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 2nd 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
