Businesses that migrated to El Paso still maintain their Juarez roots
October 19, 2012
EL PASO – The violence in Ciudad Juarez has had a huge impact in the cross-border area economy in recent years as businesses relocated here to become successful enterprises. The emigrating business owners, however, did not sever all ties to Juarez.
The drug war and the climate of criminality it spawned took a huge toll on the Mexican economy, closing down businesses, chasing away clientele and most importantly stemming cash flow. This caused a large number of establishments to slash prices, cut jobs and eventually just close down.
Many Mexican investors took a leap of faith and transferred their assets across the border to find a safe environment where their business would flourish.
Miguel Gomez, former president of “La Red,” a group of Mexican investors and business owners here moved to El Paso from Mexico City in 2004. He sees El Paso as an economic “oasis” that has not been truly damaged by the American economic downturn of the past five years. He cites three main factors – “First, our geographic location; second, the growth of Fort Bliss; and third, the flow of professionals and investors from Mexico.”
However, Mexican nationals have encountered many obstacles and challenges in order to open their businesses on this side of the border. “The legislation is very different and the rules for businesses are also different. It’s not easy and some are not prepared,” said Gomez.