ABQ Economic Crossroads: Analytics & Roadmaps

Mayor Richard J. Berry- NAIOP- February 25, 2013

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ALBUQUERQUE METROPOLITAN AREA

Peer Comparison of Economic

Performance and Underlying Drivers
February 20, 2013

Albuquerque Metropolitan Area

Cities: Albuquerque, Belen, Moriarty, Los Lunas & Rio Rancho Towns: Bernalillo, Estancia, Mountainair, Peralta

Villages: Bosque Farms, Corrales, Cuba, Encino, Jemez Springs, Los Ranchos de Albuquerque, San Ysidro, Tijeras, Willard

ABQ = 60% OF THE METRO POPULATION

PEER CITIES

Colorado Springs CO El Paso TX

Oklahoma City OK
Salt Lake City UT Tucson AZ
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ABQ METRO PERFORMANCE

OUTPERFORMS U.S AVERAGE

POSITIVE JOBS OUTLOOK

UPSIDE POTENTIAL
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ABQ Metro Slower Employment Growth

Payroll employment % Growth, 1990=100
180 160 140 120 100 80 90
Sources: BLS
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ALB OKL U.S. 92 94 96 98 00 02 04

COL SLC

ELP TUC

06

08

10

12

ABQ Metro Lacks Private Sector Employment

Private service employment, 1990=100
190 170 150 130

110
90 90 92 94 96 98 00

ALB OKL U.S. 02 04

COL SLC

ELP TUC

06

08

10

12

Sources: BLS, Moodys Analytics

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Many Highly Educated Workers

Residents with a graduate or professional degree, 2011, %
Colorado Springs Albuquerque Tucson U.S. Salt Lake City Oklahoma City El Paso 0 5 10 15

Sources: Census Bureau, Moodys Analytics

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Well-Funded University Research

Academic R&D spending per $1,000 of output, $, 2007
New Mexico

Utah
Colorado U.S. Arizona Texas 0 1 2 3 4 5 6

Sources: Census Bureau, Moodys Analytics

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Industry Job Growth % Has Been Below Avg

Professional services employment,1990=100
250 225 200 Albuquerque U.S. Peer group avg

175
150 125 100 75 90 95 00 05 10
Sources: BLS, Moodys Analytics
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Well-Funded University Research

Academic R&D spending per $1,000 of output, $, 2007
New Mexico

Utah
Colorado U.S. Arizona Texas 0 1 2 3 4 5 6

Sources: Census Bureau, Moodys Analytics

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Spinning Off Less Private Research

Industry R&D spending per $1,000 of output, $, 2007
Colorado U.S. Utah Arizona Texas New Mexico 0 5 10 15 20 25

Sources: Census Bureau, Moodys Analytics

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Attracting Less Private Investment

Per-capita venture capital equity investment, 2000-2012, $
Colorado
U.S. Utah Texas New Mexico Oklahoma

1,000

2,000

3,000

Sources: PriceWaterhouse Coopers Money Tree Survey, Moodys Analytics

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Locals and Feds Lead Public Declines

Albuquerque government jobs, change from previous year, #
2,000

1,500
1,000 500 0 -500 -1,000 -1,500 Federal Local State

-2,000
2007 2008 2009 2010 2011 2012
Sources: BLS, Moodys Analytics
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Employment Changes Since Recession

Payroll employment, change from previous quarter, #, SA
3,000 2,000 1,000

0 -1,000
-2,000 -3,000 -4,000 -5,000 -6,000 -7,000 -8,000

2007

2008

2009

2010

2011

2012

Sources: BLS, Moodys Analytics

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Stable Public Sector Performance

Government employment, 1990=100
170 160 150 140 130 120 110 100 90 90 92 94 96 98 00 02 04 06 08 10 12
Sources: BLS, Moodys Analytics
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ALB SLC

COL TUC

ELP US

OKL

If We Dont Act Now

Employment, 2012=100
125 120 115 110 105 100 95 12
Sources: BLS
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ALB SLC

COL TUC

ELP U.S.

OKL

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Lack of Exports Constrains Economy

Exports, % of gross metro product
ELP SAY TUC
COO OKL ALB 0 10 20 30 40 50

Sources: BEA, International Trade Administration, Moodys Analytics

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Southwest States & Mexico

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Right to Work

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STATE TAX CLIMATES MATTER

According to the Kaufman Foundation

Texas A+

Oklahoma A+ Utah Arizona A+ C

New Mexico C21

ABQ Economic Development Components

Business Climate Education / Workforce Dev. Bolster Public Sector Public Policy Tax & Reg Exports/Interna tional Trade

JOBS
Tourism / Arts & Culture

Recruit/Retain/ Expand Marketing the Metro

Private Sector Tech Transfer Entrepreneurship

Venture Capital

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Summary

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