New uses eyed for empty garment buildings

Abandoned garment warehouses may have alternative uses after all.

Deputy Commerce Secretary Michael Ada said that companies eyeing Saipan as a possible staging point for investments in the upcoming military buildup in Guam could use the infrastructure that once belonged to the island’s once-thriving garment industry.

“There are a variety of opportunities that exist for the CNMI. The infrastructure for manufacturing is already in place due to the garment industry’s presence on the island. However, with many of these facilities sitting idle, the capacity and space is ideal for pre-fabrication operations,” he said in an e-mail to the Saipan Tribune.

Ada said that during the 2nd Guam Industry Forum he attended last month, a number of companies have already inquired about the possibility of setting up shop on the islands and taking advantage of the islands’ investment-friendly laws.

“We were able to meet many firms who inquired about the opportunities that existed in the CNMI. There were roughly 1,300 attendees, so you can imagine the amount of prospects there were. At this point, we are mostly exchanging information.”

The Commerce official said the CNMI could accommodate a host of operations related to the Guam military buildup.

“According to the information released at the forum, requirements include the pre-fabrication of items, such as doors, framing, etc. There are also opportunities for material warehousing, logistical operations, and training functions that exist for the CNMI,” he said.

Ada further said that the CNMI offers a number of benefits to companies that want a piece of the action in the 2010-2014 military expansion in Guam, expected to cost as much as $15 billion.

“With the labor costs, tax incentives, available facilities, proximity to Guam, affordable lease terms, and efficient and reliable shipping services, the CNMI possesses many attractive qualities to the firms who want to join in on the military expansion in Guam. I think that the availability and cost of space is going to be a big draw to many companies to the CNMI,” he said.

Ada said, though, that the CNMI must get its act together, especially in providing reliable power for potential investors.

“We will have to be able to effectively address the CUC issue, as the sporadic availability of utilities may be a concern for these firms. I believe Dr. Laney (First Hawaiian Bank’s economist) may have commented on this as well. The absence of reliable and affordable utilities may offset any potential cost savings they may realize through tax incentives, cheaper lease rates, and low labor costs. Hopefully this won’t be the case, but it is definitely something we have to contend with if we want to draw these firms to the CNMI.”

The Guam military buildup is targeted at 2010-2014 following the relocation of 8,000 U.S. Marines and about 9,000 of their dependents to the U.S. territory from Okinawa, Japan.