The Manufacturing Industry: Building Back Fast

Despite turbulence caused by labor and supply chain challenges, the manufacturing industry is experiencing a positive trajectory as it recovers from the pandemic.

MANUFACTURING OF THE FUTURE IN NEW MEXICO

Advanced Manufacturing is one of New Mexico’s strongest industries. New Mexico supports manufacturing operations in nearly every industry sector, everything from aerospace and defense, to emerging technologies, to wind and solar, and food production. Companies from around the world are choosing New Mexico as they look for U.S. manufacturing locations to support their changing global footprint. Manufacturers in New Mexico benefit from the state’s strategic location, granting quick access to key consumer markets both nationally and internationally, a relevant talent pool of experienced workers, and a world-class business climate with a suite of strong state incentives.

New Mexico
The Airforce Research Lab is an integral part of New Mexico’s R&D and manufacturing ecosystem. (Photo: New Mexico Partnership)

Companies like WTEC Energy which manufactures an innovative and resilient wire cable that powers both solar and wind energy units recently selected New Mexico for its next manufacturing expansion. The expansion is expected to create 315 manufacturing jobs in a rural community. The company chose New Mexico over other locations thanks in part to the state’s fast-growing wind and solar industries.

The southern part of the state, New Mexico’s border region, has been home to manufacturing and distribution for many years and has seen several recent new projects from international companies looking to nearshore their operations. These companies can take advantage of the region’s quick and easy access to Mexico, via the Santa Teresa border crossing, and the state’s central location for both national and international consumer markets. For example, two Mexico-based food producers, Rio Blue Produce and Sierra Madre Foods Inc., chose Santa Teresa, NM in order to move their supply chain closer to their U.S. consumer base. Three companies from Taiwan (Admiral Cable, Xxentria and Cymmetrik) are all also establishing a manufacturing presence along the border region, in Southern New Mexico. The most recent of these three companies to announce, Cymmetrik, is the largest label printer and converter in China and the New Mexico location will be the company’s first U.S. location.

New Mexico continues to see its existing manufacturing base expand. Intel, in response to an increase in demand for semiconductor chips, will undergo a massive manufacturing expansion at its Rio Rancho, NM location. Intel has had a presence in New Mexico since 1980 and is now planning to invest an additional $3.5 billion as well as hire at least 700 high-tech jobs and 1,000 construction jobs to complete the expansion. The expansion is a major vote of confidence for New Mexico’s advanced and high-tech manufacturing industry. Building around the success of New Mexico’s high-tech manufacturing and emerging space industries, BlueHalo, an integrated national security and technology company, recently chose the new MaxQ site in Albuquerque, NM for a new state-of-the-art manufacturing, research, and technology complex. This new complex will play an important part in New Mexico’s growing role as a leader in the aerospace and defense, and emerging space industries. This expansion will create 64 new jobs and BlueHalo plans to invest $60 million into the site.

New Mexico provides several key advantages for advanced manufacturing operations. The state grants quick access to key consumer markets both nationally and internationally. New Mexico is equidistant by rail from two major port regions (LA/Long Beach and Houston/Galveston), as well as being proximate to 75% of the U.S. population within two days via truck. The state also shares a border with Mexico, providing a unique opportunity for companies looking to make use of multi-national operations. When it comes to talent New Mexico has over 180,000 experienced workers in roles related to manufacturing and provides access to a high concentration of R&D talent in the science and engineering fields, thanks to the state’s long history of innovation. The state has also focused on proactively maintaining a business-friendly environment with some of the strongest incentive programs in the U.S. One of the most impactful of these incentives is the state’s flagship program, the Job Training Incentive Program (JTIP). This program offers cash reimbursements for on-the-job and classroom training for expanding or relocating businesses for up to six months. In addition, the state’s discretionary incentive, the Local Economic Development Act (LEDA), can be used toward the reimbursement of land, building or infrastructure improvement costs (funding awards are determined on a project-by-project basis).

The New Mexico Partnership is designated by the state to be the single-point-of contact to help businesses locate in New Mexico. It offers a coordinated approach and a formal network of economic developers to simply the site selection process. To get started with your project needs in New Mexico, visit www.nmpartnership.com.