EL PASO, Texas (KTSM) – According to new research from New Mexico State’s Arrowhead Center and the Center for Border Economic Development (C-BED), the port of entry at Santa Teresa, New Mexico is a jobs-creation machine for the Land of Enchantment.
The recently-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, is the first of its kind on the impact of the port and surrounds.
The purpose of their analysis was to estimate the economic impact of business and international trade activities enabled by the 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.
“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.”
“This is the first time that a detailed and comprehensive economic impact study has been done on the Santa Teresa industrial base. The sheer numbers that the Santa Teresa project has added annually to the New Mexico economy in terms of job creation, investment and tax base is helping to diversify the state’s economy, and to provide good opportunities for New Mexicans,” said Jerry Pacheco, Border Industrial Association president. “Through the Center for Border Economic Development, NMSU has again established itself as a major border economic resource.”
The Border Industrial Association was a collaborative partner during the creation of the study.
“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 Parks is a major source of jobs for New Mexico, responsible for the creation of 5,800 jobs, most in Doña Ana County,” said Chris Erickson, director of the Center for Border Economic Development. “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.