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They are two cities linked together by
centuries of trade. El Paso, Texas and Ciudad Juárez, Chih.
combine to form the largest bi-national community in the world.
When you add the adjacent Southern New Mexico to the mix, the
result is a manufacturing hotspot with Juárez providing the
manufacturing, El Paso the logistic support and New Mexico the
high technology research.
The region forms the linchpin of a major
trade corridor: On the U.S. side of the border, two interstate
highways (I-25 and I-10) efficiently route cargo throughout the
United States and Canada. On the Mexican side, the Pan American
Highway connects Juárez to many of Mexico’s most important
cities.
Three major railroads (Union-Pacific,
Burlington Northern-Santa Fe and Ferromex) provide rail access.
International airports in El Paso and Juárez are complemented by
an airport in nearby Santa Teresa, N.M.
The El Paso International Airport features
the border’s largest and newest passenger terminal and its air
cargo facilities recently received a $60 million upgrade that
includes two 144,000 square foot air cargo buildings, more than
34 acres of aircraft parking and 6.4 miles of roadways.
Juárez
The manufacturing industry continues to be
the main driver of the Juárez economy. The city of course is one
of the original locations for the maquila industry and the
success of the industry here acts as a magnet for migration from
Mexico’s interior. The city’s border location makes it ideal for
maquilas looking for close proximity to the United States, but
it also makes it an ideal jumping off point for thousands of
Mexicans a year trying to live or work in the United States.
In a 2003 document, the Juárez Strategic
Plan Association noted that there are limitations for Juárez to
the maquila industry model.
“Despite its central role, the maquiladora
model has several limitations, among which is its scarce
integration with local producers,” the association noted in a
report called “Who Is Juárez?”
“Currently, only 2 percent of the
industry´s raw materials are sourced in Mexico. One important
reason that explains this situation is the limited capability of
Mexican suppliers in general to meet the maquiladora industry´s
input specifications of quality, cost, service and on-time
delivery.”
The report, however, notes that there are
several positive elements to the maquila experience.
“The Juárez maquiladora sector has been
increasingly characterized by its technical know-how and
sophisticated production processes. This development applies to
the industry as a whole but more so to the automotive subsector.
It is worth noting also that in Juárez research and development
centers of the world´s most important companies are now found
which engage in ongoing technological innovation. The best
example is the Delphi Mexico Technical Center.
“Another development in the Juárez
maquiladora industry is the growing base of skilled labor which
is another contributing factor in the creation of new processes
and innovations in the industry.
“Among the most important impacts of the
maquiladora industry is the creation of a valuable human capital
base in the city. This is the result of collaborative efforts
with training facilities and also reflects the valuable
accumulated experience of the many executives, technicians and
professionals who work in the maquiladora industry itself or for
entities that have a link with maquiladoras.”
Steel project
Among the companies taking advantage of
Juárez’s amenities is Steel Technologies Inc., which recently
announced that its new, $8.5 million facility in Juárez has
begun initial operations with slitting and storage capabilities.
Plans also were announced to expand capacity and service
capabilities with the addition of rail service and a new
multi-blanking line.
“We are extremely pleased with the start-up
and the strong customer reception of our new, world-class steel
processing center that has begun serving customers in the
fast-growing manufacturing base in the Juárez area,” said Carlos
von Rossum, G., general director for Steel Technologies de
Mexico.
The Juárez facility expands the company’s
Mexican platform to six facilities. Steel Technologies now
operates processing facilities in Monterrey, Matamoros and
Juárez, and distribution centers in Querétaro, Puebla and
Saltillo.
Steel Technologies entered the Mexico
market in 1994 and has continued to grow through Greenfield
expansion. “We intend to continue to build strategically upon
our North American platform of operations to best serve our
customers and view the Mexico expansion as a key part of this
strategy,” said Brad Ray, CEO of Steel Technologies.
Steel Technologies Inc., a wholly owned
subsidiary of Mitsui & Co., Inc. processes flat-rolled steel to
specific thickness, width, temper, finish and shape requirements
for automotive, appliance, lawn and garden, office furniture,
agriculture, railcar, construction, hardware, and consumer
goods. Steel Technologies has 25 facilities, including its
joint-venture operations, located throughout the United States,
Canada and Mexico.
El Paso
Many Fortune 500 Companies, including
Eureka, Leviton, Hoover, Boeing, and Delphi, have discovered the
resources the El Paso area has to offer. A highly productive
labor force, strategic location, intelligent infrastructure, and
unique quality of life all combine to make El Paso an attractive
site for expansion or relocation.
El Paso is the fifth largest city in Texas.
The El Paso metro area holds more than 2.2 million people,
making it the world’s largest population center on an
international border.
Encompassing more than 3,000 acres in 21
non-contiguous sites, El Paso’s Foreign Trade Zone #68 is the
fifth largest in volume in the country and the largest on the
U.S. Mexico border. Moreover, El Paso’s central location yields
a strategic proximity to markets across North America, with an
interstate highway system providing east/west and north/south
access, rail facilities serving every North American market, and
the newly renovated and expanded El Paso International Airport.
