Sandia Labs pump $3.7 billion into economy
Laboratories employ 12,000 in New Mexico
Sandia National Laboratories contributed nearly $3.7 billion to the economy in the 2019 fiscal year, Director James Peery said Wednesday. “It is an all-time high for Sandia,” said Peery, who took over as director on Jan. 1. Sandia’s spending represented more than a $363 million increase over fiscal 2018.
“We have already filled 1,100 new jobs, bringing our total workforce to more than 14,000,” he said, giving much of the credit to the leadership team under former
Director Stephen Younger, who retired at the end of last year. He said the workforce in New Mexico is more than 12,000. The labs spent nearly $2.17 billion on labor, including payroll, an increase of almost $222 million over 2018.
“Sandia is proud of the past success but will not rest,” he told a news conference at the labs. “We will keep building on these successes and seeking partnerships with highly qualified, diverse suppliers that can contribute to Sandia’s national security mission and spur economic growth in New Mexico and across the country.”
Peery said the potential was there for continued growth in fiscal 2020, but said it might be limited because Sandia’s facilities were at 98% capacity. But Associate Labs Director Scott Aeilts said the labs were looking for ways to expand.
In 2019, the labs spent more than $1.41 billion on goods and services, an increase of about $141 million from the previous year. Small businesses received more than $784 million in subcontract awards from the labs. Sandia spent more than $98 million in corporate taxes.
Nearly $522 million was spent on New Mexico businesses, and the state’s small businesses received $364 million in subcontract payments.
“We are 100% committed to the community,” Peery said. “We live in this community.”
“These numbers continue to trend upward on a yearly basis and show Sandia’s continued commitment to small businesses and New Mexico,” Aeilts said.
He added Sandia was “very proud of our record of purchases in New Mexico.” Aeilts said Sandia holds open houses to meet with business owners and their representatives.
He said the open houses help small business owners “learn about the technology and research we do here.”
“Our small business needs are pretty much across the board,” he said. “One area where there is a need is construction. … We’ve got a lot of construction we need to do.”
Paul Sedillo — Sandia’s small-business program manager — said the lab also has a need for machinists, and said area machinery businesses have been a big help in helping the labs meet their missions.
Aeilts said Sandia was hoping to expand doing business with companies in southern New Mexico. He said the labs already had inroads to many businesses in northern and central New Mexico “and that will continue.”
Peery discussed a list of priorities during the news conference. Among them is helping Sandia to become a leader among Department of Energy facilities in diversity and inclusion in its workforce and in contracts it awards to businesses.
“It is a passion for me and a business imperative,” he said. “Diverse teams are more creative and innovative.”
The amount of subcontract-related payments to small businesses were up across federal categories of small disadvantaged, women-owned, veteran-owned, service-disabled veteran owned and small businesses in impoverished areas, Sandia officials said.
“It is good to know that Sandia is working hard to be a good neighbor by keeping contracts local and diverse by reaching out to small businesses in our communities and increasing access to life-changing opportunities throughout our state,” said U.S. Rep. Deb Haaland, who represents most of the Albuquerque area. “By creating more than 1,100 new jobs, Sandia is growing our economy, and its employees are making a positive impact on New Mexico.”