ARIZONA
From Site Selection magazine, September 2007
Growing
In the Boomburbs
In the Boomburbs
W
hen one of the world's largest medical research companies went looking for its first expansion location in the American West, the final site selection came as no surprise.
Chandler, Ariz., the ninth fastest-growing U.S. city since 2000, landed the grand prize in late 2006 when Covance purchased a 50-acre (20-hectare) site that will house a US$100-million research campus by 2009.
The Princeton, N.J.-based firm with 8,000 employees worldwide and a market capitalization of $3.8 billion will employ up to 500 workers in the first phase and 2,000 upon build-out. Phase one will cover 300,000 sq. ft. (27,870 sq. m.),
while future construction could occupy 77 acres (31 hectares).
The complex will include a state-of-the-art medical research facility that will assist pharmaceutical and biotech companies in the safety testing of new drug candidates. The project is a boon for host Chandler Airpark and the Price Road Corridor.
"This new location gives us the long-term flexibility to manage the growing demand for testing new medicines to ensure they are safe and effective," said Wendel Barr, corporate senior vice president at Covance and the one who recommended the site to the Covance board. "We are committed to Chandler and look forward to supporting the city's vision of establishing a life sciences hub in the East Valley."
Putting the 'Urban' in Suburban
Like much of Arizona, Chandler is growing like gangbusters. From 2000 to 2006, the Phoenix suburb grew its population by 35.9 percent to 240,595. It is now the 76th largest city in America, up from 116th seven years ago.
Gilbert, another Phoenix boomburb, is the second fastest-growing U.S. city of this century. Gilbert grew by 73.9 percent from 2000 to 2006 to its current population of 191,517. In just six years, the town rose from the 207th largest American city to 115th.
Other Arizona cities are also breaking growth records, leading the state to No. 1 in population growth this decade. Phoenix is up by 14.5 percent, Tucson 6.5 percent, Mesa 12.5 percent and Glendale 12.7 percent.
John Boyd, a national site selection consultant based in Princeton, says it's easy to see why companies such as Covance like Arizona. "One of the advantages is that it is a right-to-work state," he says. "The metro area of Phoenix geographically is huge. Submarkets like Mesa, Glendale and Gilbert can accommodate distribution facilities, and there are tremendous skill sets in Phoenix. High-tech firms, like those in the aerospace industry, tend to cluster in places like Phoenix."
Despite unprecedented growth, Arizona remains very affordable for corporate America, says Boyd, who recently conducted a study of the comparative costs of locating a typical corporate headquarters operation in 30 U.S. cities.
Phoenix has the third lowest annual operating costs in the country, notes Boyd, trailing only Atlanta and Las Vegas, the least expensive location. Boyd looked at the costs of operating a 350-worker headquarters facility in 55,000 sq. ft. (5,110 sq. m.) of class A office space. One-year costs for the Phoenix location were $22.45 million, only slightly more than Atlanta's $22.42 million and Las Vegas' $21.97 million.
New York is the priciest location, Boyd reports, at $27.98 million a year, followed by San Francisco at $26.69 million. Boyd compared costs of labor, utilities, land and construction, property and sales taxes, heating and air-conditioning, and corporate travel.
"Companies are moving for two reasons: lower costs and to establish a new identity," says Boyd. "Most of the high-growth states are in the Southwest. A growing labor market has strategic advantages for our clients. For one thing, it helps mitigate inflationary wage pressures, and support staff costs are lower. Plus, in Arizona, our clients have the ability to recruit bilingual workers. As a result, Arizona has emerged as a premier location for companies in need of a bilingual work force."
Proximity to Clients
In the case of Covance, Arizona beat out competing locations to land the coveted research center. With many Covance clients located in the biotech hubs of California, the need to find a Western location drove the site search.
Camilla Strongin, a consultant with The Symington Group LLC and spokesperson for Covance, tells Site Selection that Covance considered locations in Nevada, California and Washington before choosing Chandler.
