Grant County, New Mexico Target Industry Analysis County...Grant County Target Industry Analysis Target Industry | 0 Grant County, New Mexico Target Industry Analysis March 12, 2012

Target Industry | 0 Grant County Target Industry Analysis

Grant County, New Mexico

Target Industry Analysis

March 12, 2012


Table of

Contents

Introduction…………………………………………………. 2

Executive Summary..…………..…………….…………..... 3

Target Industry Selection Process……………………….. 4

Recommended Target Industries….……………………... 10

Target Industry Profiles…..……………………………….. 15

Natural Resources & Mining….................................... 15

Renewable Energy……...……..……………………….. 23

Regional Goods & Services…………………………… 35

Tourism & Recreation….………………………………... 46

Small Business/Entrepreneurship…..……….....……… 54

Occupations and Competencies…………………………. 56

Conclusion & Next Steps………………………………….. 62

Appendix A – General Methodology and Narrative

Content……………………………………………………… 63

About AngelouEconomics………………………………… 64

Cover Photo Credits: Mary Alice Murphy, Grant County Government

Photo: Mary Alice Murphy


Introduction

TARGET INDUSTRY ANALYSIS In January 2012, AngelouEconomics presented the first of three reports that will be delivered to Grant County as part of an economic development strategic plan. The first document, the Market Assessment, provides a broad overview of the demographic and economic trends that are taking place within the County, as well as the many assets that may be drawn upon in efforts to grow the local economy. The Market Assessment also serves as the foundation for future work including this Target Industry report. The Market Assessment provided an assessment of Grant County’s past and current economic conditions. The Target Industry report examines where the Grant County economy might be able to go in the future. Specifically, the Target Industry report draws on a combination of quantitative and qualitative analyses to identify a selection of key industry sectors and niches that are recommended for targeting by the community in its economic development activities.

This report examines the trends and site selection requirements of each recommended target industry. Based on the

analysis completed by the project team and input received from community stakeholders, these target industries

represent the best opportunities for sustained success within Grant County. These target industry recommendations

are firmly rooted in reality as they build upon Grant County’s existing strengths, leverage emerging opportunities within

the region, and support the goals of the community. This report serves as only one component of the current project

and should not be viewed as an economic development plan in and of itself. As with the Market Assessment, future

project phases will build upon the Target Industry report and offer additional strategic recommendations.

•Project Setup & Stakeholder Engagement

Phase 1

Phase 2 •Market Assessment & SWOT Analysis

Phase 3

•Action Plan and Implementation Matrix

Phase 4

•Target Industry Analysis


This report highlights a mix of sectors that capitalize on Grant County’s existing clusters, unique assets, location and

infrastructure to strengthen key industries already present within the community, diversify into emerging industries and

capitalize upon short-term and long-term opportunities for the region. Our assessment has drawn upon a combination

of quantitative and qualitative analysis of the economic conditions and industrial trends in Grant County, southwestern

New Mexico, the State of New Mexico, and the United States, and has identified five target industries to be pursued

by the County: Natural Resources & Mining, Renewable Energy, Regional Goods & Services, Tourism & Recreation,

and Small Business & Entrepreneurship.

The report revealed that Grant County has cluster strength in several different industries, some of which are shrinking

nationally, and some of which are growing nationally. In certain cases, a decline nationally in a particular industry may

be symptomatic of industry consolidation in certain areas of the country over others and may not necessarily indicate

a weakening industry. The industries which are growing both nationally and in Grant County include: Natural

Resources & Mining, Public Administration, and Education & Healthcare. Industries that are weak locally, but growing

nationally could represent opportunities for economic development in Grant County. These industries include:

Business & Professional Services and Other Services

This report also identified the specific growing occupations for the target industries selected and then highlighted the

current concentration of these occupations within Grant County. The data provides an understanding of what jobs will

continue to be in demand and how economic and workforce development efforts can support the future economic

development goals through job training and education. Grant County has occupational strength in 11 of the 20 “In-

Demand” occupations within the Natural Resources & Mining industry. The majority of “In-Demand” occupations

within the Renewable Energy industry pay higher than Grant County’s average wage of $32,918, whereas, only five of

the “In-Demand” occupations within the Regional Goods & Services industry pay higher than the average wage.

However, Grant County has occupational strength in half (10 of 20) of the “In-Demand” occupations within the

Tourism & Recreation industry.

By evaluating Grant County’s ability to support these industries and by identifying specific challenges and competitive

advantages, the community will be in a better position to capitalize on the opportunities currently available to it and

become a stronger base from which these industries may operate.

Executive Summary

• How is the target industry defined?

• What are the national and global trends

affecting this target industry?

• How does the target industry relate to Grant

County?

• What are the industry’s site location criteria?

• Which specific industry segments (niches) are

the best fit for Grant County?

• What are the top occupations nationally within

these target industries?

• How does the target industry rate on the Assets

& Liabilities scorecard?

The Target Industry Recommendations

Answer The Following Questions:


The development of competitive clusters is a key component of economic development. Clusters develop when

businesses in interrelated industries choose to locate in close proximity to take advantage of a region’s inherent

advantages. These businesses then become interdependent on each other and, in the process, enhance their

operating environments and ultimately becoming more competitive on the global landscape. As this happens,

company profitability rises, wages increase, and the region yields significant benefits.

For this report, we conducted a cluster analysis of Grant County to determine

the relative strength and dominance of industries within the County. These clusters

were analyzed to determine national and local/regional growth trends and assets that

benefit the clusters that were identified. In conjunction with the community vision

identified through an extensive public input process, this analysis provided a basis for

the identification of target industries for Grant County.

TARGET SELECTION PROCESS

The project team employed a combination of quantitative and qualitative analysis

to select the best target industries for the community. Our approach includes four

steps, each acting as a filtering mechanism by which industries are screened for

suitability for Grant County. In many ways, target industry selection is best

described as target industry “elimination.” The accompanying figure illustrates

the project team’s systematic process by which an industry is selected as a target.

The selection of target industries is meant to focus limited economic development

resources on industries that hold the greatest potential for sustained growth, however,

it is important for community leaders to understand that the selection of target

industries should not be viewed as a strategy to ignore all other industries. If Grant County

can successfully grow its targeted industries, many other sectors will benefit throughout

the local economy.

Cluster

Concentration

GRANT COUNTY, NM TARGET INDUSTRIES

1) Which industries are

strong and are

concentrated

locally or

regionally?

2) Do the clusters

reflect national

growth trends?

Vision

Alignment

3) Are there local or

regional assets

that give

industries a

competitive

edge?

4) Do these clusters

meet the goals of

the community?

Regional

Assets

Industry

Trends

Target Industry Selection Process



STEP 1: WHAT CLUSTERS EXIST REGIONALLY? WHAT IS THEIR CONDITION?

Industry clusters are highly integrated groups of businesses with strong vertical and horizontal linkages. Vertical

linkages include the suppliers and customers in a region that combine to create a competitive business model,

whereas “horizontal” linkages include the relationships between competing companies-which often recruit from the

same labor pool of talent-and supporting public institutions. Clusters often mature when businesses expand their

relationships with existing supplier firms in a region. As the clusters grow, additional supplier firms are attracted to the

region, eventually creating a well-diversified “critical mass” of production, labor, and information.

AngelouEconomics has defined 36 standard industry clusters to categorize businesses according to their final product

and how these products are related to each other and integrated along the vertical supply chain. To assess the

strength of a cluster in a regional economy, AngelouEconomics has calculated location factors (or quotients) to each

cluster. These factors are calculated by comparing the cluster’s share of total local employment to the cluster’s

national share. This location quotient will yield a value generally between 0 and 2, where a result of “1” demonstrates

that the cluster commands an average (expected) share of the local economy. Cluster location factors greater than 2

indicate a strong cluster agglomeration, while those less than .5 indicate weak clusters.

Location Quotient (LQ)

A calculated ratio between the local economy

and the national economy that indicates

industry concentration.

LQ = 1.0 indicates average concentration

LQ > 2.0 indicates a strong cluster

LQ < 0.5 indicates a weak cluster

2011 GRANT COUNTY INDUSTRY

CONCENTRATION: 10 STRONGEST

INDUSTRIES (BY LOCATION

QUOTIENT) *

Industry Employees LQ

Natural Resources 413 13.06

Industrial Supplies 736 7.53

Government 1,295 2.33

Higher Education &

Research 390 1.82

Elementary &

Secondary Schools 524 1.32

Eat/Drink 561 1.31

Agriculture 136 1.16

Civic Enterprises 311 1.16

Material Supplies 75 1.11

Retail 1,094 1.05

Sources: Dun & Bradstreet


Grant County’s Current Top Industries

Grant County Target Industry Analysis

0.00 1.00 2.00 3.00

Grant County

New M exico

Natural Resources (413)

Industrial Supplies (736)

Government (1,295)

Higher Education & Research (390)

Elementary & Secondary Schools (524)

Restaurants/Bars (561)

Agriculture (136)

Civic Enterprises (311)

Material Supplies ( 75)

Retail (1,094)

Hotels & Entertainment (279)

Utilities (46)

Construction Manufacturers & Suppliers (586)

General Services (320)

Health Sciences (745)

Cluster

(Grant County Employment)

TOP 15 GRANT COUNTY, NM INDUSTRY CLUSTERS, 2011

Grant County

13.06

7.53

2.33

1.82

1.32

1.31

1.16

1.16

1.11

1.05

1.04

1.03

1.00

0.89

0.77

New Mexico

4.43

0.55

1.63

1.27

1.21

1.14

1.14

0.95

0.67

1.08

1.37

1.54

1.09

0.96

1.03

Cluster Location Quotient

2.00

Strong

Cluster Strength

1.00 0.00

Weak Average

Sources: Dun & Bradstreet



STEP 2: DO CURRENT AND EMERGING LOCAL INDUSTRY CLUSTERS REFLECT NATIONAL INDUSTRY

GROWTH TRENDS?

To provide a visual basis for the recommended sectors, the analysis on the next page has been prepared to illustrate

which industry sectors have registered solid performance over the last decade, and which have declined or are at a

risk to decline. Local leadership must place greater focus on economic development efforts which will (1) support

investment and employment growth in emerging, private-sector driven industry clusters, (2) help to strengthen and

diversify the regional economy by offering jobs at a variety of skill levels, and (3) leverage Grant County’s existing

assets, facilities, infrastructure, and character.

• Grant County has cluster strength in several different industries, some of which are shrinking nationally, and some of

which are growing nationally. In certain cases, a decline nationally in a particular industry may be symptomatic of

industry consolidation in certain areas of the country over others and may not necessarily indicate a weakening

industry.

• The industries which are growing both nationally and in Grant County include: Natural Resources & Mining, Public

Administration, and Education & Healthcare.

• Industries that are weak locally, but growing nationally could represent opportunities for economic development in

Grant County. These industries include: Business & Professional Services and Other Services.

STEP 3: ARE THERE LOCAL ASSETS THAT GIVE SPECIFIC INDUSTRIES A COMPETITIVE EDGE?

Every community has unique strengths that companies can leverage to create competitive advantages. These

strengths can include such things as tax structure, infrastructure, market proximity, and workforce skills, among

others. The challenge is to identify key assets in the community and region that will support a wide range of industries

to thrive, while working to improve Grant County’s “product” (e.g. infrastructure, cost of business, quality of life, etc).

The location scorecard in each target industry section identifies key assets in Grant County and opportunities for

improvement with regard to specific industry location requirements.


Shift-Share Analysis


Transportation &

Warehousing↑

Manufacturing↑Wholesale Trade↓

Education & Health Care ↑

Retail T rade↓

Other Services↑

Leisure & Hospitality↓

Construction↓Public Administration↑

Utilities↑

Business & Professional

Services↓

Information↓

0.00

1.00

2.00

-40% -30% -20% -10% 0% 10% 20% 30%

U.S. Cluster Employment Growth Rate, 2000-2010

Clu

ste

r C

on

ce

ntr

ati

on

, 2

01

0

Source: BLS

U.S

. Em

plo

ymen

t

Gro

wth

Rate -1.3%

)

Strong Locally,

Growing Nationally

Weak Locally,

Growing Nationally

Strong Locally,

Shrinking Nationally

Weak Locally,

Shrinking Nationally

GRANT COUNTY, NM CLUSTER CONCENTRATION AND SIZE, 2001-2010

= Relative size of cluster

In Grant County

= Increasing / decreasing

Cluster concentration in

Grant County

Off Chart:

Natural Resources & Mining

LQ: 6.6 ↑

↑

F.I.R.E. ↑

In order to better understand changes to Grant County’s industry clusters over the past decade, data from the Bureau of Labor Statistics (available at the

County level) was analyzed to show the changes in concentration within 14 industry clusters between 2001 and 2010. It is important to note the data in this

chart is at a broader level than the more specific 2010 location quotient data provided for the 36 industry clusters on pages 5 and 6 of this report.



STEP 4: DO THESE TARGETS MEET GRANT COUNTY’S GOALS?

Public opinion and community input are critical to the target industry selection process. The growth

of industry clusters requires a regional effort. Regional government officials, economic developers,

business leaders, and the public must be united in their vision and enthusiastic in their support to

grow industry clusters that are considered a good fit for the community. This consensus and broad

support is particularly critical when a community lacks a strong local concentration in a targeted

cluster. The lack of cluster concentration does not rule out an industry as a target, but it does

indicate that local efforts must be more focused and enhanced to successfully grow the desired

industry.

