Arrowhead Center and the Center for Border Economic Development (C-BED) at New Mexico State University (NMSU) completed a study of the economic impact arising from border-related economic activity associated with the Santa Teresa Port of Entry and the Santa Teresa Industrial Parks.
The purpose of their analysis was to estimate the economic impact of business and international trade activities enabled by the region.
“Economic development is vital for the state of New Mexico, and it’s at the forefront of our efforts at NMSU,” said NMSU Chancellor Dan Arvizu. “This report gives us a much better understanding of how vital Santa Teresa is for our state as well as our region.”
The study has found the employment and construction activities at Santa Teresa Port of Entry and the Santa Teresa Industrial Parks produced the following impacts in 2020:
• 3,262 direct jobs, and 5,849 total jobs.
• $1.1 billion in total output, with $411 million in value-added production.
• $90 million in taxes generated, $57 million in federal taxes, $26 million in taxes in New Mexico, and $8 million in taxes in Texas.
• $24 billion in international trade was facilitated, and it grew at a 5.8 percent compound annual growth rate from 2010 to 2020.
• About 80 percent of the economic benefits of Santa Teresa accrue in New Mexico, with the remainder in Texas.
“It was of critical importance that the impact of the Santa Teresa region be quantified to highlight the key role the region is playing in the state’s economy,” said Lucinda Vargas, NMSU C-BED research fellow. “The region is now the source of the majority of the state of New Mexico’s exports, at 58 percent of the total.”
“There are often questions about who benefits from Santa Teresa’s Industrial Parks and Port of Entry based its proximity to Texas,” said Kramer Winingham, economic research director at Arrowhead Center. “Our study found over 80 percent of the economic impact is occurring in New Mexico, which was actually higher than we expected, and with a total economic impact of $1.1 billion, which is significant especially since the area continues to see growth even through the pandemic.”
“This study gives clear data on how Santa Teresa benefits New Mexico,” said Kathryn Hansen, Arrowhead Center director and CEO. “By having the concrete data, we can now better work our local businesses to be a part of this growth and bring in even more industry that can see that we are part of a growing international hub.”
“The Santa Teresa Industrial Park is a major source of jobs for New Mexico, responsible for the creation of 5,800 jobs, most in Doña Ana County,” said NMSU economics professor Chris Erickson, Ph.D. “The jobs created by the Industrial Park are good jobs, with an average pay of about $23 an hour in wages and benefits.”
To read the study, click here.
Author: Cassie McClure – NMSU