State of New Mexico

To enrich New Mexicans' lives by becoming a national leader in clean energy, creative industries, and equitable opportunity.

State of New Mexico SWOT Analysis

Updated: October 2, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for State of New Mexico was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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This State of New Mexico SWOT analysis reveals a pivotal moment. The state possesses world-class assets in research, culture, and renewable energy, creating a strong foundation for its vision. However, deep-seated weaknesses, particularly in education, poverty, and economic reliance on oil and gas, pose significant hurdles. The primary challenge is execution: converting immense opportunity, amplified by federal funding, into tangible, equitable outcomes for citizens. The SWOT analysis concludes that a relentless focus on economic diversification, water security, educational reform, and innovation is not merely strategic but essential for survival and prosperity in the coming decade. The path is clear, but the will to overcome historical inertia will determine success.

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Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enrich New Mexicans' lives by becoming a national leader in clean energy, creative industries, and equitable opportunity.

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Strengths

CULTURE: Globally unique tri-cultural heritage is a major tourism draw
INCENTIVES: Film program is a top-3 US destination for productions
RESEARCH: Two major national labs (Sandia, LANL) drive innovation
ENERGY: Top-tier solar and wind resources for renewable energy dev
TOURISM: Iconic landscapes and arts scene attract global visitors

Weaknesses

POVERTY: One of the highest poverty rates in the nation at ~18%
EDUCATION: K-12 system consistently ranks in the bottom 5 of states
RELIANCE: Over 30% of state budget from volatile oil & gas revenue
INFRASTRUCTURE: Significant deficits in rural broadband and water systems
HEALTHCARE: Shortages of medical professionals in rural communities

Opportunities

FUNDING: Unprecedented federal IRA funds for clean energy projects
AEROSPACE: Growing commercial space industry at Spaceport America
MANUFACTURING: Reshoring trends favor US locations for key industries
TOURISM: Increased demand for outdoor recreation and sustainable travel
TECH: Commercialization opportunities from national lab research

Threats

WATER: Historic long-term drought threatens agriculture and cities
COMPETITION: Neighboring states (TX, AZ) have lower tax burdens
VOLATILITY: Extreme fluctuations in oil/gas prices destabilize budget
WORKFORCE: 'Brain drain' of skilled graduates to other states
POLITICS: Federal policy changes can impact funding and priorities

Key Priorities

DIVERSIFY: Accelerate economic shift from oil/gas using fed funds
WATER: Urgently implement a statewide water security & infra plan
EDUCATION: Execute bold reforms to fix K-12 and retain graduates
INNOVATE: Systematically convert national lab R&D into local jobs

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State of New Mexico OKR

Updated: October 2, 2025 • 2025-Q4 Analysis

This State of New Mexico OKR plan is a masterclass in focused execution. It directly translates the strategic imperatives from the SWOT into ambitious, measurable outcomes. The objectives—DIVERSIFY, SECURE, ELEVATE, IGNITE—are not just goals; they are a mandate for profound change. The key results are sharp, avoiding vanity metrics in favor of tangible progress in economic resilience, water security, educational mobility, and tech commercialization. This OKR framework provides the clarity and accountability needed to transform New Mexico's immense potential into widespread prosperity, moving it from a state of resource reliance to one of intellectual and creative leadership.

Arizona Texas Colorado Utah Nevada

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enrich New Mexicans' lives by becoming a national leader in clean energy, creative industries, and equitable opportunity.

DIVERSIFY ECONOMY

Build a resilient economy of the future.

INCREASE: The share of non-oil/gas revenue in the state budget from 65% to 70% through targeted growth.
CREATE: 10,000 new high-wage jobs in aerospace, renewables, and biotech via strategic incentive packages.
SECURE: $500M in new private capital investment for businesses outside of the extractive industries.
LAUNCH: Three new workforce development centers focused on advanced manufacturing and digital media skills.

SECURE WATER FUTURE

Guarantee water for generations to come.

FUND: A $500M strategic water infrastructure fund to support large-scale recycling and conservation projects.
REDUCE: Statewide per-capita water consumption by 15% through a combination of technology and policy.
FINALIZE: 100% of outstanding water rights adjudications in two key basins to reduce legal uncertainty.
DEPLOY: A statewide smart-water monitoring network to provide real-time data for agricultural users.

ELEVATE EDUCATION

Create pathways to lifelong success.

