Transcript About Arizona – Event presentation

Arizona - The NEW West
 The Old West was built on true grit and resourcefulness
 As the exemplar for the New West, these traits have helped to
establish Arizona as a significant center of know how and innovation
 Over the past decade, Arizona experienced one of the largest
increases in entrepreneurial activity (Kauffman Index of Entrepreneurial Activity)
Arizona is
recognized as a Top
Ten State in the
nation, for:
• Skilled Workforce; CNBC’s Top States for Business
• Best State for Doing Business; Chief Executive Survey
• Top Performer in Recovery; Enterprising States
Arizona- The NEW West
Arizona’s focus on high-quality industry translates into
higher paying wages
– Aerospace & Defense
• #4 in space systems and defense manufacturing employment
(TechAmerica Cyberstates 2013)
– Semiconductors
• #4 in semiconductor manufacturing (TechAmerica Cyberstates 2013)
– Optics/Photonics
• University of Arizona and Arizona State University are both
recognized as leaders in nano-biotechnology, photonics, and
nano-imaging research.
– Bioscience & Healthcare
• 100,000 jobs spread over 850 firms
– Renewable Energy
• #2 state in total solar employment at 9,800 (The Solar Foundation, 2012)
Arizona - Today
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Population (2013): 6,553,255
Population Growth since 2000: 25%
Population Growth since 1950: 874%
– 2nd largest growth rate in the nation 20002010
GDP, 2012 (millions): $266,891
GDP growth since 2000: 65%
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Civilian Labor Force (July, 2013): 3,006,600
Civilian Labor Force Growth since 2000: 18.5%
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484,000+ businesses in Arizona
Home to over 30 “Fortune 100” Companies
11 Inc. 500 companies, 100 Inc. 5,000
HB 2001 Arizona Competiveness Package
• 30% state corporate income tax reduction (phased from 6.9% to
4.9%) beginning
January 2014.
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• 100% electable sales factor (up from 80%) for multi-state
corporations by 2017.
• Reduces commercial property assessment ratio by 10% (from 20%
to 18%) by 2016.
• Enhanced R&D Tax Credit Program –income tax credit up to 34% for
R&D made in conjunction with an Arizona public university.
• Accelerated Additional Depreciation schedules to help companies
recover their investments even faster.
• Increased the personal property exemption by 2013
• Creation of the Quality Jobs Tax Credit Program that allows for up
$9,000 tax credit per qualified employee ($3,000 per year for three
years)
• Extension of the Job Training and Angel Credit Programs.
• Creation of the Arizona Competes Fund, which has helped Arizona
build leverage over other competing states.
ACA’s Strategic Framework
VISION: Arizona is the best location for high-quality business growth
MISSION: Grow & diversify Arizona’s Economy & create quality jobs for its citizens by supporting and
attracting businesses in targeted, high-growth clusters, with an emphasis on the base industries.
STRATEGIES:
1
Recruit
2
3
Grow
Create
ACTION PLAN:
Increase Awareness of
Arizona’s Attractiveness
Make Arizona Preferred Location for Target Industries:
A&D, Semiconductors, Optics, Biosciences, Solar Energy
Support Employerfocused, Demand-driven
Workforce Development
Enhance Arizona’s
Competitiveness
Make Arizona a Leading Hub in High-Quality Manufacturing
and Advanced Business Services
Develop Infrastructure
to Support Economic
Growth
Coordinate Arizona’s
Economic Development
Foster Innovation and
Support
Entrepreneurship
Become a Preferred
Trading Partner with
Mexico and Canada
Integrate All Areas of
Arizona into the State’s
Growth
Arizona’s Strategic Location
Access to 65 Million Consumers
Arizona is easily accessible to a
variety of markets, providing
convenient access to a large
customer base
• 10.97 million people
within 4 hours
• 29.39 million people
within 8 hours
• 65.78 million people
within 16 hours
Arizona’s Strategic Location
Title text
Arizona’s Global Location
Arizona:
• Shares a border with California (worlds 9th largest
economy and Mexico (world’s 14th largest economy)
• Has over 180 weekly direct flights to destinations in
Canada, Arizona’s 3rd largest trading partner
• Has direct access to Mexico, Asia, and South
America through major ports within a 4 hour drive
Canada
NAFTA
Countries
California
Arizona
Asia
Map is not to scale
Map taken from FDI Markets, 2013
Mexico
The Arizona-Mexico Trade Relationship
• Arizona imported $6.7B from Mexico in 2012
• Arizona exported $6.3B to Mexico in 2012
There are 6 ports of entry along the ArizonaMexico border. In 2012:
• 377,903 trucks crossed
• 7,472,683 personal vehicles crossed
Mexico has many emerging industries that
are the same as or compatible with major
Arizona industries, such as: aerospace,
medical devices, automotive, and renewable
energy.
Source: U.S. Census, Arizona Department of Transportation, U.S. Bureau of Transportation; 2012
Arizona’s Export Destinations
1. Mexico:
$6.3text
Billion (4.26% increase from 2011)
Title
• Electrical Machinery (25.35% of total), Ores/Slag, Ash
(15.84%), Machinery (11.84%)
2. Canada: $2.2 Billion (2.77% increase from 2011)
• Electrical Machinery (25.86% of total), Aircraft/Spacecraft
(14.86%), Machinery (11.52%)
3. China: $1.25 Billion (24.98% increase from 2011)
• Electrical Machinery (45.1% of total), Cotton/Yarn/ Fabric
(15.42%), Machinery (9.94%)
4. Japan: $920 Million (9.88% increase from 2011)
• Optics/Precision/ Medical Instruments (25.5% of total),
Aircraft/Spacecraft (16.83%), Electrical Machinery (13.71%)
5. United Kingdom: $914 Million (15.33% increase from 2011)
• Aircraft/ Spacecraft (40.74% of total), Machinery (12.67%),
Electrical Machinery (11.62%)
Source: U.S. Trade Statistics Online, a GTIS Database; accessed September 2013
Arizona Top Trade Partners in 2012
Title text
1. Mexico
$13.02 Billion
2. China
$3.99 Billion
3. Canada
$3.66 Billion
4. Japan
$2.14 Billion
5. Malaysia
$1.69 Billion
6. Germany
$1.36 Billion
7. United Kingdom
$1.36 Billion
8. Singapore
$914 Million
9. Taiwan
$852 Million
10.France
$796 Million
Source: U.S. Trade Statistics Online and International Trade Administration; accessed March 2013
Notable Projects
• General Motors – Innovation Center; 700+ jobs, $21 million Capex
• Autonomous car systems development
• State Farm – 8,000 jobs, 2 million sq. ft. building
• Bilingual customer service center
• Intel – Fab 42; $5 billion Capex, 1,000+ jobs
• Developing microprocessors sized at 14 nanometers
• Amazon – 3,000 jobs, 4 million sq. ft.
• Significant fulfillment centers in Arizona
Innovation from Arizona
• Bridgestone – Developing sustainable methods of transforming Guayule, a southwesterndesert shrub that produces natural rubber in its roots and bark, into tiregrade rubber
• Heliae – Integrating futuristic algae technology into bio-products
• HJ3 Composites – Developing carbon fiber reinforced polymers to repair existing concrete,
steel and masonry structures at a fraction of the price
• Solid Concepts – One of the largest dedicated service providers of rapid prototyping and
additive manufacturing
Smart for business: Top Companies Located in Arizona