Quad Cities Business News

Prescott, Prescott Valley, Chino Valley, & Dewey/Humboldt

You are here: Home / Archives for Arizona Commerce Authority

Arizona Commerce Authority

Innovation Center Attracting High-Tech Firms, Funding

By Leave a Comment

Visionaries see future hub for incubation, talent retention.

In just the few short months since it was formally opened on July 13, the fledgling Center for the Future (CFF) has taken flight and is attracting international attention from major high-tech organizations.

In addition, it has received status as an official non-profit 501(c)(3) corporation from the IRS, which makes it available for tax-deductible contributions. “That also means we now have additional opportunities to work with governmental organizations and federal grant programs,” Jon C. Haass, CFF founder, president and director, told the Quad Cities Business News.

Haass, a professor at Embry-Riddle Aeronautical University, said CFF is working with the Northern Arizona Council of Governments (NACOG) in alignment with its five-year strategic plan to create innovation centers in key sectors within the Quad Cities area. Organizations such as NACOG, the Arizona Technology Council, Northern Arizona Technology Alliance and the Arizona Commerce Authority support the concept of such centers throughout the region, where local graduates can find good jobs. “Companies want the kinds of students we educate locally – business students, engineers, security and intelligence graduates,” Haass said.

CFF already has received a $60,000 matching grant through its Prescott Regional Opportunity Foundation (PROF) and its fiscal sponsor, the Prescott Chamber of Commerce.

The USDA funding is being matched by in-kind donations and other sources during the next 11 months. During that time, workshops, presentations, consulting and mentoring will assist companies in hiring additional employees and help in relocating workers to this region, Haass said.

“As a business incubator and accelerator-attractor, the CFF project of PROF now has initial funding to provide services for its first partner companies that are considering this area to open new or locate branch offices,” Haass said. “We already have four organizations utilizing space within the office space the CFF occupies, and others are going to be moving in in just days.”

Those currently occupying offices are SimpleWAN, SEG (an Axient subsidiary), CyberCore and GSIS.US. Businesses operating through space administered by the CFF are located at 220 S. Marina St., in a multi-storied 3,500-square-foot building that used to be the Prescott City Hall Annex. Those facilities are now dedicated to the CFF.

Currently, an architect is working on plans for a proposed 35,000-square-foot technologically sophisticated building. It will become the Phase III home for CFF, Haass said. Land for that structure has been selected near the recently constructed CP Technologies manufacturing complex just north of the Prescott Regional Airport (PRC). Mike McCormack, CEO of CP Technologies, is now a member of the CFF board of directors.

“We’re pleased that the CFF is also a participant in a state program that funded the Arizona Commerce Agency (ACA) as well as another USDA program called RISE – Rural Innovation Stronger Economy. This involves three-year funding, which will allow us to interact with organizations across the state to bolster Northern Arizona business,” Haass said. RISE programs offer grant assistance to create and augment high-wage jobs and accelerate the formation of new businesses.

Ultimately, Haass says an objective of the CFF is to be the major hub in Central and Northern Arizona for innovation, incubation, attraction, growth and retention of solid companies and talent in cutting-edge technology industries. “This area has been praised by the Milken Institute as a ‘Top 5 Best Metro in the Country for Job Creation.’ We’re also recognized by bestplaces/.net as ‘Best Emerging Places to Live.’ All of us affiliated with the Center are enthusiastic about what we see as a bright and prosperous future.” QCBN

By Ray Newton, QCBN

For more information, visit CenterForTheFuturePrescott.com

Arizona’s Business Landscape Sees Explosive Growth

By Leave a Comment

Attracting companies and organizations is big business, and Arizona is succeeding in its efforts.

The summer of 2021 is leading the record books for businesses relocating to Arizona, including semiconductor manufacturers, electric car makers and many other tech companies. While most relocations and expansions are happening in the Valley, Northern Arizona is also attracting new companies.

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

Job Future Looking Bright at CP Technologies

By Leave a Comment

“We’re grateful for their investment in Prescott and look forward to their continued expansion.”  

