In his inaugural speech in 2015, Gov. Ducey called for making Arizona the “pace leader in the competition for the very best state in America to do business.”
Six years later, that goal is reality, and you don’t have to look far for proof.
Intel. TSMC. Lucid. ElectraMeccanica. Apple. Waymo. Benchmark Electronics. Zoom, Silicon Valley Bank, Raytheon. Infosys. Caterpillar. TuSimple. Zovio. Orbital ATK.Honeywell, Cognizant. And many more.
Arizona is a magnet for high-tech jobs. Businesses large and small are recovering steadily from the pandemic, aided by a common-sense approach that kept Arizona open. And we’ve become home base for emerging technologies such as electric vehicle manufacturing, semiconductors, financial technology, automated vehicles and more.
Now, with a global push to reshore supply chains and manufacturing jobs, all eyes are on Arizona — and the best is yet to come.
According to a recent study, the Covid-19 pandemic has affected 98% of global supply chains. This shakeup has companies all over the world rethinking their business plans and locations, with a focus on areas that offer stability, ease of doing business, low costs, ample talent and access to global markets. In these areas, Arizona isn’t just winning against other states, we’re setting the global standard.
Consider that in 2020, Arizona attracted a record $13.7 billion in foreign direct investment (FDI), according to data internal to Arizona Commerce Authority. Between 2019 and 2020, FDI increased by more than 1,700% in Arizona. Since 2016, it’s increased by more than 3,500%.
Semiconductor surge
Much of this success owes itself to the announcement from Taiwan Semiconductor Manufacturing Company (TSMC), which is building a state-of-the-art semiconductor fabrication facility in Phoenix. The project will create more than 1,600 direct jobs and generate thousands more throughout the supply chain. Construction on the facility is planned to begin this year.
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More recently, Arizona giant Intel announced a massive expansion of their already sizable footprint in the state. Intel will build two new semiconductor fabs through a $20 billion investment — the largest private-sector investment in state history. The expansion will lead to the direct creation of 3,000 new high-tech, high-wage jobs and 3,000 construction jobs, while supporting an estimated 15,000 additional indirect jobs.
Without a doubt, these announcements reverberated around the world, from Chandler to Chengdu. It’s no wonder, then, that Forbes recently dubbed Arizona, “U.S. Semiconductor Central,” positioning the Grand Canyon State as the epicenter of U.S. efforts to expand chip manufacturing capacity.
Additional leaders in the semiconductor industry here —which already employs more than 22,000 people — include NXP, ON Semiconductor, Qualcomm, Microchip, Benchmark Electronics and Broadcom.
Recovery in full swing
The explosive growth of Arizona’s semiconductor industry isn’t the only reason Arizonans can feel optimistic these days. Last month, Arizona’s workforce reached and even exceeded pre-pandemic levels. This important milestone prefaced another positive recovery indicator in a report released by the Office of Economic Opportunity, which states Arizona will add nearly 550,000 jobs by the decade’s end for an annualized growth rate of 1.6% — four times the estimated U.S. growth rate.
In terms of recovery, Arizona is outperforming the country when it comes to workforce, employment, manufacturing jobs, population growth and wage growth. We’re a top 10 state for economic momentum, tech jobs added last year, and jobs recovered during the pandemic.
These faster-than-average results are not accidental. They are a result of smart policies and visionary leadership, with Gov. Ducey setting the example.
Arizona’s approach throughout the pandemic has prioritized public health while keeping businesses and our economy open. As a result, today, small business monthly revenues are up 23% across the state compared to pre-pandemic. In addition, while many states such as California, New Jersey, New York and Michigan shut down key industries like manufacturing and construction, Arizona kept them open. This decision is already bearing fruit.
In December 2020, Lucid Motors announced completion of its 1 million-square-foot assembly facility, the first factory in the U.S. built from the ground up for the purpose of making electric vehicles (EV). Spanning slightly less than a year, construction of the facility paves the way for delivery in 2021 of the company’s debut luxury vehicle, the “Lucid Air,” something that likely may not have happened if Arizona followed the path of other states.
Lucid is in the vanguard of what one national outlet called, “a modern-day salon of EV innovators” in Arizona. The company is joined by other EV manufacturers such as Nikola, Atlis Motors and ElectraMeccanica, as well as recent supply chain additions such as UACJ Whitehall and Li-Cycle.
Enhancing a tech-ready workforce
The emergence of Arizona’s automotive assembly industry over the last few years has been nothing short of remarkable, while driving further demand for high-tech skills. Thanks to foresight and critical partnerships, Arizona has this area covered.
Over the last decade, the Arizona Commerce Authority (ACA) has partnered with community colleges, universities, industry leaders, nonprofit organizations and more to create a robust pipeline of skilled talent, one that stretches all the way from the classroom to career.
The results of this collaboration can be seen in initiatives such as the Arizona Advanced Technology Network, a unified, industry-recognized curriculum taught throughout the state to prepare students for high-tech jobs.
Another is Drive48, a state-of-the-art advanced manufacturing training facility in Coolidge that is capable of training more than 100 students at a time in advanced fields such as automotive assembly.
These efforts promise to expand on Arizona’s already robust workforce. Since 2015, Arizona has added more than 38,000 tech jobs, bringing total employment in the technology industry to 255,998. What’s more, others are taking note.
Labor market analyst Emsi ranked the Phoenix metro area No.1 — again — on its 2020 Talent Attraction Scorecard for the region’s ability to attract and retain high-quality workers. This ranking was driven by Phoenix’s No.1 1 regional competitiveness score and 18% growth in skilled jobs.
Whether it’s our workforce or thriving innovation ecosystem, ensuring Arizona remains at the forefront of technology remains a top priority.
That’s why the ACA is proud to spearhead a new partnership with Science Foundation Arizona.
The initiative will accelerate industry-university collaboration that is essential to growing and attracting industries of the future.
Growing opportunity
Growing high-tech jobs and industries is about more than just jobs and capital investment. It’s about people, livelihoods and opportunity.
Casa Grande Mayor Craig McFarland said it well at the launch of Drive48: “Thousands of high-tech jobs are coming online in Pinal County over the next few years,” he said. “This facility and the many partners involved are ensuring our workforce can meet the demand while providing local graduates a pathway to gain new skills, acquire good-paying jobs and stay right here in the community.”
The addition of more high-wage jobs brings benefits across the economic spectrum – from more customers for local small businesses to more dollars for priorities like schools, public safety and infrastructure.
This real-world impact our growing advanced industries is evident in the data as well. Last year, Arizona was among the top states in the nation for personal income growth. During the same time, net earnings in Arizona rose by 3.5%, well above the national average of 0.3%, and the state ranked fifth in terms of fastest net earnings rate of growth. This fact is even more remarkable considering that more than half of states saw net earnings decrease last year.
Promise ahead
Arizonans have been through a lot over the last year. The good news is: better days are ahead. With close to half of all Arizonans vaccinated, today, the future holds more promise than ever.
In 2021, the hard work of the last year — indeed, the last decade — is paying off. Thanks to the leadership of so many, from our legislature to university presidents, industry partners and elected leaders, Arizona has become the go-to place for advanced manufacturing. Our pipeline has never been so full, and it shows no signs of slowing.
As companies around the world look to bring more manufacturing to U.S. shores, one thing’s for sure: Arizona’s future is bright.
