NMSS - Why Metro NM: Lower Business Costs

Why Metro NM: Cost of Living

shawna — Mon, 22 May 2006 14:44:27 -0600

Cost of Living in Metro New Mexico

Communities throughout Metro New Mexico offer a broad range of amenities and lifestyles that are both attractive and affordable. In New Mexico, the overall cost of living ranks around the national average. Add to that:

a business-friendly atmosphere
a great work ethic
some of the nation's shortest commute times
a strong and healthy economy
one of the best quality of life rankings in America

Together, you get one of the best values in the nation when it comes to cost of living.

The cost of living index produced by the American Chamber of Commerce Researchers Association (ACCRA) compares price levels for consumer goods and services where 100.0 denotes the national average for all participants. The index reflects cost differentials for a mid-management standard of living.

ACCRA Cost of Living Index (Q4 2005)

Dallas, TX -94.6

Phoenix, AZ - 100.4

Denver, CO - 100.6

Albuquerque, NM - 100.7

Las Vegas, NV - 109.9

Portland, OR - 115.5

Los Angeles, CA - 159.0

Cost of Living category breakdowns compared to base of 100 nationwide.

ACCRA Cost of Living Index Fourth Quarter 2005
	Albuquerque	Rio Rancho	National
Composite Index	100.7	97.7	100
Housing	105.8	85.6	100
Transportation	104.3	107.4	100
Healthcare	98.9	105.3	100
Groceries	106.4	97.7	100
Utilities	95.2	97.4	100
Other (misc)	95.2	98.7	100

Utilities

PNM electric rates are significantly lower compared to rates in other southwestern states.

Current PNM rates vs. SW Regional Average rates through Nov. 2005 (AZ, CA, CO, ID, MT, NM, NV, OR, TX, UT, WA and WY)
FERC Class	Current PNM Rates (cents per kWh)	PNM vs. the Region
Residential	8.20	21.2% Lower
Commercial	7.15	27.4% Lower
Industrial	4.79	33.4% Lower
Retail	7.12	22.1% Lower

Source: PNM & Energy Information Administration data

PNM electric rates are also lower than the national average.

Current PNM rates vs. US average rates through Nov. 2005
FERC Class	Current PNM Rates (cents per kWh)	PNM vs. the U.S.
Residential	8.20	14.3% Lower
Commercial	7.15	20.3% Lower
Industrial	4.79	15.1% Lower
Retail	7.12	12.7% Lower

Source: PNM & Energy Information Administration data

New Mexico personal income growth posted a robust 7.5 percent gain in the second quarter of 2005.

Bernalillo County (Albuquerque) $31,160

Sandoval County (Rio Rancho) $25,468

Santa Fe County (Santa Fe) $34,448

Torrance County (Estanica Valley) $20,483

Valencia County (Belen/Los Lunas) $22,968

The three year (2002-2004) average median household income for New Mexico is $37,587.

Why Metro NM: Cost of Energy

shawna — Mon, 22 May 2006 14:41:20 -0600

Cost of Energy

Discover the powerful advantages of Metro New Mexico. We can offer your business highly reliable, low-cost energy compared to other parts of the nation.

Public Service Company of New Mexico (PNM), which provides both electricity and natural gas to the region, is one of the most reliable power providers in the country with a rated reliability of more than 99.98% from 1995 through 2004. PNM's rates are already significantly lower than rates in other southwestern states.

PNM is committed to helping its business customers manage energy use. Experienced account managers can assist you with administrative and billing issues, electricity and natural gas technology research, and planning for expansion or relocation.

PNM maintains several programs to maximize power reliability, especially for manufacturing or research businesses. You can take advantage of PNM's educational and analytical programs to increase your energy efficiency and reduce your energy costs:

Business energy analysis
Business learning and enrichment
PNM Energy Academy,®
PNM Energy Bulletin
Tree Trimming Program

See How PNM Can Help Your Business

Incentives that Energize

Generating power from renewable fuels such as wind, solar power, and biomass has many benefits. New Mexico offers a number of incentives for renewable energy development, manufacturing and use:

Why Metro NM: Cost of Labor

shawna — Mon, 22 May 2006 12:32:50 -0600

Cost of Labor

New Mexico has one of the lowest cost of labor rates in the country. In July 2005, Business Facilities Magazine named New Mexico 3rd Best State for Cost of Labor and in May 2006 Forbes Magazine ranked Albuquerque as having the lowest cost of doing business of 200 metropolitan areas.