"Arizona presented the highest number of attractive options. Covance looked at 40 sites in the Greater Phoenix area," she says, adding that the Greater Phoenix Economic Council was "very helpful in providing information on the region."
The most critical site factors, Strongin says, were the region's focus on growing the biotech industry; access to top talent and research at Arizona State University in Tempe and the University of Arizona in Tucson; the ability to "grow new employees" in the area; access to Phoenix's Sky Harbor Airport and its high number of affordable, direct flights for Covance clients; the availability of a large tract of land; and "the commitment of the City of Chandler to diversify and grow its economy."
That commitment was tested when a group of protesters, led by the People for the Ethical Treatment of Animals, waged a campaign to convince city officials to block the deal. The city held firm, however, and may have placed Chandler on the map as a safe haven for other biotech firms.
"Chandler hung tough, they did an outstanding job, and that says a lot to the bioscience community," John McGarity, president of the Arizona Biotech Association, told The Arizona Republic.
One factor that did not make a difference, says Strongin, was any offer of government aid. "Incentives frankly played no role," she said. "Covance took no incentives. They are a very financially secure company."
The same growth factors pulling expanding firms like Covance to Chandler are at work elsewhere in the state. In Yuma, Superlite Block, a subsidiary of Oldcastle APG, built a $6-million concrete block manufacturing plant. The company plans to hire 30 workers at the 30,000-sq.-ft. (2,787-sq.-m.) facility.
General Motors Corp., meanwhile, announced a $120-million, 120-job investment in a hot-weather vehicle testing facility at Yuma Proving Ground.
On July 3, Amazon.com Inc. announced plans to open a fulfillment center in Phoenix. The 600,000-sq.-ft. (55,740-sq.-m.) facility will create up to 300 full-time jobs and as many as 1,300 part-time jobs during the 2007 holiday season. Another retailer, Target, announced May 3 that it will open a 975,000-sq.-ft. (90,578-sq.-m.) distribution center in Tucson for the company's online business, Target.com.
While affordable real estate costs contributed to these deals, one expert in Arizona says that the days of bargain shopping may be coming to an end.
"You can capitalize on today's market prices, but if you are looking at Scottsdale and the Camelback Corridor, everything is commanding top dollar, up to $45 per square foot," says Dina Boscardin, managing partner of Mohr Partners Inc. in Scottsdale. "These are rates that we have never seen in the valley in our history."
The best space deals, Boscardin says, can be found on the west side of Phoenix in submarkets such as Avondale, Buckeye and Glendale. "You can be opportunistic on the west side," she adds. "In the town of Surprise, you can find newer class A office space at $27.50 per square foot, and Buckeye still offers the best submarket for logistics."
Site Selection: What have been your biggest success stories – in the form of new corporate real estate projects and facility expansions – over the past year?
Gov. Napolitano: There have been several of note, but in particular some major announcements – such as the expansion of Intel and Google – are critical to our ability to attract other such companies. Arizona's business climate is excellent, and these two companies' decisions to grow their operations in Arizona are showing others who are considering a relocation to our state that this is a great place to do business.
SS: What do you see as being the three biggest challenges facing Arizona's economy today?
Napolitano: The competition between states to attract and grow industries is intense, and to succeed, we have to be able to show that we can compete globally. We have to grow the highly skilled, educated workforce that companies need, to continue providing an excellent quality of life for those who move here, and to offer a great environment for businesses that invest here. We must keep up with our growth, providing accessible housing and other vital infrastructure needs, and plan for the future.
SS: What major infrastructure projects are being built in Arizona to enhance its infrastructure for commerce?
Napolitano: We have a Growth Cabinet that meets on a regular basis, composed of various members of my administration and state agencies. We have a number of growth-related initiatives under way that will enhance existing roads and vital services, such as the availability of water and power, and build new infrastructure so that we are able to accommodate our state's expanding population.
