Economic Development Department: NM needs to invest in infrastructure

Diversifying the state’s economy will take decades.

“We’re not just going to turn off the spigot,” said Mark Roper, the New Mexico Economic Development Department division director.

He and other economic officials spoke to the Legislative Finance Committee on Tuesday about the state of New Mexico’s economy. He said the state can’t just abandon the oil and gas or federal government industries — major economic drivers in New Mexico — to create a more balanced economy.

The state economy is driven by four major sectors: government and government enterprises; finance, insurance, real estate, rental and leasing; professional and business services; and mining, quarrying and oil and gas extraction.

The state is over-reliant on industries with limited employment growth, according to the EDD, contributing to lagging economic growth.

“We’re all very well aware of our lack of economic diversification,” Roper said.

Rep. Pamelya Henrdon, D-Albuquerque, asked what the Economic Development Department’s view is on how the economy will be diversified.

Roper said the transition won’t be a magic bullet.

He said the state needs to invest in infrastructure, like utilities and site readiness.

“We need to understand what our assets are from a people standpoint and from a physical standpoint, understand those gaps and then figure out a way to meld those together,” he said.

New EDD Secretary-Designate Rob Black said a diversified economy requires a look at investments outlined in the state’s strategic plan. EDD’s target sectors are aerospace, biosciences, cybersecurity, film and television, global trade, intelligent manufacturing, outdoor recreation, sustainable and green energy, sustainable and value-added agriculture and uranium remediation.

He said the agency’s partnership with the New Mexico Department of Workforce Solutions is important to make training accessible.

“Are we ensuring that every New Mexican has access to these economic opportunities we’re trying to develop?” he said.

Black said New Mexico has unique competitive advantages for diversification, like advanced energy. He pointed to the national laboratories, a uranium enrichment plant and transferable skills in the oil and gas sectors.

“Those are assets you have,” he said. “And so, then, how do you leverage that for future investment?”