§ 2-14-020. Economy of the city.  


Latest version.
  • The economy of Otero County and Alamogordo is extremely dependent on federal defense related employment. The most recent statistics (April 1996) indicate the following:

    April 1996 April 1995
    Total labor force 21,376 19,962
    Employed 19,885 18,779
    Unemployed 1,491 1,183
    Unemployment rate 7.0% 5.9%

     

    Defense related employment

    Holloman AFB Civilian 1,630 Military 4,700
    White Sands Missile Range Civilian 3,640 Military 790

     

    (Note: 12% of WSMR civilian work force resides in Alamogordo)

    A review of these statistics shows the labor force is growing faster than the jobs available. Total employment is growing but unemployment is growing even faster. Of the total labor force, five thousand two hundred (5,200) or twenty-four and four-tenths (24.4) percent work for the federal government. In addition to the direct government jobs there are large numbers of workers employed by government contractors such as Dyn Corp. and Lockheed-Martin. Along with the civilian employment the five thousand eight hundred (5,800) military have a major impact in the area buying cars, renting homes, etc. Without a definitive economic base study it is difficult to determine exactly the economic impact of the large amount of defense related activity. It is safe to say that it provides over fifty (50) percent of the area's economic base. Current defense budgets would seem stable enough to continue the present employment levels. However, it is a serious mistake to take government employment for granted and an unexpected change in the nation's priorities could spell disaster for the city. While there are some workers who commute to HAFB and WSMR from Las Cruces and El Paso, the number is relatively small. However, this factor would not change the city's dependence on the government.

    The nongovernment related value added sector of the economy (i.e. manufacturing and tourism) is small. Manufacturing accounts for only about nine hundred (900) jobs and suffers from limited logging which hurts the wood products industry and the loss of Active Technologies which moved to another state. The tourist industry while not affected by the strategic plan is a factor in the local economy. As shown by the attendance figures reported below there has been little growth or uneven attendance at the areas major attractions.

    Travel and Tourism Attendance:
    (New Mexico Progress Economic Review)

    1995 1994 1993 1992 1991
    Space Center 180,666 174,203 189,829 213,371 193,785
    White Sands National Monument 604,810 583,100 611,300 570,400 588,500

     

    In summary, the Alamogordo area economy is flat. It benefits immensely from federal spending and is almost totally dependent on it. The business/commercial/manufacturing/tourism portion of the economy is not growing. Job opportunities are limited.

    Future developments:

    The city expects the business community through the Otero County Economic Development Council, Inc. and the Alamogordo Chamber of Commerce to exercise leadership in any economic development program that will bring new jobs and investment to the region.

    Cooperation with the plans and programs at Holloman AFB and WSMR is essential to the future of Alamogordo.

    A well thought out targeted marketing program will be necessary if the community is to achieve its goals of more jobs and diversification.

    Additional assistance from New Mexico State agencies such as the Economic Development Deptartment and the Highway Department will be essential if Alamogordo is to achieve its goals.

    Private Sector Employment

    2nd Quarter 1995

    Industry Total Employment Average Weekly Earnings
    Agriculture—Forestry, Fish 138 $256.00
    Construction 1,070  338.00
    Building 429  290.00
    Heavy Building 107  545.00
    Special trades 534  335.00
    Manufacturing 956  476.00
    Food 42  139.00
    Lumber 198  318.00
    Printing 67  315.00
    Stone, clay, glass 41  327.00
    Machinery 58  318.00
    All others 549  607.00
    Transportation, communication and utilities 872  427.00
    Passenger 88  215.00
    Motor freight 161  312.00
    Service 30  226.00
    Communications 82  442.00
    Electric and gas 119  534.00
    Wholesale trade 237  332.00
    Wholesale—Durable 85  353.00
    Wholesale—Nondurable 152  321.00
    Retail trade 3,262  220.00
    Building 109  261.00
    General merchandise 349  228.00
    Food 571  278.00
    Auto and service 335  416.00
    Apparel 56  147.00
    Furniture 146  277.00
    Eating and drinking 1,354  140.00
    Miscellaneous retail 342  219.00
    Finance, insurance, & RE 524  312.00
    Banking 228  360.00
    Credit agencies 15  598.00
    Insurance carriers 38  316.00
    Insurance agents 73  309.00
    Real estate 154  222.00
    Services 4,680  379.00
    Personal 153  209.00
    Business 549  464.00
    Auto repair 134  244.00
    Miscellaneous repair 17  232.00
    Motion picture 28  131.00
    Amusements 180  224.00
    Health 914  398.00
    Legal 43  307.00
    Education 164  288.00
    Social 221  248.00
    Technical and business services 910  622.00
    Private households 15  178.00
    All others 1,352  267.00

     

(Ord. No. 983, 8-13-96)