To say New Mexico is a hotbed for company research and development is like saying the sun is hot. It's stating the obvious. It's that climate of product development that is keying New Mexico's economy.

As a result of research and development at Sandia in Albuquerque, companies are forming in the area of sensors, micromachines, lasers, and industrial technologies such as high-tech coatings for machinery.

Sensolve and MEMEX are two examples of the commercial applications of the research work. Sensolve is developing sensors for robots and MEMEX recently received venture capital funding for its work in manufacturing micromachines for use in telecommunications.

In addition to Sandia National Laboratories, New Mexico is home to Los Alamos National Laboratory, and the Air Force Research Laboratory at Kirtland Air Force Base in Albuquerque.

From the work at Los Alamos, companies, such as Bios and Bioreason, specializing in complex data mining and complex theory testing, have been formed. Cell Robotics is another spin-out that manufactures a blood monitoring device for diabetics.

Partnerships with these laboratories also attract companies to the state. EMCORE Corp. announced the expansion of its facility located at the Sandia Technology Park in Albuquerque.

EMCORE, which manufactures compound semiconductor solutions for the broadband and wireless communication and solid state lighting markets, tripled its clean room manufacturing capacity by adding 36,000 square feet to its existing 50,000 square foot building.

Intel succeeds in Rio Rancho

When it comes to chip manufacturing, Intel's facility in Rio Rancho will soon rank as one of the most profitable in the world. The company recently announced a $2 billion expansion of Fab 11 at the Rio Rancho facility.

The expansion could add up to 1,000 new jobs to the current 5,200. Fab 11 will feature new technology that allows Intel to manufacture microchips on 12-inch silicon wafers instead of the 8-inch wafers used currently.

The creation of this facility resulted in 2,000 new construction jobs. It is scheduled for completion in late 2001, with full capacity production beginning in late 2002.

"Intel's investment of $2 billion is not only a financial investment, but also an investment in the future," said Terry McDermott, spokesperson for Intel. "We are building Fab 11 so that it accommodates the best technology available today and tomorrow. It will secure Intel as the technology anchor in Rio Rancho for the next 15 to 20 years."

Call centers spring up around the state

Five years ago, New Mexico Sen. Pete Domenici announced an initiative called Rural Payday. The program's goal was to attract new jobs to New Mexico's rural areas.

As a result of this combined federal, state and local effort, nine new call centers located in the state, bringing the total number of call center and back office operations to more than 45.

In the third and fourth quarter of 2000, The Connection, an inbound call center service agency, announced the opening of four centers throughout New Mexico.

"The availability of the work force and partnership of the state and local officials is what attracted us to New Mexico," said Fred Weiner, president of The Connection.

Gap puts headquarters in Albuquerque

Earlier this year, Albuquerque officials welcomed a major retail player to the city. Gap Inc. announced that it would relocate part of its corporate headquarters to the city, bringing with it about 300 financial and human resources jobs.

Gap officials chose Albuquerque from a list of 167 cities. After narrowing the selection to five cities, the company picked Albuquerque due to the quality and availability of potential employees.

According to a company spokesperson, after the initial announcement was made, the company received more than 5,000 resumes for the 350 available jobs. An aggressive incentive package, which included job training funds, also aided in attracting the company.

DEMOGRAPHY AND ECONOMY

Population: 1.8 million

Capital: Santa Fe

Three Largest Cities: Albuquerque, 448,607; Las Cruces, 74,267; Santa Fe, 62,203

GSP: $51 billion

Per Capita Income: $21,836

Percentage of Private Manufacturing Labor Force Organized: 3.0%

Right to Work State: no

Unemployment Rate: 5.4% (August 2001)

Average Hourly Manufacturing Wage: $12.86

Population Age 25 and Over With Bachelor's Degree or More: Albuquerque, 28.4%; Las Cruces, 29.2%; Santa Fe, 36.1%

Corporate Income Tax Rate: 4.8-7.6%

Percentage Employment by Sector: construction, 6.1%; manufacturing, 5.5%; transportation/public utilities, 5.0%; trade, 23.1%; fire, insurance and real estate, 4.3%; services, 29.5%

Primary Industries: construction, services, trade, mining, agriculture, manufacturing

Targeted Industries: telecommunications, biotech/biomedical, optics/photonics, maquila suppliers, electronics manufacturing, food processing

BUSINESS ASSISTANCE

Major Financial Incentives: Industrial Development Training Funds; Industrial Revenue Bonds; Rural Jobs Tax Credit; Manufacturing Equipment Tax Credit

Worker Training Programs: Industrial Development Training Funds; Workforce Development Training Funds

Technology Transfer Programs: Entrepreneurial leave programs from national laboratories

Enterprise Zones: 1; City of Deming, Luna County

Foreign Trade Zones: 3; Albuquerque, Bernardo County; Santa Fe, Santa Fe County; Las Cruces, Dona Ana County

International Trade Offices and Locations: Santa Fe; Mexico City, Mexico; Chihuahua City, Mexico

Environmental Permit Assistance: Assistance from recruiters with environmental permitting process

QUALITY OF LIFE

Price for a New 2,400-sq.-ft. Home: Albuquerque, $206,321; Las Cruces, $216,358; Santa Fe, $318,250

Cost of Living Index: Albuquerque, 100.6; Las Cruces, 98.6; Santa Fe, 118.1

FOR MORE INFORMATION CONTACT

John Garcia, Cabinet Secretary for Economic Development, New Mexico Economic Development Department, 1100 St. Francis Dr., Joseph M. Montoya Bldg., Santa Fe, NM 87505, (505) 827-0300, fax (505) 827-0328, Web: www.NewMexicoDevelopment.com