The Empowerment Zone program carries
special tax incentives and bond provisions, which encourage
private investment, while providing additional funding for
workforce development. El Paso is the only city in Texas and one
of only two cities west of the Mississippi River to receive a
Round II Federal Urban Empowerment Zone designation. Similarly,
Texas State Enterprise Zones allow for refunds on various sales
and use taxes paid by businesses. In addition to these programs,
the city of El Paso offers an array of comprehensive business
incentives, including tax abatement, sales and use tax
exemptions, and Industrial Revenue Bonds.
According to the U.S. Federal Reserve Bank,
El Paso has followed national trends in job growth with a steady
shift of employment out of manufacturing and into services. It
has been a sometimes painful transition for the city, with the
number of manufacturing jobs cut nearly in half, from 41,100 to
22,100, between 1990 and 2006. Losses were concentrated in
traditional economic mainstays such as textiles, apparel and
leather goods.
Meanwhile, services have grown to make up
82.9 percent of private jobs in El Paso, up from 69.7 percent in
1990. Indeed, service-sector employment has risen fast enough to
keep the city’s private-sector job growth close to national
trends since 1990, at annual rates of 1.3 percent versus 1.5
percent for the United States.
El Paso has the transportation
infrastructure that allows coast-to-coast access to markets.
Further, the telecommunications network in El Paso offers
state-of-the-art voice and data transmission facilities to
almost one-quarter of a million residential and business
customers in the area, ensuring that companies located in El
Paso can reach clients and colleagues worldwide.
Five Star’s plan
One major development company is trying to
capitalize on these advantages. Five Star Development Group,
Inc. recently announced plans for the country’s largest LEED
certified $150 million mixed-use campus that will be located on
109 acres in El Paso, adjacent to the Zaragoza Port of Entry
between the U.S. and Mexico border.
Located on one of the last large
undeveloped land parcels along the U.S. and Mexico border, the
mixed-use campus broke ground in the fourth quarter 2007 and
will offer approximately 2.1 million square feet of retail,
commercial and high-efficiency distribution facilities that will
open in multiple phases. The first phase will be an
approximately 500,000 square foot, High-Efficiency (H.E.)
cross-dock distribution facility with occupancy scheduled for
second quarter 2008. Completion for all phases of the campus
will be approximately two years. The development is registered
for LEED certification, which upon certification will be the
first in the country.
“We look forward to debuting the country’s
largest LEED certified mixed-use campus near this
highly-trafficked commercial port that will foster international
business opportunities and serve as an alternative for many U.S.
companies that are currently doing business overseas,” said
Jerry Ayoub, president of Five Star Development. “Due to
shipping log jams and long lead times, many companies are
looking to move business to Mexico in order to be closer to
their manufacturing facilities. These businesses will gravitate
to this campus in order to take advantage of its close
proximity.”
Five Star Development plans to debut its
new High-Efficiency (H.E.) Distribution Facility series with
this project that aims to exceed Class-A standards with
innovative eco-friendly building and operating practices that
are both socially and environmentally responsible. Under its H.E.
classification, Five Star Development will incorporate many
green aspects into its facilities that are uncommon in the
industry, some of which include:
•Centrally-controlled satellite interface
irrigation monitoring and management systems that incorporates
flow management software and overflow alarm systems thereby
maximizing water conservation.
•Five Star Signature White Envelope
consisting of white painted interior warehouse walls and a
factory primed white roof deck, thereby maximizing light
reflective value and minimizing daytime energy consumption.
•Five Star Signature Tight Envelope
consisting of caulking both the exterior and interior joints
throughout, as well as creating a brush seal at all dock
positions, dock doors and levelers, weather stripping on all
exterior main doors and sealant at all wall, roof and floor
penetrations. Tight Envelope ensures maximum efficiency in
cooling and heating to reduce overall electrical consumption.
•Optional H.E. fluorescent T-5 lighting
with motion sensor activation system to reduce overall
electrical consumption.
•Optional electric generating roof solar
components and electric generating windmills.
•Thirty-two feet minimum clear heights
offering 33 percent more cubic space over a standard 24' clear
building.
“The purpose of our new H.E. series of
distribution facilities is to change the way we develop these
large-scale centers that is both environmentally responsible and
cost-effective for our tenants,” said Ayoub. “Our end goal is to
have our tenants’ operational costs lower than any other
facility in the country while at the same time being able to
offer features that exceed Class-A standards. In recent months,
we’ve seen a significant increase in demand and interest,
especially from Fortune 500 companies, for our facilities with
green features.”
Founded in 1978 by Texas real estate
developer Jerry Ayoub, Five Star Development Group, Inc. owns
and develops projects in multiple real estate asset classes
including hospitality, industrial, residential and retail. The
company has developed projects in Texas, California, Arizona and
Mexico that total approximately 20 million square feet.
...Continued
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