During the course of our project, AngelouEconomics conducted surveys and spoke with many

public and private sector leaders and community residents. Many of these leaders represented key

industries currently located in Grant County. Through this public input process, we received a great

deal of information regarding the types of businesses that Grant County’s residents desire to retain

and attract. An online survey of Grant County residents yielded the responses in the chart to the

right as the top choices for attraction or expansion.

With these steps completed, AngelouEconomics selected five target industries and corresponding

niches that will provide the best mix of employment to meet community goals while being

achievable within larger economic trends.


Overview of Recommended Target Industries

Upon conclusion of the target industry identification process, five industries were selected for recommendation as

the focus of business retention, expansion, entrepreneurship, and recruitment efforts for Grant County. These

industries stood out as having the best potential for long-term economic growth, and offer Grant County numerous

short-term opportunities for retention, expansion, entrepreneurship, and recruitment.

The target industries are:

1. Natural Resources & Mining

2. Renewable Energy

3. Regional Goods & Services

4. Tourism & Recreation

5. Small Business / Entrepreneurship

These industries should not be thought of as individual and distinct sectors. Rather, there are a number of areas in

which these industries converge and overlap. These areas of convergence present opportunities for economic

growth, that, at times, can be as significant as those presented by the industries themselves. Shared supplier

networks, customer base, workforce segments, and complimentary assets can have the effect of strengthening a

particular industry as a result of its proximity to another industry. Thus, symbiotic relationships can be developed

between industries that yield a competitive advantage for the community. The industries recommended include

ones that already have a strong heritage in Grant County as well as industries that are emerging nationally. Each

target industry and niche has very specific infrastructure requirements, location preferences, and workforce needs

that can determine where companies choose to locate.

* This diagram attempts to display the inter-related nature of the recommended target

industries; however, there are more complementary relationships between the target

industries and niches than could possibly be shown by this diagram.

Tourism & Recreation

Renewable

Energy

Natural Resources &

Mining

Small Business &

Entrepreneurship

Regional

Goods &

Services

Inter-relationships Between Industry

Clusters*

Solar Energy

Geothermal Energy

Biomass

Mining Support

Products & Services

Agri-Tourism

Eco-tourism

Outdoor

Recreation &

Events

Historical & Cultural Tourism

Mining Research &

Development

Value-Added

Agriculture

Retail &

Consumer

Goods

Government

Service

Center

Regional

Medical

Center

Energy Efficiency


Target Industries & Niches

PROPOSED GRANT COUNTY, NM TARGET INDUSTRIES AND NICHES


Small Business /

Entrepreneurship

Applied Technology

Tourism &

Recreation

Natural

Resources &

Mining

Renewable

Energy

Historical &

Cultural Tourism

Outdoor

Recreation &

Events

Mining

Research &

Development

Solar Energy

Eco-tourism

Geothermal

Energy

Regional

Goods &

Services

Government

Service Center

Retail &

Consumer

Goods

Value-Added

Agriculture

Mining Support

Products &

Services

Biomass Regional

Medical Center

Agri-Tourism

Internet –Based

Commerce

Energy

Efficiency


TYPES OF TARGET INDUSTRIES

The target industries are broken down into three types, based on their historical presence in Grant

County, their historical presence nationally, and their potential growth locally, nationally, and globally.

The different types of targets are summarized here:

“Core Targets.” These are industry clusters and niches in which Grant County currently enjoys a

specialization. Primary objectives include retaining and expanding these industries and ensuring a

support structure exists (e.g. capital, workforce development, etc.) to grow new small business spin offs

and entrepreneurship opportunities, especially those that are built upon innovative technological

applications.

“Diversification Targets.” These industry clusters are growing nationally and are a “logical next step”

for Grant County, because Grant County already has a significant presence in most of these sectors

and is well-suited to take advantage of opportunities provided by these industry sectors in the future.

They provide a critical opportunity for Grant County to diversify its economic base in the short-term and

mid-term future.

“Emerging Targets.” These are emerging industries nationwide that potentially could provide high-

wage job opportunities. Grant County enjoys some strong competitive advantages in most of these

sectors. Grant County’s unique advantages (access to renewable energy sources, agricultural

presence, and the natural beauty of the County) provide unprecedented opportunities for sustained

economic growth by developing industry clusters in these rapidly-growing sectors, particularly with

additional support structures in place.

Diversification Targets (Growth)

Sectors expected to continue to grow nationally; Grant County is well

positioned to nurture these industries and diversify its economic base. A

strong support infrastructure (capital, infrastructure, attractive business

climate) is necessary for these industries to develop a stronger local

presence.

• Historical & Cultural Tourism

• Outdoor Recreation & Events

• Value-Added Agriculture

• Retail & Consumer Goods

• Applied Technology

• Internet-based Commerce

• Energy Efficiency

Emerging Targets (Emerging/Growth)

Sectors with some concentration and/or unique assets locally or

regionally and expected to continue to grow nationally. Requires new

funding sources as well as new and expanded partnerships between

WNMU / NMSU researchers, local employers, and state, and local

governments.

• Solar Energy

• Geothermal Energy

• Biomass

• Eco-tourism

• Agri-tourism

• Mining Research & Development



TARGET BREAKDOWN


Core Targets (Mature/Growth)

High local concentration, driven by local/regional demand as well as

nationwide/global demand. Industries will continue to provide regional

growth opportunities despite declining employment nationally in some

cases. Retention/expansion are a priority. Small business spin-

offs/entrepreneurship can be a focus.

• Mining Support Products & Services

• Government Service Center

• Regional Medical Center



Grant County Target Industry Analysis Target Industry | 13 Target Industry | 13

Sciences Services

Economic Development Activities*:

• Retention

• Expansion • Entrepreneurship and Small Business

Development

Economic Development Activities:

• Attraction

• Expansion • Retention • Entrepreneurship and Small Business

Development

Economic Development Activities:

• Expansion • Attraction • Entrepreneurship and Small

Business Development • Retention

*Activities in bold represent primary activities. For example, retention and expansion activities are the primary activities for mature / core targets.

Mature/Core Targets

Diversification Targets

Emerging Targets

Tourism

Natural

Resources &

Mining

Renewable

Energy

Historic &

Cultural

Tourism

Ecotourism

Mining

Support

Products &

Services

Mining

Research &

Development

Target Industries & Niches

PROPOSED GRANT COUNTYTARGET INDUSTRIES AND NICHES

Value-Added

Agriculture

Biomass

Outdoor

Recreation &

Events

Agri-Tourism

Geothermal

Energy

Solar Energy

Regional

Goods &

Services

Retail &

Consumer

Goods

Regional

Medical

Center

Government

Service Center

Small Business /

Entrepreneurship

Ap

plied

Tech

no

log

y

Intern

et-based

Co

mm

erce

Energy

Efficiency


The following pages provide more depth and analysis within each target industry. For each target,

we identify and define the industry and niches, outline national and regional industry growth trends,

identify regional assets and challenges in supporting the target industry, and discuss location

criteria and industry requirements.

Importantly, this document is not meant to be an exhaustive analysis of Grant County’s strengths in

the target industries, but rather, is intended to inform Grant County of the trends, nuances, and

location criteria of the industries in order to better position it to recruit, retain and start up

companies within the target industries.




NATURAL RESOURCES & MINING INDUSTRY DEFINITION

For the purposes of this study, the various components of the Natural Resources & Mining industry have been

divided into two primary segments: 1) Natural Resources and 2) Metal Ore Mining. The Natural Resources

industry cluster consists of value-added agriculture and its related support activities. Whereas, the Metal Ore

Mining clusters consist of mining support products & services and mining research & development.

NATURAL RESOURCES & MINING INDUSTRY OVERVIEW

The Natural Resources industry clusters are primarily concerned with multiple-use land management including the

harvesting and replanting of timber, managing livestock use on public land, the protection of wildlife, and natural

resource conservation. All of which bring together land-use planning, water management, biodiversity

conservation, and the future sustainability of industries like agriculture, mining, tourism, fisheries and forestry.

Metal Ore Mining consists of a number of distinct components: exploration, mine development, extraction,

processing, transportation, and restoration of land. The component activities can all be undertaken by mining

companies, although the sector has become more specialized in recent times. Increasingly, mining companies

have specialized in extraction and have contracted out the exploration aspect to mining services companies and

mine development to construction companies. Depending on the circumstances of individual mines, processing

and transport may also be contracted out. A unique feature of mining is that mineral deposits undergoing

extraction are “wasting assets,” meaning they are not as renewable as are other natural resources. The depleting

of mineral deposits requires mining companies to constantly improve their technology to stay in business.

Additional sectors found within Natural Resources include animal production and aquaculture, forestry and

logging, and wood-product manufacturing. Additional sectors found within Metal Ore Mining include businesses

engaged in the production and distribution of metal ores, manufacturers that produce equipment or machinery for

the mining industry, and support activities for metal mining, and many others. As these industry clusters continue

their growth, a broader range of segments have emerged with increasing degrees of specialty, a trend that is

expected to continue into the future.


EMPLOYMENT SECTORS

NAICS Description

112 Animal Production & Aquaculture

113 Forestry & Logging

115 Agriculture & Forestry Support Activities

2122 Metal Ore Mining

213114 Support Activities for Metal Mining

321 Wood Product Manufacturing

3271 Clay Product & Refractory Manufacturing (Tile)

3314 Other Non-Ferrous Metal Production

33392 Material Handling Equipment Manufacturing

333131 Mining Machinery & Equipment Manufacturing

33152 Non-Ferrous Metal Foundries

54138 Testing Laboratories

54162 Environmental Consulting Services

54171 Physical, Engineering and Biological Service

562 Waste Management & Remediation Services

8113 Commercial Machinery Repair & Maintenance

U.S. SECTOR EMPLOYMENT AND WAGES

• 2010 Employment: 2,210,832

•2010 Average Wages: $55,755

NEW MEXICO SECTOR EMPLOYMENT AND WAGES

• 2010 Employment: 38,728

• 2010 Average Wages: $46,794

GRANT COUNTY SECTOR EMPLOYMENT AND WAGES

• 2010 Employment: 872




NATIONAL GROWTH TRENDS

Barriers to entry in the Natural Resources industry are low, making entry and exit relatively straightforward. The

opening of new forests to logging activities and higher demand for wood products from downstream industries will

result in modest growth over the next five years. In particular, rising employment and disposable incomes will boost

demand for housing, so the number of new houses is set to increase. As a result, demand for construction-related

timber products will experience moderate growth. Total employment in agri-business has been fairly steady in the

U.S. in the past decade, and future projections predict that total employment in the industry will continue this trend

of stability. Average wages in agribusiness have increased during this period, rising by about 27%.

The Metal Ore Mining industry faced unstable conditions from 2006 to 2011. While revenue has increased at an

average rate of 3.1% per year, this figure conceals the sharp annual shifts that have occurred in response to

swinging metal ore prices. Revenue plunged 30.4% in 2009 and then rebounded 35.2% in 2010. Over 2011,

industry revenue was expected to increase by another 17.2% to $13.2 billion as copper prices, output, and

shipments all increase. Industry performance is predominantly guided by copper output and prices and, to a lesser

extent, zinc and lead output and prices. However, a revival in downstream demand and rising prices will influence

industry growth. Furthermore, the globalization of the industry will prove to be an increasingly important area for

Metal Ore Mining over the next five years.

GRANT COUNTY GROWTH TRENDS AND INDUSTRY OVERVIEW

Grant County has a large, but stagnant Natural Resources & Mining sector with the potential for growth in the next

few years. A unique combination of assets gives Grant County a strong competitive advantage in the effort to

develop a Natural Resources & Mining cluster. These assets include:

• Its location in southwestern New Mexico and proximity to large mineral deposits;

• Proximity to NMSU, with its key research strengths in agricultural sciences and engineering;

• Existing industry presence; and

• A conducive climate and ample natural resources.

The New Mexico Natural Resources & Mining industry grew at a faster rate than the U.S. in total employment from

2001 to 2010, 31% and -7%, respectively.

NATURAL RESOURCES & MINING

LOCATION CRITERIA

Assets that are important to businesses in this industry

when choosing where to locate.

•Conducive Climate & Natural Resources

•Available Land/Facilities

• Available Workforce

• Entrepreneurial Environment

•Proximity to Market

•Research and Development Assets

•Rail Access

•Existing Industry Presence



//upload.wikimedia.org/wikipedia/commons/f/f0/NatCopper.jpg


Natural Resources & Mining: Industry Growth

Total Employment and Number of Establishments in Natural Resources & Mining

2,436,203 2,398,704

2,212,779 2,210,832

2,455,5582,405,8542,386,064 2,335,276 2,293,137 2,334,739

22,60822,45322,18621,60921,27021,06520,905 21,059 21,07822,688

0

1,000,000

2,000,000

3,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

10,000

20,000

30,000

40,000

Employ ment Establishments

Source: BLS

Natural Resources & Mining Employment – National



39,471 39,222 38,708 38,728

30,40129,54829,27829,62431,310

36,782

1,4801,401

1,3101,309 1,3511,406 1,448 1,430 1,455 1,455

0

10,000

20,000

30,000

40,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

500

1,000

1,500

2,000


Source: BLS

Natural Resources & Mining Employment – New Mexico



Total and Average Annual Wages in Natural Resources & Mining

$2,601$2,521$2,523$2,425

$2,040

$1,539

$1,176$1,241

$1,330$1,435

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$25,000

$50,000

$75,000

$100,000

Total Wages (in $ Millions) Av erage Annual Wages

Source: BLS

Natural Resources & Mining Wages – New Mexico



$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$20,000

$40,000

$60,000

$80,000


Source: BLS

Natural Resources & Mining Wages – National





798 809 820872

793787756 756 772 791

34313232

28

2018 17

30

34

0

100

200

300

400

500

600

700

800

900

1,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

10

20

30

40

50


Source: BLS

Natural Resources & Mining Employment – Grant County


$51$51$51$51 $51 $52 $52 $52

$59

$54

$27,317

$31,349$29,543

$27,623 $26,335$28,246

$28,651 $29,521

$32,406 $30,311

$0

$10

$20

$30

$40

$50

$60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$10,000

$20,000

$30,000

$40,000

$50,000

Total Wages (in $Millions) Av erage Annual Wages

Source: BLS

Natural Resources & Mining Wages – Grant County


Natural Resources & Mining: Niches

MINING SUPPORT PRODUCTS & SERVICES

Mining support products and services refers to the sectors of Servicing & Maintenance of Mining Equipment and

Mining Equipment & Industrial Supplies. Given that mining companies have specialized in extraction, contracting out

work to mining-service companies and mine development to construction companies has become more common.

