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FY 2015 Defense Spending By State report now available for download.

State of New Mexico DIA


Regional Background

With a large defense industry sector, four military installations, three national laboratories, and three research universities, New Mexico has long been an effective partner in preserving the security of the nation in peace and war. For decades, it has provided a solid foundation for current and future mission capabilities. As reductions or cancellations in defense spending occur, New Mexico expects to be negatively impacted in terms of lost jobs and economic vitality. Moreover, suppliers critical to DoD’s manufacturing base may also be lost.

Project Overview

DoD’s Office of Economic Adjustment provided the New Mexico Economic Development Department (NMEDD) a Defense Industry Adjustment grant to help the state collect and analyze data on military and defense sectors and then use that data to plan and identify the state’s capacity and capability to respond to the industry downsizing. The project includes:

  • An assessment of New Mexico’s defense ecosystem and how it might be impacted by DoD budget reductions.
  • Identification of at-risk businesses within the defense supply chain and the resulting economic and/or strategic impact on the state and/or nation.
  • An analysis of industry clusters and other state assets that might support the development of adjustment and diversification strategies through workforce development, strategic partnering, business assistance, technology transfer and commercialization, and/or customer development.
  • Increased awareness among in-state private sector, defense, and local government stakeholders of New Mexico’s vulnerability to cuts in defense spending to enhance collaboration for developing community adjustment and diversification strategies.
  • A central conduit for networking, information gathering, and dissemination to enhance New Mexico’s ability to respond to the needs of the defense community in the state.
  • The development, through a pilot study, of an innovation and technology commercialization adjustment and diversification methodology.
  • The development of other adjustment and diversification methodologies that can be implemented throughout the state.

Projected Outcomes

As a result of this grant, New Mexico expects to be better organized to address the needs of its defense contracting community. By mapping all assets in the network and working strategically at the state and local levels to align economic adjustment and diversification strategies, New Mexico will be able to position its defense sector for growth regardless of changing national defense priorities.