Celebrating 120 Years

The West Texas, Northern Mexico and Southern New Mexico Borderplex is one of the most dynamic growth areas in North America. With a combined population of 2.5 million, it is the largest metropolitan area on the U.S./Mexico border.  El Paso is the 21st largest city in the United Sates.  Major factors in the region’s growth and development have been a skilled labor force and a favorable business climate coupled with a high quality of life and a low cost of living. 

The three engines for the area economy are El Paso, its sister city, Juarez, Mexico, and Las Cruces, New Mexico.  El Paso and Juarez are ranked the top two “North American Cities of the Future” by Foreign Direct Investment Magazine.  The selection was based upon economic potential, cost effectiveness, human resources, quality of life, infrastructure, business friendliness, development and investment promotion.

El Paso is the only metro market area in Texas with an economy that is growing at a faster rate in 2008 than 2007.  A recent WALL STREET JOURNAL special report on economic development featured El Paso as one of seven places in the U.S. “that took different approaches to economic development – and came out ahead”.

Over the past 15 years, the Borderplex has held great appeal to both large and mid-size manufacturers wishing to capitalize on the NAFTA trade agreement with twin-plant “maquiladora” facilities.  Broad awareness of the total economic value and quality of life in this area, however, has been building over the past two years – a result of increased media coverage, the highly publicized expansion of Fort Bliss, and the return of many large manufacturers from China to Mexico.

Publicly owned companies such as Helen of Troy Limited, Western Refining, Inc., and El Paso Electric Company are headquartered in El Paso.  The El Paso Regional Economic Development Corporation is also working aggressively to continue to attract other businesses in a variety of industries, including:  Military/Defense, Life Sciences, Automotive, Technical Support, Data Centers, and Water Technologies.  Major manufacturers with a strong presence in the Borderplex include Electrolux, Lexmark, Flextronics, Foxconn, ADC Telecommunications, Lear, Delphi, Scientific Atlanta, and Thomson Electronics.


National Recognition for El Paso and Las Cruces
Over the past El Paso has been recognized by a number of publications and organizations, including being named:

• #9 among Recession Proof Cities in United States (Brookings Institute - June, 2010)
• #5 safest large city in the U.S. (1 of top 3 safest cities for 8 years in a row, then #5 in 2009) – Morgan Quinto Rankings
• #5 “Top Mid-Market” (pop. 250,000 – 750,000) in the southern half of the U.S., in rankings by the Financial Times Group’s Southern Business & Development magazine
• Of the 40 strongest U.S. Metro Economies, El Paso ranks #10. Brookings Institute (2009). Key indicators used in rankings: employment change; unemployment change; gross metropolitan product; and home price change.
• #20 of the best mid-size cities (575,000 – 1,250,000 pop.) in America for relocating families; ranked by Primacy Real Estate (2008)
• #2 Best City for Economic Growth Potential (Business Facilities – August, 2009)
• #9 strongest U.S. city for job growth in 2009, – Bizjournals, 2009
• #13 best city for cost of doing business, #1 in Texas – Forbes (March, 2009)
• #8 Best U.S. City for Cost of Living (Business Facilities – August, 2009)
• One of America’s top five hottest mid–size cities for entrepreneurs in 2005 and 2006, according to Entrepreneur magazine
• #30 in income growth, according to Forbes (2008), of the 100 largest metropolitan areas in U.S.
• #1 income growth for college graduates – Forbes (December, 2009)
• Of the 200 largest communities in the U.S. – El Paso has overall rank (job growth, wages & salaries growth, etc.) of #14 for 2009 (had been #37 in 2008 and #122 in 2007) – Milken Institute (2009)
• 10th fastest growing real estate market in the U.S., according to Money magazine
• Nation's sixth highest gain in sales prices for existing homes in the fourth quarter, 2008 among 153 metro areas (National Association of Realtors)
• #5 strongest housing market in the US (Forbes, Jan. 2009)
• 3rd highest ranking Top Metro Market for Exports in Texas, behind only Dallas and Houston, and ranked 20th in the Nation, according to the U.S. Department of Commerce
• Home to the 6th best airport in North America – El Paso International Airport – in a J.D. Power survey of airline passengers
• 1 of the 7 Best Places to Retire, according to Money magazine
• The second “happiest” city in the nation, as rated by to Men’s Health magazine
• #10 in safest drivers for U.S. cities with populations of 500,000 to 1,000,000 population (Allstate, July 2008)
• #9 Healthiest for Men (Men's Health, 2008)

Although smaller than El Paso, Las Cruces, New Mexico has received national recognition for its quality of life and business-friendly environment.  It was rated #15 among U.S. “Boomtowns” in 2007 by Inc. magazine, and has been ranked by Forbes and the Milken Institute as one of the top five “Best Small Metro Areas for Business and Careers” for several consecutive years.  Las Cruces was also selected as one of the top retirement cities by Money magazine and the AARP in 2005 and 2006, respectively.

Fort Bliss, the largest U.S. Army base in North America, is currently undergoing massive capital expansion to accommodate 19,000 additional active duty troops related to new missions and the relocation of Army units to El Paso.  Joining these troops in El Paso will be more than 26,000 family members.  More than 60% of military families live off post, which is expected to sustain the current strong demand for local housing.

The expansion of Fort Bliss will also create an estimated 11,000 jobs, many of which will be engineering, technical and industrial.

The projected economic impact of the Fort Bliss expansion will be $21.7 billion over the period 2006 to 2013, including $2.5 billion in new construction.  The current expansion plans will inject an additional $3.7 billion into the El Paso area economy annually.

Evidence of the continuing strength of the Borderplex manufacturing sector is Foxconn’s recent announcement that it will build a massive maquiladora complex in San Jeronimo, Mexico, bordering Santa Teresa, New Mexico, which is adjacent to El Paso.  The facility, which is anticipated to be the largest in Mexico, will employ as many 30,000 over the next four years.  An estimated 60% to 80% of Foxconn’s higher-paying jobs will likely be filled by U.S. residents. 

The new Texas Tech Medical School will be heavily focused on medical research, and is expected to attract many healthcare-related research and development businesses to the area.

Last year, El Paso opened the world’s largest inland desalination plant, which is providing a new supply of water for the city.

 ScottHulse has played a role in the growth and development of the Borderplex since the days of the first railroad service to the region.  Our lawyers are still actively involved in major community initiatives that are transforming the Borderplex into the most dynamic commercial center in the southwest and the epicenter of U.S./Mexico trade. 

Stuart Schwartz
Shareholder / Director
ScottHulse