IMPROVE: The state's K-12 ranking from 50th to 45th in the nation based on Education Week's index.
BOOST: High school graduation rate from 77% to 85% with a focus on at-risk student support programs.
INCREASE: The average starting teacher salary to be competitive with all neighboring states, reducing vacancies.
DOUBLE: The number of graduates from state universities with degrees in STEM and healthcare fields.

IGNITE INNOVATION

Become a hub for tech and creativity.

ESTABLISH: A joint tech transfer office with LANL/Sandia to spin out 20 new deep-tech startups.
GROW: The film industry's annual direct spending in the state from $1B to $1.5B through new infrastructure.
CONNECT: 95% of New Mexico households to high-speed broadband, eliminating the rural digital divide.
LAUNCH: An AI Modernization Initiative to improve efficiency in three major state government agencies.

METRICS

Median Household Income Growth Rate: Achieve 3.5% annual growth
Gross State Product (GSP) Growth: Exceed national average by 0.5%
Net Migration Rate: Achieve a positive net in-migration of 5,000 people

VALUES

Service to the Public
Cultural Preservation
Integrity and Transparency
Sustainable Stewardship
Equitable Opportunity

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State of New Mexico Retrospective

AI-Powered Insights

Claude

Gemini

GPT

State of New Mexico Official Website (nm.gov)
New Mexico Department of Finance and Administration Reports
U.S. Census Bureau & Bureau of Labor Statistics Data
Recent press releases from the Governor's office
Industry reports on film, energy, and technology sectors
Major news outlets (Albuquerque Journal, Associated Press)

Arizona Texas Colorado Utah Nevada

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enrich New Mexicans' lives by becoming a national leader in clean energy, creative industries, and equitable opportunity.

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What Went Well

FILM: Record-breaking year for film and TV production revenue
RENEWABLES: Exceeded goals for new solar and wind project development
BUDGET: Achieved another multi-billion dollar budget surplus
JOBS: Unemployment rate reached a 15-year low in some quarters
INVESTMENT: Secured major expansion commitments from Intel and Netflix

Not So Well

EDUCATION: Math and reading proficiency scores remain near nation's bottom
HOUSING: Affordable housing crisis worsened in Santa Fe and Albuquerque
CRIME: Violent crime rates in major urban areas remain a challenge
WATER: Key reservoirs like Elephant Butte reached critically low levels
DIVERSIFICATION: Non-extractive industries' growth still lags oil/gas

Learnings

REVENUE: Budget surpluses mask the underlying risk of oil price drops
TALENT: Job creation is outpacing the state's skilled worker supply
POLICY: Big wins in one sector don't automatically lift all boats
INFRASTRUCTURE: Decades of underinvestment can't be fixed in one cycle
URGENCY: The water crisis requires more than incremental solutions

Action Items

WORKFORCE: Fund targeted scholarships for healthcare and teaching roles
HOUSING: Launch a public-private fund to accelerate housing development
WATER: Fast-track funding for large-scale water recycling projects
ECONOMY: Triple the funding for the state's deal-closing fund (LEDA)
EDUCATION: Pilot a 'teacher salary reform' program in two districts

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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State of New Mexico Market

AI-Powered Insights

Claude

Gemini

GPT

State of New Mexico Official Website (nm.gov)
New Mexico Department of Finance and Administration Reports
U.S. Census Bureau & Bureau of Labor Statistics Data
Recent press releases from the Governor's office
Industry reports on film, energy, and technology sectors
Major news outlets (Albuquerque Journal, Associated Press)

Founded: January 6, 1912 (Statehood)
Market Share: Ranked 36th by population, 37th by GSP in the U.S.
Customer Base: 2.1 million residents and businesses in New Mexico.
Category:
State Government
SIC Code: 9199 Administration of General Economic Programs
NAICS Code: 921190 Other General Government Support
Location: Santa Fe, New Mexico
Zip Code: 87501
Congressional District: NM-3 SANTA FE
Employees: 24100

Competitors

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Utah Request Analysis

Nevada Request Analysis

Products & Services

No products or services data available

Distribution Channels

State of New Mexico Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

State of New Mexico Official Website (nm.gov)
New Mexico Department of Finance and Administration Reports
U.S. Census Bureau & Bureau of Labor Statistics Data
Recent press releases from the Governor's office
Industry reports on film, energy, and technology sectors
Major news outlets (Albuquerque Journal, Associated Press)

Problem

Need for public services (education, safety)
Requirement for reliable infrastructure
Demand for economic opportunity and jobs
Preservation of culture and environment

Solution

Operation of state agencies and programs
Public works projects (roads, water, grid)
Economic incentives and workforce training
State parks, museums, and regulations