As the fastest growing state in the country, we have to manage our growth so that our communities remain strong and can attract job centers for their local residents. In addition, we are working to modernize our Department of Commerce to ensure that it is meeting business demands of the 21st century. The primary objectives are to streamline services, leverage resources, and target opportunities through larger but more focused partnerships, particularly in areas of research and discovery.
SS: What emerging industry clusters are being developed in Arizona?
Napolitano: In Southern Arizona, two emerging clusters are renewable energies and agricultural biotechnology. Development and testing of renewable energies includes a $3 billion biorefinery, various ethanol plants, fuel farms, biodiesel research and solar farm developments. Agricultural biotechnology in cooperation with the UA Agriculture Extension and Arizona Western College has transformed traditional farming into a high-tech process.
The Northern region of the State has a significant base in the medical device industry, with over 1,600 jobs in that sector. The region has experienced growth fueled by the expansion of W. L. Gore's plant and operations in Flagstaff. Northern Arizona University has constructed new facilities that will provide 150,000 more square feet of lab space. In that region, primary research areas include infectious diseases, bio-engineering and reproductive health, renewable energy and forest health remediation.
The Central Arizona region, including Phoenix, is where next-generation electronics and ICT industries flourish, with a large presence of microelectronics and software firms. Businesses like Intel, Agilent Technologies and Google, as well as a pipeline of emerging technologies stemming from Arizona State University, are taking root here. The thriving metropolis within the Sonoran Desert is home to cutting-edge research addressing tomorrow's energy, solar and water issues. The region is home to a Photovoltaic Testing Laboratory – one of just three in the world and the only facility in the United States that has the reliability of solar models.
SS: What major incentive programs are offered by the state to help recruit new industry and encourage business facility expansions?
Napolitano: For 10 consecutive years, Arizona has reduced taxes or passed legislation favorable to business. In 2005, we introduced significant property tax reductions along with a new Sales Factor Bill, which allows multi-state businesses doing business in Arizona to "super-weight" their sales factor to reduce income tax liability to the state. Arizona also offers a unique Foreign Trade Zone Program which provides qualifying companies with the lowest effective property tax rates available in the nation.
Other incentive programs including Arizona Job Training, Enterprise Zone and other business assistance services add significant value to a qualifying company's bottom line.
SS: How does the Arizona manufacturing work force compete nationally and globally? Are any improvements being made to your state's educational system to provide even better trained workers?
Napolitano: Over the past several years, Arizona has made huge strides in both K-12 and higher education that are geared toward preparing our workers for tomorrow's innovation economy.
Since its inception in August 2005, my P-20 Council has been charged with identifying and providing solutions to gaps in Arizona's education systems and working toward the alignment of Arizona's education curriculum to the expectations of 21st century employers. The work of the P-20 Council has been invaluable in addressing educational issues that are important to employers. We have also seen the introduction of full-day kindergarten in our schools, which will give children the early start they need to succeed in school and in the future knowledge economy.
Arizona has some of the most innovative and forward-thinking universities in the country, including: Arizona State University, the University of Arizona, Northern Arizona University and Embry Riddle University. We are also home to world-renowned Thunderbird, the Garvin School of International Management.
SS: How are you handling Arizona's rapidly expanding population? What are you doing to ensure that your state does not fall behind in its infrastructure needs?
Napolitano: Arizona's population is growing faster than any other state in the nation. There are more than six million people living here now, with more than eight million expected by 2020.
This kind of growth is a tremendous opportunity, but also a challenge. Managing growth in an effective and intelligent manner is a priority for my administration. This year, I issued an executive order directing state agencies to collaborate with cities, towns and tribal communities to develop and implement smart-growth processes.
This is the Growth Cabinet I mentioned earlier – it's addressing issues that directly impact livability and sustainability. These are focused in the areas of infrastructure and economic development through mixed-use land planning, availability of water, construction of schools, an integrated multi-modal transportation system and other vital services, such as first responder and medical facilities. The goal is for Arizona residents to live, work and play in their own communities.
