Economic Development Alliance.

Considering that this has been a set amount for MVEDA for several years, you may not think this is significant. However, if you've been paying attention you know that this was a hard fought battle. MVEDA's funding was almost cut by 40%. 

It's hard to believe that DAC would consider reducing its commitment to economic development during a recession, but that's exactly what was being proposed earlier this year. What a huge mistake that would have been.

Think like a business

There is a simple business principle that when times get tough you increase your commitment to marketing. Over the next few years watch how many small business make the mistake of cutting back their marketing and go out of business.

How does this relate to DAC and MVEDA? Well MVEDA is the marketing arm of economic recruitment for DAC. It's the only group out in the business world who is actively recruiting new economic based jobs for Dona Ana County. Imagine how competitive this environment is right now. It shouldn't take much convincing that just about every economic development agency and every community who is seeing job loss (in other words everyone) has stepped up their efforts making it harder then ever to close a deal. And we almost cut our funding.

Saying all of that, I must admit that I am very concerned about the future. Companies looking to relocate have more options today then ever before. They are being bombarded by recruitment efforts. Our chances of landing deals are slimmer then ever. And next year we are going to rehash the same old argument over the necessity of funding MVEDA. So what are we to do?

Here is my plan

We need to develop a larger economic development plan for DAC. It was a surprise to me that we currently do not have a comprehensive ED plan. Until now we have relied on MVEDA to be our ED plan. We are seeing that this is no longer enough. We can't rely on MVEDA alone to solve all our problems.

There are ED issues in our colonias that need satisfying in order for them to step into the 21st century. We have policy issues that need to be worked out including both setting up a way for DAC to use state incentives for companies to locate here, and strengthening our quality of life. There are also issues throughout our county regarding convenient access to grocery stores, restaurants, recreational activities and other businesses that are not economic based (meaning they bring dollars in and keep them here).

We need a comprehensive plan that addresses all of these issues. And it needs to includes the commercial real estate, developer, and business communities in an effort to work with residents to identify specific needs and find solutions. At the same time we need to increase our commitment to MVEDA's economic base recruitment efforts so that there are more dollars spent within the county that stay in the county.

One of the most clear issues to me is the need for better jobs in Dona Ana County. It was clear long before this current recession. Maybe it's so clear because I've heard so many clichés throughout my life regarding jobs and keeping young people here. Well, I'm not just going to talk about it. I plan to do something about it.

07/20/2009 09:36 am

The first presidential campaign that I can remember was Clinton vs. Bush when Clinton's campaign said "It's the economy stupid." What a great slogan; it's non-elitist, simple, and right.

During Clinton's administration I grew up a little. I graduated High School, went to NMSU where I studied Journalism then Government, and I changed my philosophy on life from liberal to utilitarian to "postmodern" (what ever that means).

"It's the economy stupid."

These may be the words of my generation. So when I received an email on economic conditions in southern NM I thought I'd share it and talk about local steps to help improve the economy.

The following information came from New Mexico State University. The recession comments are based on averages so we don't really know if they still hold true.

Current Conditions in Southern New Mexico

July, 2009

· The Las Cruces economy is in a severe recession, with employment falling by 3.2 percent compared to twelve months ago. Job growth(establishment survey) was down 2.7 percent.

· Unemployment in Las Cruces was also up sharply to 6.5 percent, a 2.3 percent rise from a year earlier.

· Every industry except education and health services saw a decline, with natural
resources and construction down an eye popping 15.6 percent in May compared to May 2008. Transportation and warehousing, and information services both fell by more than 10 percent. Key industry manufacturing fell by 9.7 percent.

· Financial activities, other services, and government saw no change in employment.

· New Mexico continues in recession also, having seen a decline in employment by 2.8 percent in the last 12 months. Jobs loss was 2.4percent. Santa Fe and Albuquerque both lost jobs as well.

· Government (up 1.1 percent) was the only industry to see year-over-year growth.

· Construction (down 14.2 percent), manufacturing (-11.6 percent) and natural
resources (-8.1 percent) were hardest hit statewide.

· Statewide unemployment was up sharply a year-to-year 2.6 percent increase to 6.5 percent. Nationally, unemployment increased 3.9 percent to9.1 percent during the same period.

So what does this all mean?

Not only is DAC an important employer, but today, more than ever, we need to be concentrating on how our decisions impact the economy. It is the economy stupid, and we need to think about how each and every decision affects employment, paychecks, and basic survival. I promise to pound this phrase into my head over and over even if it means calling myself stupid.

