Chamber CEO: New Mexico needs to improve business climate to thrive

(The Center Square) – New Mexico has some critical areas that need improvement if state leaders want to attract diverse industries, a state chamber study found.

The New Mexico Chamber of Commerce published its research report “Driving New Mexico’s Future: Empowering a Competitive Economy in a Post-Pandemic World” to give direction on the steps needed to achieve diversification, Rob Black, the state chamber’s president and CEO, said.

“Part of what we’re looking at is: where is New Mexico competitive economically with our region?” Black told The Center Square. “Where are we not? And how can we become more competitive?”

The report, he said, is meant to give direction about the steps needed to achieve diversification.

Black pointed out that New Mexico relies on three key economic drivers: oil and gas, the government sector, and retail, making the state more vulnerable to economic swings.

In particular, oil and gas provide between 35 and 40% of the state budget’s revenue, he said.

Why hasn’t New Mexico diversified?

Black said it’s difficult.

“New Mexico really needs to improve its business climate,” Black said.

The state has a disjointed and complicated regulatory regime, which deters businesses from moving to the state, he said.

“Businesses don’t want to invest in that sort of business climate,” he said. “They need to have some sense of surety where things are going to be.”

Another area Black noted for improvement is the size and quality of the state’s workforce. He said the state needs to add more people and improve the skills of the workeforce it already has.

“We’re losing people in New Mexico at the working-age between mid-twenties and mid-40s — we’re actually losing that population out of the state instead of we need to be growing that population,” he said.

Black said New Mexico needs to recruit out-of-state workers for industries already doing well but seeking a larger workforce, including everything from film and television to engineering to aerodynamics, physics and aerospace.

Incentivizing remote work, exempting military pensions from state income tax and reducing the barriers surrounding out-of-state occupational licenses are three of Black’s practical suggestions for attracting people, businesses and economic growth.

Black said they would be working with the legislature and the governor to implement some of the steps outlined in their project.

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