And depending on the circumstances of individual mines, processing and transport may also be contracted out. The

Metal Ore Mining industry is also highly capital-intensive. And to that point, the industry's capital spending is a result

of the purchase of new manufacturing machinery, equipment and facilities designed to improve product quality,

increase manufacturing efficiency, lower production costs and meet regulatory requirements. There is a wide range

of direct and indirect business opportunities for communities in close proximity to major mining operations.

Given that Grant County is home to one of the largest open-pit copper mines in North America, Grant County has an

unparalleled competitive advantage in the Mining Support Products and Services niche.

Freeport McMoran’s mining operations in Grant County are large enough to directly employ 1,400 workers which had

an $89 million total economic impact in Grant County in 2010. Both direct and indirect impacts were estimated to be

$3 million from spending by supplier purchases. This accentuates how the mining industry can not only generate a

substantial amount of spin-off economic activity, but also that there is ample opportunity and potential to grow the

Mining support products & services niche in Grant County. To that end, Grant County should continue to develop and

implement strategies to capitalize on the spin-off opportunities for economic development represented by its strong,

local mining industry.

Functional Focus Life Cycle Applicability

• Growth / Mature • Service

• Sales / Marketing

MINING RESEARCH & DEVELOPMENT

The Natural Resources & Mining industry, specifically the mining sector, can benefit from local research and

development efforts. In addition to traditional centers of research such as universities and large research institutions,

many small firms and mid-sized laboratories are important sources of new discoveries, innovations, and technologies.

Successful research and development in the mining sector produces new technologies that reduce production costs;

enhance the quality of existing mineral commodities; reduce adverse environmental, health, and safety impacts; and

create or make available entirely new mineral commodities. The resulting benefits may go to consumers, producers,

and communities near the mine operation. Most often, however, both consumers and producers benefit, with

consumers enjoying most of the benefits over the long run. As technologies become more widely available, commodity

prices drop, and therefore companies and countries need to continually generate innovations that provide new

benefits.

A community may be in a position to develop a competitive advantage in the Natural Resources & Mining industry by

targeting firms focused primarily on research and development activities. A strong research university presence within

the community is very valuable, however, proximity to mining operations is a notable asset. Affordable and available

lab space and adequate information technology (IT) infrastructure are also important concerns for R&D firms

evaluating potential locations for new facilities. Grant County is in reasonable proximity to both NMSU and the New

Mexico Institute of Mining and Technology and can tap into their existing resources and assets to meet some of its

needs in developing R&D initiatives. And Freeport’s mining operations in both Tyrone and Chino offer a distinctive

completive advantage in drawing in R&D support.


• R&D • Emerging / Growth


Natural Resources & Mining: Niches

VALUE-ADDED AGRICULTURE

Value-added agriculture is regarded as a significant rural-development strategy. Value-added products are

created when a producer increases the consumer value of an agricultural commodity in the production or

processing stage. To that end, value-added products are considered unique, less sensitive to price

fluctuations, and are consumer-oriented. Small-scale organic food processing, non-traditional animal and

crop production, forestry and wood-related activities, and bio-fuel development are examples of various

value-added agricultural projects that have created new jobs in many rural areas. Given that products are

offered on a small scale in value-added agriculture, much more emphasis and importance is placed on the

marketing of the products. Grants may be used for planning activities and for working capital to market value-

added agricultural from the New Mexico Rural Development Office. Applicants deemed eligible are

independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-

controlled producer-based business ventures.

Grant County is well-positioned to increase its development of a Value-added Agriculture cluster given its

entrepreneurial environment, conducive climate, and abundance of natural resources. Other assets that

make Grant County an attractive location for Value-added Agriculture are its access to a sizable market with

the Silver City and Bayard populations as well as its existing industry presence, albeit small.



• Service

• Production

• Emerging / Growth


Natural Resources & Mining: Location Criteria

Industry Requirements Leading Strong Lacking Weak Assessment Rationale

GRANT COUNTY SCORECARD: NATURAL RESOURCES & MINING

Conducive Climate &

Natural Resources

Entrepreneurial

Environment

Available Land / Facilities

Research & Development

Assets

Proximity to Market

Rail Access

Existing Industry Presence

Available Workforce

Grant County has a large amount of undeveloped land with good

transportation access along the Highway180E corridor. However, there is a

lack of existing facilities available for lease or industrial space specifically

designed for Natural Resources & Mining spin-off businesses.

Grant County has existing rail spurs near the mining district; however, it

has a limited route running north/south in parallel to HWY 180 towards

Deming. The rail line is privately owned, however, its use is dominated

by the mining district.

Freeport-McMoRan employed close to 950 workers in the mining industry

at the end of 2010 with an estimated total direct and indirect economic

impact of $89 million. There are also small business operations in the

Natural Resources industry throughout the County.

Grant County has an affordable, blue-collar workforce, which is an asset for

the Natural Resources & Mining industry. A key challenge is the lack of work

ethic among the blue-collar workforce and the small professional workforce

necessary to support growth in professional services tied to the Mining

industry.

Grant County’s location in southwestern New Mexico provides access to

an abundance of Natural Resources. The County is also centrally located

within the primary copper mining region.

NMSU is a strong research university, particularly in the fields of

agricultural sciences and engineering, although it is two hours away. The

NM Institute of Mining & Tech is an additional asset, however, there is no

existing wet lab space for lease in Grant County.

The location of the Chino and Tyrone mines provide for an abundance of

copper deposits, sustaining the longevity of the mining industry. This also

provides as a conducive environment for spin-off companies. Most of the

County is also ideal for small and medium-scale agri-business.

Grant County has a strong entrepreneurial environment. Many small

business owners within the County are involved in multiple business

ventures, a sign of strong entrepreneurial spirit within the County.

Grant County Target Industry Analysis Target Industry | 23

Renewable Energy Industry

RENEWABLE ENERGY INDUSTRY DEFINITION

For the purposes of this study, the Renewable Energy industry consists of businesses engaged in or related to the

production of renewable energy and/or in the development or application of energy efficiency. The various

components of the industry have been divided into two primary segments: 1) Manufacturing and 2) Sales & Services.

RENEWABLE ENERGY INDUSTRY OVERVIEW

The Renewable Energy industry has enjoyed a very high profile among growth industries during the past several

years. A high level of investment and entrepreneurship in Renewable Energy has produced many new technologies

and innovations that have made their way to the market and have delivered a recognizable impact on world energy

production.

There are many forces behind the growth of the Renewable Energy industry. Growing concern for the environment

has led many consumers to shift their purchasing habits in favor of more environmentally-friendly products and

services, and has led government bodies to institute policies aimed at protecting the environment. However, there are

several additional forces that are driving the industry forward and, in certain areas, accelerating its growth. Among

these is the desire of businesses and consumers for cheaper, more abundant sources of energy and for greater

energy efficiency as a means of reducing expenses. As the price of conventional forms of energy (particularly oil) have

seen dramatic changes in recent years, the demand for more affordable renewable energy has grown substantially.

Another force behind the growth has been a desire to bring energy production to domestic locations to reduce

dependence on fossil fuels produced in foreign locations. Yet another factor that has been driving the growth of the

industry has been the emergence of developing economies such as China, India, Brazil and others whose economic

growth has prompted high increases in energy demand – a trend that is expected to continue into the future as the

population within these nations continue to urbanize and as their economies continue to grow.

The growth and future prospects of the Renewable Energy industry have led many communities, states, and nations to

work to support it within their own economy. Because it is a budding industry and the distributed nature of the industry

across a broad set of employment categories, it can be difficult to apply conventional government statistics to

Renewable Energy as the results can be difficult to interpret accurately. Instead, this study considers the various

business and employment categories that closely relate to renewable energy. While many of these employees or

businesses may not currently be involved in Renewable Energy, the resources and skill sets they hold may be applied

to or transitioned to support the Renewable Energy industry and can act as a foundation for its growth.

RENEWABLE ENERGY

SECTOR COMPONENTS

NAICS Description

Manufacturing

23713 Power and Communication System

Construction

3336 Engine, Turbine, and Power Equipment

Manufacturing

334413 Semiconductor and Related Device

Manufacturing

335312 Motor and Generator Manufacturing

335999 Miscellaneous Electrical Equipment

Manufacturing

Sales & Services

221112 Electric Power Transmission & Distribution

221114 Solar Electric Power Generation*

221116 Geothermal Electric Power Generation*

221117 Biomass Electric Power Generation*

42369 Other Electronic Parts Merchant Wholesalers

54133 Engineering Services

54138 Testing Laboratories

54162 Environmental Consulting Services

54169 Other Technical Consulting Services

54171 Physical, Engineering, and Biological Service

*New NAICS codes sourced from BLS, historical data

unavailable


• 2010 Employment:: 2,627,152



• 2010 Employment: 38,840


GRANT County SECTOR EMPLOYMENT AND WAGES

• 2010 Employment:: 43


Photos: U.S. Energy Information Agency


NATIONAL GROWTH TRENDS AND INDUSTRY OVERVIEW

The Renewable Energy Manufacturing segment has experienced strong growth in recent years. This growth has

been supported in the U.S. by a growing and urbanizing population that is seeking more affordable energy

alternatives. This segment also includes companies that assist in the installation of energy grid infrastructure and

more efficient “smart grid” equipment and technology. The Renewable Energy Manufacturing segment also

includes firms that provide maintenance and repair services on energy equipment. While some firms are

experiencing very rapid growth, businesses within the Renewable Energy Manufacturing segment generally

maintain a longer-term outlook than many other industries.

The Sales & Services segment of the Renewable Energy industry is becoming a very enticing option for

communities wishing to build a stronger Renewable Energy industry presence. Although many portions of this

segment are already well-established, there are certain areas that are emerging as strong growth opportunities for

the industry as a whole begin to take shape. The Sales & Services segment includes businesses that operate

power generating equipment or power stations, sell electricity or energy equipment to businesses and consumers,

as well as firms that provide consulting or engineering services to improve energy efficiency. The segment also

includes firms that conduct research and development in the area of Renewable Energy. As the Renewable

Energy industry as a whole continues its growth in the years to come, the Sales & Services segment that supports

it will likewise continue to uncover new opportunities.


Southwestern New Mexico is situated in an area with high solar and geothermal energy resources. Grant County

is well positioned to capitalize off the future growth of the solar and geothermal industries. Jobs provided by these

industries range from engineering positions requiring advanced degrees, to turbine construction and maintenance

positions that can be filled by someone with an associates degree or certificate. The number of Renewable

Energy establishments in Grant County has risen from six in 2001 to 13 in 2010, which represents a positive

growth rate in the establishments being formed in Grant County. Niches are more likely to survive and even

expand when clustered with industry-related establishments.

Renewable Energy Industry: Industry Segments RENEWABLE ENERGY

LOCATION CRITERIA



• Public Policy Support for the Industry

• Access to Available Natural Resources

• Skilled Workforce

• Capital & Funding Sources

• Access to Venture Capital

• Research & Development Assets

• Structural Assets & Infrastructure

• Proximity to Market

Photos: U.S. Energy Information Agency


Renewable Energy Industry: Industry Growth

Total Employment and Number of Establishments in Renewable Energy

2,732,755 2,784,0922,660,802 2,627,1522,680,515

2,559,5292,595,8962,478,334 2,410,7042,453,349

235,523234,797229,511225,607219,538215,845214,886 216,755 216,270

236,634

0

1,000,000

2,000,000

3,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

100,000

200,000

300,000


Source: BLS

Renewable Energy Employment – National

Total Employment and Number of Establishments in Renewable Energy

40,25738,766 38,336 38,84037,697

31,03129,526 30,062 30,318 30,567

1,5061,4851,4191,3871,308

1,2631,202 1,217

1,283

1,515

0

10,000

20,000

30,000

40,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

500

1,000

1,500

2,000

2,500


Source: BLS

Renewable Energy Employment – New Mexico




$0

$50,000

$100,000

$150,000

$200,000

$250,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000


Renewable Energy Wages – National Total and Average Annual Wages in Renewable Energy

Total and Average Annual Wages in Renewable Energy

$2,024$1,946

$1,854$1,755

$2,114

$2,678

$3,100 $3,152 $3,152 $3,188

$55,776$53,309$51,386

$55,514

$60,391$61,249 $63,674

$69,129 $68,869 $64,946

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$25,000

$50,000

$75,000

$100,000


Source: BLS

Renewable Energy Wages – New Mexico

Source: BLS




Total Employment and Number of Establishments in Regional Goods & Services

30

35

42 43

2525

1518

2123

131412

15

1211

69

14 13

0

10

20

30

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

10

20

30


Source: BLS

Renewable Energy Employment – Grant County

Total and Average Annual Wages in Regional Goods & Services

$3

$2$2

$1$1$1$1 $1 $1 $1$50,023$52,262

$49,486$44,040

$34,720$31,680

$25,790$24,220 $24,480

$28,739

$0

$1

$2

$3

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$20,000

$40,000

$60,000

$80,000

$100,000


Source: BLS

Renewable Energy Wages – Grant County


Renewable Energy Industry: Niches

SOLAR ENERGY

Solar photovoltaics (including modules, system components, and installation) are projected to grow from a $71.2 billion

industry in 2010 to $113.6 billion by 2020. New installations reached more than15.6 GW worldwide in 2010, more than

double of 7. 1GW in 2009. This was a direct result of PV prices dropping by more than 30% in 2009 followed by an

additional 10% drop in 2010. Lenders are growing increasingly comfortable with funding solar technology, and

investment in solar ventures is likely to continue increasing in future years. The US was a net exporter of solar energy

products in 2009, with $723 million in net exports; Polysilicon was the largest solar product export. With $1.1 billion in

exports 81% of the domestic value created in the solar industry came from the photovoltaic (PV) sector, with

concentrating power (CSP) and solar heating and cooling (SHC) making up the remaining 19%.

