New Mexico Chamber report provides solid ideas for improving NM’s economy

The New Mexico Chamber of Commerce recently produced a report that makes an important contribution to the State’s economic development conversation. While RGF and the various chambers of commerce aren’t  always on the same page and this report is obviously not the kind of report RGF would come up with, the primary findings about what ails New Mexico are in lockstep with us. Before getting to that, what we mean is that the Chamber focuses heavily on attracting specific industries to New Mexico. Those are:

Quantum and Advanced Computing,
Intelligent Manufacturing,
Advanced Energy, and
Space, Aerospace, and Defense.

These are fine industries, but as we have seen with Spaceport America, it isn’t easy to predict “the next big thing.”

The report’s critical findings start on page 63. Again, you can download it here. The section is entitled: FACTORS IMPACTING NEW MEXICO’S COMPETITIVENESS. While there are some positives, the negatives include things that RGF has worked on extensively:

Lagging Workforce Participation and Population Growth: At 57.7 percent, New Mexico’s labor force participation rate is in the bottom 10 among all states. Compounding this, its
population has grown by only 0.5 percent since 2020, far behind the national rate of 2.6 percent, limiting the available talent pool.

Deficient K-12 Educational Outcomes: U.S. News & World Report ranked New Mexico last among all states for PreK-12 education. This is driven by low college readiness, poor math
and reading scores, and a high school graduation rate of 78.05 percent—nearly nine percentage points below the U.S. average.

High Crime Rates: Public safety remains a major concern. The state had the second highest rate of violent crime and the highest rate of property crime in the nation,
impacting both quality of life and the ability to attract talent.

Challenging Business and Regulatory Climate: The state ranks 44th overall in CNBC’s “Top States for Business,” with a particularly low rank for Access to Capital (46th).
Stakeholders consistently cite uncertain regulatory processes and a sales tax structure that resembles a gross receipts tax as significant impediments.

Infrastructure Deficits: New Mexico ranks 42nd overall for infrastructure, according to U.S. News. Challenges include limited broadband access, worsening housing affordability,
and a road infrastructure system ranked 48th in the nation.

There’s a lot to the report. It is a worthwhile read for policymakers or anyone who cares about turning around our beautiful but troubled state.