"One bit of advice we've received is that aviation companies like to be together," Richardson says. "We are also proposing additional tax credits for large and small aviation entities for companies to come to New Mexico. We're basically eliminating the gross receipts tax for them. We've targeted Albuquerque and Roswell, which already have a number of aviation companies."
      Eclipse Aviation was the foundation for Albuquerque's cluster. Their decision to build the Eclipse 500 jet in Albuquerque put the area on a lot of radar screens. Perry Denker, head of the company's investor relations, says several factors make the region a natural for aviation.
      "First and foremost is the climate," Denker says. "Flying is an activity that is best done in nice weather. You either have it or you don't.
      Denker also cites work force availability, drawing from Sandia National Lab and Kirkland Air Force Base. He says Eclipse regularly hosts visits by companies considering Albuquerque, and they aren't all aviation firms.
      "We've become a spokesperson for the area," Denker notes.
      As Eclipse ramps up toward commercialization of its US$1.175-million priced jets, Denker says at least a dozen of the company's suppliers are looking for sites in the area. He adds that it's beneficial to everyone for suppliers to be nearby.
      "Modern manufacturing practices include just-in-time principles. I'd rather have that just-in-time part across the road than across the ocean. A lot of our supplier investment will be driven by our ramp," Denker says. "I would hazard to guess that five years from now, 10 to 15 of our suppliers will be here, and there will be suppliers moving in to serve the other aerospace companies located here."
      New Mexico's cluster grew significantly with two aerospace projects announced during the last quarter of 2004.
      Aero Mechanical Industries will locate an FAA-certified fixed wing and helicopter repair/overhaul station and parts factory in Rio Rancho, creating 150 jobs with average annual wages of $35,000. Aero Mechanical is consolidating two companies previously located in Arkansas and Arizona.
      American Utilicraft, based in Lawrenceville, Ga., is spinning off Utilicraft Aerospace Industries, which plans to build a new twin-engine cargo aircraft in an assembly plant at Albuquerque's Double Eagle II aviation park. The Navajo Nation is an investor in the project. The new company may eventually create up to 1,000 jobs.
      Meanwhile, one especially big aerospace project may eclipse all of these. In late January 2005, Bombardier Aerospace announced it had narrowed the location list for a proposed $2.1-billion airliner plant to New Mexico, Toronto, Montreal and Belfast, Northern Ireland. The plant would employ 2,500, with another 2,500 projected to work at supplier operations. A decision to go forward with the project is due to be made in March 2005.