Improving the Border Region's Competitiveness Senator Eliot
Shapleigh 29th Senatorial District El Paso County www.shapleigh.org
Austin: 512-463-0129 or (800) 544-1990 El Paso: 915-544-1990 Border
Legislative Conference March 26, 2004 Slide 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 Slide 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).
Slide 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). Slide 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). Slide 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. Slide 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 Slide 8 Invest in
Infrastructure: Transportation Slide 9 There is a backlog of $13
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
2002. Ciudad Juarez needs 1.5 billion gallons a day, current access
is 5 million gallons. Slide 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, 2004. 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 Slide 11 Invest in Infrastructure: Energy Gas
Production Along the Border Yearly Average MexicoUnited States 2003
4181720 2002 4081880 2001 4331868 Texas In the year 2002, Texas
produced almost 5,612,000,000 barrels of natural gas. Natural Gas
Liquid Production 1000 Barrels per day Slide 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 Slide 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
Slide 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 Slide 15 Invest in Human Capital Population Growth
Along the Texas-Mexico Border Slide 16 Invest in Human Capital:
Workforce Training States Investment in Workforce Training Texas
vs. California Slide 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.
Slide 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 Slide 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)123114121 Indiana (6,159)106119114 Michigan
(10,050)108103102 Georgia (8,560)9689101 Washington (6,069)11911499
California (35,116)919293 New York (19,158)1089093 Illinois
(12,601)1079087 North Carolina (8,320)1039185 Florida
(16,713)828180 Pennsylvania (12,335)957975 Massachusetts
(6,428)858375 Virginia (7,294)807670 Texas (21,780)746668 New
Jersey (8,590)787060 Slide 20 Increase Access to Capital Texas
Leads the Country in Subprime Lending Slide 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 Slide 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. Slide 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 Slide 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 Slide 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 Slide 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 Slide 27 Invest in Secured Manufacturing Along the
Border Slide 28 Slide 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
Slide 30 What do we have in common: "Investment" Improving the
Border Region's Competitiveness Senator Eliot Shapleigh 29th
Senatorial District El Paso County www.shapleigh.org Austin:
512-463-0129 or (800) 544-1999 El Paso Office: 915-544-1990