Three basic things that I am focusing on:

LEDA - This is the Local Economic Development Act. It allows money to flow from the state, to the county and then directly into economic development project. DAC needs to pass a LEDA ordinanace and we are working to get this done in fall 09.

MVEDA - The Mesilla Valley Economic Development Alliance. This is the central front for attracting new businesses into our region. They hold the key to our economic prosperity and we need to support them. On 7/28 we will be passing our final budget with $100k of funding for MVEDA. Earlier in the year there was some questioning of cutting our support. I for one will not let that happen.

Flexibility - We need to work with businesses in the community and be flexible to help them create new jobs, start new projects and get our people working again.

Although I think the sun's a little brighter today, this impact of this recession isn't going to go away anytime soon. That doesn't mean that we should just sit by and wait for the federal government to magically solve the problem. It means that it is up to all of us to do our part.

 

06/13/2009 04:09 pm

There’s a perfect storm brewing in and around southern Dona Ana County. 

While much of the storm is off in the future, when combined with current conditions it will permanently transform Dona Ana County’s economy.   

Specifically I’m talking about the following:

The Santa Teresa International Border Crossing

The Dona Ana County International Airport

Access to I-10 and I-25

The relocation and expansion of Union Pacific’s railroad station

What will be one of the largest electronic manufacturing campuses in the world 

And a new port in northern Baja

Considering the dramatic affect that this list will have on our future, we need to be very aware of what is currently happening and where we are going.

Punta Colonet

Located in northern Baja, this new port will become to Mexico what the New York and New Jersey port is to the United States.  In other words, this port will be massive.

While it may seem logical that a port of this size would look to enter the U.S. at the closest international border crossing, southern California’s congestion and the strategic location of Santa Teresa may make it more efficient right here.    

So what do they see in southern Dona Ana County?

Union Pacific

Union Pacific is relocating its fueling station out of downtown El Paso and into Santa Teresa with plans on expanding into a block swap and inter-modal station. 

Why does this matter?  It matters because it will make railroad trade coming out of this area more efficient.  The railroad will someday be able to avoid both downtown El Paso and downtown Juarez, and the open land offers room for growth and minimal utility conflicts. 

Our location is currently the northern end of the Sunset Line which starts in San Diego.  The route then opens up to the north, east and southeast.  When you factor in the interstates, the international airport and the border into the equation, Santa Teresa could become one of the most efficient locations to start your trade in the United States. 

Foxconn

The world’s largest manufacturer of electronics sees the potential for profit here. 

In fact, they have invested in 240 hectors west of Juarez where they’re planning a manufacturing campus complete with dormitories, restaurants and recreation areas.  They are planning to employ 10k employees in the next 2 years, and word on the street is they are looking to employ 30k in the long run.  By the end of their first year they will already employ over 5k.

Where are we going?

When you combine the expansions of these companies into Dona Ana County with the airport, the border crossing, and the interstates you get something that exists nowhere else in the United States or Mexico.  It truly is the perfect storm for the future of U.S./Mexico trade. 

As manufactures look for the most efficient place to produce and distribute to the U.S. the Juarez/Santa Teresa area is destined to be at the top of the list. 

To make this work we need to pay more attention to security on the border and consider more self imposed security measures.  We also can’t forget that there are legitimate concerns with NAFTA in the United States, and we cannot ignore that manufacturers choose Mexico for its cheap labor. 

While I am not about to enter into a lengthy examination of the pros and cons of NAFT in this article, it seems like only yesterday (actually 1998-1999) that I was studying the affects of NAFTA with Neil Harvey at New Mexico State University.  Funny the way it is that today I am continuing to study this from a more unique position. 

Dona Ana County's Role

And from my position today I’m looking at what Dona Ana County can do to benefit.  Most pressing is the need for the county and Sunland Park to step up the efforts to finalize the utility and land management organization that will serve Santa Teresa. 

In addition, the county needs to coordinate with other organizations.  They include the New Mexico Department of Economic Development, the New Mexico Border Authority, the International Business Accelerator and the Mesilla Valley Economic Development Alliance (among others). 

Together we need to continue to recruit and market ourselves to the industries that are looking for a U.S. base of operations.  And we need to be prepared to offer housing and commercial space for companies looking to work on the U.S. side of the border. 

To succeed it will take the hard work of each organization listed above and we all need to be committed to finding the right way to benefit from our unique position in this perfect storm.

 

 

 

 
 
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