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QUARTERLY REFLECTIONS
CHAD MATHESON, CECD
President & CEO
Albuquerque Regional Economic Alliance
As we close the first quarter of 2026, I find myself reflecting on both the pace of activity across our region and the deeper signals shaping Greater Albuquerque’s economic trajectory
In economic development, momentum is often discussed in headlines and announcements. But true momentum is built in the underlying conditions like alignment across partners, confidence from investors, and the steady strengthening of the systems that support long-term growth
This quarter, we’ve seen continued progress across each of those dimensions
From major project activity in advanced industries to ongoing expansion from existing employers, the region continues to demonstrate its ability to compete for and support investment in globally relevant sectors At the same time, efforts around site readiness, workforce alignment, and regional collaboration are reinforcing the foundation required to sustain that growth over time
Equally important is the growing sense of alignment across our ecosystem Economic development is a team sport, and the consistency of engagement from our public, private, and institutional partners is a strong leading indicator of where we are headed as a region.
At AREA, our focus remains clear We are committed to serving as a convener, a connector, and a source of trusted, data-driven insight. Whether through business development, research, or strategic partnerships, our role is to help ensure that Greater Albuquerque is positioned not only to compete, but to lead
As you read through this report, I encourage you to view it through both lenses: what has been accomplished, and what it signals about the road ahead The opportunities in front of us are significant, and so is the responsibility to continue building a more competitive and resilient regional economy
Thank you for your continued partnership and commitment to this work
With Gratitude,
Chad Matheson
Chad Matheson, CEcD President and CEO
Castelion Breaks Ground on Project Ranger, Advancing Scaled Hypersonic Manufacturing in New Mexico
RIO RANCHO, NM — January 21, 2026 — Castelion announced the launch of Project Ranger, a 1,000-acre hypersonic manufacturing campus in Sandoval County, designed to support high-cadence production of hypersonic strike systems. The project will create approximately 300 high-paying manufacturing jobs and represent more than $220 million in private investment, with an estimated $650 million in economic impact for New Mexico over the next decade.
“This is economic development in New Mexico – high-tech companies bringing high-paying jobs,” said New Mexico Governor Michelle Lujan Grisham. “Castelion chose our state because we have the workforce, the expertise and the infrastructure they need to succeed.”
Project Ranger will support solid rocket motor manufacturing, static testing, and final assembly of hypersonic weapons, reinforcing New Mexico’s position at the forefront of defense innovation. The first building will be completed this summer, with all twenty-one buildings on the campus complete and ready for production by the end of 2026.
“We chose New Mexico for its unparalleled technical talent and history of scientific achievement,” said Bryon Hargis, CEO and CoFounder of Castelion “Project Ranger represents a renaissance in American manufacturing, delivering the advanced systems our country needs. We’re proud to partner with a community that has powered some of our nation’s greatest leaps forward. We have a bright future together.”
REGIONAL ANNOUNCMENTS
AeroVironment, Inc Announced $30 Million New Mexico Expansion
ALBUQUERQUE, N.M. — March 3, 2026 — AeroVironment, Inc.a global leader in advanced defense and aerospace solutions, today announced plans to invest more than $30 million to significantly expand its manufacturing operations in Albuquerque, New Mexico.
Supported by an initial $5 million from the State of New Mexico and $1 million from the City of Albuquerque through the Local Economic Development Act (LEDA), the investment will expand AV’s manufacturing operations across its three existing manufacturing sites in the Sandia Science & Technology Park while supporting major capital equipment purchases and workforce growth.
“The growth we’re driving in Albuquerque goes beyond our own business,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “It’s about strengthening the domestic defense industrial base, creating high-quality American jobs, and partnering with New Mexico to continue to develop a durable innovation and manufacturing hub that can deliver when it matters most.”
The investment will further establish a vertically integrated, nextgeneration manufacturing campus expected to generate more than $670 million in economic impact over the next 10 years, boost production of mission-critical defense and space technologies, create more than 450 high-wage jobs, and strengthen New Mexico’s role in the U.S. defense industrial base by enabling scaled domestic production of directed energy systems and space-grade components that support national security and resilient supply chains.
GOAL 1: ESTABLISH NATIONAL IDENTITY AS A LEADING LOCATION FOR BUSINESS
Build the national profile of the greater Albuquerque region by strategically marketing the area’s advantages as a business location; aggressively pursue high impact business investors and aid their entrance into the region; build strength through diversity of industries
1. Market the Region to Recruit Growth Businesses
Business Development Sales Mission- Los Angela, California
Aida Roberts, AREA’s Vice President of Business Development, recently traveled to Los Angeles on a targeted sales mission to elevate Greater Albuquerque’s profile among key decision-makers During her visit, she met with venture capital firms, companies, and site selectors to share insights on the region’s growing economy, competitive advantages, and opportunities for investment
IEDC Leadership Summit - Washington, D.C.
