Business Climate
What does the Arizona Association for Economic Development do? The AAED provides a forum for the discussion of Arizona economic development issues and advocates for sensible economic development in all of Arizona.
Bruce Coomer was asked: As business attraction manager, what were some of the companies you recruited? Coomer’s answer: “Our group recruited 45 companies to Arizona in fiscal year of 2006… Some of the companies I worked with included Johnson Controls, manufacturing plant in Yuma; Lockheed Martin,data center in Prescott Valley; eBay,data center in Phoenix and eBay/PayPal, data center in Scottsdale.”
By Betty Beard, Arizona Republic.
State’s Economy Stronger than that of the nation:
The seasonally adjusted Arizona Business Conditions Index rose to 63.8 in November, a 5 percent increase from October.A reading of more than 50 indicates the state’s economy is growing. A reading of less than 50 indicates a near-term slowdown.
“While current conditions looks positive, there are some vulnerabilities, such as the weakening housing market and a continued squeeze on consumer’s budgets from rising interest rates and rising prices on goods and services,” the report said.
“Economic strength in Arizona, at least for the short term, appears to far outweigh the weaknesses apparent in other parts of the country.”
By Chad Graham in the Arizona Republic
Phoenix
Phoenix is one of the fastest growing cities and metropolitan areas in the United States. 
With a population of almost 1.4 million, the state capital of Arizona ranks as the nation’s fifth largest city. Its metropolitan population is approaching 3.5 million today, making it the 14th largest in the country — a dramatic ten-fold increase to the metro figure of 333,770 in 1950. This impressive expansion is due to the quality of life, climate and economic opportunities found in Phoenix. By the year 2010, the area is projected to grow to more than 4.15 million people.
Continued in-migration plus reasonable living costs keep wages competitive compared to most major metropolitan areas. The median house resale price was $177,500 in 2004. The expanding base of workers helps make Phoenix an attractive location for expanding firms.
Source: City of Phoenix Website
Arizona is the nation’s fourth largest semiconductor manufacturer, behind California, Texas and Oregon.
Some older chip facilities are: Microchip, ON Semiconductor and Freescale Semiconductor.
Intel is spending $2 billion to upgrade one of its two Chandler plants to accommodate the 12-inch discs.
Source: Max Jarman, The Arizona Republic
Greater Phoenix area is comprised of fourteen dynamic communities that represent some of the finest places to live and work in the United States. Each has its own distinct characteristics and ranges in size from 5,000 to 1.4 million people.
Good schools, affordable housing, and a progressive mindset help explain why Greater Phoenix has been one of the nation’s fastest-growing regions for the last 50 years, now the fifth largest city in the U.S.
Currently more than 3.4 million people, with a median age of 32.9 years, call Greater Phoenix home.
Innovative community leaders effectively manage the region’s growth and strive to maintain its celebrated quality of life. This commitment to excellence helps Greater Phoenix stand apart from other major metropolitan areas.
The Governor’s Council on Innovation and Technology
Hospital, health care boom lifts economy
Robust sector offers higher-than-average wages. Flurry in construction of facilities adds jobs, beds.
Hundreds of help-wanted ads for health care workers appear weekly. A hospital construction boom is adding beds around the state. Partnerships with bioscience ventures multiply by the day.
A new report to be unveiled by the W.P. Carey School of Business at Arizona State University shows that hospitals, traditionally high-wage employers, now have more people on their payrolls than the Arizona hotel industry or the electronics and aerospace industry.
Unlike other industries such as manufacturing or high tech, health care is labor-intensive and more immune to outsourcing. And demand for services is soaring as baby boomers age and the Arizona population continues to surge. To catch up, Arizona hospitals are undertaking $3.3 billion worth of construction projects.
The ASU report estimates that construction will add 14,900 jobs per year and contribute $822 million to the gross state product for the next four years.
An overview of employment, expansion, construction
New opportunities
Diane Dick left selling life insurance to become a hospital nurse who makes sure children get the right car seats. For Dick, 54, becoming a nurse in 2005 was a deferred dream that finally came true. She always had wanted to be a nurse but got into business instead.
“I got tired and realized I wanted to go back to what my dream was.” Nursing school was a grind. “I ate, breathed and lived nursing school.” But then Dick easily found a job at St. Joseph’s Hospital and Medical Center as a pediatric nurse. “I would tell anyone just to go for it. If it is truly your passion, don’t give it up.”
Jobs in health care expected to see the greatest leaps in employment from 2004 to 2014:
Job / projected increase
Home health aides: 66 percent.
Personal care aides: 60 percent.
Physician assistants: 55 percent.
Medical assistants: 54 percent.
Chiropractors: 48 percent.
Dental hygienists: 44 percent.
Dental assistants: 44 percent.