Key Metrics

Gross State Product (GSP) growth
Median Household Income
Unemployment Rate
Educational Attainment Rate

Unique

Tri-cultural history (Native, Hispanic, Anglo)
Home to Sandia and Los Alamos National Labs
Vast, protected public lands and dark skies

Advantage

Sovereign authority to tax and legislate
Control over vast state trust lands/minerals
Unique federal partnerships and designations

Channels

State government websites (e.g., nm.gov)
Physical offices (MVD, Human Services)
Public school systems and universities
State-funded media and press releases

Customer Segments

Residents (citizens)
Businesses (local and relocating)
Tourists and visitors
Federal government agencies

Costs

State employee salaries and benefits
Medicaid and public assistance programs
Public education funding (K-12, higher ed)
Capital outlay for infrastructure projects

State of New Mexico Product Market Fit Analysis

Updated: October 2, 2025

The State of New Mexico is executing a strategic transformation. By leveraging its world-class federal labs and cultural assets, it's building a resilient economy focused on technology and creative industries. This plan creates high-wage jobs, elevates education, and ensures sustainable prosperity, making New Mexico the premier state for opportunity and quality of life in the Southwest.

Unlocking economic potential beyond oil and gas.

Building educational pathways to prosperity.

Leveraging unique assets for future-proof jobs.

Before State

Over-reliant on volatile oil & gas revenue
Struggling public education system
Limited high-wage job opportunities
Facing severe water scarcity challenges

After State

Diverse, resilient, high-growth economy
Top-quartile K-12 and higher education
Thriving hub for tech, creative industries
A secure and sustainable water future

Negative Impacts

Boom-and-bust budget cycles hurt services
'Brain drain' of talented young people
Persistently high poverty rates
Threats to agriculture and way of life

Positive Outcomes

Stable funding for critical state services
Increased median household income for all
Net in-migration of skilled workers
Long-term prosperity and quality of life

Key Metrics

Net Migration Rate

-0.2% (2023)

Citizen Satisfaction Index

Varies by service

Business Formation Rate

+4.8% (2023)

GSP Growth Rate

+2.1% (2023)

Requirements

Sustained, strategic public investment
Bold policy reforms in education/economy
Strong public-private partnerships
Statewide commitment to conservation

Why State of New Mexico

Targeted economic development incentives
Modernizing educational curriculum & pay
Building innovation hubs around nat'l labs
Investing in large-scale water projects

State of New Mexico Competitive Advantage

Unmatched federal lab assets for R&D
Unique cultural identity attracts talent
Abundant solar and wind resources
Generous film production incentives

Proof Points

Billions in film production spending yearly
Major new investments from Netflix, Intel
Fastest-growing renewable energy sector
Los Alamos/Sandia Labs innovation engine

State of New Mexico Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

State of New Mexico Official Website (nm.gov)
New Mexico Department of Finance and Administration Reports
U.S. Census Bureau & Bureau of Labor Statistics Data
Recent press releases from the Governor's office
Industry reports on film, energy, and technology sectors
Major news outlets (Albuquerque Journal, Associated Press)

Strategic pillars derived from our vision-focused SWOT analysis

DIVERSIFY

Aggressively shift economic reliance from oil & gas

INNOVATE

Leverage federal labs to build a tech-based economy

EDUCATE

Transform public education into a top-25 US system

SUSTAIN

Secure New Mexico's water future through conservation

What You Do

Provides public services, infrastructure, and economic stewardship.

Target Market

Residents, businesses, and visitors of New Mexico.

Differentiation

Tri-cultural heritage (Native, Hispanic, Anglo)
Major federal research labs
Vast renewable energy potential

Revenue Streams

Gross receipts (sales) tax
Income tax (personal & corporate)
Oil and gas production taxes
Federal government funding

State of New Mexico Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

State of New Mexico Official Website (nm.gov)
New Mexico Department of Finance and Administration Reports
U.S. Census Bureau & Bureau of Labor Statistics Data
Recent press releases from the Governor's office
Industry reports on film, energy, and technology sectors
Major news outlets (Albuquerque Journal, Associated Press)

Company Operations

Organizational Structure: Executive, Legislative, and Judicial branches.
Supply Chain: Manages public works, services via state agencies & contractors.
Tech Patents: Primarily through partnerships with Sandia & Los Alamos Labs.
Website: https://www.nm.gov/

Top Clients

Board Members

Not applicable; governed by elected officials and legislature.

