- The big news locally is the planned opening of the Foxconn Maquila to be located in San Geronimo, Mexico, directly across from Santa Teresa. The plant is expected to open in March and ultimately will employ as many as 20,000. Foxconn is the trade name for Taiwan-based Hon Hai Precision Industry, an electronics manufacturing giant that makes products for Apple, Nokia, Dell and Sony, and more cell phones than any other firm in the world.
- Foxconn will be the largest maquila in Mexico when it is completed. Beyond the direct employment at Foxconn, the plant is expected to be a major draw for suppliers who will also generate employment growth. Foxconn is expected to substantially increase crossings at Santa Teresa.
- Louisiana Energy Services’ $1.5 billion National Enrichment Facility is having a major economic impact on Lea County according to the New Mexico Department of Workforce Solutions. LES is spending about $13.3 million a month on construction and has as many as 1600 people on site at one time. The project is at “peak construction” and has construction workers on site working two shifts. LES expects its non-construction staff to grow from 208 to 250 full time employees at which time the facility will be fully staffed.
- Menlo Worldwide Logistics plans to hire as many as 100 workers at a warehousing facility in the Santa Teresa Logistics Park.
- Prosper Foods, Inc. is closing its Deming facility, laying off 130 employees.
- Total nonagricultural employment for June increased by 1.0 percent statewide and by 1.2 percent in Las Cruces compared to 12 months previous.
- Strong sectors statewide were education and health services (3.7 percent compared to twelve months previous), transportation and warehousing (3.7 percent), and education and health services (3.5 percent).
- Weak sectors statewide were manufacturing (-5.1 percent), financial activities (-1.1 percent) and business services (-.3 percent).
- Strong sectors in Las Cruces include other services (13.3 percent compared to June last year), business services (5.1 percent), and education and health services (2.9 percent).
- Weak sectors in Las Cruces include natural resources, mining and construction (-7.8 percent); and financial services (-4.2 percent).
- The dry weather cycle has finally broken (of course, the always lingering pessimistic view is that the first day after a week of rain is the beginning of the next drought). But, for now the summer rains have caught most New Mexico weather reporting stations up somewhat. Las Cruces has received 2.44” of precipitation so far in 2008 (as of July 14), still below the 3.63” normal for January through July. But 2.24” has fallen in July so far, well above the normal 1.36” normal July. All but two of New Mexico’s 30 weather reporting stations currently show below-average levels of precipitation for the first six months of 2008. Only Tucumcari (at 11.71” so far in 2008) and Deming (at 5.09”) are above average. As a result, statewide, dryland crops and rangeland conditions are still suffering; topsoil moisture is rated as 21% very short, 35% short, 42% adequate, and 2% surplus.
- Irrigated crops are generally unaffected by the current drought situation; irrigated winter wheat is 96% harvested while alfalfa is generally rated as fair or better as we approach 93% complete with the second cutting and 30% complete with the third cutting. Chile, onions (93% harvested), and pecans are generally in good to excellent condition. The situation is reversed for rangeland conditions, 15% very poor, 42% poor, 33% fair and 10% good.
- Milk cow numbers have risen (from 335,000 in June 2007 to 340,000 in June 2008) and milk production increased from 608 million pounds in June 2007 to 670 million in June 2008.
- Increased feed prices continue to put pressure on the operating margins for all livestock, including milk and beef cattle production. U.S. corn prices averaged $6.12 per bushel in June, as compared to $5.28 in May 2008, $3.77 in June 2007, and $2.30 for the 1990-92 period.
- New Mexico alfalfa hay prices for July averaged $197.00 per ton, $30 above July 2007. June cull cow prices remained the same as May at $55.80 per hundredweight. The national average was $53.80. Steer and Heifer prices also remained the same between May and June, averaging $99.50 per hundredweight. New Mexico steer and heifer prices were $3.60 above the national average of $95.90. Calf prices rose $3.00 from the May level of $119.00 per hundredweight to $122.00 and were $2.00 above the national average. Milk prices were reported in June to be $18.40, $1.60 above the May level of $17.20 per hundredweight and $0.60 below the June 2007 level of $19.00.
