Executive Summary

The 2025-2026 SEA business pulse survey reveals a cautiously optimistic outlook among businesses. A strong majority of companies plan for expansion, with a significant number intending to add jobs and/or square footage. While overall business confidence / sentiments for the local and national business climates is leaning positive, the state-level sentiment is more mixed, with a notable number of businesses expressing a poor outlook. Key challenges highlighted in the comments include concerns over taxes, regulatory burdens, and issues with workforce quality.

Business Sentiments and Climate

Overall business sentiment is rated most favorably at the local and national levels, while sentiment toward the state climate is mixed. The following charts provide a detailed breakdown of the responses.

• Local Business Climate: The majority of respondents (11 out of 20) view the local business climate as either Good or Very good. A smaller, but still significant, portion rated it as Fair (6) or Poor (3).
• State Business Climate: Opinions on the state’s business climate are split. Good was the most frequent rating, but Poor and Fair ratings were also common, with one business rating it Very poor.
• National Business Climate: The sentiment toward the national business climate is largely positive, with Good being the most common response. Poor and Fair ratings were also present, indicating some level of concern.

Market Growth and Shrinkage

The survey results show a strong intention for market growth and expansion in 2025-2026.

• Expansion Trends: A total of 14 businesses are planning for some form of expansion, with the majority (8 businesses) intending to expand both jobs and square footage. An additional 5 businesses plan to expand jobs.
• Shrinkage Trends: Only one business indicated a plan to reduce jobs, demonstrating a very low intention for contraction within the surveyed group. Five businesses expect No change in their operations.

Net Growth Analysis

In addition to the promising sentiment and expansion plans, the survey data provides a clear picture of anticipated growth in both jobs and physical infrastructure for 2025-2026. Based on the aggregate responses, businesses in the region project a net gain of 183 new jobs (after the consideration of layoffs from Intel). This is a strong indicator of a healthy and growing workforce. Furthermore, there is a substantial planned net increase of 133,927 square feet of commercial space. This significant physical expansion demonstrates a commitment to long-term growth and a tangible increase in the area’s business footprint. These numbers reinforce the optimistic outlook reflected in the survey and highlight a forward-looking and proactive business community poised for expansion.

Specific Issues and Concerns from Comments

The qualitative comments provide crucial context to the quantitative data, highlighting a number of key issues for businesses.

• Taxes and Regulations: The Gross Receipts Tax (GRT) was a recurring pain point, with multiple businesses describing it as high and onerous. One comment also criticized a proposed heat rule for outdoor workers as a severe and devastating regulation.
• Workforce and Talent: Several respondents expressed concerns about the workforce, citing a lack of technical skills, unmotivated workers, and a limited applicant pool. The challenge of recruiting talent from other states to New Mexico was also mentioned.
• Infrastructure and Business Support: Some businesses noted a shortage of suitable lab space for technology development and a lack of early-stage customers and growth capital, which they believe puts them at a disadvantage compared to competitors in other states.
• National and International Policies: Tariffs were a significant negative theme. Multiple comments stated that tariffs are hurting small businesses, increasing costs, and making it difficult to compete in international markets. Political unrest and a perceived bias towards Big Techs in federal government policies were also mentioned.
• Positive Feedback: On a positive note, several businesses praised the helpfulness of local and state government officials and economic groups for being supportive of business needs. Some also noted that New Mexico’s infrastructure and location are beneficial.

Our survey result for Sandoval County, NM is broadly in line with the national survey conducted by The Confidence Board on a national scale.