Chad Matheson, AREA’s President & CEO, recently represented the organization at the IEDC Leadership Summit in Washington, DC, joining top economic development leaders from across the country The visit provided an opportunity to engage in high-level conversations on national trends, share Greater Albuquerque’s momentum, and strengthen relationships with key partners. This continued engagement ensures our region remains connected, competitive, and well-positioned for future growth
Site Selectors Guild Spring Conference - Atlanta, Georgia
Aida Roberts, AREA’s Vice President of Business Development, recently attended the Site Selectors Guild Spring Conference in Atlanta, connecting with some of the nation’s leading site selection consultants. The conference provided a valuable platform to showcase Greater Albuquerque’s strengths, share updates on regional growth, and build relationships with key influencers in corporate location decisions Her engagement helps keep Albuquerque top of mind for future business attraction opportunities
2. Support Existing Business Retention & Expansion
Business Retention and Expansion visits are tracking well toward AREA’s annual goal of 50+ visits to regional firms, with 10 visits completed in Q1, six of which are planning an active expansion. This early pipeline signals strong confidence among existing employers and reinforces the importance of proactive engagement in identifying growth opportunities. These visits are also providing valuable, real-time insights into workforce needs, infrastructure constraints, and investment drivers, helping to better align regional support and resources around company expansion.
BUSINESS DEVELOPMENT UPDATES
In celebration of St. Patrick’s Day, with a distinctly New Mexican twist, AREA’s Vice President of Business Development, Aida Roberts, joined partners from the New Mexico Economic Development Department and the City of Albuquerque Economic Development Department for a special behind-the-scenes tour of Bueno Foods in Barelas.
This visit provided a firsthand look at one of the region’s most iconic food manufacturers as they mark an impressive 75 years in business. From their nationally distributed chile and tortillas to their deep local roots, Bueno Foods continues to play a vital role in showcasing New Mexico’s unique culture and flavor.
The tour also highlighted the company’s continued growth, including a new 25,000-square-foot freezer facility supported by LEDA. Investments like these demonstrate the impact of strong public-private partnerships in helping local businesses expand and thrive.
BRE’s in the 1 Quarter st 2 National Sales Missions
5 Company Site Visits in Q1
GOAL 2: ATTRACT, RETAIN, AND ALIGN TALENT
Convene key partners throughout the region, identify talent gaps and implement and catalyze talent attraction and retention solutions; improve connections between the jobs we do have with the talent we have
1. Promote the Region to Attract & Retain Talent
In March, AREA convened a Marketing Strategy Workshop, bringing together regional marketing and communications leaders for a collaborative discussion on strengthening Greater Albuquerque’s brand The session focused on sharing local insights, identifying opportunities for alignment, and exploring strategies to better attract and retain talent. The conversation marked an important step toward building a more coordinated and impactful regional marketing approach
2. Identity Gaps & Forecast Needs
Through ongoing BRE outreach, companies across the region provided direct input on hiring challenges, talent demands, and emerging skill needs. This feedback strengthened the AREA’s ability to plan ahead and support employers more effectively
3. Support Regional Talent Development
Over the course of Q1, the Talent Insights Advisory Council has been intentionally convened as a working group to drive execution of the Regional Workforce Summit Rather than functioning as a traditional advisory body, the committee has operated in a more hands-on, action-oriented capacity, meeting regularly to shape the summit’s structure, content, and outcomes.
Discussions have focused on aligning the summit with employer demand, refining key themes and breakout sessions, and ensuring strong integration across industry, education, and policy stakeholders. The group has also played a critical role in identifying speakers, shaping the participant experience, and reinforcing the summit’s value proposition to partners and sponsors
11 JTIP awards to AREA companies
188 Total Trainees $53.90 Average Wage
GOAL 3: BREAK DOWN BARRIERS TO REGIONAL COMPETITIVENESS
AREA will work to bring together the regional network of economic development professionals for the benefit of the region, promote the expansion of infrastructure, and support solutions to challenges affecting the business climate.
1. Collaborate with Regional Partners
In March, AREA hosted its first Economic Development Professional (EdPros) Council meeting of the year. This meeting gathered two state representatives, Meredith Dixon and Joshua Hernandez who shared key takeaways from the 2026 legislative session, including bipartisan efforts and historic investments supporting economic development and industry growth in New Mexico.
2. Foster A Strong Business Climate
Chad Matheson, AREA’s President & CEO, participated and spoke at the Lovelace Leadership Conference at Sandia Golf Club, joining regional leaders for a day of insight and collaboration. During the event, Chad shared economic updates, workforce priorities, and the importance of strong leadership in driving sustainable growth.