Although the cost of solar has fallen substantially in the past decade, the availability of subsidies and incentives

provided by the federal government as well as individual state governments and agencies can play a very important role

in determining the profitability of a project (particularly large-scale commercial projects), and may ultimately be a

deciding factor for investors and developers in choosing whether or not to pursue a particular project. State Renewable

Energy Portfolio Standards (REPS’s) can also play a pivotal role in driving clean energy demand and the growth of the

clean energy industry within a particular state or region. A 2004 study by the Renewable and Appropriate Energy

Laboratory (RAEL) at the University of California, Berkeley demonstrated a positive correlation between renewable

energy portfolio standards and the creation of green jobs. However, the full impact of renewable portfolio standards

depends upon the level at which they are set and the manner in which utilities, businesses and consumers are

incentivized to shift away from conventional sources of energy toward renewable and energy efficiency measures.

In general, 80% of jobs created in solar and wind sectors will be in manufacturing and 20% in construction and

installation. Solar photovoltaic power uses more labor per installed MW than other clean energy sources, and therefore

produces a large demand for a skilled workforce. The manufacturing component of the solar industry consists of three

primary technologies at present: silicon wafer based-PV, thin film photovoltaics, and solar thermal electric power.

Small-scale solar energy is also an important part of the industry, particularly in helping to make homes and other

buildings more energy efficient and environmentally sustainable. Solar thermal hot water heating (in its modern form) is

a technology that has been in use for many decades and is quite common in many regions throughout the U.S.

Located in the sunbelt, New Mexico is one of the top solar emitting states in the U.S., and southern New Mexico is

particularly strong in solar-energy potential. Not only do solar farms present opportunities for Grant County, but solar

panel manufacturing also afford tremendous potential. From a cost perspective, producing solar panels in southwest

New Mexico is a reasonable approach given the proximity to large areas of undeveloped land with some of the highest

solar photovoltaic energy potential in the U.S.


• Manufacturing/

Production

• Service

•R&D

•Emerging/ Growth



GEOTHERMAL ENERGY

Geothermal energy is used to heat people’s homes and to produce electricity by digging deep wells and pumping the

heated underground water or steam to the surface. Most of the geothermal reservoirs in the United States are located

in the western States. And one of the most common direct use of geothermal energy is for heating buildings through

district heating systems. Hot water near the Earth's surface can be piped directly into buildings and industries for heat.

Industrial applications of geothermal energy include food dehydration, gold mining, and milk pasteurizing. Dehydration,

or the drying of vegetable and fruit products, is the most common industrial use of geothermal energy. A more unique

application of geothermal energy is the hatching and raising of fish in locales outside of their natural habitat. Tropical

fish, for example, require warm water temperatures to be hatch and raised. With the utilization of geothermal energy,

tropical fish are currently being hatched and raised in the desert southwest.

The United States leads the world in electricity generation with geothermal power. In 2010, U.S. geothermal power

plants produced about 15 billion kilowatt-hours (kWh), or 0.4% of total U.S. electricity generation. In 2010, five States

had geothermal power plants. California had 35 geothermal power plants, which produced 83% of U.S. geothermal

electricity. Nevada had 18 geothermal power plants, which produced 14% of U.S. geothermal electricity. Utah had two

plants, and Hawaii and Idaho each had one geothermal plant.

Geothermal power plants use hydrothermal resources that have two common ingredients: water (hydro) and heat

(thermal). Geothermal plants require high temperature (300°F to 700°F) hydrothermal resources that may come from

either dry steam wells or hot water wells. These resources can be used by drilling wells into the Earth and piping the

steam or hot water to the surface. Geothermal heat pumps use the Earth's constant temperatures to heat and cool

buildings. They transfer heat from the ground (or water) into buildings in winter and reverse the process in the

summer. According to the U.S. Environmental Protection Agency (EPA), geothermal heat pumps are the most energy

efficient, environmentally clean, and cost effective systems for temperature control.

A crucial factor for any niche in the renewable energy industry is obtaining access to natural resources. Grant County

is well positioned to begin utilizing the ample geothermal energy source below its surface. Such energy could be used

to heat and cool homes and offices, cultivate tropical fish hatcheries, and/or export stored energy to outside

establishments to name a few potential areas of utilization. There are also already a few resorts and spas that use

geothermal fluids for heating the various soaking tubs and swimming pools in Grant County which could potentially be

expanded upon.


Emerging / Growth • Manufacturing /

Production

• Service

• Sales

U.S. GEOTHERMAL RESOURCES

Source: Energy Information Agency, U.S. Dept of Energy

INDUSTRIAL GEOTHERMAL RESOURCES AT 3 MILES OF DEPTH

U.S. GEOTHERMAL RESOURCES

Source: Energy Information Agency, U.S. Dept of Energy

INDUSTRIAL GEOTHERMAL RESOURCES AT 3 MILES OF DEPTH



BIOMASS

Several regions throughout the U.S. present opportunities for the development of clean energy based on biomass.

There are a number of types of biomass that are available which may used to produce clean energy, including

ethanol-producing crops such as corn or sugar, switchgrass, algae, residue from saw mills, and methane produced by

landfills and livestock manure. With various types of biomass being more prominent in certain regions over others, it is

likely that different types of clean energy technologies will also begin to emerge in the regions that produce or support

the appropriate biomass input. The strongest regions for the production of biomass are found in the Midwest, the

Southern Mississippi Basin, and areas throughout the Southeast.

Landfill gas can be extracted from landfills and directed to central collecting points, where it can be treated or

processed. At this point, it can be flared up or used to generate electricity (the most common use), replace fossil fuels

in industrial and manufacturing operations, fuel greenhouse operations, or be upgraded to pipeline quality gas. There

are various technologies that can be used, the most common of which is internal combustion (reciprocating) engines

or turbines, with micro-turbine technology used at smaller landfills and in niche applications. Landfill gas projects often

generate revenue from the sale of gas and can also create jobs through its design, construction, and operation.

Projects involve engineers, construction firms, equipment vendors, and utilities or end-users of the supplied power.

It costs about 9 cents per kilowatt-hour (kWh) to generate electricity in a direct-fired biomass power plant today,

compared to 2.3 cents per kWh spend in a coal plant, but “cofiring” biomass with coal can lower the cost to around 2.1

cents per kWh. According to the Department of Energy, through gasification we may be able to produce clean bio-

power for about 4 to 5 cents per kWh in the future. Rural economies can especially benefit from methane recapture,

since it can be converted to fuel gas and ethanol close to the landfill, avoiding transportation costs. Presently, 4% of

the energy generated in the US is from biomass, with the potential to increase this to 20%.

Methane recapture can currently take place using landfills, waste treatment facilities, and livestock manure. Landfills

are responsible for 22% of human-related methane emissions, and make it much easier to recapture methane than

from livestock sources (the major source of methane emissions). Out of America’s 2,300 landfills, 520 capture gas and

burn it to produce electricity-enough to power 688,000 homes.

Grant County has two fuel-source options in attempting to develop this industry niche. The first takes into

consideration the abundance of national forest within the County given that the most common form of biomass is wood

and wood waste (i.e. bark, sawdust, wood chips, wood scrap, paper mill residues, etc.). Landfills are a second option

for a biomass fuel source for Grant County. Landfills can collect the methane gas, treat it, and then sell it as a

commercial fuel. It can then be burned to generate steam and electricity.


Emerging / Growth • Manufacturing /

Production

•Service

•Sales



ENERGY EFFICIENCY & SUSTAINABILITY

An area of the renewable energy industry that has experienced strong growth and is expected to serve a broader

market in the years to come relates to energy efficiency and sustainability – often served by consulting, construction,

architectural/engineering and R&D firms. As demand for more abundant and less costly energy sources continues to

rise and as more businesses and consumers seek ways to improve energy efficiency and to reduce their impact on the

environment, the energy efficiency and sustainability niche will present many new opportunities for businesses and

communities alike. Venture capitalists and government bodies have invested billions of dollars to support the

development of new technologies related to renewable energy and entrepreneurial activity within this particular niche

has been significant. Moreover, as the benefits of becoming more energy efficient or incorporating new energy-related

technologies becomes more appealing to businesses and consumers, there has been significant growth in the number

of businesses that offer services focused on energy efficiency and sustainability. The primary requirements of

businesses within this niche include an availability of highly skilled professionals, access to funding, proximity to

significant research institutions and access to potential customers. Locations that are particularly appealing include

urban areas that require significant improvements to the built environment in order to become more energy efficient

(an outcome that can often make older urban locations more desirable for relocating businesses) or near to large

residential areas that value environmentally-friendly lifestyles or simply seek practical means of reducing monthly living

expenses.

The Southwest Energy Efficiency Project (SWEEP) identified Grant County and Silver City as one of eight models in

the Southwest that other cities and counties may want to replicate for energy efficiency. SWEEP is a public interest

organization working to advance energy efficiency in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming.

The funds helped Silver City and Grant County to strengthen neighborhood energy efficiency programs as well as

improve the energy efficiency of public buildings and install a large-scale solar system.



• Service


3,058,692

2,508,372

$74K

$89K

$62K

0

1,000,000

2,000,000

3,000,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Source: BLS, Economy.com,, AngelouEconomics

RENEWABLE ENERGY & ENERGY EFFICIENCY

U.S. EMPLOYMENT & AVERAGE WAGE, 2002-2011

Avg. Annual Wage Employment

Projected

$5,055

$3,553

$760$1,158

$6,120

$2,658

$3,761

$807

23.2%

4.3%

12.6%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2003 2004 2005 2006 2007 2008 2009 2010

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Renewable Energy Percentage of

Total U.S. Venture InvestmentsRenewable Energy Venture

Investments ($ Millions)

Clean-Tech Venture Capital Investments in U.S.-Based Companies

Source: PWC Money Tree


Renewable Energy Industry: Sectors in Niches

The following pages list industry sectors derived from the aforementioned renewable-energy niches.

CONSTRUCTION & INSTALLATION

As the Renewable Energy industry continues to grow, a necessary area of business that will grow along with it will be

Construction & Installation. Firms that focus on, or offer capabilities that relate to, the construction of infrastructure and

the installation of renewable energy equipment will be a vital part of the industry going forward. The Construction &

Installation niche can be an area of focus for communities seeking the Renewable Energy industry, however,

businesses in this niche will typically require relatively close proximity to significant population centers and/or to major

project sites. Communities that wish to support this niche may consider efforts to assist firms in obtaining valuable

certifications related to the Renewable Energy industry that could help them compete. Similarly, efforts to assist the

local workforce in obtaining specialized training in the construction and installation of Renewable Energy infrastructure

and equipment can help to support this particular niche.

EQUIPMENT & TECNOLOGY MANUFACTURING

The Equipment & Technology Manufacturing niche is a quickly growing area of the Renewable Energy industry that is

becoming increasingly diverse in both the size of the firms within it and in the areas of specialty upon which they are

focusing. The most easily recognized firms within this niche are the manufacturers of major renewable energy

equipment such as wind turbines, solar panels, advanced batteries and generators. Although there are already several

well-established firms that serve the market within this niche, the growth in demand for Renewable Energy and the

increase in support from investors and government bodies have opened new opportunities for these manufacturers to

expand into new territories and for new competitors to emerge as well. Moreover, as the Renewable Energy industry

as a whole continues to grow and diversify, opportunities have materialized for smaller manufacturers and new

ventures to develop a stronger presence within the industry and to focus on numerous areas of specialty such as in

the manufacturing of components or advanced technology applicable to the industry.

The needs of firms within the Equipment & Technology Manufacturing niche vary greatly depending on the focus of the

business. Large manufacturers producing large equipment such as wind turbines will generally seek locations that

offer affordable land with very strong distribution channels and close proximity to assembly or installation (i.e. wind

farms). Smaller manufacturers, however, may be open to a broader range of sites. Nevertheless, access to skilled and

affordable labor is a key concern across all areas of the niche.

