You can try the delicious, authentic posole in Nogales, Sonora.

One of the more appreciated and enjoyable things we do for visiting business colleagues and friends is take them “across the line”.   By that we mean our twin city of Nogales, Sonora, Mexico, home to around 500,000 inhabitants.

While Santa Cruz County is low-key and mostly rural in character, in just minutes you cross the border of Mexico and are in the midst of a bustling city!  

There, you can eat at some great restaurants (La Roca is our personal favorite) and shop for some real deals both on your way in (at UETA Duty Free) and once you get there along the colorful streets and the many curio shops.   The dollar worth around 13 pesos today means you can find some real bargains.

Downtown Nogales, Sonora has really been spruced-up recently, with new pedestrian-only streets, plazas and even a new museum coming.  In all, the city is spending over $15.4 million in infrastructure improvements mainly to attract U.S. visitors.  Their Chamber of Commerce is even organizing guided tours of the border community.

Don’t  let what you might have heard in the media about violence on the border detract you.  This is not the Texas border!   Nogales is quite safe, well-policed, and the merchants are warm and welcoming.  You can cross by foot, have lunch, shop and return to the U.S. in just a couple of hours. (Bring your passport.)

We don’t want to keep all the fun found “across the line” to ourselves, so come join us!

Governors Guillermo Padres Elias of Sonora, MEX and Jan Brewer of AZ flank Nogales Mayor Octavio Garcia-Von Borstel at the Port of Nogales groundbreaking.

Yesterday we had the distinct pleasure of attending the groundbreaking ceremonies for the expansion of the Port of Nogales.  As we mention in our Why Santa Cruz County? page here, this $213M+ effort is a boon to our area and represents the largest single project earmarked by the American Recovery Act of 2009.

Many in the community were present, including our own VIPs,  Arizona Governor Jan Brewer and City of Nogales Mayor.  Also attending were the governor for the state of Sonora Mexico, along with representatives of the Greater Nogales & Santa Cruz County Port Authority, as well as U.S. Customs & Border Protection and Federal Highway Administration, among other agencies.

 The inspiring ceremonies right there at the current Port were followed by a festive lunch at one of our state-of-the art warehouses, owned by major produce distributor Del Campo.  There, we had the opportunity to speak to several in our community who expressed their commitment in working together to help bring businesses here.

We are all confident — especially here at SCMC — that this great project will be the beginning of something very exciting for this border area…and for you!  Stay tuned for more details to come here on the Port project as well as other local development projects SCMC is spearheading.

(Read more about the 10-22 event at www.nogalesinternational.com)

Big banks cluster...so do we

The Economist  magazine recently expounded on the phenomenon whereby firms from the same industry gather together in close proximity.  “Clustering” is also one of the Top Ten reasons listed by Expansion Management  magazine for company relocations.

Companies cluster mainly because they enjoy the expertise and camaraderie of their industry colleagues, not to mention the competitive vibe.  Banks have long clustered in London or the Cayman Islands for that reason.  

There is also the factor of service support.  Providers come to these areas precisely to serve these companies, and thus a boon is born.  The adage: “fish where the fish are”  is an apt one here.

 Here in Nogales, AZ, we have clustering a-plenty in the produce industry.  Approximately 130 fresh produce distributors, shippers, brokers or affiliated businesses call Santa Cruz County headquarters.  Most are located on the Hwy I-19 corridor that connects Tucson to the Mexico border…and beyond, but they can also be found in mini-clusters throughout the entire area.

These companies are here because the Port of Mariposa (slated for a huge government expansion program – more on that soon!) is responsible for crossing over 200,000 trucks of fresh produce per year from Mexico.

These Mexican trucks typically unload their winter produce at these distributors’ warehouses, which are then reloaded onto U.S trucks that criss-cross the nation.  All told, fresh produce imports from Mexico is an $8B concern, of which Nogales represents about half.

Another fine example of clustering is right across the U.S. border in Nogales, Sonora, home to over 500,000. There, manufacturers like Motorola, Ford, Intel, etc. have parts factory (maquiladoras) which employ thousands in a business worth double-digit billions.

Either country, on both sides of the border, minutes from each other: this is arguably the only place in North America where you will see such an extensive and dynamic example of clustering.

No doubt we have suffered also, especially our smaller local merchants, but  signs point to the fact that we may be better off than many other areas.  Nogales City Manager Jaime Fontes explains:

“Our budget is very conservative and we have planned for long-term sustainability in services to residents, ” he was quoted in The Nogales International  this week.   I can personally  tell you that I have sat through enough  City Council meetings to say that, yes, this is one group that hates spending money if it doesn’t don’t have to!

Mr. Fontes also added that the City had actually budgeted for  ”its own stimulus package of $6M”, that includes major infrastructure improvements such as re-paving of roads, new traffic overpasses, sidewalk expansion and beautification projects. How many communities  have such ambitious plans in today’s economy?

 We’re planning a meeting with Mr. Fontes soon and will share more details about these exciting new projects that should help attract  businesses and residents to our area.  This should definitely ensure our economic recovery is as rapid as possible.

The region was recently awarded a $2 million Community-Based Job Training (CBJT) Grant from the U.S. Department of Labor.  This program will be managed by the Southern Arizona Logistics Education Organization (SALEO).  What this means to companies relocating here on the border is access to employees specifically-trained in trade logistics.

Nogales is already known  as the #1 freight-mover in the state, now it may well become known globally.  Through liaison with the community colleges, this effort will focus on awarding certificates and bachelor degrees in logistics.  They are also planning on-site instruction at businesses.

With the new Port expansion promising to deliver new businesses to the area, this initiative could not have come at a better time.  We congratulate the hard-working team at SALEO.

According to the Mayor’s office, this is an upgrade since a few years back when the City received a B or lesser rating.  It reflects the recent improvement in the financial management of the City.  

This only serves to benefit companies wishing to do business here.   And now, with the  upcoming $270 million Port expansion,  ratings can only go up…

Keep up the good work, Mayor and City Manager!

The Santa Cruz Valley, along the banks of the river of the same name, has always been a fertile land for agriculture in Arizona.   The Santa Cruz Valley Heritage Alliance is a non-profit organization dedicated to communicating the cultural, education and preservation of this area’s unique history.  Their most recent effort is focused on food.

The Alliance has recently published a colorful and educational “Local & Heritage Foods Directory” that lists local agribusinesses, food manufacturers, retailers and restaurants.  The booklet also has a very useful glossary of Mexican ingredients, along with fun factoids and tips.  In short, this effort not only interests all food lovers, but it promotes  small-to-large food-related businesses in Santa Cruz County.

For more information about this boon to our area, and perhaps inspiration for YOUR business, contact the SCVHA at 520-429-1394, or visit them at www.SantaCruzHeritage.org.

Exciting things are coming our way soon, including our new, $270 million Port of Entry on the border with Mexico, and we plan to share some of these details with you.   Importantly, we want to hear from you and how we may assist you in your future relocation and business dreams!

Thanks for visiting us, and please call me directly if you need any immediate assistance at 520-841-1661, or via e-mail at curtis@scmc2009.com

All the best,

Curtis P. Kraushaar

Managing Director

SANTA CRUZ MARKETING CONCEPTS, LLC