Source: Occupational Outlook Handbook
EXPANSION, Extensive hiring planned
There’s going to be a “surge” in hiring this year at John C. Lincoln Hospital- North Mountain, the hospital’s CEO, Rhonda Forsyth, says. The hospital plans to add 80 people to its staff of 1,800 because of a new and larger emergency department, trauma center and operating rooms.
About half of the people will work in clinical positions, and the rest will be support people. “We need people to clean the emergency department,” Forsyth said.
The biggest challenge is finding people, she said. The hospital hopes to use its reputation as being a great place to work to recruit people, she said.
A major employer
How hospitals compare with other Arizona economic sectors in employment and in average annual wage per worker (as of 2005):
Hospitals: 73,300; $46,400.
Banking and credit: 76,952; $55,600.
Electronics and aerospace: 53,550; $80,300.
Hotel and lodging: 45,079; $38,200.
Elementary and secondary schools: 129,672; $33,300.
Construction
Banner Health, the state’s largest health care system, has $1.4 billion worth of construction ongoing or being planned.
Banner is building two hospitals in the East Valley, a cancer center and a proposed hospital with the University of Arizona in downtown Phoenix, and expanding facilities at three existing hospitals.
“The building is being done to meet community need, ” said Bill Byron, Banner spokesman. Banner is building to create more hospital beds and also to expand its research programs. Banner is not alone. Most Valley hospitals have construction in progress or are in the planning stages.
Construction boom
Hospital construction and expansion projects are pouring money into the state’s economy as they add new beds.
From 2000 to 2006, New beds: 1,310, Spent on construction: $1.2 billion. Planned construction, 2007-11, New beds: 2,873. Estimated construction spending: $3.3 billion.
By Jodie Snyder
The Arizona Republic
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Phoenix Chamber of Commerce
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Scottsdale Chamber of Commerce
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Carefree/Cavecreek Chamber of Commerce
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| Buckeye Valley Chamber of Commerce | www.buckeyevalleychamber.org | |
| East Valley Chambers of Commerce Alliance | www.evcca.org | |
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Mesa Chamber of Commerce
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Tempe Chamber of Commerce
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Arizona Chamber of Commerce
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Gilbert Chamber of Commerce
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| Glendale Chamber of Commerce | www.glendaleazchamber.org | |
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Peoria Chamber of Commerce
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Chandler Chamber of Commerce
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| North Phoenix Chamber of Commerce | www.northphoenixchamber.com | |
| Northwest Valley Chamber of Commerce | www.northwestvalley.com | |
| Southwest Valley Chamber of Commerce | www.southwestvalleychamber.org | |
| Wickenburg Chamber of Commerce | www.wickenburgchamber.com | |
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Scottsdale Convention and Visitors Bureau
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Greater Phoenix Convention and Visitors Bureau
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| Better Business Bureau | www.phoenix.bbb.org | |
The Arizona Office of the Governor Janet Napolitano and Council on Small Business
Council provides an executive level forum to focus on key topics that impact Arizona’s small business community.
Copper Industry Golden to Economy:
A study conducted by the Western Economic Analysis Center found Arizona’s copper industry added $19 billion to the national economy in 2005.
The copper industry added more than $3.5 billion to Arizona’s economy, including about $1.1 billion in personal income, and $223 million in state and local government revenue.
Employment increased by 8 percent to 6,900 workers compared with 6,400 the year before. Average annual pay rose to almost $59,400, compared with $57,000 the previous year.
By E Behrendt, The Arizona Tribune
Greater Phoenix, greater place to grow a business
A diverse economic base, highly skilled workforce, and strong business climate position the area firmly among the most competitive regions in the world. Skilled workers from across the nation are migrating to Arizona in incredible numbers – attracted by economic opportunity and an unmatched quality of life.
The Arizona Republic Newspaper reports in October of 2005: Phoenix is ranked No. 1 in the nation for entrepreneurs among large metro areas! Arizona cities of all sizes rank at, or near the top in their respective categories. Tucson is the No. 2 midsize city, behind El Paso. Yuma is No. 4 in the small city category.
Greater Phoenix’s large workforce is young, talented and ambitious:
- The total civilian labor force exceeds 1.8 million.
- Greater Phoenix residents’ median age, in ‘04, was 32.9 years;
- the US median age was 35.9.
- 16.3% have a bachelor’s degree or higher.
- More than 60% of the population is between the ages of 25 and 64.
- Nearly 380,000+ people are currently enrolled in higher education in Greater Phoenix.
- A 2000 labor market analysis showed Greater Phoenix employees rated as significantly more productive than employees in similar company operations in other parts of the country. By AZ Dept. of Economic Security; US Bureau of the Census, GPEC Info Center, Wadley Donovan Group.
