New Mexico Underachieves in Manufacturing & Logistics


Ball State University’s Center for Business and Economic Research has more bad news for the Land of Enchantment.

The center’s “2015 Manufacturing & Logistics Report Card” analyzes “how each state ranks among its peers in several areas of the economy that underlie the success of manufacturing and logistics. These specific measures include the health of the manufacturing and logistics industries, the state of human capital, the cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, the state tax climate, and global reach.”

The report card’s metrics “were chosen as those most likely to be considered by site selection experts for manufacturing and logistics firms, and by the prevailing research on economic growth.” New Mexico flunked five of the nine categories:

Manufacturing Industry Health: F
Logistics Industry Health: F
Human Capital: F
Worker Benefit Costs: C
Tax Climate: C
Expected Liability Gap: D
Global Reach: F
Sector Diversification: F
Productivity and Innovation: D

Job-training “incentives,” increased spending on government schools, GRT deductions, and committing more severance-tax revenue to “critical community infrastructure”? The strategy isn’t working. It’s time for something different.

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One Reply to “New Mexico Underachieves in Manufacturing & Logistics”

  1. This is a damning indictment, esp on 1 of only 4 US states that borders Mexico. El Paso has taken off like never before, and I did biz there weekly & in Mexico for several years. The Santa Fe Welfare Plantation System marches on.

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