POWER GENERATION & TRANSMISSION

Though already long-established within the industry, the Power Generation & Transmission niche is experiencing a

transition to incorporate the changes that are taking place in the market and the introduction of renewable energy

production technologies. Many firms within this niche have made major changes to their branding in order to establish

themselves as “green energy” providers. As new sources of energy production are being established in a number of

new locations, the required transmission and distribution of energy is supporting the growth of businesses in this niche

to establish a presence near these production centers. The site decisions of businesses within the Power Generation

& Transmission niche is very closely tied to the location of energy resources and major population centers.


• Manufacturing /

Production

• Distribution /

Logistics

• Growth / Mature


• Emerging • Manufacturing /

Production


• Service

• Manufacturing /

Production

• Distribution /

Logistics

• Growth / Mature


Renewable Energy Industry: Sectors in Niches

EQUIPMENT SALES

The Equipment Sales niche of the Renewable Energy industry remains closely linked to equipment sales for

conventional forms of energy or to the original equipment manufacturer. However, there are a number of firms and

professionals that specialize in this area of the industry and that are experiencing growth related to Renewable

Energy. The types of equipment that are provided by firms in this niche vary greatly from heavy machinery and

generators to customized equipment and specialty devices. Of primary interest for firms within the Equipment Sales

niche is having close proximity to existing or growing markets for Renewable Energy equipment and major purchasers

of energy-related equipment as well as access to suppliers and distribution channels.

CONSULTING AND R&D

An area of the Renewable Energy industry that has experienced strong growth and is expected to serve a broader

market in the years to come is the Consulting and R&D niche. As demand for more abundant and less costly energy

sources continues to rise and as more businesses and consumers seek ways to improve energy efficiency and to

reduce their impact on the environment, the Consulting and R&D niche will present many new opportunities for

businesses and communities alike. Venture capitalists and government bodies have invested billions of dollars to

support the development of new technologies related to Renewable Energy and entrepreneurial activity within this

particular niche has been significant. Moreover, as the benefits of becoming more energy efficient or incorporating new

energy-related technologies becomes more appealing to businesses and consumers, there has been significant

growth in the number of businesses that offer consulting services focused on Renewable Energy. The primary

requirements of businesses within this niche include an availability of highly skilled professionals, access to funding

and venture capital, proximity to significant research institutions and access to potential customers.

ENERGY STORAGE RESEARCH

Energy storage is absolutely essential to the entire renewable technology industry. Many forms of electricity production

are sporadic, only generating when the wind blows or the sun is out. Hybrid and electric vehicle technology rely upon

the ability of batteries to store and distribute power . Technology is becoming oriented more and more towards

mobility, as Smartphones, Netbooks, and tablet computers become essential tools for both business and pleasure.

These technologies rely heavily upon battery capacity, storage, and lifespan. At this point, most activity in the U.S.

takes the form of research, which is mostly dependent upon talent and research space.



• Service • Emerging / Growth


• Service

• R&D

• Back Office /

Support



• R&D •Growth / Emerging

Global Clean-Energy Market Size, 2000-2010GLOBAL MARKET SIZE, IN $ US BILLIONS

Source: Clean Edge, Inc., 2011


Renewable Energy Industry: Location Criteria


GRANT COUNTY SCORECARD: RENEWABLE ENERGY INDUSTRY

There is a lack of ready-to-use business space and smart grid infrastructure

in Grant County. However, several land options exist for a renewable

energy-focused business park to be developed with EDA funding.

The instability of the global economic climate has made banks and

investors less willing to lend capital, making it much less readily available

for expanding businesses, which is reflected in Grant County.

Grant County-based entrepreneurs lack a support system in locating and

approaching potential investors as well as Venture and Angel Investor

firms. However, federal funding is available for green energy projects.

State and federal tax credits, along with utility buy-back programs for

renewable energy production are helping to foster an amicable

environment between green policy and implementation.

Grant County is located in proximity to NMSU, which has strong R&D

assets, particularly in engineering fields, as well as the NM Institute of

Mining & Tech. However, there is a lack of locally-based R&D assets.

Grant County has moderate highway and rail infrastructure, but is not

located directly on an interstate highway. Grant County’s location away from

major metro areas is also a challenge for renewable energy generation and

distribution.

Grant County has relatively inexpensive land rental rates and also has low

property taxes and relatively low electricity rates.

.

Grant County has an affordable workforce, however, it currently lacks

renewable energy specialists for the positions requiring deep expertise.

Some of which could be recruited from the NMSU field of experts.

Public Policy Support for the

Industry

Access to Available Natural

Resources

Skilled Workforce Available

Capital & Funding Sources

Access to Venture Capital

Research & Development

Assets

Structural Assets &

Infrastructure

Proximity to Market

Cost Factors

Southwestern New Mexico leads in solar and geothermal energy potential,

giving Grant County plenty of resources for extracting geothermal and

solar energy.


Regional Goods & Services REGIONAL GOODS & SERVICES

EMPLOYMENT SECTORS

NAICS Description

44-45 Retail Trade

621 Ambulatory health care services

622 Hospitals

623 Nursing and residential care facilities

92 Public Administration


• 2010 Employment:: 37,455,875



• 2010 Employment:: 248,257



• 2010 Employment:: 2,996


REGIONAL GOODS & SERVICES INDUSTRY DEFINITION

For the purposes of this study, the Regional Goods and Services industry is comprised of three broad industry

categories (retail trade, healthcare, and government) that are made up of multiple sectors (retail, ambulatory health

care services, hospitals, nursing and residential care facilities, and public administration).

REGIONAL GOODS & SERVICES INDUSTRY OVERVIEW

One of the most basic functions of a city or town is to serve as a central gathering place where individuals and

businesses from around the region can exchange goods, services, and ideas. Regional service centers serve this

basic function as a gathering place for local residents and businesses, but also draw economic activity from a broader

geographic region. Regional service centers rely on both local demand and visitors to support their businesses and to

provide employment for their residents in sectors such as healthcare, retail, restaurants, hotels, and

recreation/entertainment. Frequent visitation by tourists, shoppers and business travelers, can also be the source of

significant amounts of revenue for community businesses and of taxes for the community itself. Some regional service

centers seek to establish themselves as attractive destinations and work to support the presence of the tourism

industry as a growth strategy or as a means of diversifying the local economy.

The retail industry is one of the largest in the U.S. economy, employing nearly 15 million workers. This industry is

characterized by low wages and high levels of job turnover; however, it also provides a good source of employment

for workers with a limited amount of skills or for workers that require flexible schedules due to classes, child care, or

other needs. These industries also provide a wide range of opportunities for entrepreneurs and small business start-

ups.

The healthcare industry is one of the largest in the American economy and is projected to experience rapid growth in

employment and wages during the coming decade. As the industry continues to grow, a broader and more diverse

range of segments have emerged with greatly increased degrees of specialization. However, as the U.S. population

ages and moves around, the need for government services changes. A primary reason that healthcare expenses are

projected to account for 25 percent of GDP by 2025 is that the "baby boom" generation will soon be reaching the age

for Medicare eligibility. The same aging effect will drive Social Security to consume a higher portion of GDP in the

near future as well. For state and local governments, population shifts can change service needs dramatically. The

65-and-over population is expected to rise 80 percent by 2030, further adding to service needs.

Regional Goods &

Services

Photos: Grant County



The retail industry is both highly dependent on the broader economy as it lost about one million jobs from 2001 to

2010 in the U.S., however, it is projected to grow , albeit at a slow pace, over the next decade. The healthcare

industry enjoys very low cyclicality and is among the least vulnerable to economic downturns. During the recent

economic slowdown, the U.S. economy shed millions of jobs, but the healthcare industry’s total employment

continued to grow in absolute numbers, and the growth was even more pronounced when compared to other

industries. The healthcare industry gained several million jobs from 2001 to 2010 in the U.S. As the American

economy continues to make the slow transition from a goods-producing, manufacturing-centric economy to a

high-tech, knowledge-based economy, the healthcare industry will continue to exhibit rapid growth in

employment.

Employment at all levels of government has grown in recent years; the number of state and local government

employees increased more than four percent between 2004 and 2009. Likewise, the Bureau of Labor Statistics

(BLS) projects that the number of employees in the federal government will rise nearly 10 percent from 2008

levels by 2018. This picture for state and local governments is less certain, though fluctuating responsibility at the

state and local government level for what were federal services could increase the need for skilled employees.


Grant County’s economy is dependent on the regional goods and services industry, which employs 27% of Grant

County’s total employment, compared to 25% of New Mexico total employment and 23% of U.S. total

employment. Grant County’s regional goods and services industry grew by 7% between 2000 and 2010,

compared to a 16% growth rate in New Mexico and a 7% growth rate for the U.S. as a whole. A significant

challenge facing Grant County’s Regional Goods & Services industry is the minimal population growth. In fact,

Grant County actually experienced a decline in population of about 5% between 2000 and 2010. However, there

are some promising opportunities for growth within this industry. There are also opportunities to limit the amount

of retail leakage that is currently benefiting Luna County through the establishment of new specialty retailers in

Grant County. In addition, the large local, state, and federal employee base offers many opportunities to

capitalize upon. Overall, Grant County serves in a regional service center function, especially to the surrounding,

less populated counties.

REGIONAL GOODS & SERVICES

LOCATION CRITERIA



• Trade Area

• Infrastructure

• Population Growth

• Aging Population and Young Population

•Available Land / Developments

• Existing Healthcare Providers

•Skilled and Affordable Workforce


Regional Goods & Services

Regional Goods &

Services

Photos: Grant County


Regional Goods & Services: U.S. and New Mexico Employment and Growth



Source: BLS

Regional Goods & Services Employment – National


244,598 248,600 247,798 248,257233,722227,805222,329

214,629

237,976 241,196

0

50,000

100,000

150,000

200,000

250,000

300,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

5,000

10,000

15,000

20,000


Source: BLS

Regional Goods & Services Employment – New Mexico

37,337 37,635 37,199 37,45536,75136,26134,876 35,192 35,401 35,762

1,786,1361,793,1641,779,3361,761,3211,739,0731,708,8751,690,959 1,699,111 1,720,0951,791,450

0

10,000

20,000

30,000

40,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

500,000

1,000,000

1,500,000

2,000,000

Employ ment (Millions) Establishments

Target Industry | 38 Grant County Target Industry Analysis Grant County Target Industry Analysis

Regional Goods & Services: U.S. and New Mexico Wage Growth

$0

$500,000

$1,000,000

$1,500,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$20,000

$40,000

$60,000


Regional Goods & Services Wages – National Total and Average Annual Wages in Regional Services

Total and Average Annual Wages in Regional Services

$9,717$9,594$9,323

$8,817$8,317

$7,837

$6,132$6,569

$6,940

$7,423

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$20,000

$40,000

$60,000


Source: BLS

Regional Goods &Services Wages – New Mexico

Source: BLS


Regional Goods & Services: Grant County Employment and Wage Growth


2,9783,225 3,192 3,146

2,559

2,9462,942 2,894 2,870 2,978

341329311311298

290292 289 296

343

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

100

200

300

400

500


Source: BLS

Regional Goods & Services Employment – Grant County

Total and Average Annual Wages in Regional Goods & Services

$75$71$71$69

$76$81

$85

$97 $101 $104

$32,795$32,448$31,676 $32,731

$33,938

$36,122 $37,335$39,362

$41,236$42,901

$0

$20

$40

$60

$80

$100

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$10,000

$20,000

$30,000

$40,000

$50,000


Source: BLS

Regional Goods & Services Wages – Grant County


Regional Goods & Services (Healthcare Only): Grant County Employment and Wage Growth

Total Employment and Number of Establishments in Healthcare

709

845 868 850

728746720 730 740 749

119

104

8788827876 77 79

121

0

100

200

300

400

500

600

700

800

900

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

50

100

150


Source: BLS

Healthcare Employment – Grant County

Total and Average Annual Wages in Healthcare

$19$18$18$18

$19 $20 $20

$26$28

$30

$24,781$24,300$24,100 $24,500

$25,254

$27,570$28,524

$31,135$32,416

$34,414

$0

$10

$20

$30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$10,000

$20,000

$30,000

$40,000

$50,000


Source: BLS

Healthcare Wages – Grant County


Regional Goods & Services (Retail Only): Grant County Employment and Wage Growth

Total Employment and Number of Establishments in Retail

1,222 1,2341,168 1,1391,1731,154

1,2241,156 1,123 1,170

101106110107107102104 100

107 104

0

500

1,000

1,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

50

100

150

200


Source: BLS

Retail Employment – Grant County

Total and Average Annual Wages in Retail

$21$20$19$20

$21 $22

$25 $25

$21

$24

$17,650$16,627$16,020

$17,445$18,055

$18,878 $20,260 $20,281$20,695

$21,164

$0

$10

$20

$30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$10,000

$20,000

$30,000

$40,000


Source: BLS

Retail Wages – Grant County


Regional Goods & Services (Public Administration): Grant County Employment and Wage Growth

Total Employment and Number of Establishments in Public Administration

567 569 569599

570531519 521 520 529

51505050485050 50 49 49

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

25

50

75


Source: BLS

Public Administration Employment – Grant County

Total and Average Annual Wages in Public Administration

$20$19$19

$17

$21$22

$23 $24$25 $25

$37,068$35,768

$33,595$36,200

$38,823 $39,251 $40,464 $41,949$44,107 $42,306

$0

$5

$10

$15

$20

$25

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000


Source: BLS

Public Administration Wages – Grant County


Regional Goods & Services: Niches

REGIONAL MEDICAL CENTER

Regional medical centers provide inpatient and outpatient hospital services for multi-County areas. These facilities

offer comprehensive medical care including diagnostics, surgery, and ongoing nursing care, and typically have a

presence in virtually every type of medicine. In addition, regional medical centers often have specializations in multiple

areas such as cancer care, women’s health, cardiovascular, pediatrics, and neuroscience. Because of their acute care

focus, regional medical centers utilize the most advanced technologies in treatment and diagnostics in their service

provision. Regional medical centers may also host research centers, teaching hospitals, or drug studies. As regional

medical centers continue to specialize, many have become destinations for specific care, where people from across

the region and the U.S. seek care from the most knowledgeable medical staff in a particular health care area.