New Mexico is also a national leader in other low costs borne by employers:

New Mexico's unemployment insurance tax rate is 1% or less. (Virginia leads with 0.2%.)
New Mexico workers' compensation rate is less than $3.00 per $100 of payroll. (By comparison, California's rate is $12.45.)
Wages are lower than 36 other states and the District of Columbia.

Best States for Cost of Labor
1	South Dakota
2	Arizona
3	New Mexico
4	Utah
5	Mississippi
6	North Carolina
7	Idaho
8	Geogia
9	Arkansas
10	Virginia

Source: Business Facilities July 2005 Survey

Best Cities for Cost of Doing Business
Rank	Metro Area	Cost of Doing Business	Job Growth	Educational Attainment	Population
1	Albuquerque NM	1	60	54	793,100
2	Raleigh NC	43	52	11	934,200
3	Houston TX	21	77	70	5,257,100
4	Boise ID	51	22	91	534,100
5	Knoxville TN	26	35	93	654,200
6	Phoenix AZ	55	16	88	3,813,000
7	Nashville TN	28	64	79	1,414,000
8	Durham NC	24	117	6	457,600
9	Fayetteville AR	23	7	141	399,700
10	Indianapolis IN	47	80	64	1,637,300

Source: Forbes Magazine, 2006

Average Wages Per Job 2003
Rank	United States	$37,154
1	Montana	$26,830
2	South Dakota	$26,877
3	Mississippi	$27,078
4	North Dakota	$27,370
5	Idaho	$28,243
6	Arkansas	$28,335
7	West Virginia	$28,688
8	Oklahoma	$29,414
9	Wyoming	$29,772
10	Iowa	$29,922
11	Louisiana	$30,219
12	Maine	$30,267
13	South Carolina	$30,325
14	Nebraska	$30,456
15	New Mexico	$30,467
16	Utah	$30,829
17	Kansas	$31,028
18	Vermont	$31,166

Source: US Department of Commerce, Bureau of Economic Analysis

More Labor Force Statistics

Why Metro NM: Cost of Property

shawna — Mon, 17 Apr 2006 12:43:23 -0600

Affordable Commercial Property

Affordable commercial real estate is one of the reasons businesses are attracted to New Mexico. In fact, Albuquerque was named 5th best in Expansion Magazine's Top 40 Real Estate Markets for 2005. Join new and expanding businesses in making the Metro area your home or part of your business operations. We still have room to grow!

Whether you are looking for a site that is ready to move into, or prefer a build-to-suit arrangement, our property database has an extensive list of office, industrial or land properties available in each of our member communities to meet your needs.

Albuquerque Industrial Rent Rates 2006
Property type (all submarkets)	Asking Rent
General Industrial	$6.31
R&D/Flex	$8.56
Warehouse/Distribution	$5.79

Asking rents are per square foot per year, triple net
Source: Grubb & Ellis|New Mexico

Albuquerque Office Rent Rates 2006
By Class (all submarkets)	Asking Rent
Class A	$19.23
Class B	$15.38
Class C	$12.86

Asking rents are per square foot per year, full service

Source: Grubb & Ellis|New Mexico

How Low Can You Go?

New Mexicans enjoy some of the lowest property tax rates in the nation.
Industrial Revenue Bonds Incentives
Community Development Incentives

A Good Place for Real Estate Investment (February 2006)

Albuquerque ranked No.1 among the fastest appreciating markets (2006).
Albuquerque was ranked No.6 best investment market for commercial property.

Why Metro NM: Cost of Workers Comp

shawna — Mon, 10 Apr 2006 15:25:25 -0600

Low Workers' Compensation Costs

New Mexico's Workers' Compensation System performs extremely well. New Mexico has the 25th-lowest workers' compensation rates in the U.S.

The calculated loss ratio in New Mexico is based on business written in the state divided by premiums.

In 2004 New Mexico's premium rate index was $2.56 per $100 of payroll.
National premium rate indices ranged from a low $1.06 in North Dakota to a high of $6.08 in California.

To control compensation expenses in New Mexico:

Worker incentives to file frivolous claims are cut back.
Legal fees are capped and medical fees are contained.
Reliance on lawyers and litigation is limited.