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Archives for September 2013

Intel Cuts 400 Positions at Rio Rancho Plant

September 15, 2013 by mcarristo

Intel Corp. announced Friday that it is “redeploying” 400 of the 3,300 employees at its Rio Rancho chipmaking plant.
“Due to a shifting market, we are making some difficult business decisions,” company spokeswoman Natasha Martell Jackson said in an email. “Specifically, in New Mexico, we have notified employees of a phased process of redeploying up to 400 positions.”
The deployment will be a phased approach, she said. The first steps will be offering retirement packages to those who qualify and attempting to find positions for employees at other Intel locations.
“Intel recognizes that this is a difficult time for employees and our community,” Martell Jackson said. “Our employees are a valuable asset and we are working with them to offer the best options and opportunities available, including placements within other Intel sites as well as voluntary retirement and separation packages.”
In a phone interview Friday, Martell Jackson told the Observer she did not know how many positions are open at other Intel sites at this time and how many Intel employees qualify for retirement packages.
Those who want to leave voluntarily can also do so, she said.
“Once those three phases are done, if Intel still has positions and employees that need to be moved, if that target isn’t reached, then we move into redeployment.”
Redeployment means Intel will assist employees in finding another job, either at Intel or elsewhere, for up to two months. That assistance could be job training or another form of support, Martell Jackson said.
In the email, Martell Jackson said “Intel’s New Mexico site is a vital part of the company’s 300mm global manufacturing network and will continue to produce some of Intel’s most popular products on the market.
“We recognize and appreciate the work of the state and local government as well as the community to create a positive business environment in New Mexico,” Martell Jackson said. “And we will continue to pre-position our site for future opportunities.”
The move is caused by market factors and changes in the market for computer chips, she said in the phone interview, as consumers move from personal computers to hand-held devices and mobile phones. She acknowledged that the local plant hasn’t retooled to move to a smaller chip set in several years.
“Intel New Mexico is still very vital and very important to the company’s overall manufacturing network,” she said. “It’s still state of the art and we’re producing some of the most popular products on the market.”
When asked if Intel is phasing out the operation in New Mexico, she said “absolutely not.”
Rio Rancho Mayor Tom Swisstack said he believes Intel will stay in Rio Rancho.
“I never like to see people lose their jobs,” he said. “I do not believe that this is any kind of signal that it is leaving.”
On Thursday, Intel Corp. announced it would close its only chipmaking factory in Massachusetts.
The world’s leading chipmaker said it planned to shut down its Hudson plant by the end of next year, eliminating 700 jobs.
Intel’s research and development facility in that community, which employs 850 workers, will remain in operation. The Hudson factory, once used by Digital Equipment Corp. and acquired by Intel in 1998, uses technology four generations behind those produced at its more modern facilities, The Boston Globe reported.
“The facility and the site do not meet the requirements that we need,” Intel spokesman Chuck Mulloy said.
By Lee Ross (Rio Rancho Observer)
Click here for source article.

Filed Under: All News

Commercial Real Estate Investments Rise 24%

September 12, 2013 by mcarristo

As the traditional summer vacation season wrapped up, it became easier to focus on the economic performance over the first half of the year. However, the task became an exercise in reading fortune cookies given the many changes in the economy, the markets, and the legislative environment.
The main measure of economic activity — gross domestic product — has been redefined and revised by the Bureau of Economic Analysis during the second quarter. It has been redefined to include business investments in intellectual property, such as research & development, software, and entertainment and original artistic work. GDP has also been revised, as it normally is at regular intervals.
The results point to an economy that nominally is much stronger than it was a quarter ago, by almost $2.0 trillion. At the same time, the revised annual rate of growth for first quarter GDP dropped from 2.7 to 1.2%. However, the estimate for the second quarter growth rate is 1.7%, indicating an accelerating economy. Of course, given the pace of acceleration, we should not expect any whiplash, as there is no hurry in the macro advance. (Economists Outlook Blog by George Ratiu) Full Story
 

Filed Under: All News

Real Estate Market 'Cautiously Optimistic'

September 12, 2013 by mcarristo

LAS CRUCES – The first four months of the year has given the real estate community in Las Cruces a reason to have some hope.
“Realtors are cautiously optimistic,” said Doris Nurenberg executive officer of the Las Cruces Association of Realtors. “If you take a look at the first quarter, January was fabulous, February was not and March brought it back.”
She said that February was probably slow because of sequestration concerns. But still she said she could see 2013 being a good year if there are not major shakeups to cause buyers to tighten up.
“As long as everything stays neutral in Washington and there is not a major world catastrophe, I could see this being a better year,” Nurenberg said.
In fact, according to Multiple Listing Service statistics provided by Steinborn Realty, 406 homes were sold in Las Cruces through the end of April this year. That is up from the same time period last year when 378 homes were sold.
In addition, the total monetary value rose as well from about $63 million last year to nearly $70 million this year.
Maybe the best news, though, is the fact that the median price has improved. According to the stats, the median price for a home sold during the first four months of this year was $148,687. The median price through the first four months last year was $139,500.
“This is the first year-over-year increase in median sales price since the downturn,” John Hummer, president of Steinborn Realty, pointed out.
The National Association of Realtors reports that, in March, pending home sales increased and remain above year-ago levels, but contract activity in recent months shows only modest movement.
Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.
Lawrence Yun , NAR chief economist, said the market appears to be leveling off.
“Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply,” Yun said. “Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses.”
Total existing-home sales are projected to increase 6.5 to 7 percent over 2012 to nearly 5 million sales this year, while the national median existing-home price is forecast to rise about 7.5 percent.
Brook Stockberger may be reached at 575-541-5457; follow him on Twitter @Bstockberger
By Brook Stockberger (Las Cruces Sun-News)
Click here for source article

Filed Under: All News

Commercial Real Estate Fundamentals Point to Steady Growth

September 4, 2013 by mcarristo

After gross domestic product revisions, business spending shows growing confidence in the first half of the year. The first quarter spending was down 4.6 percent, with a decline driven by a 25.7 percent drop in spending on commercial structures. However, the second quarter posted a much better performance, with an annual growth rate of 4.6 percent. Spending on commercial buildings rose 6.8 percent. Businesses also increased their spending on information processing and transportation equipment by 11.4 percent and 5.5 percent, respectively. The new component of business spending—intellectual property products—rose 3.9 percent in the second quarter, boosted by software and R&D.  Read more…
 

Filed Under: All News

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