High Desert Capital and WestStar Bank are two financial organizations that have opted to sponsor the work being done by Technology HUB with the Bridge Accelerator- Binational Supplier Development Program.
Through their support, these lending institutions help strengthen companies that operate on both sides of the US-Mexico border; in El Paso, Texas and Ciudad Juárez, Mexico. The huge potential of being supported by these companies is a boost to regional economic efforts by the increased local circulation of capital.
The Borderplex region, which encompasses El Paso, Ciudad Juárez and southern New Mexico, is a massive hub of economic activity, principally in the form of manufacturing. However, to ensure that this sector grows in a way that benefits community governments, businesses and financial institutions must work together to ensure a continuation of equitable, socially responsible and sustainable growth.
Understanding the Borderplex and South of the Border
The Borderplex is among North America's largest distribution and manufacturing centers. In fact, in 2021, trade in El Paso grew by $121.3 billion (or 2.9%) in just November. The pandemic has affected some areas of this market; however, the region is rebounding quickly, as evidenced by the growth in 2021.
Some of the most well-known companies in the world have manufacturing sites in the Borderplex, with over 70 Fortune 500 companies, including Electrolux, Bosch, Boeing and Siemens.
It can sometimes be the case that major international organizations can absent-mindedly set up a satellite manufacturing location in a city, but neglect to give back to the community in return. This can lead to paying only low wages and a massive uptick in poverty, crime and social problems.
The best way of responding to the social issues that can arise with the influx of massive organizations is to make sure that small, locally developed and led businesses also get a chance to thrive.
How Cities Benefit from Community-Based Economic Development
Local economic development is a practice or focus whereby local governing bodies and business leaders focus on boosting the economy by supporting local businesses.
We know that the more times a dollar circulates in the economy of a given community, the more jobs, income, wealth and well-being there will be in that same community. That’s because the dollars circulating through the community will help local businesses and, more importantly, local families. These benefits are integral to future community well-being both south of the border and in Texas.
The more money stays in the community, the more investment will be local so that not just the businesses but all the workers can reap the rewards. Local economic development is a pretty straightforward concept and can result in the following:
- -More construction and development for commercial, residential and community buildings.
- More income tax is collected to support public works, including schools, hospitals, roads and much more.
- More jobs, and as a result, less poverty, which also means less crime and corruption.
- Attracting more businesses to invest and provide more jobs.
- A stronger sense of culture, community and well-being.
How WestStar Bank and High Desert Capital Are Contributing to Technology HUB
Through The Bridge Accelerator, Technology HUB connects companies to leading manufacturing companies. Each year, twelve already established small- to mid-sized companies gain knowledge and experience from the accelerator program and are given the opportunity to present their concepts at Demo Day.
The Bridge Accelerator’s Demo Day brings like-minded business leaders out to recognize the work being done by small- to midsize suppliers in their region. The goal is for partnerships to begin and for the supply chain to stabilize with deeper and more reliable partnerships made with a common goal in mind.
WestStar Bank and High Desert opted to sponsor Bridge Accelerator because of the community's need for more local small- to mid-sized companies so that local manufacturers don’t have to seek outside the community to meet their supply chain needs.
Localizing supply means more support for manufacturing companies–for sourcing and distributing. Many businesses have failed because costs get too high for manufacturers and customers when the logistics are unavailable. So there’s a large desire to turn the Borderplex region into one that’s value-added with a robust supply chain.
At Technology HUB, we believe in supporting our local economies and giving back to the community. If you’d like to get involved, reach out to us, we’d love to hear from you.
