Industry hopes for New Mexico in 2023
ALBUQUERQUE, N.M. – As we ring in the new year in New Mexico there are a handful of industries that are saying 2023 will be their year.
We looked at the New Mexico Bureau of Business and Economic Research’s predictions for four industries: cannabis, aerospace, oil and gas, and film.
According to the BBER, they are all predicted to grow, but some are expected to increase way more than others.
Recreational marijuana has been legal for less than a year in our state. According to the Bureau of Business and Economic Research, in eight months the cannabis industry brought in $5.1 million in state tax revenue. While that is shy of the $5.4 million state leaders originally estimated, they are still hoping to see a big increase in sales this year.
The BBER is projecting $22.7 million in tax revenue in 2023. That is a 358% increase from 2022.
New Mexico is also looking towards the stars this year.
“We were the leader in the first space age, and we now have the opportunity to lead in this new space era,” New Space New Mexico Founder and CEO Casey Anglada DeRaad said.
New Mexico’s aerospace industry is also expecting to see more growth this year, especially in the number of space companies based here.
“So when we first started out, we gathered what companies are here working, and we had about 60 companies. Right now we are updating our information but I can tell you are working with more than 80 companies that are here and operating, and others that are thinking of coming and I think that the New Mexico companies that are here and operating is growing to at least 150,” Anglada DeRaad said.
OIL AND GAS
One of New Mexico’s biggest industries is expected to get bigger.
The BBER reports in 2022 oil producers in new Mexico produced 531 million barrels. That number is expected to increase to 618 million in 2023.
As for how much money that means for the state– the BBER predicts record levels of severance taxes and federal royalty payments this year. Predicting about 62% of the general fund growth in 2023 will be from oil and gas money.
The New Mexico Film Office announced the second season of “Dark Winds” will be filmed here. The production will be employing 200 local crew members and 150 New Mexican actors.
Other productions coming to our state include multiple short films called “Neon vowels,” “Pollo loco,” and “The other v word.”
The film office is projecting $69 million will come into our state this year, thanks to film.
Gov. Michelle Lujan Grisham mentioned multiple industries in her inauguration speech Sunday – including her goal to create new jobs statewide among many of them.
“Our efforts to spread economic opportunity to every community, every tribal nation and every individual no matter their background will continue with renewed enthusiasm. As I mentioned, we are creating new jobs at a rate not seen in this state in many, many years,” said Lujan Grisham.
The BBER predicts the first few months of 2023 will have slower economic growth – but says it will pick up in the second half of the year.