BORDER COMMERCE
by Ana María Ruiz Brown, Staff Writer -Translator

BUSINESS EXPECTED TO GROW MORE IN EL PASO AND IN JUAREZ

While some businesses are expanding their border involvement and creating jobs, a Texas state task force is studying unemployment rates in El Paso and South Texas that almost double statewide averages.

After surveying the El Paso market, MSC Industrial Supply of Plainview, N.Y. decided to start a branch division at El Paso. "We are looking for a lot of growth here and in Juárez. Based on the sales we were getting with no one here, we can only imagine what we'll get with a presence here," said Marcia Jessup, El Paso branch manager.

Similarly, Sunstate Equipment plans to open a division in El Paso West side. The decision was based on the business growth in El Paso, and its proximity to México, said Larry Cox, employee in the market development for the company.

The Greater El Paso Chamber of Commerce reported new employment because of the companies in expansion. It expected the development of new industries will create 5,500 jobs. In 1996, the chamber reported 3,667 jobs. Compared to last year statistics, employment rates in El Paso have increased, according to the Chamber. If economic growth continues as planned, it is expected to to create 8,000 jobs in 1998 said A.F. Thomas, senior vice president for the chamber's economic development division.

Some companies with plans to expand in El Paso have already started hiring workers, said Victor Grado, chamber director of retention and expansion.

The list included Antec, a telecommunications and cable supply manufacturer, Boeing, which contracts with the military for projects, Handgards, which makes disposable plastic globes and bags, Taylor Publishing, Axxion Corp., a computer case maker, and Casa Rústica, a furniture maker.

On the other hand, the Texas Department of Economic Development has created a special task force to find out what prevents economic growth in the border. According to El Paso businesswoman Paty Holland-Branch, there is a 10% unemployment rate in 43 county regions at Texas. The statewide unemployment percentage last year was 5.5 percent, but it jumped to 11.4 percent in El Paso and 12.8 percent in South Texas, reported the El Paso Times. The task force follows the problem to make it more visible and to find a resolution, said Holland-Branch.

The task force will organize "town-hall" -type meetings in El Paso and other border areas to obtain suggestions on how to improve the economy in the border, according to the Times. It expected to hear experiences from local commerce people and economists in these panels.

One example of changing border employment in February was Thomson Consumer Electronics. They announced they will relocate a television plant from El Paso to Juárez in April. The main reason to rebuild operations in Juárez is to cut labor cost, said Richard Knoph, spokesman for Thomson in Indianapolis. Thomson is a French-owned consumer electronics manufacturer.The company will keep administrative offices and two warehouses in El Paso, according to the El Paso Times.

Another international electronics company that will settle in Juárez is Acer Inc., bringing a combined investment of about $160 million and 1,200 new jobs -200 in El Paso County, the El Paso Times reported. Acer makes desktop and portable computers in two plants in El Paso and employs about 970 people, said Ken Su, president of the Acer subsidiary Aii Technologies in El Paso. Su also described that some jobs are taken to Juárez because of the cheap labor cost, but for more specialized jobs they rely in their plants in El Paso.

Source: El Paso Times