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Arts & Cultural Industries Building on the Past Facing the Future Renewing the Creative Economy of New Mexico University of New Mexico Bureau of Business & Economic Research Building on the Past Facing the Future Renewing the Creative Economy of New Mexico Jeffrey Mitchell and Gillian JoyceWith Steven Hill and Ashley M. Hooper 2014 The arts and cultural industries are among the main drivers of New Mexico’s economy. Arts and culture in New Mexico enjoy a national reputation far beyond the state’s size or economic standing. With a more robust level of support, the arts and cultural industries could be leveraged to help power the New Mexico economy as it emerges © Denise Womack-Avila © Denise from the economic recession. Executive Summary To appreciate the importance of arts and culture to New Mexico’s economy, consider that these industries are the primary source of employment for 43,031 New Mexicans–roughly equal to the state’s construction industry and 50% larger than the manufacturing industry. The arts and cultural industries account for about 1 of every 18 jobs in the state (5.5%). These industries pay $1.37 billion in wages and salaries, roughly equal to the total paid by the state’s mining industry, and more than the total paid by hotels and restaurants. hese figures are based on a narrow definition receipts taxes, income taxes paid by cultural Tof the arts and culture industries. If we include workers, federal transfers and various fees persons employed by cultural tourism, arts and and private grants. The total cost of cultural cultural education and industries linked to the services to public agencies in New Mexico is unique culture and heritage of the state (e.g. making $168.0 million. Most of these costs are borne crafts, salsa, and adobe), the arts and cultural by local (and especially municipal) governments, industries employ 76,780 persons–equal to about with the largest share of the funds allocated to one in ten jobs (9.8%) in the state. That is more libraries as well as museums and cultural services than the construction and manufacturing and events. These figures do not include revenues industries combined. or spending on public education. Arts and cultural industries generate $137.1 million in revenues for state and local governments in New Mexico. Approximately two-thirds of the © Mobilus In Mobili In © Mobilus total is received by the state government as gross New markets are emerging, aesthetics are changing, consumption habits are evolving and emerging technologies are providing entirely new ways to deliver and experience art and culture. Comparisons with other states. New Mexico’s institutions. Challenges facing New Mexico’s are establishing multi-function facilities that are arts and cultural industries are similar to other cultural economy are numerous. Arts and cultural flexible, accommodate multiple niches and foster states in terms of the total share of employment. institutions, as well as individual artists, have a sense of community and participation. These However, the specific subsectors and occupations been hit hard by the recent recession, but they are strategies require new skills, can be initially that employ artists and cultural workers in also facing more general and ongoing challenges expensive, and work better in some contexts New Mexico differ substantially from national Globalization has made arts and cultural markets than others. Some artists and organizations patterns. New Mexicans are, to a much greater more competitive. New markets are emerging, have flourished while many continue to struggle. extent than residents of other states, employed aesthetics are changing, consumption habits are professionally as artists and artisans in galleries evolving and emerging technologies are providing Creative professionals in New Mexico: advantages and museums, and in other activities and industries entirely new ways to deliver and experience and disadvantages of working in a ‘small pond.’ most closely associated with the creative aspects art and culture. In important ways, the new Bureau of Business & Economic Research of arts and culture. Moreover, there are specific technologies and consumer patterns are driving (BBER) conducted 200 interviews, including regions within New Mexico where the association the arts and cultural markets in directions that 125 in-depth surveys, with creative professionals with specific activities is truly extraordinary, such are difficult to predict. in New Mexico. In these interviews, creative as galleries in Santa Fe and artisanship among In response to these pressures, cultural professionals commonly described the state’s arts the Native Communities. Yet, New Mexicans are institutions nationwide, including those in and cultural industries as a ‘small pond’, noting also far less likely to be employed in more rapidly New Mexico, are experimenting with new both advantages and disadvantages. According growing and higher paying applied fields such as strategies to engage audiences. Artists and to these varied accounts, the small pond offers media, advertising and software publishing. organizations recognize that they no longer can intimacy, social access, natural beauty, a high Changes in arts and cultural industries. This study wait for their audiences to approach them, nor quality of life and allowance for experimentation. includes detailed surveys of the assets, impacts can they expect their audiences to be content But it can also mean a scarcity of material support, and challenges of a number of key sectors of with a passive one-directional experience of limited market opportunity, and isolation from the New Mexico’s arts and cultural economy. These culture. Instead, organizations are increasingly rapid currents that drive innovation. include: fine arts, museums, libraries, galleries, reaching out with social media, mobile exhibits A greater number of those who participated in the performance venues, monuments and parks, fairs, and experiential programming to engage their study reported that location in New Mexico was, on festivals, farmers’ markets, historic preservation, audiences. Organizations are making new efforts balance, more of an advantage than a disadvantage heritage and craft industries, cultural tourism, to collaborate and to attract and engage new in their professional lives. Interestingly, there was and funders of arts and cultural activities and audiences, especially youth. Some organizations no discernible pattern, in terms of ethnicity, age, has been influential in the development of the gender, location, type of work, time spent in the state’s cultural industries and suggests instead that state, or even one’s account of their professional amidst the global changes described above, there success, among those who counted more advantages is an increasingly intense competition for access, than disadvantages. Also, participants were more influence and identity among creative professionals likely to express a commitment to remaining in the in the state. state than a willingness to relocate under the right circumstances. Yet, here, the differences among Recommendations to revitalize New Mexico’s respondents were sharp. For those committed creative industries. Cities, states and nations to remaining in the state, their decision was across the world are embracing arts and culture, almost entirely a matter of personal history and and creative industries generally, as a foundation identity; their professional lives were an extension for the development of a 21st century economy. of their identity and could not be thought of The findings of this study suggest that New Mexico separately. But for those willing to relocate, it was is well-positioned to succeed in this regard, by largely a matter of professional opportunity and leveraging its genuinely unique history, creatively development; many have an affinity for life in engaged population, and strong national and global New Mexico but it was a secondary consideration. reputation for the development of a 21st century The difference among creative professionals in creative economy. To be effective however, the terms of their willingness to stay or leave the state must implement cultural policies that foster state suggests that perhaps, rather than a small the capacity necessary for the growth of creative pond, New Mexico’s creative industries are enterprises, renew and integrate its diverse divided among many still smaller ponds with little communities, promote education and engagement, flow or interaction among them. This account and update its national brand to emphasize © Jody McGowan questions the narrative of ‘tri-culturalism’ that accessibility, opportunity and quality. Based on the findings of this comprehensive study, BBER offers twelve interrelated policy recommendations: New Mexico’s creative industries are an 1 Establish a business development center for creative 7 Implement strategies to ensure the effective enterprises, supported by services such as career administration of the 2003 Fine Arts Education essential component to both the state’s advising, business plan development, fundraising Act (FAEA) in elementary schools, and advocate economy and its identity. With the proper and investment solicitation, accounting and financial for the extension of the FAEA to middle and support, New Mexico has the ability to leverage manage ment, and marketing. secondary schools. the arts and cultural industries for economic 2 Utilize the business development center to provide 8 Establish collaborative efforts between DCA, PED
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