New Mexico ranks No. 44 on CNBC’s top US states for business

New Mexico has landed at No. 44 on CNBC’s latest Top States for Business rankings, highlighting the state’s ongoing struggle to climb the competitive ladder even as business and government officials court new investment in the quantum and renewable energy spaces.

“Our ranking sure needs to be a lot better than 44th in the country for doing business,” said Terri Cole, Greater Albuquerque Chamber of Commerce president and CEO.

CNBC has used the same categories for its annual study since 2007, measuring the economy, infrastructure, workforce, cost of doing business, quality of life, business friendliness, technology and innovation, education, access to capital and cost of living. This year, CNBC said it added metrics to gauge states’ risks from trade wars and a shrinking federal budget.

New Mexico ranked No. 43 in CNBC’s 2024 rankings. States can earn a max of 2,500 points, and New Mexico scored 1,137 overall in the latest rankings.

“The study’s narrow criteria — focused on (Small Business Administration) loans and direct venture funds — doesn’t capture the full picture,” state Economic Development Department Secretary Rob Black wrote to the Journal. “The State Investment Council’s new $1.8 billion investment strategy is already driving major wins, like the billion-dollar geothermal partnership between XGS and Meta. This new approach is generating real deal flow and attracting forward-looking companies who see New Mexico as a great location for their business to thrive.”

Ernie C’deBaca, president and CEO of the Albuquerque Hispano Chamber of Commerce, thought it was “amazing” that New Mexico still placed in the bottom 10, despite having the state’s national labs and research universities.

One of C’deBaca’s goals has been to try to figure out how the chamber can further help New Mexico businesses with inspections and permitting, he said. To him, small businesses should be treated the same as large ones.

“We ought to try to give them filler-type incentives to try to be successful,” he said. “They’re the ones that hire the people; they’re the ones that work the hardest, the longest hours, and they’re the ones that supply the parts and equipment to the larger businesses.”

Cole said New Mexico needs to improve Downtown, education outcomes and public safety to help increase the state’s ranking.

“It takes the public and private sector, and everyone else, to be on the same page,” Cole said. “Understanding how important this is and coming together with a plan that executes toward the results we need.”

New Mexico has consistently ranked between 24 and 46 since 2007. Its 2021 placement at No. 38 has been the highest in the last five years, but the state’s strongest performance came in 2015 when it tied at No. 24 with Kansas.

“I think New Mexico is a great state — we have a lot going on,” C’deBaca said. “We’re on the cusp of something great that can happen here — we’ve just got to put our collective minds together. Let’s work together as nonpartisan as we can to work in a manner that helps our citizens and our business community grow and prosper.”