Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Low Energy Costs: Boasts low industrial and commercial electricity costs compared to regional and national averages, a draw for energy-intensive manufacturing. Targeted Incentives: Active economic development through programs like the Creative Industries Grants and the Creative Industries Division to support specific sectors.

Poor Overall Business Climate Ranking: Ranked low (e.g., 44th overall in a 2025 "Best States for Business" index), citing low rankings in Economy and Infrastructure. Workforce and Innovation Gaps: Ranked poorly in Workforce (31st) and Technology/Innovation (35th), indicating a need for skilled labor development.

Focus on Advanced Industries: Can capitalize on existing R&D institutions (national labs) to improve its Technology and Innovation ranking by supporting high-growth sectors like semiconductors, aerospace, and advanced energy.

Brain Drain: The low overall ranking for quality of life and business friendliness may exacerbate talent recruitment and retention challenges, particularly in high-wage, high-tech sectors.

Domestic Manufacturing

High-Tech Specialization: Strong presence and growth in high-wage, advanced manufacturing sectors like Semiconductor and Electronic Component Manufacturing (Intel major presence), Aerospace & Defense, and Scientific R&D. Strong Growth Metrics: Ranks high nationally (e.g., 6th in employment and 5th in wage growth) in the manufacturing sector.

Low Absolute Manufacturing GDP: The total Gross Domestic Product for the manufacturing sector is relatively low compared to other states (e.g., 45th in 2024), indicating a smaller base to build upon.

Fusion Energy Manufacturing: Major, recent announcements (e.g., $1 billion fusion research and manufacturing campus) position the state as a global leader in the emerging clean-tech fusion energy supply chain.

Commodity Price Volatility: Significant economic reliance on oil and natural gas production (2nd largest crude oil producer), making the state's budget and economy vulnerable to global energy price swings.

Sustainability Initiatives

Pioneering Clean Energy Investment: Highly hospitable policy environment for securing renewable energy investments (16th nationally) and is a leader in clean energy job growth. Strategic Water Management: Recognized for developing the first Strategic Water Supply in the U.S. (Gov. Office, 2023).

Infrastructure Development: Although a leader in clean energy, infrastructure (e.g., transmission lines for remote solar/wind farms) may still lag behind the state's potential for renewable energy generation.

Leveraging National Labs: Utilize the expertise of the National Laboratories (LANL, Sandia) to spin off new clean-tech and advanced energy companies, driving a new wave of sustainable economic activity.

Environmental Concerns/Brownfields: Dealing with a legacy of environmental issues (e.g., brownfield sites) requires resources and attention that divert funds from new growth initiatives.

Balance of Trade

Positive Trade Balance: Often maintains a small trade surplus, exporting more than it imports. High-Value Exports: Exports are concentrated in high-value, sophisticated goods like Office Machine Parts, Integrated Circuits, and Telephones.

Concentration Risk: The state's exports are heavily concentrated in a few high-tech product categories, making total export value sensitive to demand shifts for those specific goods.

NAFTA/USMCA Trade Corridor: Can utilize the I-40 Tradeport Corridor and proximity to Mexico to strengthen logistics and serve as an assembly/export hub for North American supply chains.

Geopolitical/Tariff Risk: Over half of goods exports go to a single partner, Mexico ($7.0 billion in 2024), making the state extremely sensitive to any changes in U.S.-Mexico trade relations or new regional tariffs.