SS: How well is Arizona positioned to handle increasing demand for energy and water in the future?
Napolitano: Arizona's recently completed Solar Roadmap Study projects up to 1,000 megawatts of solar electricity could be implemented in Arizona by 2020, creating more than 3,000 new jobs in the process and reducing emissions by 400,000 tons per year.
The Arizona Water Institute is a partnership among the three universities, three state agencies, and Arizona communities to position the state as a world leader in water resources management and technology. The primary driver for this initiative is sustaining Arizona's water supply, which is crucial to the state's economy, the health and well being of its residents and its natural environment. I established a Drought Task Force and adopted the state's first short- and long-term drought management and water conservation plans, both of which are currently being implemented. Arizona also gave localities the authority to adopt ordinances that avoid developments that would be built without the presence of a 100-year water supply. And of course, I'm dedicated to Arizona getting its fair share of water from the Colorado River.
While natural resources are an issue, with the approaches we are taking they should not be a concern.
SS: What are your state's best strategic advantages for business?
Napolitano: We are first on the Federal Funds Information for States index of state economic momentum (State Policy Reports, 2006); first in job growth according to the U.S. Bureau of Labor Statistics (October 2006); and first in gross domestic product growth according to the U.S. Bureau of Economic Analysis (June 2006).
Arizona is a central gateway for companies to access robust U.S. markets and also tap into opportunities in Mexico and South America. Arizona is working with the Mexican state of Sonora to improve a diverse and dynamic economic region that offers great benefits to companies looking to expand here.
More than 100 foreign-owned companies have operations in Arizona, and more than 60,000 jobs in the state are tied to foreign-owned companies.
SS: What advice would you give to a corporate real estate executive considering a West Coast or expansion?
Napolitano: Arizona has the advantages of cheaper living and operational costs, strategic location, a highly educated labor pool, zones of advanced technology industries, and a positive business environment.
The state's strength comes from the collaboration among business and community leaders who are all working to make Arizona a great place to grow your business and raise a family.
Chandler, Ariz., the ninth fastest-growing U.S. city since 2000, landed the grand prize in late 2006 when Covance purchased a 50-acre (20-hectare) site that will house a US$100-million research campus by 2009.
The Princeton, N.J.-based firm with 8,000 employees worldwide and a market capitalization of $3.8 billion will employ up to 500 workers in the first phase and 2,000 upon build-out. Phase one will cover 300,000 sq. ft. (27,870 sq. m.),
Covance, one of the world's largest medical research firms, is building a $100-million campus in Chandler, Ariz., the ninth-fastest growing city in America.
The complex will include a state-of-the-art medical research facility that will assist pharmaceutical and biotech companies in the safety testing of new drug candidates. The project is a boon for host Chandler Airpark and the Price Road Corridor.
"This new location gives us the long-term flexibility to manage the growing demand for testing new medicines to ensure they are safe and effective," said Wendel Barr, corporate senior vice president at Covance and the one who recommended the site to the Covance board. "We are committed to Chandler and look forward to supporting the city's vision of establishing a life sciences hub in the East Valley."
Putting the 'Urban' in Suburban
Gilbert, another Phoenix boomburb, is the second fastest-growing U.S. city of this century. Gilbert grew by 73.9 percent from 2000 to 2006 to its current population of 191,517. In just six years, the town rose from the 207th largest American city to 115th.
Other Arizona cities are also breaking growth records, leading the state to No. 1 in population growth this decade. Phoenix is up by 14.5 percent, Tucson 6.5 percent, Mesa 12.5 percent and Glendale 12.7 percent.
John Boyd, a national site selection consultant based in Princeton, says it's easy to see why companies such as Covance like Arizona. "One of the advantages is that it is a right-to-work state," he says. "The metro area of Phoenix geographically is huge. Submarkets like Mesa, Glendale and Gilbert can accommodate distribution facilities, and there are tremendous skill sets in Phoenix. High-tech firms, like those in the aerospace industry, tend to cluster in places like Phoenix."
