THE LARGEST I-PAPER COVERING THE TEXAS/MEXICO BORDER
Valley economy remains strong, summit goers are told
By Joey Gomez (Courtesy: www.RioGrandeGuardian.com)
McALLEN, April 2 - An economic "drop off" facing the nation underscores the advantages that are at the heart of economic prosperity in McAllen, business leaders said at an economic forecast summit held Tuesday.
The economy is "extremely strong", McAllen Chamber of Commerce President Steve Ahlenius told a gathering of local leaders, as well as business and economic professionals at the event, which was held at the McAllen Country Club.
The area is "blessed" to have the benefits of Mexican trade, he said.
"Our advantage is Mexico because their economy continues to do so well, consumer confidence continues to be strong, and they're coming here and shopping and spending money," Ahlenius told the Guardian after the summit. "While we may have had a drop off (nationally)...being close to Mexico is a huge advantage that we have for this region."
McAllen Economic Development Corporation (MEDC) President and CEO Keith Patridge said his organization brought in 17 new companies to the region in 2007, 12 in McAllen and 5 in Reynosa. Patridge called it a "transitional" year, with more than 571 new jobs created.
The area added about 10,000 new jobs that were created by the expansion of existing companies in 2007, Patridge said. Over the past 21 years, the MEDC has brought in 550 companies, and created over 110,000 jobs on both sides of the border.
"Something you have always seen over the last 20 years is when the U.S. economy starts going down, and starts weakening, we generally have an up tick in the number of businesses coming down because business margins are suffering, they're looking at ways to increase their market share during those times." Patridge said.
Retail trade in McAllen increased by 4.6 percent in 2007, according to the Chamber. Wage and Salary Employment also climbed 4.1 percent, and unemployment stood in a "healthy" 6.5 percent, according to Ahlenius.
The Texas Workforce Commission recently reported that the McAllen MSA leads the state in annual growth despite having the highest level of unemployment in Texas, a fact the MEDC takes positively.
The area added 600 jobs in February but retained a state leading unemployment rate of 6.5 percent, according to TWC.
But higher unemployment can mean good news, according to Patridge. It means that employment can't often keep up with the rapid growth of the area, he said.
"This is good news for us, because it validates the strength of our economy right now," Patridge told the Guardian in a recent interview. "It shows that we are continuing to grow when everything else is slowing down."
Forbes magazine ranked McAllen among the nation’s "Best Cities for Jobs in 2008" in its January issue. McAllen ranked no. 1 in the nation for its expected job growth rate, and 2nd in the nation for its income growth rate among 100 major metropolitan areas, according to Forbes.
Out of the 100 largest metropolitan areas, the McAllen MSA was ranked 97th in the nation in terms of foreclosures per total number of household, with only .132 percent of all MSA households foreclosed or under foreclosure.
The McAllen MSA showed a year-over-year decrease of 19.74 percent from 2006 to 2007, one of the nation’s sharpest declines in foreclosures, according to the Chamber.
"It's really important to recognize that because of the jobs being created, because Mexico in terms of the money...and also because of the consumer confidence, you put those two elements together and it makes the economy extremely strong, much more so compared to the Midwest, the Northeast, or even the West Coast," Ahlenius said.
"We are seeing a lot of benefits from that because we don't have the same dynamics happening here that are happening in those other locations," Ahlenius added.
Write Joey
Gomez (Courtesy: www.RioGrandeGuardian.com)