Grant County has a strong regional hospital, Gila Regional Medical Center, that serves Grant, Catron, and Hidalgo

counties and a portion of Luna County. The Medical Center includes new surgical and cancer centers. Grant County

also has seven clinics, three adult residential care facilities, three home health providers, and five rehabilitation

centers. These facilities provide Grant County with a large base of general and specialized medical services. And as

the region’s population continues to age, the Gila Regional Medical Center will drive additional economic growth. It will

be important to focus on retaining and attracting specialty physicians and specialized medical technologies in order to

serve patients from within the region that would otherwise travel to Las Cruces, Tucson, or El Paso for specialized

medical services.

RETAIL AND CONSUMER GOODS

The availability and diversity of consumer goods has been used as a hallmark of economic progress in the U.S. since

WWII and is often looked to as a sign of the desires and purchasing power of the middle class. While the expansion of

internet shopping has provided customers with alternatives to locally-based retail and service providers, this industry

will always remain a vital part of any local economy, as consumers will always prefer to make purchases closer to

home. Many products, especially perishables and services, are impossible to provide effectively from long-distance,

ensuring that local providers will always be necessary. While retail and consumer services is generally a local-serving

sector that lacks a large-scale economic impact, the primary goal in its development lies not in traditional economic

goals related to investment and job creation, but rather to improve the overall quality of life for the local residents and

workforce. A lack of retail and service centers creates a loss of potential sales tax revenue, as residents and potential

customers spend money elsewhere. With increased sales in local retail and services, sales tax revenue will provide an

increased revenue stream to city budgets, allowing local governments to offer residents more public services, or to

decrease property taxes.

Retail growth in Grant County has not kept up with competitors such as Luna County. While some retailers have

gradually moved in, Grant County has experienced retail drain across several sectors. New real estate developments

provide valuable spaces for future retailers and service providers. While the recession has made companies in this

sector hesitant to expand because of drops in consumer spending, low taxes and a strong quality-of-life in Grant

County are a vital draw for new operations. Resident surveys and interviews indicated a strong desire for more

shopping outlets and services within Grant County, indicating there is unmet consumer demand to fuel sales.

Downtown revitalization also represents a major opportunity for Silver City. While the city center currently has

businesses, the progressive population moving into the area is likely to appreciate locally-owned, unique venues.


• Service

• R&D

• Growth / Mature


• Emerging / Growth • Service


Regional Goods & Services: Niches

REGIONAL GOVERNMENT SERVICE CENTER

The primary purpose of a region, County, or town acting in the capacity of a Government Service Center is to

provide support services to local, County, state, and/or federal government operations and programs. Such

support services include, but not limited to, providing housing to government workers, servicing and storing

government-owned vehicles, special storage or unique property disposition, infrastructure management,

information management, risk management via outsourcing to local populace, etc. Government entities could

include municipal, County, state, and federal governments to name a few.

While reduced levels of government spending threaten the growth of government-related businesses, there is also

a chance that a smaller-sized government will outsource the functions of some aspects of their current spending.

A case in point is how more government entities are outsourcing administrative tasks to focus on their core

competencies and potentially achieve cost savings. Private correctional facilities, water treatment and refuse and

recycling services have also slowly benefited over time from government outsourcing. Management consultants

and IT consultants have also proven to be adept at helping government find better ways to maintain critical

functions while doing it more efficiently.

Grant County already services a large governmental community: municipal and County governments, and the

federal government via the Border Patrol and Forest Service. However, finding new creative and efficient ways to

help these government entities to reduce costs is the key to growing Grant County as a regional government

service center.


• Emerging / Growth • Service

http://www.cbp.gov/xp/cgov/border_security/border_patrol/


Regional Goods & Services: Location Criteria


GRANT COUNTY SCORECARD: REGIONAL GOODS & SERVICES

Grant County is not directly located on an interstate highway and lacks a

quality infrastructure network including widened roadways and rail spur

extensions.

Available Land /

Developments

Aging Population (Healthcare)

Trade Area

Existing Healthcare

Providers

Population Growth

Skilled and Affordable

Workforce

Grant County has an aging population, which will help drive demand for

healthcare, however, the demand for a healthcare workforce may soften

given Grant County’s dwindling young population.

Grant County has a large amount of land available for development,

however, running utilities to undeveloped land is problematic and

expensive due to the bedrock in the terrain.

Grant County is the center of a three-County region, making it an important

for retail, healthcare, education, and government services. The County also

has experienced strong growth in business establishments over the past

decade.

Grant County has a high-quality regional medical center: Gila Regional

Medical Center. It also has seven clinics, three adult residential care

facilities, three home health providers, and five rehabilitation centers.

Grant County’s workforce is affordable, but does not include a large

number of highly-trained professionals. However, the workforce has a

diverse skill set reaching across the tourism, mining, and educational

sectors.

Grant County has a strong heritage of supporting small businesses and

entrepreneurs and the local businesspeople are highly entrepreneurial and

resourceful. There are strong local banks alongside the presence of an

SBDC office.

Infrastructure

Entrepreneurial

Environment

Grant County’s population increased for five consecutive decades before

experiencing a decline in 2010. However, its population is expected to

grow close to 40,000 by 2050.


TOURISM & RECRATION INDUSTRY DEFINITION

For the purposes of this study, the tourism and recreation industry includes businesses that serve or cater to

travelers or visitors and firms that provide support to other businesses serving these individuals. This includes tour

operators, museums, and related amusement and recreation industries, hotels, and restaurants.

TOURISM & RECREATION INDUSTRY OVERVIEW

The Tourism and Recreation industry is central to the economies of many communities and regions. Frequent

visitation by tourists, shoppers and business travelers, can be the source of significant amounts of revenue for

community businesses and of taxes for the community itself. Many locations rely on tourism for the support of

their businesses and for the employment of their residents. Other communities seek to establish themselves as

attractive destinations and work to support the presence of the tourism industry as a growth strategy or as a

means of diversifying the local economy.

The Tourism and Recreation industry seeks new and innovative ways of entertaining visitors through cultural

experiences, unique museums, live music and shows, or other attractions. In recent years, new segments of the

tourism industry have emerged including health tourism, eco-tourism, and agri-tourism. Although this industry

offers low wages, it does provide employment opportunities for low-skilled individuals and contributes significantly

to a community’s tax base. The more tourists a community can attract, especially from outside the immediate

region, the more visibility and recognition the community will receive, which can help create a positive brand that

can be marketed and leveraged to attract firms in other industries.

For many communities, the primary local assets that attract visitors include cultural institutions such as museums,

historical sites, opera houses, concert venues and regional cuisine or fine dining. When this is combined with

related entertainment activities, it can serve as a strong method for attracting visitors and increasing tourism

revenues in a region. Communities that wish to draw upon local historic and cultural assets should develop a

strategy that promotes these features in a manner that will be best received by the target market for the

community. The community should likewise consider ways to draw businesses or other attractions to the areas

around these historic and cultural assets that compliment them, support their success and present more

opportunities for the local economy to benefit from visitors attracted by these assets.

Tourism & Recreation TOURISM & RECREATION

EMPLOYMENT SECTORS

NAICS Description

114 Fishing, Hunting, & Trapping

31212 Breweries

33992 Sporting & Athletic Goods Manufacturers

4511 Sporting Goods Stores

487 Scenic & Sightseeing Transportation

71 Arts, Entertainment, & Recreation

72 Accommodation & Food Services


• 2010 Employment:: 14,048,865

• 2010 Average Wages:$19,876


• 2010 Employment:: 100,070

• 2010 Average Annual Wages: $18,085


• 2010 Employment:: 917

• 2010 Average Annual Wages: $12,431

Photos: Mary Alice Murphy

Tourism &

Recreation


TOURISM & RECREATION

LOCATION CRITERIA



• Affordable Workforce

• Natural Assets

• Historic & Cultural Assets

• Proximity/Convenience to Population Centers


• Tourism Infrastructure

• Brand

• Destinations

• Cost Factors


Total employment in the tourism and recreation industry grew steadily from 2001 to 2008, but declined during

the recent economic downturn and has remained essentially flat since 2009. A number of trends and events

are currently affecting the tourism industry. The effects of the recent recession continue to limit tourism in

many parts of the country, as individuals with less disposable income and businesses working under tighter

budgets tend to travel less frequently and spend less money during trips than in previous years. However, as

the economy improves, it is likely that tourism activity will also increase. Changes in the travel industry have

also affected the tourism industry in recent years. Recent changes and Mergers & Acquisitions (M&A) activity

among airlines, for instance, have (and will continue to have) an impact on destinations served and the

frequency of flights. Other new developments in the industry, such as the emerging importance of travel

websites, have had a significant impact over the past decade on the way people travel. Similarly, changes in

the ease of travel (i.e. fuel expenses, security requirements, etc.) have also had an impact on the tourism

industry.


Grant County is home to a growing arts and entertainment sector that has several uncommon assets for a

community of its size. Some of these unique assets include: the Fort Bayard National Historic Landmark,

historic Pinos Altos, the Silver City Museum, Silver City’s historic downtown, the Arts & Culture District, and

the Theatre District. These assets are leading to a growing number of small businesses (retailers, art studios,

etc.) in downtown Silver City. The strong positive momentum in Grant County’s arts and entertainment sector,

combined with the County’s scenic beauty and strong historical and agricultural heritage, are distinctive

advantages that offer many opportunities for economic growth and will help Grant County to continue to be an

attractive destination for visitors.

Tourism & Recreation

Photos: Mary Alice Murphy

Tourism &

Recreation


Tourism & Recreation: Industry Growth

Total Employment and Number of Establishments in Tourism & Recreation

0

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

25,000

50,000

75,000


Source: BLS

Tourism & Recreation Employment – National

Total and Average Annual Wages in Tourism & Recreation

$0

$100,000

$200,000

$300,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$10,000

$20,000

$30,000

$40,000


Source: BLS

Tourism & Recreation Wages – National





103,205 103,562 100,859 100,07097,93296,18694,17891,46299,179 101,869

5,0904,6744,6094,603 4,703 4,661 4,782 4,866 4,888 4,952

0

20,000

40,000

60,000

80,000

100,000

120,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

2,000

4,000

6,000

8,000


Source: BLS

Tourism & Recreation Employment – New Mexico


$1,756$1,726

$1,734$1,644

$1,548$1,447

$1,175$1,259

$1,313$1,387

$18,085$14,224

$13,914$13,491$13,058$12,577$14,208$12,583

$13,186 $12,538

$0

$500

$1,000

$1,500

$2,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$5,000

$10,000

$15,000

$20,000

$25,000


Source: BLS

Tourism & Recreation Wages – New Mexico






1,056978 930 917

1,1391,062

1,316

1,131 1,125 1,103

92919692878786 8694 96

0

200

400

600

800

1,000

1,200

1,400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

100

200


Source: BLS

Tourism & Recreation Employment – Grant County


$10$10$9$9

$10

$11 $11 $11 $11 $11

$8,580

$7,881

$6,736

$8,553

$9,636$9,985

$12,451

$10,361

$12,797 $12,431

$0

$2

$4

$6

$8

$10

$12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$0

$5,000

$10,000

$15,000


Source: BLS

Tourism & Recreation Wages – Grant County


Tourism: Niches

HISTORIC AND CULTURAL TOURISM

For many communities, the primary local assets that attract visitors include certain cultural institutions such as

museums, opera houses, concert venues and regional cuisine or fine dining, as well as various historical sites or

buildings that are present in the area. This portion of the industry can be highly important to a community or

region’s economy and drives much of the tourism that takes place throughout the world. Communities that wish to

draw upon local historic and cultural assets should develop a strategy that promotes these features in a manner

that will be best received by the target market for the community. The community should develop strategies to

draw businesses or other attractions to the areas around these historic and cultural assets that compliment them,

support their success and present more opportunities for the local economy to benefit from visitors attracted by

these assets.

Grant County has a strong historical and cultural heritage that connects it to the Old West via Pinos Altos, Ft.

Bayard, and other historic sites. The Silver City Museum helps to capture this cultural heritage of southwestern

New Mexico by showcasing the region’s unique history. And there are many opportunities to expand upon these

assets, either by developing complementary historic and cultural destinations or by increasing access to existing

destinations. Silver City displays a downtown area that is growing in vibrancy and business activity building off

the existing historic and cultural scene.

