Priority 1 · Delivery Brief

Economic Diversification and Business Growth

Build from what the region does well. Help established employers connect with local suppliers while opening opportunities in adjacent industries.

Suggested coordinating lead
Local economic-development and business-assistance organizations; SNMEDD convenes and supports
First delivery milestone
Complete five county opportunity profiles and at least 25 structured employer/supplier interviews. Month 6.
Outcome to track
Local supplier contracts and dollars retained; business expansions; jobs retained/created and associated wages Assisted-business survival; financing closed; contracts won; ownership transitions; jobs and wages
Read the Goal and Measurable Objectives →Compare Milestones and Planning Resources →

Regional Industry Cluster and Supplier Development Strategy

Strengthen the region’s existing industry clusters while building supplier networks, business retention systems, and diversification pathways that keep more value in Southeastern New Mexico.

Why It Matters

Southeastern New Mexico’s economy is powered by industries that produce real value: energy, agriculture, aerospace, defense, healthcare, education, construction, logistics, tourism, outdoor recreation, and public services. These sectors generate jobs, wages, public revenue, small business demand, and infrastructure needs.

However, the region’s economy is also vulnerable to industry concentration, commodity cycles, workforce shortages, and supply chain leakage. A stronger regional cluster and supplier strategy can help the region retain more local wealth, support business expansion, strengthen resilience, and identify emerging opportunities.

This action is especially important because the CEDS planning process included a Purdue University Cluster Industry Analysis and county-level focus groups where participants reviewed cluster drill-down data showing that five key industries account for a significant share of jobs and establishments in the region.

County-Specific Strategic Direction

Chaves County

Use Roswell’s role as a regional service center to strengthen clusters connected to agriculture, food systems, aviation, healthcare, education, distribution, and professional services. Supplier development should focus on agricultural inputs, processing, aviation maintenance, healthcare support, construction, logistics, and small business services.

Eddy County

Build supplier networks tied to energy, mining, industrial services, WIPP-related activity, environmental compliance, logistics, safety systems, water management, construction, and professional services. Carlsbad and Artesia can serve as anchors for industrial supplier development and business retention.

Lea County

Strengthen supplier development around energy, oilfield services, logistics, renewable energy, industrial safety, construction, equipment maintenance, and technology-enabled field services. Hobbs and Lovington can support a broader business ecosystem, while Jal, Eunice, and Tatum should be integrated into regional supplier and workforce strategies.

Lincoln County

Support clusters tied to tourism, outdoor recreation, hospitality, healthcare, arts, retail, senior services, construction, and small business ownership. Supplier development should help tourism and hospitality businesses become more resilient, support year-round business activity, and prepare for disaster-related disruption.

Otero County

Focus on defense-adjacent services, aerospace, aviation, tourism, healthcare, education, outdoor recreation, and military-serving businesses. Otero’s cluster strategy should connect Alamogordo, Cloudcroft, Tularosa, Holloman AFB, and White Sands-related activity with small business growth and workforce development.

Key Activities

  1. Establish a regional business retention and expansion process that gathers employer intelligence by county and industry cluster.
  2. Conduct structured employer interviews to identify workforce, infrastructure, housing, permitting, financing, supply chain, and site-readiness needs.
  3. Develop county-level cluster profiles for use in recruitment, grant writing, business retention, and workforce planning.
  4. Map supplier gaps and procurement opportunities in energy, agriculture, aerospace, defense, healthcare, tourism, construction, logistics, and public-sector purchasing.
  5. Connect small and mid-sized businesses to technical assistance, certifications, bonding, financing, procurement training, and contracting opportunities.
  6. Promote local purchasing and supplier relationships among major employers, institutions, and public agencies.
  7. Identify emerging diversification opportunities that build from existing strengths, including water technology, energy transition services, aviation services, outdoor recreation, value-added agriculture, remote work, and specialized industrial services.

Lead and Supporting Partners

Potential Lead Partners

  • SNMEDD
  • Local Economic Development Organizations
  • Chambers of Commerce
  • Counties
  • Municipalities

Potential Supporting Partners

  • Major Employers
  • New Mexico Economic Development Department
  • Small Business Development Centers
  • Community Colleges
  • Workforce Boards
  • Procurement Offices
  • Industry Associations
  • Financial Institutions
  • MainStreet Organizations
  • Tourism Partners
  • Private-Sector Business Leaders

Estimated Cost Range

Costs will vary depending on the level of employer outreach, data analysis, supplier mapping, procurement support, technical assistance, and program implementation.

Activity Type Examples Estimated Range
Business Retention and Expansion Outreach $50,000–$150,000
Cluster Analysis and Supplier Mapping $75,000–$250,000
Procurement Readiness and Technical Assistance $150,000–$500,000
Supplier Development Programming $250,000–$1 million+
Regional Marketing, Industry Briefs, and Investment Materials $50,000–$250,000

Potential Funding Sources

  • EDA Planning
  • EDA Economic Adjustment Assistance
  • State Economic Development Funds
  • USDA Rural Business Development Grants
  • Local Government Contributions
  • Private-Sector Sponsorships
  • Chamber Partnerships
  • Foundation Support
  • Industry Contributions
  • Small Business Financing Partners

Performance Measures

  • Number of employers engaged.
  • Number of industry clusters profiled.
  • Number of supplier gaps identified.
  • Number of businesses referred for technical assistance.
  • Number of businesses connected to procurement or contracting opportunities.
  • Jobs created or retained.
  • Private investment supported.
  • Number of expansion or retention opportunities identified.
  • Number of local businesses participating in regional. supply chains.

Timeline

  1. Year 1: Design business retention process, identify priority clusters, and develop outreach tools. Years 1–2: Conduct employer outreach, cluster mapping, and supplier gap analysis.
  2. Years 2-3: Launch supplier development, procurement readiness, and business support activities.
  3. Years 4-5: Update cluster profiles annually and integrate findings into workforce, infrastructure, housing, and small business strategies.