Despite unprecedented growth, Arizona remains very affordable for corporate America, says Boyd, who recently conducted a study of the comparative costs of locating a typical corporate headquarters operation in 30 U.S. cities.
Phoenix has the third lowest annual operating costs in the country, notes Boyd, trailing only Atlanta and Las Vegas, the least expensive location. Boyd looked at the costs of operating a 350-worker headquarters facility in 55,000 sq. ft. (5,110 sq. m.) of class A office space. One-year costs for the Phoenix location were $22.45 million, only slightly more than Atlanta's $22.42 million and Las Vegas' $21.97 million.
New York is the priciest location, Boyd reports, at $27.98 million a year, followed by San Francisco at $26.69 million. Boyd compared costs of labor, utilities, land and construction, property and sales taxes, heating and air-conditioning, and corporate travel.
"Companies are moving for two reasons: lower costs and to establish a new identity," says Boyd. "Most of the high-growth states are in the Southwest. A growing labor market has strategic advantages for our clients. For one thing, it helps mitigate inflationary wage pressures, and support staff costs are lower. Plus, in Arizona, our clients have the ability to recruit bilingual workers. As a result, Arizona has emerged as a premier location for companies in need of a bilingual work force."
Proximity to Clients
Camilla Strongin, a consultant with The Symington Group LLC and spokesperson for Covance, tells Site Selection that Covance considered locations in Nevada, California and Washington before choosing Chandler.
Embraer broke ground July 2 on an $8-million executive jet service center in Mesa, Ariz., which has grown in population by 12.5 percent since 2000 and is now the 38th largest city in the U.S.
The most critical site factors, Strongin says, were the region's focus on growing the biotech industry; access to top talent and research at Arizona State University in Tempe and the University of Arizona in Tucson; the ability to "grow new employees" in the area; access to Phoenix's Sky Harbor Airport and its high number of affordable, direct flights for Covance clients; the availability of a large tract of land; and "the commitment of the City of Chandler to diversify and grow its economy."
That commitment was tested when a group of protesters, led by the People for the Ethical Treatment of Animals, waged a campaign to convince city officials to block the deal. The city held firm, however, and may have placed Chandler on the map as a safe haven for other biotech firms.
"Chandler hung tough, they did an outstanding job, and that says a lot to the bioscience community," John McGarity, president of the Arizona Biotech Association, told The Arizona Republic.
One factor that did not make a difference, says Strongin, was any offer of government aid. "Incentives frankly played no role," she said. "Covance took no incentives. They are a very financially secure company."
The same growth factors pulling expanding firms like Covance to Chandler are at work elsewhere in the state. In Yuma, Superlite Block, a subsidiary of Oldcastle APG, built a $6-million concrete block manufacturing plant. The company plans to hire 30 workers at the 30,000-sq.-ft. (2,787-sq.-m.) facility.
General Motors Corp., meanwhile, announced a $120-million, 120-job investment in a hot-weather vehicle testing facility at Yuma Proving Ground.
On July 3, Amazon.com Inc. announced plans to open a fulfillment center in Phoenix. The 600,000-sq.-ft. (55,740-sq.-m.) facility will create up to 300 full-time jobs and as many as 1,300 part-time jobs during the 2007 holiday season. Another retailer, Target, announced May 3 that it will open a 975,000-sq.-ft. (90,578-sq.-m.) distribution center in Tucson for the company's online business, Target.com.
While affordable real estate costs contributed to these deals, one expert in Arizona says that the days of bargain shopping may be coming to an end.
"You can capitalize on today's market prices, but if you are looking at Scottsdale and the Camelback Corridor, everything is commanding top dollar, up to $45 per square foot," says Dina Boscardin, managing partner of Mohr Partners Inc. in Scottsdale. "These are rates that we have never seen in the valley in our history."
