Diversifying the city's business base will offer more stability - economic and industrial developments in Carlsbad, New Mexico - Industry Overview

New Mexico Business Journal, Feb, 1993 by Jeff Flinn

In the $40,000-$60,000 range, 1991 saw 80 units sell; only 39 were on the market in 1992.

The trend continues: $60,000 to $80,000, 58 sales in 1991 with only 18 marketable in 1992; $80,000 to $100,000, 23 sales in 1991 with 14 on the market for 1992; $100,000 to $120,000, seven sales in 1991 with six on the market in 1992.

Stroud says the lack of affordable homes in the middle- to upper-middle income bracket is reflected in ever-increasing non-speculative housing.

"The homes just aren't there, so the potential home buyer is going to the contractor buying homes before they're constructed or put on the market," he says.

Energy

THE POTASH INDUSTRY, one of Carlsbad's more reliable employment forces, continues to struggle in the face of an undercutting international market.

Jack Skinner, former state representative and president of The Mine Supply Co., says he sees a slow growth period for Carlsbad's six potash mines, but remains optimistic the industry will stabilize again.

Diversify, diversify

JOHNSON SET GOALS for the Carlsbad Chamber of Commerce and the city shortly after his promotion to executive director last year.

Johnson hit the market with the lodger's tax gain, accomplished by target marketing and eliminating what Johnson termed "scatter shots." Johnson and the chamber targeted West Texas and cities within a 300-mile radius of Carlsbad.

"The 16 percent means we're getting to people close by, who had not thought about coming to Carlsbad," he says.

While the tourist represents big chamber dollars, Johnson continues to aim elsewhere, particularly to coax retirees to settle in the area.

"Retirees are good business. They're financially stable and bring $20,000 a year in disposable income per person per year," he says.

Johnson cites factors that add to the draw for a retiree: low property taxes, low crime rate, warm climate, extremely good quality of life, and proximity to medical facilities.

Figures from Southwest Public Service for new service contracts from customers listing themselves as "retired" showed 122 hookups in 1990, 113 in 1991, and an increase to 149 through October of 1992.

Johnson says his goal for 1993 is to increase the gross receipts tax revenue returning to Carlsbad by 10 percent.

"Economic growth in any city, especially in a city this size, is fueled at least 75 percent from local businesses," says Johnson. "I would like to see per capita income grow."

BERNHARD AGREES that Carlsbad needs to diversify and expand the existing economic base and increase the city's work force while holding on to the future of WIPP.

"The primary goal in 1992 was to keep WIPP and prevent layoffs," says Bernhard.

But attracting new technology-based business to the area ranks among the top priorities for 1993.

Bernhard says his organization is looking to more effective marketing and higher visibility to lure companies to Carlsbad from such states as California where taxation and "quality of life" problems are making life more difficult.

"One-third of California's manufacturers are looking to move within three years," he says. Attracting a Fortune 500 company could solve a small town's employment problem, but Bernhard remains focused on the smaller draw.