Some significant corporate headquarters located in the valley:
Motorsports Authentics , Amkor Technology, Arizona Republic,Banner Health Systems,
Best Western, Cold Stone Creamery, Discount Tire Company, eFUNDS, Fender Musical Instruments, Fulton Homes,
Giant Industries,Go Daddy, Insight Enterprises, Inter-Tel, John C. Lincoln Hospitals,
Main Street Restaurant Group Medicis Pharmaceutical Corporation, Mesa Airlines,
MicroChip Technology, Mobile Mini,ON Semiconductor, Petsmart,
Ping Golf / Karsten Manufacturing,
Pinnacle West Capital Corporation, Arizona Public Service, P.F. Chang’s China Bistro, Poore Brothers, Rural/Metro,
Salt River Project, Scottsdale Healthcare, Shamrock Foods,
Swift Transportation Company, Taser International
A Location Positioned for Success
True to the old adage that location is everything, Greater Phoenix is blessed by its position smack in the middle of the largest and fastest-growing multi-state region in the country.
Greater Phoenix is taking advantage of the easy access to nearly every major city within the growth region that includes bordering states of New Mexico, Utah, Colorado and Nevada, in addition to California and Mexico.
According to the Greater Phoenix Economic Council (GPEC), the region’s economic development organization, location is only one factor that encourages business to grow and locate in Greater Phoenix. In this pro-business community, the work climate is positive and wages are competitive, thanks to a favorable cost-of-living index.
Big Business is at Home in Greater Phoenix
Top Area Employers *
Source: 2005 Business Joumal Book of Lists
| Name | Category |
| Banner Health Systems | Health Care |
| Honeywell Intemational, Inc | Aerospace |
| Wells Fargo and Co | Financial Services |
| Intel Corp | Electronics |
| JP Morgan Chase | Financial services |
| Bank of America | Financial Services |
| American Express Co. | Financial Services |
| Pinnacle West Capital Corp. | Utilities |
| Qwest Communications | Telecommunications |
According to the study by Global Insight Inc., Phoenix is among the Sunbelt cities leading the U.S. in job growth in 2006 as the nation’s metropolitan areas slow their economic recovery. The other leading cities are Las Vegas and Orlando, Reuters news service reports.
The study, conducted for the U.S. Conference of Mayors, valued U.S. metropolitan area economic activity at about $10.7 trillion in 2005.
The Hot Place for International Business
Greater Phoenix’s pro-business attitude has been instrumental in wooing international businesses as well. The state’s foreign trade zones provide international companies with inviting property tax reductions and other advantages. International companies such as Toyota, SGS-Thomson Microelectronics, Sumitomo and Materials Research Corporation
(a division of Sony) have relocated here recently, assisted by Greater Phoenix Economic Council and its economic development partners.
When all the statistics are in, it appears that Arizona still will be building houses and creating jobs at an enviable rate for the rest of this year and probably into next year. Construction was the highest gainer in June, 2005, while total employment in that industry hit another record with 208,700 jobs statewide, according to the Arizona Department of Economic Security.
How green is the Valley? Greener than you think, if you look at green as a demographic term. Both the Valley and the State are growing younger. While many people think of Arizona as a retirement haven, what they may not realize is that Arizona’s average age, 32.2 years, is below the national average of 32.9 years. The change in demographics is good for many businesses in that it opens new markets to them. This melding of two societies, bodes well for Arizona’s economy because of the increasing diversity.
Companies with Large Presence in the Area:
Amerco, U-Haul, American Express, Applied Materials, Bank of America, Boeing, Catholic Healthcare West , Countrywide Financial Cox Communications Dial Corporation , Henkel Freescale Semiconductor, General Dynamics ,
Google , Home Depot Honeywell International J.P. Morgan Chase Intel Kroger Marriott International,Medtronic,
Motorola, Pulte Homes, Qwest Communications, Safeway, Southwest Airlines, Starwood Hotels & Resorts Worldwide,
Target Corporation, USAA, Vanguard Group, Wal-Mart, Walgreen’s, Wells Fargo
Networking in the Valley of the Sun:
Phoenix Chamber , TheArtofNetworking , National Assn of Women Business Owners , LeTip International Networking , Risk Takers Toastmasters , Metro Professionals , WomenCEO Network , eWomen Network , GCMSDC , Arizona Authors Assn , Governor’s Council on Small Business, Phoenix Women’s Commission and Score Sales Training for Success , WIN (Prescott) and AWIT , Asian Chamber of Commerce
The Arizona Business Journal
Arizona Commerce Home Page
Arizona Corporation Commission
Business Development
Business Relocation Information
Greater Phoenix Economic Council Information Center
Chandler – Economic Development
Economic Development in Tempe
Small Business Assistance in Phoenix
City of Scottsdale Business
Operating a Business in Phoenix
Small Business Assistance
Arizona Small Business Association
U.S. Small Business Administration (Phoenix)
ASU Center for Business Development
Workforce Informer in Arizona
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