The best space deals, Boscardin says, can be found on the west side of Phoenix in submarkets such as Avondale, Buckeye and Glendale. "You can be opportunistic on the west side," she adds. "In the town of Surprise, you can find newer class A office space at $27.50 per square foot, and Buckeye still offers the best submarket for logistics."
Gov. Napolitano: 'Growth Is an Opportunity'
Site Selection Q&A with Arizona Gov. Janet Napolitano
Site Selection Q&A with Arizona Gov. Janet Napolitano
Gov. Napolitano: There have been several of note, but in particular some major announcements – such as the expansion of Intel and Google – are critical to our ability to attract other such companies. Arizona's business climate is excellent, and these two companies' decisions to grow their operations in Arizona are showing others who are considering a relocation to our state that this is a great place to do business.
SS: What do you see as being the three biggest challenges facing Arizona's economy today?
Napolitano: The competition between states to attract and grow industries is intense, and to succeed, we have to be able to show that we can compete globally. We have to grow the highly skilled, educated workforce that companies need, to continue providing an excellent quality of life for those who move here, and to offer a great environment for businesses that invest here. We must keep up with our growth, providing accessible housing and other vital infrastructure needs, and plan for the future.
SS: What major infrastructure projects are being built in Arizona to enhance its infrastructure for commerce?
Napolitano: We have a Growth Cabinet that meets on a regular basis, composed of various members of my administration and state agencies. We have a number of growth-related initiatives under way that will enhance existing roads and vital services, such as the availability of water and power, and build new infrastructure so that we are able to accommodate our state's expanding population.
As the fastest growing state in the country, we have to manage our growth so that our communities remain strong and can attract job centers for their local residents. In addition, we are working to modernize our Department of Commerce to ensure that it is meeting business demands of the 21st century. The primary objectives are to streamline services, leverage resources, and target opportunities through larger but more focused partnerships, particularly in areas of research and discovery.
SS: What emerging industry clusters are being developed in Arizona?
Napolitano: In Southern Arizona, two emerging clusters are renewable energies and agricultural biotechnology. Development and testing of renewable energies includes a $3 billion biorefinery, various ethanol plants, fuel farms, biodiesel research and solar farm developments. Agricultural biotechnology in cooperation with the UA Agriculture Extension and Arizona Western College has transformed traditional farming into a high-tech process.
The Northern region of the State has a significant base in the medical device industry, with over 1,600 jobs in that sector. The region has experienced growth fueled by the expansion of W. L. Gore's plant and operations in Flagstaff. Northern Arizona University has constructed new facilities that will provide 150,000 more square feet of lab space. In that region, primary research areas include infectious diseases, bio-engineering and reproductive health, renewable energy and forest health remediation.
The Central Arizona region, including Phoenix, is where next-generation electronics and ICT industries flourish, with a large presence of microelectronics and software firms. Businesses like Intel, Agilent Technologies and Google, as well as a pipeline of emerging technologies stemming from Arizona State University, are taking root here. The thriving metropolis within the Sonoran Desert is home to cutting-edge research addressing tomorrow's energy, solar and water issues. The region is home to a Photovoltaic Testing Laboratory – one of just three in the world and the only facility in the United States that has the reliability of solar models.
SS: What major incentive programs are offered by the state to help recruit new industry and encourage business facility expansions?
Napolitano: For 10 consecutive years, Arizona has reduced taxes or passed legislation favorable to business. In 2005, we introduced significant property tax reductions along with a new Sales Factor Bill, which allows multi-state businesses doing business in Arizona to "super-weight" their sales factor to reduce income tax liability to the state. Arizona also offers a unique Foreign Trade Zone Program which provides qualifying companies with the lowest effective property tax rates available in the nation.
Other incentive programs including Arizona Job Training, Enterprise Zone and other business assistance services add significant value to a qualifying company's bottom line.