In February, Chad Matheson, AREA President and CEO spoke to the Bernalillo County Commission regarding their review of county-level economic development policies and procedures.
3. Drive Development of Commercial Space
Throughout Q1, AREA has taken a proactive, hands-on approach to supporting both landowners and public sector partners in advancing submissions for the State’s Site Readiness Program. This has included direct outreach to identify viable sites, one-on-one coordination to guide partners through program requirements, and technical assistance to strengthen application competitiveness.
We have worked closely with local jurisdictions, utilities, and private property owners to align on site positioning, infrastructure considerations, and documentation needed for successful submission.
4. Advocate for Mobility, Transportation, and Broadband Advancement
AREA is a partner and supporter in the multi-county and multi-state I-40 Tradeport Corridor initiative This strategic vision will support current and future innovation in transportation and leverage our region’s strategic geographic location.
8 Governance, Advisory Council and Investor Programs Q1
3 BD Trade Shows, Market Visits, and Conferences Attended
10 AREA Q1 Community Speaking Engagements
AREA’S Q1 COMMUNITY ENGAGEMENT
The AREA Ambassadors held their first 2026 Lunch & Learn on February 19th, hosted by R4Creating in Rio Rancho, New Mexico, a nonprofit that is transforming the future of STEM education for our community and the state. The AREA Ambassadors enjoyed flying drones, driving robots, and learned how to use 3D printing pens.
R4Creating was founded over 21 years ago by Dr. Shelly Gruenig. R4Creating grew from humble beginnings when Dr. Gruenig discovered a robotics competition in Las Cruces and was inspired to bring those same hands-on experiences to other children in New Mexico. What started in her garage quickly spread through the community by word of mouth, eventually growing into a thriving nonprofit organization. R4Creating officially became a nonprofit in 2016 and has been expanding its reach ever since.
R4Creating made history as the primary beneficiary of the 2024 Montezuma Ball, one of New Mexico's oldest and most celebrated traditions, where they set a new fundraising record by raising over $1 million to expand their STEM services throughout the state.
COMMUNITY IN ACTION
Chad Matheson, AREA’s President & CEO, boldly kicked off the first quarter by speaking with an engaged audience of Albuquerque Public Schools leadership, faculty, and staff, sharing insights into the economic strategy and key trends shaping Greater Albuquerque’s future.
During the discussion, Chad highlighted the critical connection between workforce supply and industry demand, emphasizing that long-term economic growth depends on strong alignment between education, employers, and economic development efforts. By working together, these sectors can create meaningful pathways for students, deliver stronger outcomes for businesses, and build a more resilient regional economy.
The conversation underscored the importance of collaboration and partnership in preparing the next generation of talent while supporting the evolving needs of employers. Chad expressed appreciation for the opportunity to engage with APS leaders and reaffirmed AREA’s commitment to strengthening these connections.
2026LEGISLATIVE SESSION
New Mexico’s 2026 legislative session was short, but it delivered big results for economic growth and innovation. Lawmakers advanced key policies that strengthen the state’s business climate, including extending the High-Wage Jobs Tax Credit and updating the Advanced Energy Equipment Tax Credit to include fusion as the industry expands in New Mexico.
The state also made major investments to keep momentum building as we grow an economy that lifts up New Mexico families. Key investments in economic development include:
Economic Development Outcomes
$110 million for the research, development and deployment (RD&D) fund to support early-stage innovation and commercialization across the state.
$49.3 million for DARPA quantum benchmarking, providing state matching funds for the federal Defense Advanced Research Projects Agency initiative.
$38 million to establish a centralized open user facility for applied quantum information science research, including workforce training space and collaboration with national laboratories.
$15 million to support innovation hubs throughout the state.
$11.6 million for Technology Innovation Office (TIO) grants supporting small businesses, entrepreneurs, startups and research and development in science and technology sectors.
$10 million for quantum innovation projects to solidify New Mexico as an industry hub.
$10 million for higher education partnerships supporting endowed faculty positions and postdoctoral researchers across New Mexico institutions.
$3 million to continue to support the Quantum New Mexico Institute.
$2 million for business recruitment and attraction efforts that promote New Mexico’s economic development opportunities.
AREA’S ECONOMIC DEVELOPMENT PROFESSIONALS
REPRESENTATIVE
MEREDITH DIXON
REPRESENTATIVE JOSHUA HERNANDEZ
On March 20th our Economic Development Professionals Council or EdPros monthly gathering featured Representatives who shared key takeaways from the 2026 legislative session, including bipartisan efforts and historic investments supporting economic development and industry growth in New Mexico.
AREA BOARD OF DIRECTORS
