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ECONOMY

New Mexico’s film industry rebounds slightly, latest data shows

Both production spending, number of projects increased for the first time in four years

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New Mexico’s film industry is showing modest gains after years of declining activity.

Film productions spent a little more than $327 million in fiscal year 2026 — which spanned July 2025 through June — according to the state’s latest economic impact data. Eighty productions also filmed in the state during that time.

It’s the first time in four years that both production spending and the number of film projects in New Mexico have increased, with FY26 spending up roughly $4 million and productions up by four projects compared to FY25.

“The film industry in New Mexico is beginning to rebound alongside the broader industry following a global production contraction,” said Steve Graham, director of the New Mexico Film Office. He said he believes “more independent films and other types of media productions choosing to film in the state” contributed to the increases.

While the latest numbers are up, recent spending and film activity still pale in comparison to the boom the local industry experienced just four years ago. In FY22, production spending skyrocketed to $855 million and 112 projects filmed in the state.

The local industry has been on a downward spiral since then, coinciding with a national film slowdown spurred by a Writers Guild of America strike in 2023 and increased international competition.

David Manzanares — a New Mexico native and seasoned film professional who’s spent 35 years location scouting, producing and now, directing — said he has felt and recognized the downturn in activity. But he and his wife, Andie, manage to stay busy through other projects, such as photo shoots, commercials, documentaries and music videos.

Makeup artists and film professionals whose skills transfer to other jobs are in a similar boat, but for workers with specific film-dependent roles, “it can be grim,” Manzanares said.

Graham agreed, adding that while productions are picking up across the state, the current level of film activity isn't keeping everyone working.

“Knowing there are New Mexican film workers without consistent work has been difficult,” Graham said.

Matias Fontenla, an economics professor at the University of New Mexico, said the $532 million loss between FY22 and FY25 has likely been felt within the wider local business community as well.

“When $800 million comes in, it creates a multiplier effect where not just people that work directly in the film industry benefit,” Fontenla said. “These individuals go out and spend and buy groceries, buy vehicles, rent houses — and that money circulates and multiplies throughout the economy.”

During the six months that Netflix’s recently canceled “The Boroughs” filmed in New Mexico, the project’s out-of-state cast and crew frequently patronized several local businesses, including Dion’s, Little Bear Coffee and Skidmore’s Holiday Bowl, showrunners and business owners previously told the Journal.

Fontenla said that while a $532 million loss over four years is “concerning,” the recent numbers are showing signs of stabilization.

Reilly White, a finance professor at UNM, said he thinks the data shows “the endurance and appeal of the New Mexico film industry.”

White explained that film, like many other industries, is cyclical and fluctuates, adding that how an industry behaves during a downturn is what’s important.

“The way to weather downturns is to develop expertise in the local labor market and the infrastructure that’s available for film,” White said. “When you develop a film ecosystem year after year, you will still experience those downturns, but you help give reason for people to come back.”

New Mexico has done that, White said, citing the state’s several studios, expansive film workforce and state incentives.

But for the New Mexico Film Office, the work doesn’t stop there. Graham said he and his team are constantly working with film partners to find leads for upcoming productions and promote the state to producers and filmmakers — big and small.

“Our goal is to get people back to work,” Graham said. “The number of film project inquiries continues to grow in the state. It does take time to cultivate these relationships, and the film office continues to be front and center in these conversations as we try to convert leads into boots-on-the-ground filming.”

In the meantime, Graham said he encourages New Mexicans to complement the office’s work by supporting the state’s film incentives and the local businesses that aid the film industry.

He pointed to the office’s On Set in New Mexico: Film & Media Conference, the first event to be held at the new Central New Mexico Community College Film and Media Arts Collective, or MAC, at the saʴýҳ Rail Yards. The event will run Sept. 2-3.

Further developments for the industry may not be too far down the road. Manzanares said he’s received calls about two major film projects — a movie and a series —considering New Mexico. He said the projects aren’t booked and declined to name them, but if they pan out, he said they will be “one of those godsends that everyone talks about.”

Right now, Manzanares said the local industry is in a “wait and see” moment, and he’s feeling hopeful.

“The fact that we’ve had that heyday, we’ve had those busy times — we’ve proven that the local professional film industry here understands how to cater to and service the wider industry,” Manzanares said. “We have to be ready.”

Kylie Garcia covers retail and real estate for the Journal. You can reach her at kgarcia@abqjournal.com.