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Improving the Border Region's Competitiveness Senator Eliot Shapleigh 29th Senatorial District El Paso County www.shapleigh.org Austin: 512-463-0129 or.

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Presentation on theme: "Improving the Border Region's Competitiveness Senator Eliot Shapleigh 29th Senatorial District El Paso County www.shapleigh.org Austin: 512-463-0129 or."— Presentation transcript:

1 Improving the Border Region's Competitiveness Senator Eliot Shapleigh 29th Senatorial District El Paso County Austin: or (800) El Paso: Border Legislative Conference March 26, 2004

2 Improving the Border Region's Competitiveness Improving Competitiveness – The need for Investment Invest in Infrastructure Invest in Human Capital Increase Access to Capital and Credit Invest in Border Specific Economic Generators Invest in Secured Manufacturing Investing in the Border to Improve Competitiveness

3 Kerry rips into Bush on jobs Democratic presidential candidate John Kerry on Friday said job losses "rip the heart out of our economy" and criticized President Bush's ability to make up for the millions of jobs that have disappeared during his administration. "Kerry rips into Bush on jobs." Commercial Appeal (March 6, 2004). Job Loss Across North America On job losses, simplistic solutions won't work February's astonishingly weak jobs creation data surprised many people, especially White House supporters, who expected a number in the hundreds of thousands… Bush is now facing the grim prospect of being the first president since Herbert Hoover who will finish his term with fewer jobs than when he started. "On job losses, simplistic solutions won't work." Austin American Statesman (March12, 2004).

4 Jobs Shifting to China China now makes 80% of all toys sold in America. In Shenzhen, China the legal minimum wage is $0.33. Employers are not required to pay laborers pension or medical insurance. No labor contracts required. Source: "The World's Sweatshop: The Etch a Sketch Connection." The New York Times (December 7, 2003).

5 Foreign Investment in Maquilador sector down 7.5 percent 2002: $2.43 billion invested in maquiladoras 2003: $890 million invested in maquiladoras Employment in Maquilador sector down 257,147 people between 2000 and 2003 Since 2000, 183 maquiladoras have closed In 2003, 35% of Ciudad Juarez faced unemployment Foreign Investment in Maquiladoras Plummets Sources: "Se hunde inversion extranjera." El Diario (October 2, 2003). "Panorama aterrador." El Diario (February 8, 2004).

6 Foreign Investment in Maquiladoras Plummets Employment Volatility in Maquiladoras While employment in the maquiladora sector was lower in 1998 than in 2003, employment has dropped significantly since October 2000.

7 Investing in the Border to Improve Competitiveness Solution 1: Invest in Infrastructure Transportation Water and Wastewater Telecommunications Energy Cross Border Trade Improving the Border Region's Competitiveness

8 Invest in Infrastructure: Transportation

9 There is a backlog of $1–3 billion in needed wastewater and drinking- water projects in the Border Region Management of water resources along the border is fragmented legally and institutionally Invest in Infrastructure: Water and Wastewater Source: Nitze, William A. "Meeting the Water Needs of the Border Region: A Growing Problem for the United States and Mexico." Center for Strategic International Studies, April Ciudad Juarez needs 1.5 billion gallons a day, current access is 5 million gallons.

10 Invest in Infrastructure: Technology Texas-Mexico Border Offers Unique Opportunity to Become High Technology Production-Sharing Center Michie, Donald A., Ph.D.. "Testimony Beofre Senate Committee on Internation Relations and Trade, 78th Legislature." El Paso County Courthouse, El Paso, Texas. March 5, Texas-Mexico Border communities' logistics – international trade services, transportation routes, distinct trade areas High technology in area with New Mexico and Texas research laboratories Lower cost production sharing manufacturing of higher technology products

11 Invest in Infrastructure: Energy Gas Production Along the Border Yearly Average MexicoUnited States Texas In the year 2002, Texas produced almost 5,612,000,000 barrels of natural gas. Natural Gas Liquid Production 1000 Barrels per day

12 Invest in Infrastructure: Cross Border Trade Invest in a "one stop" model at Border ports of entry to cross commercial vehicles in twelve minutes, not six hours Issue "smart cards" to Border citizens, the most frequent travelers across Border points of entry Authorize Border Mass Transit projects at key Border Metroplexes Invest in Border rail routes to shift cargo from commercial vehicles and lines to rapid rail and just-in-time markets Increase personnel at Border crossings to allow 24 hour port access

13 Invest in Infrastructure: What Texas Has Done S.B. 913, 76th Session "One-Stop" Border Inspection Facility facilitate the flow of commerce improve federal efforts aimed at interdiction protect our public health conserve our environment by decreasing the idling time of commercial vehicles protect the already severely overburdened highways along the Border by preventing overweight trucks from traveling on Texas' roads Port Authority Feasibility Study, 77th Session reduced stop/no stop process is feasible for most trucks process does not add substantial infrastructure costs linking facilities will improve vehicle safety standards compliance

