CEDSSummary Background Industry Clusters
Aerospace, Defense & Manufacturing
Aerospace and defense activity connects technical talent, supplier development, research, and industrial infrastructure.
- Specialized Assets
- Technical Skills
- Supplier Networks
Introduction
Connect Specialized Assets With Local Capacity.
Holloman Air Force Base, White Sands Missile Range, Roswell’s aviation assets, and regional fabrication capabilities give southeastern New Mexico a technical foundation for aerospace, defense support, and advanced manufacturing. The CEDS profile reports about 5,600 cluster jobs in 2024, compared with 4,600 in 2020. The value of this cluster lies not only in an installation or aircraft, but also in maintenance, component production, logistics, digital skills, and qualified local suppliers.
Otero and Chaves carry different anchor roles, while Lea, Eddy, and Lincoln can connect through manufacturing and workforce pathways. Site readiness, procurement access, technical training, and realistic interregional partnerships matter more than assuming every new technology will create a local project.
01At a Glance
Two Years, Side by Side
2020 and 2024 observations · Bars begin at zero.
View the Full Metrics Table and Sources
| Indicator | 2020 | 2024 | Change |
|---|---|---|---|
| Regional GRP Share | 2.30% | 3.70% | + 1.4 pp |
| Active Installations / Facilities | 3 | 5 | 67% |
| Employment | ≈ 4,600 | ≈ 5,600 | 22% |
| Average Annual Wage | $69,200 | $78,400 | 13% |
| LQ (Regional Average) | 1 | 1.2 | ↑ |
(Sources: NM DWS 2024; BEA 2024; USAF Holloman Economic Impact Statement 2024; Purdue Cluster Analysis 2024)
02Cluster Typology by County
This following illustrates the cluster status and key role each county plays within the aerospace/defense industry across Southeastern New Mexico.
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Cluster Status by County
| County | Cluster Status | Key Role |
|---|---|---|
| Lea | Transforming | Advanced manufacturing and energy-related fabrication; workforce crossover potential. |
| Eddy | Emerging | Equipment manufacturing and industrial logistics tied to energy and mining. |
| Chaves | Mature | Aviation maintenance and training hub; Roswell Air Center and manufacturing assets. |
| Otero | Star | Defense and aerospace cluster anchored by Holloman AFB, NASA White Sands, and support industries. |
| Lincoln | Emerging | Aerospace-adjacent workforce potential; small-scale manufacturing and drone testing. |
(Source: Purdue Cluster Analysis 2024; SNMEDD County Profiles 2024; USAF EIS 2024)
County-by-County Overview
Lea County (Transforming)
Lea County’s manufacturing base is evolving from energy equipment fabrication into precision components and materials handling. The Lea County Regional Airport and industrial park infrastructure provide logistics advantages for manufacturing diversification. Local training partnerships between New Mexico Junior College and private employers are preparing workers in welding, automation, and industrial systems aligned with advanced manufacturing standards.
Eddy County (Emerging)
Eddy County leverages its industrial workforce and transportation infrastructure to attract machinery manufacturing and metal fabrication firms that support both the energy and defense supply chains. The Carlsbad Industrial Park is being evaluated for aerospace-component logistics and material staging operations, supported by proximity to Texas manufacturing corridors. Continued investment in workforce housing and industrial utilities will be key to future growth.
Chaves County (Mature)
Chaves County is a recognized aviation and aerospace hub anchored by the Roswell Air Center (RAC), one of the largest airfields in North America. RAC supports aircraft maintenance, storage, and testing, attracting tenants including MRO (Maintenance, Repair, and Overhaul) firms, parts manufacturers, and flight-training schools. The area also benefits from NASA and private aerospace testing partnerships through the New Mexico Space Grant Consortium. Chaves County’s existing industrial workforce, supported by ENMU-Roswell, makes it a cornerstone for regional aerospace expansion.
Otero County (Star)
Otero County stands as the region’s epicenter for defense and aerospace activity. Holloman Air Force Base contributes approximately $500 million annually to the regional economy through direct and indirect spending. The base supports pilot training, unmanned aerial systems (UAS), and maintenance operations for the U.S. Air Force, generating high-skill, high-wage employment. Complementing Holloman, White Sands Missile Range and NASA’s testing facilities drive research collaboration opportunities. Otero’s emerging synergy between military, renewable energy, and advanced manufacturing sectors positions it as a linchpin for the state’s defense innovation strategy.
Lincoln County (Emerging)
Lincoln County’s mountain environment and open airspace create opportunities for drone testing and aerospace training partnerships. While its manufacturing base is small, Lincoln’s proximity to Ruidoso and Holloman AFB supports growth in defense contractor housing and technology entrepreneurship. Lincoln can also benefit from creative-tech crossover as remote work and innovation hubs expand.
03Industry Trends and Technology Shift
Defense Modernization & Federal Investment
Increased Department of Defense (DoD) funding for pilot training, UAS operations, and space testing has strengthened Otero’s position in national defense readiness.
Additive & Advanced Manufacturing
3D printing, composites, and automation technologies are being introduced in Chaves and Lea Counties, supporting smaller, flexible production lines that complement larger national manufacturers.
Spaceport & Aerospace Synergies
Spaceport America, while outside the immediate SNMEDD region, provides spillover opportunities for regional contractors and supply-chain firms.
STEM Workforce Pipeline
Partnerships with NMSU-Alamogordo, ENMU-Roswell, and local high schools are expanding STEM-focused programs to prepare technicians and engineers for aerospace careers.
Supply Chain Reshoring
Post-pandemic disruptions have created new incentives for domestic manufacturing. Southeastern New Mexico’s available land, workforce, and affordability position it as a strategic location for secondary production and logistics centers.
04Regional Risks and Structural Stresses
Federal Dependency
Reliance on defense budgets introduces fiscal volatility tied to national policy.
Infrastructure Limitations
Industrial parks require upgrades to water, broadband, and utilities to attract higher-tier manufacturing.
Workforce Competition
Recruitment challenges arise as private firms compete with federal installations for technical talent.
Technology Gaps
Many smaller manufacturers need support adopting automation and digital production tools.
Interregional Coordination
Collaboration with adjacent aerospace hubs (e.g., Las Cruces, El Paso) is critical for supply-chain integration.
05Key Insights
Key InsightsDefense Innovation & Contractor Alignment
Defense Innovation & Contractor AlignmentStrengthen partnerships with Holloman AFB, NASA, and White Sands to expand local contractor opportunities.
Technology Adoption Support
Technology Adoption SupportProvide incentives and training for automation, digital design, and additive manufacturing adoption.
Manufacturing Infrastructure Modernization
Manufacturing Infrastructure ModernizationUpgrade industrial parks with utilities, broadband, and logistics capacity to attract advanced manufacturing tenants.
Regional Supply Chain Integration
Regional Supply Chain IntegrationCollaborate with southern NM and west Texas aerospace corridors to align marketing and investment strategies.
STEM Workforce Development
Expand engineering, robotics, and aviation training programs through NMSU-Alamogordo and ENMU-Roswell.