| TEXAS SNAPSHOT, APRIL 2009
El Paso Industrial Market
In general, the economy has created an atmosphere of cautiousness as companies rethink expansions and settle for the status quo. Many companies, such as those engaged in the auto industry, are experiencing a reduction in orders and are reducing their production, inventory and workforce to adjust to this trend.
On the bright side, Foxconn’s industrial park south of Santa Teresa, New Mexico, will provide thousands of new jobs to the region. Suppliers and logistic companies that service Foxconn will locate on both sides of the border, afecting Santa Teresa as well as west El Paso, as the companies compete for a piece of the pie.
Fort Bliss has substantially benefited from the BRAC realignment (See “A Strong Pulse” on the cover). With additional brigades being located at Fort Bliss, the further development of the base infrastructure, housing and tactical facilities are in full swing. With the influx of the more than 60,000 people (which include military personnel and their families), the El Paso region will require additional city/county governmental services, educational facilities, off-base housing and vendors to accommodate this growth in the community. The benefit to the El Paso community will be affected exponentially.
Overall, the market is not in a upward trend, but companies, while being conservative, are still planning and many are still growing. New industries are being created as advances in research provide solutions to industrial, technological and medical problems. Growth will come from these solutions. As the credit market loosens and companies are able to borrow, we will begin to see this growth.
— Mark M. Blaugrund is the president of RECON Real Estate Consultants, Inc. in El Paso.
Production Sharing and the Future of the U.S./Mexico Border Trade Zone
During a recent presentation in the El Paso marketplace, a developer described the outlook for production sharing. He felt that production sharing will continue to grow and accelerate as companies face intense pressures to reduce costs. The U.S./Mexico border represents a production zone globally to compete with China. Many companies that are considering manufacturing operations in China to supply the North American market have very real concerns about security and potential disruptions in the Trans-Pacific supply chain, intellectual property issues and speed to market issues. El Paso/Juarez/Santa Teresa’s proximity to the largest consumer market in the world is a comparative advantage that cannot be duplicated easily elsewhere.
Furthermore, people on both sides of the U.S./Mexico border have been successfully dealing with each other for over 100 years. The border, in particular El Paso, Texas/Juarez, Mexico and Santa Teresa, New Mexico will remain competitive by collaborating regionally to compete globally. This area is comprised of three states in two countries: Texas, New Mexico and Chihuahua, Mexico. Together they offer the best technological resources, educational institutions and research facilities on the border. El Paso/
Juarez/Santa Teresa will continue to benefit from favorable global production trends and rapid population growth for many years to come.
— Adin A. Brown, II, is the president of El Paso-based Sonny Brown Associates, LLC. |
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