By Kimberly Alvarez, Publisher, Expansion Solutions Magazine
Not only is Arizona known for its rugged terrain, stunning scenery, and vibrant cities, but it is also one of the best states in the Nation to do business.
Arizona has long had a reputation for being one of the most fiscally responsible states in the Union, and it has received a lot of attention for the economic climate it has cultivated. The 2023 “Rich States, Poor States,” yearly analysis from the American Legislative Exchange Council, comparing state economies throughout the U.S., ranks Arizona No. 3 for Economic Performance over the last decade. Arizona received the third-highest marks in the country in its annual ranking based on the state’s GDP, population, and job growth with non-farm employment in Arizona increasing by 71,900 jobs over the year.
Arizona also ranked No. 3 for Economic Outlook which is a forecast based on each state’s policy variables, which are greatly influenced by legislation. Those states that spend and tax less, like Arizona, tend to experience higher growth rates than states that spend and tax more.
Workforce
The talent pool is young, educated, and ready to work. Employment costs are less expensive when compared to other states because Arizona is a right to work state.
Investing in the Future by Investing in Its People
Governor Katie Hobbs is committed to building an innovative and prosperous Arizona for all Arizonians while lowering costs, investing in public education, securing the state’s water future, and providing affordable housing for its citizens. By providing state level child tax credits, sales tax relief to families for things like school supplies, diapers and over the counter medicine, expanding childcare assistance, and providing training opportunities for good-paying jobs, the economy is set up for growth, and the state will experience for long-term prosperity as a result. Creating a dependable workforce will allow even more business development, making the state more competitive and extremely attractive to workers.
Let’s Talk Semiconductors and Autonomous Vehicles
With manufacturing and semiconductor development giants such as Intel, Texas Instruments, Microchip, TSMC, Qualcomm, Applied Materials, Lam Research and Amkor Technology (to name a few) already part of the semiconductor ecosystem in Arizona as well as companies leading the way in the manufacturing and testing of autonomous vehicles, it’s no wonder the state’s economy is flourishing. In fact, Arizona was the first state in the Nation to enact an executive order supporting the testing and operation of self-driving vehicles. It was also the first to allow Waymo to launch a commercial self-driving, robotaxi service in Tempe, Mesa, and Gilbert. Today, there are more than a dozen companies operating in the state, testing driverless vehicles and related technology.
Going Green
City of Buckeye: In July of this year, Fortescue Future Industries (FFI) made its first major investment in the U.S., investing $24 million to acquire Phoenix Hydrogen Hub, LLC (PHH). Adding to its green portfolio, the City of Buckeye, will become the site for the PHH’s green hydrogen projects. Phase one of the planned projects is an 80MW electrolyzer and liquefication facility which can produce up to 12,000 tons of liquified, green hydrogen annually. This can supplant the equivalent of 10 million gallons of diesel consumption annually. With the first production of green hydrogen anticipated in the next several years, the project has the potential to create hundreds of jobs and makes Buckeye a prime location for like-minded businesses to expand and thrive.
Nikola, whose zero emission trucks are manufactured in Coolidge, Arizona, will be a potential customer of liquified green hydrogen from the hub to support the deployment of its heavy-duty, hydrogen fuel cell electric vehicles and hydrogen refueling stations in California and the U.S. Southwest.
Phoenix: Australian electric vehicle and fast-charging company, Evie Networks, announced the selection of Phoenix as the site of their North American headquarters in July 2023. The company will establish electric vehicle charging stations across Arizona and should have its first U.S. sites up and running within 18 months.
Cyber Security & Aerospace/Defense
Cybersecurity and Aerospace/Defense companies flock to Arizona. Many of the most prestigious companies in the world have operations there. The state’s cluster of cybersecurity and aerospace/defense companies, university programs and government initiatives are constantly in action to secure the nation’s systems and bring about innovation.
Arizona is home to four Cyber Security Warfare Range locations throughout the state. They are privately funded, non-profit entities offering hands-on training, mentoring and real-world experiences. These Ranges are designed to sharpen the skills of cyber security professionals while driving innovation and enhancing cyber security technologies and techniques.
More than 625,000 servicemen/women and veterans from all branches of the service call Arizona home. Their unique specialized skills can be utilized for a number of civilian technical applications. They have proven to be valuable assets for companies looking for highly-trained talent with natural leadership abilities in the cybersecurity and aerospace/defense industry. Top cybersecurity and aerospace/defense firms have found Arizona to be the perfect place to test, launch, and scale ideas.
Sierra Vista: Fort Huachuca is home to the U.S. Army’s Network Enterprise Technology Command (NETCOM) 9th Signal Command and Intelligence Center of Excellence. As a result of having a highly-skilled workforce with top-secret clearance, Sierra Vista is a leader in cyber defense and intelligence support. Fort Huachuca is also a key partner in electronic warfare testing for the Aerospace/Defense industry. As part of the Department of Defense Major Range and Test Facility Base, Fort Huachuca offers third-party testing for companies to validate their technology. It is also the premier organization of the Army for testing command, communications, control, computer and intelligence systems and equipment.
Yuma: Yuma’s airport has unparalleled military ties with the country’s most prestigious defense aviation park—the 120-acre Defense Contractor Complex (DCC). The DCC is located near the airport and Yuma Proving Grounds and supports defense contractors such as Boeing and other top firms by providing a secure space to complete technical testing.
