Discover what New Mexico needs to do to boost its business climate. Explore expert opinions on shifting attitudes, regulatory challenges, and legislative solutions for a thriving economy in 2024.
New Mexico is at a crossroads. If the state wants to attract more businesses and support existing ones, significant changes are needed. Let’s dive into what local business leaders say about the state’s current climate and how we can shift our mindset to make New Mexico a thriving hub for entrepreneurs.
The Current State of New Mexico’s Business Climate
New Mexico has a lot going for it. We have beautiful weather, low costs of living, and a rich cultural heritage. But there’s a significant barrier: the state’s attitude towards private industry.
1. The Wrong Mindset
Many business leaders in New Mexico believe that the state sees private companies as enemies rather than partners in economic growth.
Rhiannon Samuel, Executive Director of NAIOP New Mexico, emphasises that entrepreneurs genuinely want New Mexico to succeed. They are deeply invested in making the state a better place for everyone. Yet, the prevailing attitude is that business is inherently bad while labour is good.
Read More:
- Changing the Business Climate in New Mexico: What You Need to Know
- Why a Shift in Attitude Towards Business Could Benefit New Mexico
Joe Farr, a Realtor with Duke City Commercial, points out that states like Texas have a more welcoming attitude towards businesses. For instance, Texas’s $10 million investment programmes often result in massive developments. In contrast, New Mexico’s anti-donation clause restricts state funds from being invested directly in the private sector.
2. Rethinking Economic Reliance on Oil and Gas
Jim Peach, a retired economics professor from New Mexico State University, highlights a major issue: New Mexico is overly reliant on the oil and gas industry.
Economic Dependency
- Oil and Gas Revenue: More than 40% of New Mexico’s state budget comes from oil and gas revenues.
- Comparison with Texas: Texas manages a diverse economy with significant contributions from manufacturing and other sectors.
- Risks: Relying on oil and gas is risky. Volatile prices and unpredictable global factors can lead to economic instability.
Explore:
- Why New Mexico Needs to Diversify Its Economy Beyond Oil and Gas
- How Other States Manage Economic Diversity: Lessons for New Mexico
New Mexico must look beyond the boom-and-bust cycle of oil and gas. A diverse economic base is essential for long-term stability and growth.
3. Building a Strong Private Sector
Terri Cole, President and CEO of the Greater Albuquerque Chamber of Commerce, stresses that New Mexico needs to focus on building a robust private sector.
Steps for Growth
- Intentional Efforts: New Mexico must be proactive, not reactive. We need to invest in our private sector with intention.
- Public vs Private Sector: A balanced approach is necessary. We should support both private enterprises and public sector initiatives.
Learn More:
- How to Build a Strong Private Sector in New Mexico
- The Importance of a Balanced Economy for New Mexico’s Future
By focusing on strategic investments and encouraging private businesses, New Mexico can create a more vibrant economy.
4. Streamlining Regulations and Processes
One major hurdle for businesses in New Mexico is the regulatory environment.
Current Challenges
- Complex Regulations: The process for obtaining building permits and navigating state regulations is overly complicated.
- Proposed Solutions: NAIOP advocates for a one-stop-shop portal for business permits and a more streamlined regulatory process.
Read More:
- How to Simplify Business Regulations in New Mexico
- Why Streamlining Permits Can Boost New Mexico’s Business Environment
A simplified regulatory environment can make New Mexico a more attractive place for businesses.
5. The Role of Housing Development
Jim Strozier, President of Consensus Planning, discusses the importance of housing development for economic growth.
Housing and Business Growth
- Affordable Housing: Building more housing can support economic growth by attracting new residents and businesses.
- Addressing NIMBYism: New Mexico needs to overcome Not In My Backyard (NIMBY) attitudes that hinder housing development.
Learn More:
- The Link Between Housing Development and Economic Growth
- How to Combat NIMBYism for Better Housing Solutions
By investing in housing, New Mexico can foster a more dynamic and growing economy.
6. Legislative Efforts and Challenges
Special Session: New Mexico’s upcoming special session will focus on public safety, but it’s crucial for business leaders to advocate for legislation that supports economic growth.
Key Legislation
- House Bill 195: This bill proposes $175 million for development projects, including $100 million for commercial enterprises and $75 million for housing.
Explore:
- How House Bill 195 Could Impact New Mexico’s Business Environment
- Why Supporting Legislation is Key for Business Success in New Mexico
Business leaders must engage in legislative processes to ensure that policies are beneficial for economic development.
7. The Future of New Mexico’s Economy
Bobbi Kay Nelson, a Certified Public Accountant, highlights the need for tax reform to support a more diverse economy.
Tax Structure Issues
- Gross Receipts Tax: New Mexico relies heavily on this tax, which is tied to the oil and gas industry.
- Need for Reform: A shift to a more balanced tax structure could reduce dependency on fossil fuels and support economic diversification.
Learn More:
- The Need for Tax Reform in New Mexico’s Economy
- How New Mexico Can Balance Its Tax Structure for Future Growth
Bobbi Kay Nelson suggests that reforming the tax system is crucial for long-term economic stability.
Conclusion: A Call to Action for New Mexico
New Mexico has immense potential for growth, but it requires a fundamental shift in how we view and support businesses. By adopting a more positive attitude towards the private sector, streamlining regulations, investing in housing, and advocating for thoughtful legislation, we can pave the way for a brighter economic future.
Are you ready to see New Mexico thrive? Share your thoughts on what changes you think are necessary for our state’s success!
