The New Mexico Borderplex is poised to transform into a global trade hub, and Governor Michelle Lujan Grisham’s recent announcement of a trade mission to Taiwan underscores the strategic significance of our state in the realm of international trade and manufacturing.
The resurgence of reshoring, the practice of relocating manufacturing and services back to the United States from abroad and increased foreign direct investment have injected vitality into the U.S. economy. Since 2010, these initiatives have added over 1 million jobs, constituting 8% of the manufacturing workforce. Notably, the annual job creation rate from reshoring and foreign direct investment has surged by over 6,000% since 2010, with a 260% increase since 2019. A substantial 72% of reshoring endeavors since 2010 have originated from Asia. In the first quarter of 2023, the Reshoring Initiative identified three primary reasons for reshoring: ecosystem synergies (including robust local supply chains), government incentives, and proximity to customers and markets.
Governor Lujan Grisham will lead an official delegation comprising key figures such as Chief of Staff Daniel Schlegel, Director of Communications Maddy Hayden, Senior Advisor for Global Trade & Infrastructure Joseph De La Rosa, former Economic Development Department Secretary Alicia J. Keyes, New Mexico Partnership President Melinda Allen, and President and CEO of the Mesilla Valley Economic Development Alliance Davin Lopez. Ethan Chen, New Mexico Economic Development Department’s foreign trade representative in Taipei, will provide valuable assistance to the delegation.
The epicenter of these developments is the Borderplex, situated at the crossroads of New Mexico, Texas, and Mexico, with Santa Teresa being the focal point of this transformative process.
A comprehensive study conducted in 2021 by Arrowhead Center and the Center for Border Economic Development at New Mexico State University illuminated the profound economic impact of the Santa Teresa Industrial Park. It supported 3,262 direct jobs, 5,849 total jobs, and contributed $1.1 billion to economic output. Remarkably, despite its proximity to Texas, 80% of these economic benefits flowed into New Mexico. Moreover, the Santa Teresa area experienced uninterrupted job growth throughout the pandemic, maintaining a robust upward trajectory.
In 2022, a study prepared by Arrowhead Center and the Center for Border Economic Development for the Border Task Force underscored the region’s unique advantages compared to other potential reshoring and nearshoring locations.
The Borderplex possesses notable strengths and opportunities in electronic manufacturing, automotive, medical devices, and pharmaceuticals. In 2022, the Reshoring Initiative found that 68% of reshored jobs were in electrical equipment, appliances, components, and computer and electronic products.
Santa Teresa boasts extensive developable land, spanning over 70,000 acres, adjacent to the second-largest metropolitan area along the U.S.-Mexico border, home to 2.5 million residents. Its binational character presents exceptional advantages for supply chains seeking to leverage both sides of the border. The presence of intermodal transportation connecting major U.S. markets and the potential for significant supply chain shortening are other key assets. Enhanced transportation options from surrounding areas, including El Paso and Las Cruces, empower a skilled workforce to support incoming businesses.
To fully unlock the Borderplex’s potential in this sector, addressing infrastructure requirements is imperative as the region continues to expand. Expanding wastewater and utility services, along with transportation enhancements, are essential components of this development.
Governor Lujan Grisham has prioritized these investments, committing $30 million in state funds to enhance border infrastructure and advocating for an additional $170 million from the federal government to upgrade the Santa Teresa Port of Entry, where commercial activity is on the rise. Furthermore, the state has pledged to finance a new border highway extension to reduce commute times for Santa Teresa workers.
Strategic investments are now crucial to support potential regional growth. Governor Lujan Grisham’s focus on reshoring is not only timely but also astute. The moment is ripe for substantial infrastructure investments in Santa Teresa to harness the momentum of reshoring trends that are reinvigorating U.S. industry. There exists a substantial opportunity to diversify New Mexico’s economy through reshoring, but this window of opportunity is finite. By establishing the necessary infrastructure and business environment for reshoring enterprises in the Borderplex region, Santa Teresa emerges as the ideal locale to seize this opportunity, ensuring a lasting source of employment for New Mexicans for decades to come. The time to act is now.
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Santa Fe New Mexican
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