By BF Editors
From the November/December 2024 Issue
The Grand Canyon State is positioned to lead trends that further enhance the way industries do business. In Fiscal Year 2024, Arizona attracted record capital investment and jobs. During this time period, workforce development, startup growth, supply chain enhancements, and rural business expansions saw substantial wins. The fiscal year results show 121% of Arizona’s projected jobs goal, 128% of its projected wages goal, and 1,250% of projected capex goal were achieved. This activity spanned the state, with activities across metro regions as well as smaller communities.
Arizona is at the forefront of innovation—providing an environment for entrepreneurs to succeed. Known for its welcoming environment, Arizona provides fertile ground for companies of all stages—from early-stage ventures to global behemoths–to thrive. Arizona is at the forefront of innovation—providing an unparalleled environment for entrepreneurs to succeed. Known for its welcoming environment. Governor Katie Hobbs is instrumental in the momentum happening in Arizona’s business climate.
Business Facilities recently spoke with Gov. Hobbs, who took office in January 2023, about the latest for business and residents in Arizona.
Business Facilities: Please tell us about the business climate in Arizona. What are highlights for corporate expansions, as well as companies considering locating in the state?
Governor Katie Hobbs: I’m focused on making Arizona the best state to live, work, and raise a family. Since office as Governor, Arizona’s economy has grown by more than 160,000 jobs. We have the lowest unemployment rate in our state’s history and more Arizonans are employed than ever before.
The world’s most advanced companies are coming to Arizona, and we are nurturing world-class talent right here at home. Arizona is at the heart of America’s manufacturing resurgence, and we are leading the nation in new semiconductor jobs, investment, and expansion, securing more than $100 billion in private investment and creating 15,700 direct industry jobs.
Arizona is also well practiced in delivering on major projects, with both the TSMC and Intel plants slated to begin production on schedule in 2025. This success is leading more suppliers to Arizona and strengthening our position as the nation’s leading semiconductor ecosystem.
There’s a reason that Arizona is one of the fastest growing states in the country, with more and more people and businesses choosing to call our state home.
BF: What are the key issues facing Arizona in terms of business development going forward?
Gov. Hobbs: As I speak to business leaders and communities across the state, our workforce is top of mind. Companies want talent, and Arizonans want jobs. We are home to some of the best higher education institutions, including the largest engineering school in the nation at Arizona State University. Our community colleges, universities, and high schools are working to create advanced manufacturing, engineering, and STEM programs that prepare Arizonans for the jobs of the future.
Building a diverse and resilient workforce is the key to unlocking Arizona’s full potential. That’s why we’re focused on creating an economy for everyone, which means building pathways to opportunity for workers in every corner of our state, whether they are first generation students, working parents, or individuals looking for a new career. We want to ensure that Arizonans are reaping the benefits of our growing industries and that industries are getting the skilled workers they need to power their businesses.
Apprenticeship programs are one of the best tools in our toolbox to open our job market to more Arizonans. Apprenticeships are real jobs that allow people to earn money while they learn skills. These programs, and the skills gained through them, can translate into careers for individuals and equip businesses with the workforces they need to succeed. They provide targeted educational and training programs that meet the needs of our growing economy, whether that’s more housing or more healthcare professionals.
As construction continues to surge in Arizona, we launched BuildItAZ to strengthen our construction talent pipeline. Our goal is to double the number of construction and trades registered apprentices by 2026 to support Arizona’s growing economy and connect Arizonans with quality, good-paying jobs.
Whether you’re already in Arizona or want to make us your home, we’re excited to partner with more businesses that are interested in starting an apprenticeship program.
BF: In 2023, you issued an Executive Order establishing the Governor’s Water Policy Council. What is the goal and framework of the Council? What else can you tell us about Arizona’s water management plan?
Gov. Hobbs: Despite what some people say, Arizona is not running out of water. Business leaders should know that Arizona takes water management seriously. From 1957 to 2019 the Arizona population grew by more than 500% and our gross domestic income increased by more than 2,000%. During that time, the state’s water usage remained flat. That’s because Arizonans are smart about our water resources and understand that sustainable water management and sustainable economic growth go hand in hand.
We must continue our longstanding tradition of responsible water management that has allowed Arizona to thrive. I created the Governor’s Water Policy Council, a bipartisan group of developers, farmers, Tribal leaders, legislators, and other key stakeholders, to develop common sense solutions to our most pressing water policy challenges. Their recommendations range from closing loopholes to protect consumers to reforming groundwater management in rural communities to safeguard water users after decades of inaction.
“From 1957 to 2019, the Arizona population grew by more than 500%… during that time the state’s water usage remained flat.”
— Governor Katie Hobbs
This work builds on a strong foundation. Our 100-year Assured Water Supply Program guarantees we’ll have the water we need to grow before that growth happens. We have conservation programs for all water use sectors to maximize efficiency. We are experts in recycling and reusing our water, and we have long-term investments in augmentation and the development of new water supplies. In our beloved desert state, water is life, and our all-of-the-above approach will ultimately make us even stronger and more resilient.
BF: What are target industries in Arizona in 2024? Would you highlight a project or two that have chosen the state for their business, and what attracted those decision-makers?
Gov. Hobbs: In addition to leading the nation in semiconductor jobs and investment, Arizona is in the top five for aerospace and defense manufacturing jobs and the top three for bioscience manufacturing job growth. We’re focused on growing industries that create high-value jobs, invest in capital-intensive projects, generate exports, and have strong supply chains that create industry clusters and additional indirect jobs.
We’ve honed in on six industries that we believe will solidify Arizona’s leadership in innovation and bolster our global competitiveness: manufacturing, aerospace and defense, bioscience and healthcare, business and financial services, film and digital media, and technology and innovation.
Evidence of our business strength, last fall Amkor announced a historic advanced packaging and testing facility in Peoria, further broadening our semiconductor supply chain and reshoring this critical part of our supply chain back to North America. This $2 billion investment will create over 2,000 jobs for Arizonans and cement our state’s position as the leading hub for the semiconductor industry.
We’re excited to see companies like Amkor expand their footprint in Arizona. Amkor planted roots in the Greater Phoenix area 40 years ago, later relocated their headquarters to Tempe, and is now planning a major expansion in Phoenix’s West Valley in Peoria.
Amkor recognized that strategically locating this new facility within a robust semiconductor ecosystem would create enormous value for Arizona’s economy and America’s national security. Amkor’s investment also underscores our significant investments in infrastructure and workforce, as well as our reliable grid capacity.
Arizona leads across these fronts, and we look forward to a successful build-out of Amkor’s facility and additional investments to strengthen this ecosystem.
