NM Economic Development Department Touts growth of NM’s miniscule manufacturing sector

As part of the Department’s effort to tout positive data about New Mexico and its economy, the Economic Development Department sent out the following chart. The upshot of the chart is that over the last year New Mexico experienced 1.4% growth in manufacturing employment while the US as a whole experienced a slight decline of 0.6%.

To be fair, this is indeed good news, but yearly data bounce around all over the place. If you notice four of the top five states in terms of percentage change are small population Western states (including New Mexico). In fact, conveniently, several of the top performing states are in the Western US.

What is more notable than a small yearly change is the fact that New Mexico’s manufacturing employment is so small relative to our neighbors.

Colorado has 6 million people (about 3X New Mexico’s 2 million) but it’s manufacturing employment is more than 5X New Mexico’s.

Arizona has 7.3 million people (3.65X New Mexico’s 2 million) but it’s manufacturing employment is also more than 5X New Mexico’s.

Texas has 31 million people (15.5X New Mexico’s) but it’s manufacturing is 33.4X New Mexico’s.

Don’t get us wrong, New Mexico has seen some positive economic news recently, aided of course by the State’s massive oil and gas boom), but the year-over-year growth touted by NMED is trivial when the State’s fundamental manufacturing (and job growth) climate remains beholden to economically-harmful policies like the gross receipts tax which MLG once supported reform of. 

An effort to reform and reduce New Mexico’s tax structure would have a lasting positive impact on manufacturing and job creation in general. It’s too bad the Gov. and Democrat controlled Legislature won’t embrace them.