During the official ribbon-cutting of the CP Technologies (CP Tech) manufacturing complex, local, national and international leaders predicted a significant increase in high-tech jobs in the immediate Prescott region.

CP Tech personnel greeted industry and business leaders and invited guests at the Wednesday, June 9, event at 2620 Deep Well Road on the north edge of Prescott. The program was planned by the Prescott Chamber of Commerce and moderated by long-time Chamber member Sanford Cohen. Several speakers told the crowd about the expected economic impact CP Tech would have on the region and Arizona.

“What we’re seeing here in Prescott and Arizona is the midst of a manufacturing boom,” said Governor Doug Ducey to the 150 or so guests. He praised Prescott leaders for their aggressive support in enticing CP Tech to make Prescott its North American headquarters. “We’re grateful for their investment in Prescott and look forward to their continued expansion.”

The governor also welcomed Dr. Uzi Landau, chair of Rafael Advanced Defense Systems (Rafael) from Haifa, Israel; Moshe Elazar, CP Aeronautics president and CEO; and Mike McCormack, CP Technologies president and CEO, who brought the firm to Prescott from San Diego, where it had operated for 24 years.

Landau told the crowd that CP Tech is owned by Aeronautics Ltd., an international firm that is 50% owned by Rafael and 50% by private investor Avichay Stolero. It was emphasized that CP North America is independently operated in Arizona. CP North America encompasses a family of brands like CP Technologies, CP Systems and CP Aeronautics. Prescott is now home for all three divisions.

Also speaking was Moshe Elazar, recently appointed president and CEO of CP Aeronautics. He said he and his colleagues feel at home in Prescott and are proud to be part of the local community. “We want to play a role as an essential economic player in Arizona.”

McCormack told the crowd that locating to Arizona was a “no-brainer.” He said five states had tried to recruit CP Tech to relocate but that Prescott was, without hesitation, the best choice. “Opening this facility marks a major milestone for the CP brand and provides the needed expansion of our capabilities as a manufacturer to serve our customers worldwide.”

McCormack has a long history of being involved with the defense industry. He served in the U.S. Air Force as an Airborne Command Post Communications Systems Engineer. He also has management experience with major defense and industrial firms that designed and manufactured a wide range of products for defense and aerospace.

Prescott Mayor Greg Mengarelli thanked Gov. Ducey and other state officials for their support. He also expressed gratitude to the local educational and business community, noting that Embry-Riddle Aeronautical University and Yavapai College were strong advocates for bringing CP Tech to Prescott. He also thanked Sandra Watson of the Arizona Commerce Authority for her support.

“Make no mistake. It is a new day in Prescott in having this company here as the national headquarters,” he said.

Expansion Anticipated

Following the formal program, CP Tech staff members led visitors on a guided tour of the complex. During that tour, it was noted that other high-tech firms – some international – will soon be partnering with the company.

The 50,000-square-foot facility will manufacture high performance computer platforms, custom military, industrial computers, monitors and keyboards for military and commercial markets. That includes the production of world-class combat-proven Unmanned Aerial Vehicles (UAVs) for defense, federal and commercial customers, according to Mark Kempf, vice president of CP Tech.

In another example, CP Tech announced it has teamed with General Atomics Aeronautical Systems to design and manufacture the Portable Aircraft Control Station (PACS) for the U.S. Air Force. PACS is a rugged system expected to perform direct connections with aircraft in pre- and post-flight operations and engine functions. CP Tech personnel say PACS will provide a compact, yet cost-effective solution for the Air Force.

Dozens of former California employees have relocated to Prescott, Kempf said. He indicated that at least 150 employees would be in place within the next two years.

“We want to build another 50,000-square-foot complex next door, but we need to get the current facility fully loaded first,” said Kempf. He estimated by 2024, CP North America will offer complete end-to-end manufacturing capabilities. He also estimated that even more high-tech employees will be recruited. QCBN

By Ray Newton, QCBN

For more information, visit cptechusa.com.