OUTDOOR RECREATION & EVENTS

Festivals, sporting events, and outdoor recreation is one of the most important sectors of the broader tourism

industry because it is particularly appealing to young individuals and families and supports many related

businesses including restaurants, hotels, and retailers. Communities that are situated in close proximity to an

attractive outdoor recreation destination (e.g. lake, mountains, beach, state or national park, etc.) can often

support strong tourism activity centered around a key natural asset. Different attractions will tend to draw different

groups and so it is important for communities to determine what markets or groups would be most attracted to the

outdoor spots in the area. This can help communities to determine what activities these visitors are most likely to

demand, to position the community in a way that best caters to these visitors and to attract businesses that will be

in the best position to support these types of activities A growing number of communities have found remarkable

success in the support of outdoor and extreme sports targeted at younger individuals and athletes. Sporting

events such as little league tournaments and festivals that highlight a region’s unique cultural assets can also be a

major drivers of economic activity because they attract hundreds (sometimes thousands) of visitors from outside

of the region that spend money at local businesses.

Grant County has a strong existing base of festivals, sporting events, and outdoor recreation. Grant County’s rich

heritage of festivals already draws in visitors and generates additional revenue for the County’s economy. The

Blues Festival, Chocolate Fantasia, the Tamale Festival , and the Red Paint Pow Wow are some examples of the

unique festivals that help support Grant County’s broader regional goods and services industry. And Grant

County’s moderate year-round temperatures offer a distinctive advantage of having a longer timeline to host such

events.


• Growth / Mature • Service



• Service




Tourism: Niches

ECOTOURISM

The International Ecotourism Tourism Society defines ecotourism as “responsible travel to natural areas that

conserves the environment and improves the well-being of local people.” Its activities are meant to minimize

environmental impacts, build environmental and cultural awareness and respect, provide positive experiences for

both visitors and guests, provide direct financial benefits for conservation, and provide financial benefits and

empowerment for local people. Examples of natural areas include national, state and city parks, bird and wildlife

sanctuaries, conservation areas, and natural wonder tourist attractions like caves and waterfalls. With its unique

scenic beauty and abundance of natural resources, Grant County is well-positioned to support businesses in the

ecotourism industry. Furthermore, the growing green movement will help to bolster the ecotourism demand as

well. However, the first step will be to develop creative ways to responsibly market and capitalize upon the

County’s scenic beauty and natural resources.

AGRI-TOURISM

Agri-tourism is an emerging sector involving vacations on farms or ranches where visitors can take part in

farming or ranching activities. The types of activities ranges from wine tasting, farm tours, picking fruit, feeding

animals, riding horses, attending agricultural festivals, and planting crops. The idea is to attract visitors to areas

primarily used for agricultural purposes. The Small Farm Center at the University of California-Davis defines agri-

tourism as “the act of visiting a working farm or any agricultural, horticultural, or agri-business operation for the

purpose of enjoyment, education, or active involvement in the activities of a farm or operation.” It is important for

agri-tourism businesses to have something for visitors to see, something for visitors to do, and something for

visitors to buy. Agri-tourism enables farmers to diversify their products and realize additional sources of income.

Grant County’s strong agricultural heritage, particularly the presence of small family farms and ranches, can be

leveraged concurrently with its natural assets to develop a presence in the agri-tourism niche.


• Service




• Service




Tourism & Recreation: Location Criteria


GRANT COUNTY SCORECARD: TOURISM & RECREATION

Grant County has an intriguing historical and cultural heritage that

connects it to the Old West via Pinos Altos, Ft. Bayard, the Mimbres

Culture Heritage site, and other historic sites.

Grant County has a respectable brand of “Four Gentle Seasons” and

ample outdoor recreation. However, there is still a general lack of

consensus on what brand to market and who should take the lead.

Grant County has several attractive tourist destinations throughout the

County (Bear Canyon Reservoir, Gila Cliff Dwellings, historic downtown

Silver City, cultural museums, etc.), providing for a concentrated cluster of

inter-related destinations.

Affordable Workforce

Natural Assets

Historic & Cultural Assets

Tourism Infrastructure

Entrepreneurial Environment

Proximity/Convenience to

Population Centers

Brand

Destinations

Cost Factors

Positioned against the Gila National Forest, Grant County is a scenic area

full of natural assets. This is one of Grant County’s strongest qualities

specific to tourism.

Grant County is within a two-hour drive to Las Cruces and three hours to

El Paso and Tucson. Limited air travel options are available in Grant

County. Its location not immediately on an Interstate Highway is a slight

disadvantage.

Grant County has adequate roadway, water, and utility infrastructure for

tourism-related business; however, there is a limited amount of hotels and

high-quality restaurants.

Grant County’s strongest cost advantages specific to the tourism and

recreation industry are its affordable labor force and low land and

construction costs.

Grant County’s workforce is affordable and has a diverse skill set reaching

across the tourism, mining, and educational sectors.

Grant County has a strong heritage of supporting small businesses and

entrepreneurs and the local businesspeople are highly entrepreneurial and

resourceful. There are strong local banks alongside the presence of an

SBDC office.


NATIONAL OVERVIEW

While it is not industry specific, economic developers need to attract and retain entrepreneurs and small business

owners, as well as cultivate existing local talent, to improve and maintain national competitiveness. These are the

individuals and businesses most likely to grow and build or expand within a community. These companies and

entrepreneurs help provide and shape the identity of a community and are less likely to relocate than a firm that

moves branch operations into the area.

Firms and entrepreneurs within this sector have experience in a variety of skill areas that include but are not limited

to research and development, commercialization of emerging technology, and business management. They often

consist of researchers who have created a technological innovation or advancement. These researchers work with

highly-skilled, highly-experienced startup managers to develop and implement market commercialization strategies.

As these businesses – usually less than 10 people in the start-up phase – become successful, they are likely to keep

their headquarters local due to high relocation costs and an affinity for the region by the primary decision makers.

Current economic uncertainty combined with real corporate losses are precipitating many major firms to lay off large

numbers of employees. While this creates an immediate challenge for communities, it also provides real

opportunities for laid-off employees to take the risk of starting their own businesses and for other businesses to

capture local talent.

Small Business and Entrepreneurship


LOCAL OVERVIEW

• Grant County is in a particularly strong position to capitalize on entrepreneurship thanks to a highly innovative

population, demonstrated by the local businesspeople and their entrepreneurial spirit and resourcefulness.

Additional momentum could be developed by building a worker pipeline in partnership with WNMU’s Applied

Technology School which offers Certificate Programs and Associates degrees in Computer and Network

Technology, Construction Technology, Digital Media Communications, Electrical Technology, Financial Services,

and Welding Technology. All of which contribute to the Internet-based commerce that is already prevalent within

the County, providing the potential for growth and expansion in the entrepreneurship and small business sector.

• There are numerous assets related to small business and enterprise both within Grant County and the

southwestern New Mexico region; some of these include the SBDC housed in WNMU, the International Business

Accelerator (IBA) located in Santa Teresa, NM but owned by WNMU with funding from the SBDC, and the South

West Office of Regional Data (SWORD). However, there is an overall lack of incubator space and support

programs.

• Nearby universities, especially New Mexico State University, are also valuable sources of both talent and support

for entrepreneurs and small business owners. NMSU receives a large amount of R&D funding in engineering and

agriculture, which is likely to produce a wealth of innovations that can serve as a foundation for future

entrepreneurial ventures. WNMU and NMSU need to foster a stronger relationship within this realm given their

proximity and related interests.

• While traditional sources of financing have dried up because of the recession, the state of New Mexico still offers

a sufficient amount of venture and angel capital firms looking to invest in promising start-up ventures. However,

potential entrepreneurs in Grant County seeking funding may need support in finding and approaching these New

Mexico venture and angel capital firms.

• While quality-of-life and an affordable workforce are important assets that Grant County can offer small

businesses, many small business owners cited a number of challenges operating in Grant County, such as a lack

of infrastructure, a unmotivated workforce, and a lack of small business support.

Small Business and Entrepreneurship


Occupations and Competencies

KEY OCCUPATIONS IN TARGET INDUSTRIES

A critical aspect of further developing these industry opportunities in Grant County is the cultivation of a pool of

talent with the appropriate skills for firms to be competitive. This section identifies the specific growing occupations

for the four primary target industries selected and highlights the current concentration of these occupations within

Grant County. The data provides an understanding of what jobs will continue to be in demand and how economic

and workforce development efforts can support the future economic development goals through job training and

education.

METHODOLOGY

Occupational information in this section was gathered from the Bureau of Labor Statistics. Much of the findings are

based on occupational location quotients which quantify both how concentrated a particular occupation is in a

particular industry as well as what makes Grant County’s occupational mix unique in comparison to the national

average. Occupational data from the Bureau of Labor of Statistics is provided for the southwestern New Mexico

region.

TOP OCCUPATIONS IN DEMAND IN THE U.S.

In the following pages are the top occupations “In Demand” in the U.S per target industry sector. “In Demand”

occupations are those that meet two criteria:

1. Occupations that are projected to grow over the next 10 years nationally.

2. Occupations that have a high occupational LQ (above 1.0) within a sector; meaning the occupation is heavily

concentrated within that specific industry nationwide. For example, soil and plant scientists have an

occupational LQ of 28.10 within the bio-technology industry. This indicates that soil and plant scientists are

28.10 times more concentrated within the bio-technology industry than in the U.S. economy as a whole.


The Top 20 In-Demand Occupations - As identified in the

previous page, these are occupations within a particular

industry that have a high occupational LQ and are projected

to grow nationally.

Average annual wages - for that particular occupation in

Grant County.

The Grant County Makeup of “In-Demand” Occupations -

Grant County’s current occupational concentration in each of

the top 20 “In-Demand” Occupations. An LQ of higher than 1

means Grant County has a higher concentration of a

particular occupation than the U.S. as a whole, and thus a

competitive strength.

% with Bachelor’s Degree - for that particular occupation.

Education and Training Requirements - for that particular

occupation.

Workforce Priority Area - These are occupations that are

“In-Demand” nationally and pay a wage higher than the 2011

Grant County average wage of $32,918.

1 23

4

5

7

Occupational Areas of Focus

This section provides a regional occupational snapshot, highlighting

occupations within each target industry that are in demand nationally

and identifies how Grant County “measures up” in terms of its current

concentration of those jobs.

The following pages are organized by target industry and each chart

summarizes eight key data points. The figure to the left provides an

example:


Sources: BLS Occupational and Employment Statistics

“IN-DEMAND” OCCUPATIONS CHART EXAMPLE

6

8

Key Occupations in the Natural Resources & Mining Industry

Occupational Title

Concentration

Within the

Industry

10-year

U.S.

Growth

Projection

Avg.

Annual

Wages -

SW New

Mexico

"In Demand"

Occupations

(Local

Occupational

Concentration)

% with

Bachelor's

Degree+ Education

Refuse and Recyclable Material Collectors 47.50 18.6% $23,190 1.95 4% Short-term on-the-job training

Maintenance Workers, Machinery 5.58 4.6% $30,290 3.55 5%

Moderate-term on-the-job

training



training

Separating, Filtering, Clarifying, Precipitating, and Still

Machine Setters, Operators, and Tenders 5.38 10.6% $32,130 0.00 14%


training

Bus and Truck Mechanics and Diesel Engine Specialists 5.15 5.7% $32,540 3.10 3%

Postsecondary vocational

award

Inspectors, Testers, Sorters, Samplers, and Weighers 4.78 -3.6% $35,680 1.08 14%


training

Helpers--Production Workers 4.27 -0.1% $22,580 2.13 6% Short-term on-the-job training

Heavy and Tractor-Trailer Truck Drivers 3.78 13.0% $33,410 0.71 5% Short-term on-the-job training

First-Line Supervisors of Production and Operating Workers 3.46 -5.2% $41,290 0.71 15%

Work experience in a related

occupation

Team Assemblers 3.06 0.0% $23,560 0.00 5%


training

Electrical and Electronics Engineering Technicians 2.93 -2.2% $48,730 1.67 17% Associate degree

Operating Engineers and Other Construction Equipment

Operators 2.74 12.0% $35,700 3.83 3%


training

Water and Wastewater Treatment Plant and System

Operators 2.52 19.8% $26,670 2.28 10% Long-term on-the-job training

Laborers and Freight, Stock, and Material Movers, Hand 2.30 -0.8% $22,990 0.58 5% Short-term on-the-job training

First-Line Supervisors of Mechanics, Installers, and

Repairers 2.28 4.3% $48,060 1.54 12%


occupation

Packaging and Filling Machine Operators and Tenders 2.02 -0.7% $17,450 1.73 4% Short-term on-the-job training

First-Line Supervisors of Construction Trades and

Extraction Workers 1.60 15.4% $46,660 1.35 11%


occupation

Carpenters 1.49 12.9% $29,900 1.51 7% Long-term on-the-job training

General and Operations Managers 1.38 -0.1% $81,490 0.69 49%

Bachelor's or higher degree,

plus work experience

Payroll and Timekeeping Clerks 1.32 -5.3% $29,370 1.09 15%


training

1 2 3 4 5 6 7



NATURAL RESOURCES & MINING “IN-DEMAND” OCCUPATIONS

• Five of the “In-Demand” occupations within the Natural Resources

& Mining industry pay higher than Grant County’s average wage of

$32,918.

• Grant County has occupational strength in 11 of the 20 “In-

Demand” occupations within the Natural Resources & Mining

industry.

• The education and training requirements for “In-Demand”

occupations within the Natural Resources & Mining industry do not

require higher education degrees, but rather rely upon on-the-job

training.

KEY FINDINGS

Key Occupations in the Natural Resources & Mining Industry

Occupations Title

Concentration

Within the

Industry

10-year U.S.

Growth

Projection

Avg.

