The IBA has been working with UNM, the City of Albuquerque and the New Mexico Economic Development Department to publish the 2004 New Mexico Export Recap. This document, which can be accessed via the IBA’s (www.nmiba.com) and the Anderson Schools of Management (www.mgt.unm.edu) websites, reviews the state’s exports to its top trading partners by product category. The Recap should be ready for viewing within the next 10 days. The following is the Executive Summary of this document:

New Mexico Export Summary 2004

Executive Summary

Companies based in New Mexico exported $2.05 billion in merchandise to 134 countries in 2004. Annual exports declined by 12% compared with 2003, due to a 36% decline in exports of integrated circuits. Exports of products other than integrated circuits increased by 49%. New Mexico ranks 44th among the fifty states in export revenue, accounting for 0.25% of the nation’s total export volume.

High-technology products account for a majority of New Mexico’s exports. In fact, a single product—integrated circuits—accounts for slightly more than half of all exports. However, the state’s exports are less concentrated in integrated circuits now than in the past—integrated circuits accounted for 88% of New Mexico’s exports in 1999. Leading export industries for New Mexico in 2004 include computer and electronic manufacturing ($1.3 billion, of which integrated circuits account for $1.08 billion), machinery manufacturing ($143 million), and miscellaneous manufacturing ($105 million). At the level of specific products, integrated circuits were followed in 2004 by diamonds, telecommunications equipment, valves including thermostatic controls, and semiconductor devices and light-emitting diodes.

Mexico was the largest foreign market for New Mexico exports in 2004, totaling $357.6 million. This amount represents a 47.7% increase over the previous year and places New Mexico 33rd among the fifty states in exports to Mexico. New Mexico exports a wider range of products to Mexico than to any other country, which indicates that a larger number of New Mexico-based companies depend on the Mexican market than on any other foreign market. The leading products exported to Mexico from New Mexico (by tariff classification) are valves including thermostatic controls, articles of iron or steel, liquid pumps such as for internal combustion engines, used motor vehicles, and containers such as boxes.

The top ten markets for New Mexico exports in 2004 include Mexico, Costa Rica, Malaysia, China, the Philippines, Israel, Canada, Taiwan, Ireland, the Netherlands, Korea, Belgium, Japan, the United Kingdom and Germany. Exports to half of these 10 countries (Costa Rica, Malaysia, the Philippines, Israel, and Ireland) are heavily concentrated in integrated circuits. The countries to which New Mexico exports the most diverse range of products include Mexico, Canada, the United Kingdom, Germany, and Japan. On a regional basis, North America, Southeast Asia, and East Asia are the most important regions for New Mexico exports, though the regional data are skewed by large export volumes for a small number of products to a small number of countries.

Featured Client:

Industria Cosmetica S.A. de C.V.

Founded in Chihuahua City by chemist/pharmacist Ulrich Fiehn Leu, “Pelter” skin lotion has been a preferred and trusted lotion in Chihuahua City for many years. Mr. Fiehn’s dream was to create the, “world’s best liquid lotion” that would keep the skin moist without leaving the skin oily. In late 1950, he found the perfect mix of natural ingredients which included almond oil, beeswax, lanolin, and glycerin. The lotion first began selling at Mr. Fiehn’s pharmacy, but quickly gained popularity and his family began selling door-to -door, then to distributors and retailers. Today, his youngest daughter, Helga U. Fiehn, and her husband, Gilberto Valdes, are continuing with Mr. Fiehn’s dream by manufacturing and distributing Pelter lotion through Mrs. Fiehn’s newly founded company, Industria Cosmetica, S.A. de C.V.

Pelter lotion is currently being sold in Chihuahua City and can be found at local pharmacies, S-mart, Al Super, and Wal-Mart retail stores. In fact, Wal-Mart is interested in stocking this 100% Chihuahua-made product throughout all of its Chihuahua locations.

Industria Cosmetica approached the IBA to assist in exploring marketing channels as well as possible investors or joint venture partners in the U.S. that can help them satisfy the increasing demand of their product. A New Mexican company has been identified as a possible partner, which will begin working with the IBA to bridge collaborative manufacturing and distribution efforts.