14 Investing in the Border to Improve Competitiveness Solution 1: Invest in Infrastructure Solution 2: Invest in Human Capital Workforce Training Improving the Border Region's Competitiveness

15 Invest in Human Capital Population Growth Along the Texas-Mexico Border

16 Invest in Human Capital: Workforce Training States Investment in Workforce Training Texas vs. California

17 Finding Creative Avenues for Workforce Training Invest in Human Capital: Workforce Training Frontier of the Americas The digital divide is the wedge between the "information rich" (those with higher-than- average incomes and levels of education) and the "information poor" (such as those who are younger, those with lower incomes and education levels, and those who live in rural areas or central cities). By closing the digital divide we can achieve educational equity. Through educational equity, the Frontier of the Americas Program can create sustainable links to education, community and commercial resources.

18 Investing in the Border to Improve Competitiveness Solution 1: Invest in Infrastructure Solution 2: Invest in Human Capital Solution 3: Increase Access to Capital and Credit Loan to Deposit Ratio Home Lending Improving the Border Region's Competitiveness

19 Increase Access to Capital Texas Trails the Country in Loan-to- Deposit Ratio 15 Most- Populous States Ordered by 2002 Ratio State and Population (in thousands as of July 2002) Host State Loan-to-Deposit Ratio 2000 Ratio2001 Ratio2002 Ratio Ohio (11,421) Indiana (6,159) Michigan (10,050) Georgia (8,560) Washington (6,069) California (35,116) New York (19,158) Illinois (12,601) North Carolina (8,320) Florida (16,713) Pennsylvania (12,335) Massachusetts (6,428) Virginia (7,294) Texas (21,780) New Jersey (8,590)787060

20 Increase Access to Capital Texas Leads the Country in Subprime Lending

21 Investing in the Border to Improve Competitiveness Solution 1: Invest in Infrastructure Solution 2: Invest in Human Capital Solution 3: Increase Access to Capital and Credit Solution 4: Invest in Border Specific Economic Generators Educational Opportunities Access to Health Care Transnational Lending Economic Development Hubs Improving the Border Region's Competitiveness

22 Invest in Border Specific Economic Generators Increase Educational Opportunities Thunderbird Thunderbird's Garvin School of International Management in Glendale, AZ is the world's leading source of international management education and a pioneer in this field. Thunderbird's tripartite foundation of business courses, international and regional studies, and language and communication includes a broad range of business specializations.

23 The State has supported El Paso's number one priority, a four-year medical school at Texas Tech's El Paso Campus, by approving $95 million in Tuition Revenue Bonds for a Research Tower and a Classroom Facility at Texas Tech El Paso. The school will create over 1,000 new higher paying higher skilled jobs, will increase per capita income, create greater business opportunity, and improve quality of life. The fully developed medical school will have positive impact of $185 million on the community. Invest in Border Specific Economic Generators Increase Access to Quality Healthcare El Paso Medical Center of the Americas

24 Banking on the Border – Laredo's Financial Community Since 1970 when total assets only reached $102 million, the Laredo Region's banking community has flourished. Laredo bank assets rose from $102 million in 1970 to $1.7 billion in 1988, and by the end of 1994 the city of Laredo attained the status of a "$4 billion plus" banking center. Invest in Port Specific Economic Generators Increase Transnational Lending Opportunities Laredo Banks include: International Bank of Commerce Laredo National Bank Wells Fargo Falcon National Bank First National Bank South Texas National Bank

25 Invest in Port Specific Economic Generators Increase Innovative Business Opportunities Along the Border Chihuahua Local Suppliers Material Key Local Suppliers (Actual) Commodity Plastic Rubber Chip Board Suppliers Security Plastic, Advance Dial Co. Sei Woo Stone Container Potential New Local Suppliers Commodity Coils LCD PWD Plastic Thermoform Printing Suppliers Coilcraft Varitonics WUS Hartzell Industrial 'de Plastico Imprenta Ochoa

26 Investing in the Border to Improve Competitiveness Solution 1: Invest in Infrastructure Solution 2: Invest in Human Capital Solution 3: Increase Access to Capital and Credit Solution 4: Invest in Border Specific Economic Generators Solution 5: Invest in Secured Manufacturing Along the Border Improving the Border Region's Competitiveness

27 Invest in Secured Manufacturing Along the Border

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29 Shortened Supply Lines Increased Strategic relationships between the United States and Mexico Use tax incentives and infrastructure investment to induce manufacturers to utilize and expand maquiladora industrial base Invest in Secured Manufacturing Along the Border U.S. Strategic Manufacturing Zone

30 What do we have in common: "Investment" Improving the Border Region's Competitiveness Senator Eliot Shapleigh 29th Senatorial District El Paso County Austin: or (800) El Paso Office:


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