SS: How does the Arizona manufacturing work force compete nationally and globally? Are any improvements being made to your state's educational system to provide even better trained workers?
Napolitano: Over the past several years, Arizona has made huge strides in both K-12 and higher education that are geared toward preparing our workers for tomorrow's innovation economy.
Since its inception in August 2005, my P-20 Council has been charged with identifying and providing solutions to gaps in Arizona's education systems and working toward the alignment of Arizona's education curriculum to the expectations of 21st century employers. The work of the P-20 Council has been invaluable in addressing educational issues that are important to employers. We have also seen the introduction of full-day kindergarten in our schools, which will give children the early start they need to succeed in school and in the future knowledge economy.
Arizona has some of the most innovative and forward-thinking universities in the country, including: Arizona State University, the University of Arizona, Northern Arizona University and Embry Riddle University. We are also home to world-renowned Thunderbird, the Garvin School of International Management.
SS: How are you handling Arizona's rapidly expanding population? What are you doing to ensure that your state does not fall behind in its infrastructure needs?
Napolitano: Arizona's population is growing faster than any other state in the nation. There are more than six million people living here now, with more than eight million expected by 2020.
This kind of growth is a tremendous opportunity, but also a challenge. Managing growth in an effective and intelligent manner is a priority for my administration. This year, I issued an executive order directing state agencies to collaborate with cities, towns and tribal communities to develop and implement smart-growth processes.
This is the Growth Cabinet I mentioned earlier – it's addressing issues that directly impact livability and sustainability. These are focused in the areas of infrastructure and economic development through mixed-use land planning, availability of water, construction of schools, an integrated multi-modal transportation system and other vital services, such as first responder and medical facilities. The goal is for Arizona residents to live, work and play in their own communities.
SS: How well is Arizona positioned to handle increasing demand for energy and water in the future?
Napolitano: Arizona's recently completed Solar Roadmap Study projects up to 1,000 megawatts of solar electricity could be implemented in Arizona by 2020, creating more than 3,000 new jobs in the process and reducing emissions by 400,000 tons per year.
The Arizona Water Institute is a partnership among the three universities, three state agencies, and Arizona communities to position the state as a world leader in water resources management and technology. The primary driver for this initiative is sustaining Arizona's water supply, which is crucial to the state's economy, the health and well being of its residents and its natural environment. I established a Drought Task Force and adopted the state's first short- and long-term drought management and water conservation plans, both of which are currently being implemented. Arizona also gave localities the authority to adopt ordinances that avoid developments that would be built without the presence of a 100-year water supply. And of course, I'm dedicated to Arizona getting its fair share of water from the Colorado River.
While natural resources are an issue, with the approaches we are taking they should not be a concern.
SS: What are your state's best strategic advantages for business?
Napolitano: We are first on the Federal Funds Information for States index of state economic momentum (State Policy Reports, 2006); first in job growth according to the U.S. Bureau of Labor Statistics (October 2006); and first in gross domestic product growth according to the U.S. Bureau of Economic Analysis (June 2006).
Arizona is a central gateway for companies to access robust U.S. markets and also tap into opportunities in Mexico and South America. Arizona is working with the Mexican state of Sonora to improve a diverse and dynamic economic region that offers great benefits to companies looking to expand here.
More than 100 foreign-owned companies have operations in Arizona, and more than 60,000 jobs in the state are tied to foreign-owned companies.
SS: What advice would you give to a corporate real estate executive considering a West Coast or expansion?
Napolitano: Arizona has the advantages of cheaper living and operational costs, strategic location, a highly educated labor pool, zones of advanced technology industries, and a positive business environment.
The state's strength comes from the collaboration among business and community leaders who are all working to make Arizona a great place to grow your business and raise a family.
Site Selection Online – The magazine of Corporate Real Estate Strategy and Area Economic Development.
©2007 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.
©2007 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.