CEDSStrategic Direction and Action Plan
Priority 1: Economic Diversification and Business Growth
Strengthen and diversify the regional economy by supporting business expansion, entrepreneurship, supplier development, and industries that complement Southeastern New Mexico's existing economic strengths.
Strategic Priority 1
Why This Priority Matters
The Regional Need
Southeastern New Mexico possesses significant economic strengths. Energy, agriculture, tourism, defense, healthcare, education, public-sector institutions, and service industries all contribute to regional employment and economic activity. Those strengths should remain central to the region's economic strategy. At the same time, long-term resilience depends on reducing vulnerability to any single industry, employer, commodity cycle, or source of public investment. Economic diversification therefore does not mean moving away from the industries that have made the region successful.
- It means creating more economic opportunity around them.
- It means helping existing businesses grow.
- It means strengthening supply chains.
- It means encouraging entrepreneurship.
- It means identifying industries that complement existing assets.
- And it means creating more pathways for local businesses to participate in the economic activity already occurring throughout Southeastern New Mexico.
Regional Goal
Strengthen and diversify the regional economy by supporting business expansion, entrepreneurship, supplier development, and industries that complement Southeastern New Mexico's existing economic strengths.
Regional Opportunities
Strengthen Existing Businesses
Business retention and expansion should remain one of the region's most important economic-development strategies.
Existing businesses already employ local workers, purchase local services, contribute to the tax base, and understand the advantages and challenges of operating in the region.
Regional partners should continue identifying barriers that may prevent existing employers from expanding.
These may include:
- workforce shortages
- infrastructure capacity
- access to capital
- housing availability
- transportation
- regulatory complexity
- supplier limitations; and
- site or facility constraints.
The objective is not simply to identify business concerns.
It is to connect those concerns with organizations capable of helping resolve them.
Expand Regional Supply Chains
Some of the greatest opportunities for diversification may already exist within industries operating in the region.
Energy, defense, agriculture, healthcare, construction, government, and tourism all purchase goods and services.
Where possible, Southeastern New Mexico should capture more of that spending locally.
Potential opportunities may include:
- equipment repair and maintenance
- fabrication and manufacturing
- engineering and technical services
- professional services
- environmental services
- transportation and logistics
- construction
- technology
- food production and processing
- hospitality services; and
- federal and institutional contracting.
Supplier-development efforts should focus on identifying gaps between what major employers purchase and what regional businesses currently provide.
Support Entrepreneurship
Entrepreneurship is an important component of economic diversification, particularly in rural communities.
Small businesses help retain local spending, create employment, respond to unmet community needs, and provide pathways for residents to build economic independence.
Regional partners can strengthen entrepreneurship through:
- technical assistance
- business planning support
- access to capital
- procurement education
- mentorship
- small-business networking
- succession planning
- business incubator or accelerator partnerships; and
- improved awareness of available resources.
Pursue Complementary Industries
Industry attraction should be strategic.
Rather than pursuing every possible opportunity, regional partners should prioritize industries that align with existing assets, infrastructure, workforce capabilities, institutions, or supply chains.
Potential areas of alignment may include:
- advanced manufacturing
- energy technology
- aerospace and defense
- food and agricultural processing
- logistics
- professional and technical services
- emerging energy industries
- technology-enabled services; and
- tourism-related businesses.
The strongest opportunities will be those that build on advantages already present in the region.
SNMEDD's Role
SNMEDD can support this priority by:
- convening economic-development partners
- identifying shared business-development opportunities
- supporting grant and funding research
- helping communities connect projects to state and federal resources
- supporting regional supply-chain analysis
- maintaining regional economic data
- helping identify emerging industry trends; and
- facilitating collaboration when opportunities cross jurisdictional boundaries.
Measures of Progress
Progress may be evaluated through indicators such as:
- business expansions supported
- new business starts
- capital investment
- jobs created or retained
- supplier-development activity
- federal or institutional contracting activity
- small-business technical assistance
- industry diversification; and
- regional projects advanced through funding or technical support.
Measurable Objectives
Recommended milestones from the start of the authorized work program.
Month 6
Complete five county opportunity profiles and at least 25 structured employer/supplier interviews.
Month 12
Select two supplier-development pilots using documented demand, workforce capacity, and infrastructure readiness.
Years 2–3
Publish annual results for the pilots, including verified local purchasing, business expansion, and job quality.
Month 6
Publish one shared referral directory and hold an accessible business clinic in each county.
Month 12
Provide individualized assistance to at least 25 unique businesses, including succession and financing readiness.
Years 2–3
Report 12-month business survival and verified financing or procurement outcomes for the assisted cohort.
Planning connections: New Mexico Economic Development Department: State Plan; EDA: Strategic Direction/Action Plan. Reviewed September 26, 2026.