wealthtrust-arizona - an update on the state of the arizona economy
DESCRIPTION
Workshop presented by WealthTrust-Arizona & Barry Broome, President and CEO of the Greater Phoenix Economic Council.During the presentation Barry discusses the state of the Arizona economy, including real estate, local politics and possible growth opportunities to ensure a competitive, vibrant and self-sustaining regional economy.TRANSCRIPT
WealthTrust-Arizona & the Greater Phoenix Economic
Chamber
Holly DeemCEOWealthTrust-Arizona
Barry BroomeCEO & PresidentGreater Phoenix Economic Council
• Founded in 1989 as a regional, public-private partnership
• Supported by Maricopa County, 20 cities and towns, and more than 155 private-sector businesses
• Provides site-selection services as well as supporting data and analysis
• Fosters partnerships between companies entering the market and key leaders/businesses in AZ
GREATER PHOENIX ECONOMIC COUNCIL
• Since inception, GPEC has assisted 500 companies to locate in the region
• Resulting in $10.5 billion in capital investment
• Creating more than 91,000 jobs
Region’s Economic Development Organization
• Markets respond, and industries cluster, on regional levels.
• The Brookings Institution recently selected Greater Phoenix to take part in its Metropolitan Business Planning Initiative, along with Syracuse, Lexington/Louisville and Memphis.
• The goal is to demonstrate the power of systematic, locally-driven regional strategies to transform, reposition and demonstrably improve the economic performance of Greater Phoenix.
• Regional collaborative model with Maricopa Association of Governments, GPEC, Thunderbird School of Global Management and Arizona State University.
Economic development and growth occurs on regional levels
REGIONALISM
REGIONAL STRATEGYCurrent Key Initiatives to Diversifying the Region’s Economy
• Clean Technology• Renewable energy• Energy efficiency• Energy storage• Smart-grid technology• Electric vehicles• Advanced materials
• Healthcare / Personalized medicine
REGIONAL IMPACT: SUN CORRIDOR INITIATIVEInter-Regional Collaboration Around California Strategy
• Partners: TREO, GYEDC, Flagstaff, Pinal County
• Approximately 23% of GPEC’s prospects come from CA.
• Corporate headquarters and Fortune 500 companies leaving CA.
• CA’s high-tech/manufacturing industry losing ground due to regulatory climate, tax burden and reputation as a difficult and costly place to do business.1
• #1 State for Alternative Energy Business Facilities Magazine
• Top State for Potential Solar Capacity by NREL
• One of the most aggressive incentive programs for renewable firms in the country
• First U.S. market to land China’s investment by a solar company
SOLAR HAS ARRIVEDTop State for Renewable Energy
REGIONAL IMPACT: FIRST SOLAR EXAMPLEFirst Solar Facility in the Mesa Gateway Area
• Potentially 4,800 jobs at full build-out
• Mesa jobs: 2,617
• Jobs to surrounding areas:
Apache Junction - 214
Gilbert - 559
Queen Creek - 274
GROWING SOLAR INDUSTRY CLUSTERCompanies that have Recently Selected Greater Phoenix
COMPANY PROJECT TYPE
LOCATION JOBS
INVESTMENT
DATE
Suntech Manufacturing Goodyear 150 $14M Oct. 2010
Rioglass Manufacturing Surprise 109 $50M Aug. 2010
Alpha Energies Headquarters Phoenix 57 $5.1M Feb. 2010
Power-One Manufacturing Phoenix 350 $11M Jan. 2010
Faist Manufacturing Phoenix 45 $5M Jan. 2011
Gestamp Manufacturing Surprise 164 $57M Feb. 2011
First Solar Manufacturing Mesa 4,800 $1,600M Mar. 2011
Fluidic Manufacturing Maricopa Co. 400 $16M Apr. 2011
Saint Gobain Manufacturing Goodyear 50 $20M Jun. 2011
3 Pending Locates Manufacturing TBD 260 $43M Q3 2011
TOTAL12 Companies
6,385
$1.82B
GPEC: LEADING INNOVATION
• According to the September NFIB Small Business Trends report, lack of demand (sales) is the largest problem facing small businesses.
• Base industry attraction creates local market demand for small businesses:
DEMAND WANTEDSmall Businesses Need Sales
FDI: ATTRACTING NEW INVESTMENT
#4 GERMANY
$212B+22%
#5CANADA
$206B+22%
#1UK
$432B- 3%
#2JAPAN$257B+10%
Top 5 Countries for Inward FDI to the U.S. Collectively Account for 56% or $1.3 Trillion
#3S
$217B+21%
#32CHINA$3.1B+185%
#3HOLLAND
$217B+21%
FDI: ATTRACTING NEW INVESTMENTCurrent FDI Jobs in Arizona
73,000 Total Jobs
73,000 Total Jobs
18,000 Manufacturing
Jobs
18,000 Manufacturing
Jobs
2,101 Green Field
Jobs
2,101 Green Field
Jobs
WHY INCREASE FDI?Promote Quality Jobs and Exports
CA TXAZ
• On average, foreign firms pay 25% higher wages and salaries than the rest of the private sector in the U.S.
• More than one-quarter (25.6 percent) of all manufacturing workers in Arizona depend on exports for their jobs.
• In 2008, trade supported 732,800 jobs in Arizona, nearly 3.6% of all jobs.
CLOZE AZ GAP ON FDI AND TRADE BANKING IN THE U.S.Neighboring states have correlation between FDI and trade
CA TXAZ
FDI 1st 21st 2nd
EXPORT 1st 25th 2nd
TARGET FOR FDI STRATEGYIf FDI position improved, job creation potential would be:
CA TXAZ
POLICYFY2012 Economic Development Policy Recommendations
Thank You