Building Stronger Together: Safe Shoring

If you are connected to any type of media, the discussion of global trade, tariffs, DOGE, and the impact on the gross domestic product (GDP) of the United States of America is non-stop. The Trump Administration seems hell bent on setting a new Global Trade Paradigm to leverage our advantages as the world’s greatest consumer base.  Using a unique and highly explosive cocktail aimed at disrupting the status quo, the Administration is betting that America can raise $1T in tariffs and Trump gold cards while cutting $1T in government inefficiencies to reduce our debt to GDP, cut taxes, remove regulation and streamline permitting, drop interest rates, and drive down energy prices.  Based on this bet and negotiations with countries and companies, this experiment serves a complimentary agenda to recruit and restore critical supply chains that the COVID-19 pandemic shined light on single points of failure especially in the five critical areas of technology (chips & AI), energy, rare earth materials, pharmaceuticals, and defense.  So, if industry becomes convinced that you can make it here based on improved business climate and lower costs, then how does Northwest New Mexico position itself?

First, a couple of key definitions that arose out of global free trade that centered itself around competitive advantages and just-in-time supply chains:

1. Offshoring – the practice of basing some of a company’s processes to take advantage of lower costs.
2. Friendshoring – similarly, to base a company’s processes in countries’ friendly to the USA. 
3. Nearshoring – similarly, to base a company’s processes nearer to USA – think Mexico and Canada.
4. Reshoring – bringing base processes back to the USA.
5. Safe Shoring – locating into areas of the USA to reduce natural disaster and business disruption risks.

Next, my thesis in coining the phase “safe shoring” is that companies coming back need to think strategically about these multi-year builds and billion-dollar investments.  Why do companies continue to choose the Gulf Coast and places like Houston, TX and Louisiana that seemingly are in constant re-building mode due to hurricanes and flooding?  Well, the answer is simple – access to markets, capital, labor force, infrastructure, and resources.  But based on March 23, 2023, Forbes Magazine article by Brenda Richardson and a CoreLogic report on the “Safest Places to Live” that details the least risky places to live in the US from a natural disaster perspective, the least risky county is – drum roll please – McKinley County, New Mexico.  So, during Economic Development week, you have heard about projects like the Gallup-McKinley County Tradeport that take advantage of this new Global Trade paradigm and safe shoring, as well as position our region to go from a rural outpost to Tradeport America.  Being a logistics center of American-led and innovative products will not only get all boats to rise but ultimately increase our resiliency to supply shocks and regional emergencies. We appreciate the professional work of the Greater Gallup Economic Development Corporation, City, County, and its partners for their planning, positioning, and now attempting to close deals to safe shore quality careers where people are rooted and transition our economy from boom-bust to robust.

Lastly, there are traditional and strategic reasons that people, businesses, and communities have made their home in the Four Corners. 
Economic development comes down to risk, why not bet on building in the safest place in America.

___________________________________________
About Northwest New Mexico Council of Governments 
Northwest New Mexico Council of Governments (NWNMCOG) is 53-year-old regional development organization (RDO) recognized and empowered by the State of New Mexico and the US Economic Development Administration.  We serve the entire three-county region of Cibola, McKinley, and San Juan counties and the communities therewithin to improve community and economy for the region and its people.  The NWNMCOG is association of nine local governments governed by a Board of Directors unified by the belief that we are stronger together and only united can we advance on regional opportunities and tackle regional challenges from sustainable water supply to behavior health, to strategic infrastructure, and to regional economic development. 
For more information about NWNMCOG, visit www.nwnmcog.org

About the Author
Evan Williams has been the Executive Director of the NWNMCOG for five years and is a certified Economic Developer who has been serving the region for nearly 25 years.  He and his team are responsible to develop, implement, and manage the Comprehensive Economic Development Strategy for the region.