| Current Economic Conditions in New Mexico | | Summary Table | | Labor Markets | | | | | Employment | | Jun-08 | Jun-07 | % change | | | Las Cruces | | 84,435 | 83,313 | 1.3% | | | Statewide | | 918,059 | 912,037 | 0.7% | | | U.S. data | (in thousands) | | 146,649 | 146,958 | -0.2% | | | | | | | | | | | Unemployment Rate | Jun-08 | Jun-07 | Difference | | | Las Cruces | | 4.80% | 4.30% | 0.5% | | | Statewide | | 4.50% | 3.90% | 0.6% | | | U.S. data | | 5.70% | 4.70% | 1.0% | | | | | | | | | | | Payroll Employment by Industry | | | | | | New Mexico | | Jun-08 | Jun-07 | % change | | | | Total Nonagricultural Employment | 854,500 | 846,300 | 1.0% | | | | Goods Producing | 116,000 | 117,700 | -1.4% | | | | Service Producing | 738,500 | 728,600 | 1.4% | | | | Natural Resources and Mining | 19,600 | 19,600 | 0.0% | | | | Construction | | 61,000 | 60,800 | 0.3% | | | | Manufacturing | | 35,400 | 37,300 | -5.1% | | | | Wholesale | | 24,600 | 23,900 | 2.9% | | | | Retail | | 97,000 | 95,700 | 1.4% | | | | Trans., Warehousing and Utilities | 25,200 | 24,300 | 3.7% | | | | Information | | 17,000 | 16,400 | 3.7% | | | | Financial Activities | 35,000 | 35,400 | -1.1% | | | | Business Services | 109,000 | 109,300 | -0.3% | | | | Education and Health Services | 113,100 | 109,300 | 3.5% | | | | Leisure and Hospitality | 90,800 | 90,200 | 0.7% | | | | Other Services | 31,600 | 31,400 | 0.6% | | | | Government | | 195,200 | 192,700 | 1.3% | | | | | | | | | | | | Las Cruces | | Jun-08 | Jun-07 | % change | | | | Total Nonagricultural Employment | 67,700 | 66,900 | 1.2% | | | | Goods Producing | 7,800 | 8,200 | -4.9% | | | | Service Producing | 59,900 | 58,700 | 2.0% | | | | Natural Res., Mining, and Constr. | 4,700 | 5,100 | -7.8% | | | | Manufacturing | | 3,100 | 3,100 | 0.0% | | | | Wholesale | | 1,400 | 1,400 | 0.0% | | | | Retail | | 7,400 | 7,200 | 2.8% | | | | Trans., Warehousing, and Utilities | 1,700 | 1,700 | 0.0% | | | | Information | | 1,000 | 1,000 | 0.0% | | | | Financial Activity | 2,300 | 2,400 | -4.2% | | | | Business Services | 6,200 | 5,900 | 5.1% | | | | Education and Health Services | 10,800 | 10,500 | 2.9% | | | | Leisure and Hospitality | 7,400 | 7,200 | 2.8% | | | | Other Services | 1,700 | 1,500 | 13.3% | | | | Government | | 20,000 | 19,900 | 0.5% | | Source: New Mexico Department of Labor | | | | | | | | | | | | | | | | | | | | | | Current Economic Conditions in New Mexico (Cont’) | | Agriculture | | | | | | Dairy Production | | Jun-08 | Jun-07 | % change | | | Cow Numbers | (thousand head) | 340 | 335 | 1.5% | | | Milk Production | (Million Pounds) | 670 | 608 | 10.2% | | Prices | | | | Jul-08 | Jul-07 | % change | | | Milk Price | (Cwt.) | $19.60 | $22.00 | -10.9% | | | Hay | (ton) | $194.00 | $164.00 | 18.3% | | | Alfalfa | (ton) | $197.00 | $167.00 | 18.0% | | Source: New Mexico Department of Agriculture | | | | | | | | | | | | | Gross Receipts Tax Revenue before Medical Deduction | | | | | | | 1st Quarter 2008 | 1st Quarter 2007 | % of change | | | Dona Ana | | $53,576,673 | $51,994,051 | 3.0% | | | New Mexico | | $800,962,920 | $779,671,746 | 2.7% | | Source: New Mexico Department of Taxation and Revenue | | | | | | | | | | | | | Real Estate | | | | | | Las Cruces Building Permits (All Sources) | Jan-June 08 | Jan-June 07 | % change | | | Permits | | | 1,575 | 2,077 | -24.2% | | | Valuation | | 108,347,360 | 149,385,213 | -27.5% | | Source: City of Las Cruces | | | | | | | | | | | | | | Housing Price Index | | 1st Quarter 2008 | 1st Quarter 2007 | % change | | | Las Cruces | | 198.27 | 193.74 | 2.3% | | | New Mexico | | 343.71 | 332.46 | 3.4% | | | United States | | 387.54 | 387.67 | 0.0% | | Source: Office of Federal Housing Enterprise Oversight | | | | | | | | | | | | | Energy Prices | | Jul-08 | Jul-07 | % change | | | Oil ( $/barrel ) | | 133.44 | 74.18 | 79.9% | | | Natural Gas (dollars per million BTU) | 11.06 | 6.21 | 78.1% | | | | | | | | | | | Prepared by Christopher A. Erickson, and James Libbin |
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