Attracting companies and organizations is big business, and Arizona is succeeding in its efforts.
CP Technologies in north Prescott is a good representation of the trend. The defense company, which also builds unmanned aerial vehicles, opened its doors earlier this year after relocating from San Diego.
President and CEO Mike McCormak said California’s high taxation and cost-prohibitive regulations had him looking at other states. After considering Texas, Nevada, Utah and Alabama, Arizona was the clear choice for new company headquarters.
“The reason we chose Arizona was because the state made it a no-brainer with financial support and a lack of bureaucracy,” said McCormak. Other incentives were supportive local officials, and proximity to an airfield, Embry-Riddle Aeronautical University and Yavapai College, he said.
“Of all the options, Prescott was best for our business and staff. with its amenities and cost of living,” McCormak added. It was important to him that the move improved the quality of life for his staff members.
McCormak worked closely with John Heiney, Prescott’s community outreach manager. In the past couple of months, Heiney also has hosted other California companies considering a move to Prescott. “By the time a company is looking at site selection, they have done their research on what their needs are,” he said.
The greater Phoenix area has more ground and rail transportation compared to the Prescott region; however, company leaders, especially with smaller privately owned companies, may put more weight on affordability, outdoor options and four seasons, said Heiney.
The trend of companies moving to Arizona has been underway for a few years, but the pandemic accelerated timetables for many, Heiney added.
Attracting companies and organizations is big business, and Arizona is succeeding in its efforts. But, the story was different a short time ago.
The state was one of the hardest hit during the Great Recession, said Patrick Ptak of the Arizona Commerce Authority. The senior vice president of executive initiatives said that after 300,000 jobs were lost and $3 million in state revenues dried up, state leaders realized the urgent need for economic diversification. The Arizona Commerce Authority was then created, with a focus on attracting high value industries like aerospace, defense, biopharma and technology.
A decade after ACA’s inception, new business construction and renovations are underway across the state, said Ptak. “Arizona offers the complete package, with a highly skilled and growing workforce, low-cost business environment, affordable and reliable energy, and proximity to some of the biggest markets a day’s drive away.”
Ptak said these changes in what he calls Arizona’s robust innovation ecosystem will likely continue because tech companies want to be near other pioneers. Major companies like Intel, Raytheon, Benchmark Electronics and numerous others are driving these advancements in the state, he added, along with Arizona State University, Northern Arizona University and the University of Arizona.
A lot of people can look at Arizona’s growth and wonder how it affects them, Ptak said. He quotes Bureau of Economic Analysis statistics showing that state residents experienced some of the country’s most significant wage and personal income growth during the past year.
“When you are bringing in more high paying jobs, it has a growth effect for the entire economy, with more people spending money at local restaurants, businesses and traveling to other parts of the state,” said Ptak.
The Arizona Office of Economic Opportunity recently published the 2019-2029 Projected Employment Report. It calculates that nearly 550,000 jobs will be added during the next decade, representing a 1.6% annual growth in the state. QCBN
By Theresa Bierer, QCBN
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