State of New Mexico Competitive Forces

Threat of New Entry

NONE: The threat of new entry is non-existent. The geopolitical framework of the United States is fixed, and new states cannot be created to compete.

Supplier Power

HIGH: The Federal Government is a critical supplier of funds (~25% of budget) and can dictate terms. The oil & gas industry is a key revenue supplier with significant lobbying power.

Buyer Power

MODERATE: Voters ('buyers' of governance) can change leadership every 2-4 years. Large corporations can demand significant incentives to locate or stay, effectively dictating terms.

Threat of Substitution

HIGH: Residents and businesses can easily substitute New Mexico by relocating to other states, particularly those in the lower-cost, high-growth Sun Belt region.

Competitive Rivalry

HIGH: Intense competition from AZ, TX, CO for businesses, talent, and federal investment based on taxes, regulation, and quality of life.

Analysis of AI Strategy

Updated: October 2, 2025 • 2025-Q4 Analysis

The State of New Mexico AI SWOT analysis highlights a significant asymmetric opportunity. The state's possession of two premier national research labs provides a world-class AI R&D foundation that few others can claim. This is a decisive strength. However, the strategy is critically hampered by a weak private-sector talent pipeline and slow adoption rates. The path forward must be a focused campaign to bridge this gap. The state must act as the primary catalyst, using its resources to build educational pathways and incentivize public-private partnerships centered on the labs. The goal is not just to use AI, but to become a creator of applied AI solutions in water, energy, and governance, turning a research advantage into a durable economic engine.

Arizona Texas Colorado Utah Nevada

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To enrich New Mexicans' lives by becoming a national leader in clean energy, creative industries, and equitable opportunity.

Strengths

RESEARCH: National labs are hubs for advanced AI and ML research
DATA: State holds vast datasets on energy, water, and public health
TESTING: Unique geography allows for testing AI in robotics/drones
GOVERNMENT: Centralized state data can be used to train service AIs

Weaknesses

TALENT: Severe shortage of private-sector AI developers and engineers
ADOPTION: Low AI implementation among local businesses and agencies
DIGITAL-DIVIDE: Unequal access to broadband hinders widespread AI use
TRAINING: Lack of university and vocational programs focused on AI

Opportunities

OPTIMIZE: Use AI to manage water resources and energy grid efficiency
SERVICES: Deploy AI chatbots to improve citizen access to services
AGRICULTURE: Implement precision AI to boost crop yields and save water
HEALTHCARE: Leverage AI for remote diagnostics in underserved rural areas
CREATIVE: Utilize generative AI tools to enhance film/media production

Threats

COMPETITION: Other states are creating more aggressive AI talent hubs
ETHICS: Risk of biased AI algorithms in government decision-making
JOBS: Potential for AI to displace workers in key administrative sectors
SECURITY: Increased cybersecurity risks from AI-powered threats

Key Priorities

PIPELINE: Build an AI talent pipeline via education and scholarships
PARTNERSHIP: Create a public-private AI center with the national labs
MODERNIZE: Pilot AI solutions to improve government service delivery
INVEST: Launch a state fund to support local AI startup companies

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State of New Mexico Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

State of New Mexico Official Website (nm.gov)
New Mexico Department of Finance and Administration Reports
U.S. Census Bureau & Bureau of Labor Statistics Data
Recent press releases from the Governor's office
Industry reports on film, energy, and technology sectors
Major news outlets (Albuquerque Journal, Associated Press)

Profit: FY24 Budget Surplus: ~$3 Billion

Market Cap: Not Applicable

Stock Performance

Annual Report: NM Dept. of Finance and Administration website

Debt: General Obligation Bond Debt: ~$7.5 Billion

ROI Impact: Measured by GSP growth, job creation, citizen well-being.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Challenger with Potential

ICM Index

STRATEGIC ADVISOR ASSESSMENT

New Mexico has a high-ambition, societal-level vision, but its achievability is constrained by deep-rooted weaknesses in education and poverty. The OKRs and Core Strategy are well-defined and potent, but the severe downside risks from the SWOT analysis (water, economic reliance) weigh down the overall score. AI leverage is a significant but unrealized opportunity. The state is a challenger with the assets to transform, but execution against historical inertia is the key variable.

SWOT Factors

Upside: 74.0 Risk: 83.3

OKR Impact

AI Leverage

Top 3 Strategic Levers

Systematically commercialize national lab IP to create jobs

Execute bold, structural reforms in K-12 education system

Aggressively fund and build large-scale water infrastructure

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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