Annual

Wages -

SW New

Mexico

"In Demand"

Occupations

(Local

Occupational

Concentration)

% with

Bachelor's

Degree+ Education

Refuse and Recyclable Material Collectors 47.50 18.6% $23,190 1.95 4% Short-term on-the-job training



training



training

Separating, Filtering, Clarifying, Precipitating, and Still

Machine Setters, Operators, and Tenders 5.38 10.6% $32,130 0.00 14%


training

Bus and Truck Mechanics and Diesel Engine Specialists 5.15 5.7% $32,540 3.10 3%

Postsecondary vocational

award

Heavy and Tractor-Trailer Truck Drivers 3.78 13.0% $33,410 0.71 5% Short-term on-the-job training

Team Assemblers 3.06 0.0% $23,560 0.00 5%


training

Operating Engineers and Other Construction Equipment

Operators 2.74 12.0% $35,700 3.83 3%


training

Water and Wastewater Treatment Plant and System

Operators 2.52 19.8% $26,670 2.28 10% Long-term on-the-job training


Repairers 2.28 4.3% $48,060 1.54 12%


occupation




occupation

Carpenters 1.49 12.9% $29,900 1.51 7% Long-term on-the-job training

Sales Representatives, Services, All Other 1.30 13.9% N/A/ 0.00 47%


occupation

Mixing and Blending Machine Setters, Operators, and

Tenders 1.17 15.5% $18,630 1.99 5%


training

Construction Laborers 1.15 20.5% $23,710 1.46 6%


training

Sales Representatives, Wholesale and Manufacturing,

Except Technical and Scientific Products 1.09 6.6% $56,490 0.14 47%


occupation

Plumbers, Pipefitters, and Steamfitters 1.06 15.3% $32,900 0.41 4% Long-term on-the-job training

Bookkeeping, Accounting, and Auditing Clerks 0.99 10.3% $27,970 0.41 15%


training

Electricians 0.98 11.9% $52,730 0.41 8% Long-term on-the-job training

Light Truck or Delivery Services Drivers 0.94 4.2% $32,080 0.41 5% Short-term on-the-job training

Source: BLS Occupational and Employment Statistics



RENEWABLE ENERGY “IN-DEMAND” OCCUPATIONS

• The majority of “In-Demand” occupations within the Renewable

Energy industry pay higher than average wages, however, there are

a few occupations that pay significantly less than the average wage

of $32,918.

• Grant County has occupational strength in 12 of the 20 “In-

Demand” occupations within the Renewable Energy industry.

• The “In-Demand” occupations within the Renewable Energy

industry include a balanced mix of either on-the-job training or

higher education degrees.

KEY FINDINGS

Key Occupations in the Renewable Energy Industry

Occupations Title

Concentra

tion

Within the

Industry

10-year

U.S.

Growth

Projection

Avg.

Annual

Wages -

SW New

Mexico

"In Demand"

Occupations

(Local

Occupational

Concentration)

% with

Bachelor

's

Degree+ Education

Civil Engineers 34.62 24.3% $61,120 0.79 85% Bachelor's degree

Electrical Power-Line Installers and Repairers 18.35 4.5% $46,870 2.34 5% Long-term on-the-job training

Hydrologists 18.33 18.3% $76,370 0.00 92% Master's degree

Biological Scientists, All Other 8.09 18.8% $52,150 4.86 93% Doctoral degree

Managers, All Other 2.54 7.3% $77,540 1.01 53%


occupation

Executive Secretaries and Executive Administrative

Assistants 2.40 12.8% $40,920 0.39 17%


occupation

Management Analysts 2.24 23.9% $54,110 0.37 76%

Bachelor's or higher degree, plus work

experience

Construction Laborers 2.18 20.5% $23,710 1.46 6% Moderate-term on-the-job training

Operating Engineers and Other Construction

Equipment Operators 2.06 12.0% $35,700 3.83 3% Moderate-term on-the-job training

Business Operations Specialists, All Other* 1.99 11.5% $62,270 0.25 48% Bachelor's degree

Veterinary Assistants and Laboratory Animal

Caretakers 1.89 22.8% $19,740 0.00 12% Short-term on-the-job training

Compliance Officers 1.59 31.1% $53,080 2.42 55% Long-term on-the-job training

Maintenance Workers, Machinery 1.44 4.6% $30,290 3.55 5% Moderate-term on-the-job training

Administrative Services Managers 1.40 12.5% $63,100 1.44 38%


experience

Secretaries and Administrative Assistants, Except

Legal, Medical, and Executive 1.33 4.6% $25,440 1.71 17% Moderate-term on-the-job training




occupation

Accountants and Auditors 1.27 21.7% $47,050 0.64 75% Bachelor's degree

Financial Managers 1.26 7.7% $77,110 0.51 59%


experience


Repairers 1.21 4.3% $48,060 1.54 12%


occupation

Procurement Clerks 1.18 5.8% $26,110 2.01 23% Moderate-term on-the-job training




REGIONAL GOODS & SERVICES “IN-DEMAND” OCCUPATIONS

• Five of the “In-Demand” occupations within the Regional Goods &

Services industry pay higher than Grant County’s average wage of

$32,918.

• Grant County has occupational strength in more than half (12) of

the 20 “In-Demand” occupations within the Regional Goods &

Services industry.

• The majority of “In-Demand” occupations within the Regional Goods

& Services industry do not require higher education degrees, but

rather rely upon on-the-job training.

KEY FINDINGS

Key Occupations in the Regional Goods & Services Industry

Occupations Title

Concentration

Within the

Industry

10-year U.S.

Growth

Projection

Avg. Annual

Wages - SW

New Mexico

"In Demand"

Occupations

(Local

Occupational

Concentration)

% with

Bachelor's

Degree+ Education

Dental Hygienists 8.48 36.1% $64,930 1.11 35% Associate degree

Dental Assistants 8.30 35.8% $26,630 0.67 10% Moderate-term on-the-job training

Medical Secretaries 8.26 26.6% $28,830 0.50 17% Moderate-term on-the-job training

Medical Secretaries 8.26 26.6% $28,830 0.50 17% Moderate-term on-the-job training

Medical Assistants 8.15 33.9% $26,690 2.17 12% Moderate-term on-the-job training

Nursing Aides, Orderlies, and Attendants* 7.87 18.8% $21,870 0.48 8% Postsecondary vocational award

Registered Nurses* 7.43 22.2% $65,520 0.69 56% Associate degree

Medical Records and Health Information

Technicians 7.05 20.3% $26,400 1.40 14% Associate degree

Emergency Medical Technicians and

Paramedics 5.85 9.0% $26,520 1.11 15% Postsecondary vocational award

Personal Care Aides 3.55 46.0% $20,910 2.44 11% Short-term on-the-job training

Billing and Posting Clerks 3.48 15.3% $26,270 0.41 15% Short-term on-the-job training

Receptionists and Information Clerks 3.41 15.2% $21,380 1.24 13% Short-term on-the-job training

Clinical, Counseling, and School

Psychologists 2.75 11.1% $46,170 1.96 99% Doctoral degree

Cooks, Institution and Cafeteria 2.72 9.7% $18,610 2.29 5% Moderate-term on-the-job training

Maids and Housekeeping Cleaners 2.51 5.7% $19,390 1.37 5% Short-term on-the-job training

Social and Human Service Assistants 2.49 22.6% $30,520 1.24 52% Moderate-term on-the-job training

Pharmacists 2.25 17.0% $121,460 0.55 97% First professional degree

Laundry and Dry-Cleaning Workers 2.13 2.8% $18,000 1.44 6% Moderate-term on-the-job training

Pharmacy Technicians 1.72 30.6% $26,910 0.74 17% Moderate-term on-the-job training

First-Line Supervisors of Office and

Administrative Support Workers 1.23 11.0% $37,580 1.12 29%


occupation




TOURISM & RECREATION “IN-DEMAND” OCCUPATIONS

• The majority of “In-Demand” occupations within the Tourism &

Recreation industry pay lower than average Grant County wages.

• Grant County has occupational strength in over half (12 of 20) of

the “In-Demand” occupations within the Tourism & Recreation

industry.

• None of the “In-Demand” occupations within the Tourism &

Recreation industry require higher education degrees, but instead,

rely upon on-the-job training

KEY FINDINGS


Key Occupations in the Tourism & Recreation Industry

Occupations Title

Concentration

Within the

Industry

10-year

U.S.

Growth

Projection

Avg.

Annual

Wages -

SW New

Mexico

"In Demand"

Occupations

(Local

Occupational

Concentration)

% with

Bachelor's

Degree+ Education

Hosts and Hostesses, Restaurant, Lounge, and

Coffee Shop 9.19 6.5% $18,040 0.75 12% Short-term on-the-job training

Cooks, Restaurant 9.19 7.7% $19,960 1.37 5% Long-term on-the-job training

Cooks, Fast Food 9.12 7.5% $17,170 3.19 5% Short-term on-the-job training

Waiters and Waitresses 9.10 6.4% $22,070 1.10 13% Short-term on-the-job training

Hotel, Motel, and Resort Desk Clerks 9.04 13.7% $20,060 7.54 16% Short-term on-the-job training

Dishwashers 8.47 11.6% $17,200 1.27 3% Short-term on-the-job training

Bartenders 8.41 8.0% $18,290 0.60 16% Short-term on-the-job training

Dining Room and Cafeteria Attendants and

Bartender Helpers 8.23 5.6% $18,000 0.00 6% Short-term on-the-job training

Combined Food Preparation and Serving Workers,

Including Fast Food 7.94 14.6% $17,040 0.66 5% Short-term on-the-job training

First-Line Supervisors of Food Preparation and

Serving Workers 7.58 6.6% $24,110 1.21 14%


occupation

Maids and Housekeeping Cleaners 4.69 5.7% $19,390 1.37 5% Short-term on-the-job training

Driver/Sales Workers 3.59 4.4% $24,700 0.00 5% Short-term on-the-job training

Bakers 1.99 0.2% $17,370 1.05 8% Long-term on-the-job training

First-Line Supervisors of Housekeeping and

Janitorial Workers 1.89 5.1% $28,010 1.71 12%


occupation

Laundry and Dry-Cleaning Workers 1.45 2.8% $18,000 1.44 6% Moderate-term on-the-job training

Cooks, Institution and Cafeteria 1.39 9.7% $18,610 2.29 5% Moderate-term on-the-job training

Landscaping and Groundskeeping Workers 1.20 18.0% $21,880 0.89 7% Short-term on-the-job training

Cashiers 1.15 3.5% $17,840 1.90 10% Short-term on-the-job training

Security Guards 0.91 14.2% $25,320 0.44 15% Short-term on-the-job training

Retail Salespersons 0.72 8.4% $19,830 0.78 24% Short-term on-the-job training


CONCLUSION

Appropriate target industries and niches are essential for economic development retention, expansion and recruitment efforts. Without a strategic approach, resources will not be maximized for return on investment. It is important for project stakeholders to remember that this is not the strategy, but research that supports the final recommendations.

The industries and niches presented in this report provide a strong balance for Grant County between focusing on the present and preparing for the future. Many of them use the community and region’s existing strengths and assets, while many more rely on these attributes to move into emerging markets that will sustain the local workforce in years to come.

By focusing its resources and efforts on developing and supporting the target industries in this report, Grant County’s economic development leaders can not only build upon the community’s strengths in existing industries, but also work to diversify the local economy by leveraging local assets that can support emerging opportunities.

NEXT STEPS

The next step in this strategy process is to present the Comprehensive Economic Development Strategic Plan, which will act as a roadmap for Grant County’s economic development efforts.

Conclusion and Next Steps

Photo: Wikipedia

•Project Setup & Stakeholder Engagement

Phase 1

•Market Assessment, SWOT Analysis & Organizational Assessment

Phase 2

•Target Industry Analysis Phase 3

•Action Plan and Implementation Matrix

Phase 4


METHODOLOGY & NARRATIVE CONTENT

As described in the portion of this report titled “Target Industry Selection Process”, the project team completed an in-depth analysis specific to Grant County, New Mexico that included site visits, interviews and focus groups, and was strengthened by input from key community stakeholders. The results of this analysis formed the basis for the identification and selection of recommended target industries and for the determination of target niches within those industries. Particular emphasis was placed by the project team on the selection of targets that best fit the unique characteristics of Grant County and the surrounding region and offered the best opportunities for successful development within the community. The research completed as well as the recommendations provided have been directed specifically to meet the economic development needs and objectives of Grant County and will guide research and recommendations to be prepared by the project team in future stages of this project.

Certain portions of this report draw upon previously completed research conducted by AngelouEconomics for internal use or for separate projects, and were selected for inclusion in this report for their specific relevance to the challenges and opportunities currently affecting Grant County. In certain cases, specifically those relating to research processes, definitions, national and global trends, industry-wide conditions and dynamics, and national economic data, narrative remarks may be included in other documents completed by AngelouEconomics. Reasonable efforts have been made to ensure that all data and information that was completed by other organizations and government agencies have been properly sourced throughout this report. Further information about the methods, research, or recommendations featured in this report can be made available upon request by the client.

Appendix A

Photo: Wikipedia


AngelouEconomics

AngelouEconomics partners with client communities and regions across the United States and abroad to

candidly assess current economic development realities and identify opportunities. Our goal is to leverage the

unique strengths of each region to provide new, strategic direction for economic development. As a result,

AngelouEconomics’ clients are able to diversify their economies, expand job opportunities and investment,

foster entrepreneurial growth, better prepare their workforce, and attract ‘new economy’ companies.

Project Team

Angelos Angelou

Principal Executive Officer

Levi Jackson

Project Manager

John Karras

Project Manager

Documents

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