Manufacturing Grows In Arizona

Low corporate taxes and infrastructure improvements make the Grand Canyon State an attractive choice for companies seeking an agile environment.

By BF Editors
From the September/October 2022 Issue

Paired with some of the lowest corporate and individual income tax rates in the nation, Arizona offers all companies a place to build at a lower cost. Companies such as Intel and Frito-Lay have expanded manufacturing to Arizona and are taking advantage of the incentives the state has to offer.

Not only does Arizona offer low income tax rates, but the state also provides strategic access to three of the world’s biggest economies: California, Texas, and Mexico. With a surging ecosystem and $3 million annually commited to the Arizona Innovation Challenge, which launched in 2011, the Grand Canyon state attracts global corporations and forward-thinking startups. By offering a variety of loans, grants, and tax credits for property tax reductions, companies can cut costs and increase revenue by utilizing state financial programs and incentives.

Arizona has created a minimalist regulatory environment by cutting red tape and by repealing burdensome regulations. Couple low tax rates with fewer government regulations, a highly skilled and available workforce, and an exceptional quality of life, and Arizona is a great option for corporate relocation or expansion.

“We’ve eliminated or improved more than 3,100 regulatory burdens—the equivalent of a $171 million tax cut. We’ve simplified or reduced taxes every year, including cementing the lowest-in-the-nation flat tax,” said Govenor Doug Ducey in the July/August issue of Business Facilities.

Arizona’s environment encourages bold ideas and facilitates innovative solutions. The state is positioned to lead and ready to meet project needs, along with an abundant workforce that is talented and young.

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Since the pandemic Arizona has experienced one of the fastest job recoveries in the nation, and more people are continuing to move to the state.

As the seventh lowest in average workers’ compensation costs, Arizona is a global magnet for high-tech manufacturing and renewable energy companies. The state is also home to more than 1,200 small- and large-scale aerospace and defense companies and to one of the fastest-growing bioscience industries in the U.S. With cutting-edge innovation and next-generation advancements, Arizona thrives in technology and innovative industries.

Manufacturers Find Abundant Talent In Arizona

At a lively graduation ceremony in July, the first cohort of all-women students received certificates for completing the Semiconductor Technician Quick Start program at Mesa Community College. The two-week, 40-hour intensive boot camp prepares students for jobs as semiconductor technicians and includes the opportunity to interview with Intel upon graduation.

Arizona’s advanced training pipeline is being nurtured with government programs. (Photo: GETTY IMAGES)

The leading American chip manufacturer, which is constructing two new fabrication facilities east of Phoenix, partnered with the community college, a local nonprofit, and the Arizona Commerce Authority to develop the innovative program. The program, which has plans for expansion along with over 700 students already signed up, has received national recognition, including an in-person visit from First Lady Jill Biden, for helping guide more women, minorities, and veterans into in-demand tech fields.

Manufacturers throughout the Grand Canyon state are partnering with local education and workforce leaders to develop new skills training pathways and meet ambitious hiring goals.

Last year, electric car maker Lucid partnered with Central Arizona College, local governments, and the Arizona Commerce Authority to launch Drive48, a state-of-the-art training center south of Phoenix. The unique facility features cutting-edge robots, multiple hands-on learning rooms, and is outfitted to train students in automotive assembly. Since the opening of the facility, more than 1,700 Lucid employees have completed the programming.

The Drive48 model has achieved so much success that Arizona plans to expand it. The state has allocated $30 million to build six additional advanced manufacturing training centers around the state, which will feature industry partnerships in fields such as semiconductors, batteries, electric vehicles, and more.

Keys to Arizona’s pioneering workforce approach are the state’s top-ranked universities and community colleges. At Arizona State University, which has been ranked the most innovative university in the country for seven years straight, nearly 27,000 students are enrolled in engineering programs—a 190% increase since 2010.