Energy & Natural Resources
New Mexico is blessed with plentiful natural resources making it a large net exporter of energy. Total energy generated within the state in 2011 was 2,261 Trillion Btu. Mineral extraction has been the primary, sustained economic driver for the state for at least 150 years. The oil and gas sector alone returns more than $2 billion in taxes and other revenue to the state annually. Mining employs more than 22,000 statewide.
The San Juan Basin, located in northwest New Mexico and southwest Colorado, is the largest proven natural gas reserve in the country. This 26,000 square mile geologic feature is a major source of oil and gas, and it provides approximately 70 percent of the gas produced in New Mexico.
New Mexico has tremendous potential for renewable energy production, particularly solar and wind. Currently, there are 774 megawatts (MW) of wind and 160 MW of solar operating in New Mexico. Additional projects are forthcoming; six applications for solar power plants and four for wind farms were processed by the state in 2013. New Mexico has an aggressive renewable portfolio standard that requires investor owned utilities to generate a portion of their energy from renewable sources; 15 percent by 2015 and 20 percent by 2020. The state offers tax incentives to encourage the development of renewable energy projects.
Aerospace & Defense
With nearly 340 days of sunshine, one can expect minimal delays due to weather conditions. The high altitude and dry air lowers fuel costs and allows less corrosion. Robert Goddard, Wernher von Braun, and NASA all chose New Mexico to conduct their research.
Spaceport America is owned by the State of New Mexico and is the world’s first purpose-built commercial spaceport. Virgin Galactic has entered into a 20 year lease to locate its world headquarters at Spaceport America, launching its space tourism program at the Spaceport. In addition to Virgin Galactic, Spaceport America clients include Lockheed Martin, Boeing, Moog-FTS, UP Aerospace, Microgravity Enterprises, Armadillo Aerospace, and Celestis.
Value Added Agriculture
New Mexico‘s economy has been based in cattle ranching and farming for two centuries. There are still 23,000 farms operating in the state. Wheat is the highest volume crop in terms of acreage with nearly one million acres in production. Corn for grain is second largest volume crop. There is one biofuel facility in New Mexico which drives demand for grain. For the smaller grower there are more than 60 farmers’ markets statewide.
New Mexico is the number one state for chile production and the number two state in pecan production in the nation. Competitive electric prices, land costs, and wages separate New Mexico from other states.
Distribution, Logistics & Transportation
New Mexico is strategically located in the middle of the southwest and the nation’s fastest growing states: Arizona, Colorado, Nevada, Texas and Utah. An excellent highway and rail infrastructure provides direct access to the east and west coasts, Texas, the midwest, and the international borders of Canada and Mexico.
From New Mexico goods can be delivered to Texas, Arizona, Colorado, Kansas and Utah within one day, and California markets in two days. The volume of truck traffic into the state translates into low backhaul rates for goods leaving the state.
A report released by Ernst & Young in January 2014, ranked New Mexico number one in the west of manufacturers. New Mexico is home of the lowest effective tax rate for manufacturers in the nine-state Western region. A major factor in the report was the New Mexico Jobs Package which was signed into law by Governor Susana Martinez in 2013. New Mexico made a giant leap from 51st in the nation in a previous 2011 Ernst and Young report, to the most competitive in the west.
Back office & Technical support
New Mexico has a strong presence of customer service centers throughout the state, including Gap Inc., Fidelity Investments, and Hewlett-Packard. An aggressive workforce development program, bilingual workforce, and competitive wages make the state a prime destination for centers of all types and skill needs. A strong broadband network, competitive electric prices, and proximity to the nation’s fastest growing states also contribute to the growth of the industry here.