Metroplex - New Mexico plan to attract California Bay Area businesses

New Mexico Business Journal, March, 1991 by Pat Woods

Metroplex

Albuquerque is leaving calling cards on the desks of businesses in California, and the callbacks are encouraging.

Deirdre Firth, marketing director of Albuquerque Economic Development and the Bay Area project manager, says the Metroplex Project is showing encouraging results from the year-and-a-half effort.

The Metroplex Project grew out of a July, 1989 task force established to bring new business to the greater Albuquerque metropolitan area. The original goal was to attract businesses from the Bay Area of California to Albuquerque to establish plants and offices.

Firth says the area extends from Belen to Bernalillo, and the economic developers in these areas have been working cooperatively to start more aggressive marketing and raise funds for a targeted marketing campaign.

"We looked for addition resources and help to raise money for a targeted recruitment project. We've contacted over 1,300 businesses in the Bay Area, and 50 percent of those companies have indicated an interest in Albuquerque," says Firth.

"Those 1,300 businesses are on our mailing list, and 100 companies have even more interest and have asked for a follow-up on our plans on a quarterly basis," says Firth. The project has purchased a database from the California Manufacturers Register to help in targeting specific kinds of companies.

Public Service Company of New Mexico and Albuquerque Economic Development are co-sponsoring advertising in California Business Magazine to reach additional companies.

While the original intent was to contact companies in the Bay Area, the project has expanded to begin targeting additional companies in Los Angeles, Orange County and surrounding areas. Firth has been on four recruitment trips to the Bay Area and more are being planned.

"We have a part-time recruiter working for Albuquerque Economic Development on this project," says Firth. "Dr. David S. Henkle, Jr., who is the former director of the State of New Mexico Economic Development Division, is directing his recruiting efforts at contacting each of the companies on the list. He has a student intern helping him, and they are explaining the opportunities available in Albuquerque to the companies."

While Firth and Henkle are recruiting, the Homebuilders Association of Central New Mexico and the Association of General Contractors are also providing funding for the project.

Under the current economic conditions, some companies are very cautious in discussion expansion or relocation plans. But the project coordinators are very optimistic.

"Economic development is a very long process," explains Firth. "It can take anywhere from six months to 10 years for a company to decide to expand or move. We're getting ourselves very well positioned with these companies."

In the past, Albuquerque may not even have been considered on a regular basis by companies looking for expansion or relocation. The cities most commonly examined were Salt Lake City, Denver, Phoenix and Texas municipalities. The project is spreading the word about Albuquerque, which is appearing now on companies' `long list' of places.

"We're trying to get Albuquerque on everybody's short list and eventually become the chosen site," says Firth. "We think we have some of the really important and critical factors for businesses to consider when they look to expansion or relocation."

Among those factors are: a very productive labor force, training programs and support programs, and quality of life issues. Firth admits quality of life is very subjective, but she lists some areas that are of concern to businesses in California.

"We can offer lack of congestion, which cuts down on commuting time and contributes to increased productivity. Also, we have lower housing costs than California. And the cost of land, and additional expansion for employees are causing California companies to look outside California."

Firth adds environmental regulations to the concerns of businesses, citing the increased penalties and cities targeted by the Environmental Protection Agency are not viable alternatives to some companies.

These factors help in attracting businesses to look into the Albuquerque area for a potential move. Firth thinks all of these contributed to the recent move of Olympus Corporation, which manufactures endoscopes for use in the medical field.

One difficulty with economic development is people wanting to see immediate results from efforts, and that is not possible, according to Firth.

The first goal of the project was to raise awareness of New Mexico in general, and Albuquerque in particular. A massive direct mail campaign was initiated. Between 6,000 to 8,000 companies were contacted, asking them to consider Albuquerque.

"We think we have an incredibly strong story and message to tell," says Firth. "We are working hard at creating opportunities to tell that message to companies in California."

Why California companies?

"California is a natural target for us," says Firth. "It's close geographically, unlike someplace on the East Coast. There is a general appreciation for New Mexico culture, which helps.