< Previous48 G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC EDeloitte is latest in line of major investments in advanced business services.When leading professional services firm Deloitte announced June 8 that it planned to bring 1,500 phase one jobs to Gilbert, Arizona, the news only confirmed what a lot of site selectors already knew: The advanced business services sector in Greater Phoenix is booming.The Deloitte announcement is but the latest in a long line of significant investments in business services operations in the Valley, as the firm announced an expansion of its Arizona footprint with a new U.S. Delivery Center for technology solutions. The initial $34-million investment will result in Deloitte taking up 100,000 sq. ft. of space at The Commons at Rivulon, a 250-acre mixed-use development at Gilbert Road and the Santan Loop 202 freeway.Deloitte, which has had a presence in Arizona since 1961, plans to locate in Rivulon, a $750-million development that caters to technology, and creative and collaborative tenants seeking large, open and flexible space in an integrated campus environment. The master-planned neighborhood features outdoor common areas, walking trails, and nearby shops and eateries.Jonas McCormick, Phoenix managing partner for Deloitte, says that a “talented, available and well-educated workforce drew by R O N S TA R N E RA D V A N C E D B USIN E S S S E R V I C E SThe Commons at Rivulon is a 250-acre mixed-use development in Gilbert, AZ. Photos courtesy of Nationwide Realty InvestorsBusinessBusinessTaking Care ofG R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC E 49us to Greater Phoenix. We looked at several West Coast states and markets, but we landed on Greater Phoenix as the place we wanted to be. We did our due diligence in a multitude of Western markets, but in the end, the talent pool in the Southeast Valley rose to the top.”Rivulon made the decision that much easier, he adds. “It was important for us to find an area where our employees would want to both live and work,” he notes. “We take that very seriously as a firm. And Gilbert wanted us.”State and local incentives sealed the deal, but they were not the decisive factor, says McCormick. “Incentives were important, but our ability to tap into a highly qualified labor force over the long term drove this deal,” he says.Chris Camacho, president and CEO of the Greater Phoenix Economic Council, says Deloitte’s investment is emblematic of regional growth. “Deloitte’s expansion to Greater Phoenix highlights the region’s tremendous assets and ability to meet the needs of one of the nation’s leading professional services organizations,” he said. “The location in Gilbert allows Deloitte access to a robust and dynamic tech talent pool and supportive resources to enhance their current and future growth.”Gilbert is in the Southeast Valley of Greater Phoenix and has a population of nearly 250,000 people. CNN/Money Magazine ranked Gilbert recently as the 22nd best place to live in the country, and WalletHub named it No. 10 Best City to Raise a Family in the U.S. in 2018.Business Greater Phoenix offers the in the western United States.rd-largestlabor pool50 G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC EA Who’s Who of Banking & Tech GiantsGilbert is one of many locations in Greater Phoenix that caters to advanced business services. Companies like American Express, Bank of America, Chase, GoDaddy, Microsoft, Apple, PayPal, State Farm Insurance, Uber, USAA and Wells Fargo have been doing business in Greater Phoenix for years, employing tens of thousands of workers in the Valley.“Greater Phoenix has a long history of top-notch talent sup-ported by a strong and unique public-private partnership that has been a model for other communities throughout the country,” says Chris Zaharis, executive vice president of Empire Southwest.A robust business ecosystem, diverse and talented labor pool, low-cost operating environment, and superior connectivity to other major metropolitan markets are cited as critical site selection factors when companies choose Greater Phoenix. Phoenix Sky Harbor International Airport is often a key differentiator when firms announce their final site decision.Other pivotal site factors for business service operations include:• Large amounts of available and desirable class A office space in key commerce corridors.• The reduction of the corporate income tax rate to 4.9 percent in 2017.• Greater Phoenix experiences only 0.3 percent downtime in power with an average outage time of less than 30 minutes.• Arizona is a right-to-work state with low unionization rates.• Greater Phoenix offers the third-largest labor pool in the western U.S.• Arizona State University’s W. P. “Incentives were important, but our ability to tap into a highly qualified labor force over the long term drove this deal.”— Jonas McCormick, Phoenix managing partner, DeloitteCarey School of Business ranks in the top 15 executive MBA programs in the country, and its Department of Supply Chain Management is consistently ranked in the top 10 nationally by U.S. News & World Report.When Greater Phoenix makes the short list, competitive incentives of-ten tip it over the top. Among them include the Arizona Competitive-ness Package, the Quality Jobs Tax Credit of up to $9,000 per qualified employee and the Angel Investment Program, which provides income tax credits of up to 35 percent for investors of small businesses.Apple Investment Bears Fruit in MesaAnother key segment of advanced business services — mission critical back-office operations like data centers — thrives in Greater Phoenix. Case in point: Apple’s $2-billion data center in Mesa. Already the seventh-largest concentration of data centers nationally, the Greater Phoenix region added to its firepower August 15 when California-based Apple opened the doors to its 1.3-million-sq.-ft. Arizona Data & Global Command Center in Mesa.The complex on Signal Butte Road monitors operations at Apple’s five major data centers in the U.S. and the company’s global data centers. Powered 100 percent by clean energy, the new data center in Arizona is considered the hub of Apple’s online operations.“You’re not going to find a bigger deal than this,” Mesa Mayor John Giles said at the press conference showcasing the facility’s opening. “We’re proud of the result. Apple coined the term ‘the Mesa way’ because of how fast we were able to help them with permits. Mesa is ready to compete globally.”About 147 million annual kilowatt hours of energy production come from Apple’s partnership with the Salt River Project and the nearby 15-megawatt Bonnybrooke solar array.Other large data center investors in Greater Phoenix include Aligned Data Centers, CenturyLink, CyrusOne, Digital Realty Trust, eBay, Fry’s, GoDaddy, H5 Data Centers, PhoenixNAP, ViaWest and zColo, among others. reater Phoenix’s status as one of the largest aerospace markets is bolstered by more than 300 days a year of sunny skies, aviation-based property tax incentives, a large supply chain, incomparable aerospace and engineering programs at universities across the state, and a highly skilled workforce. For decades, many of the industry’s major players have had operations in Greater Phoenix including Boeing, Honeywell Aerospace, MD Helicopters, Lockheed Martin, Northrop Grumman and Orbital ATK. Aerospace has an enormous impact on the state’s economy with more than 1,860 companies providing more than 62,000 jobs — with the bulk of the state’s jobs and economic impact coming out of Greater Phoenix. Indeed, Phoenix Sky Harbor International Airport is the largest airport in the state and is ranked the 13th-busiest airport in the country based on passenger traffic. With so many advantages in one location, it’s no wonder Arizona is one of the top three states for aerospace manufacturing attractiveness, according to PWC in 2016, and it has the fourth highest concentration of aerospace manufacturing jobs in the nation. In 2017, Boeing shifted hundreds of jobs from its Seattle location to Mesa, where it has a large 52 G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC EA E R O S PA C Eby SAVA NN A H K I N GGArizona’s aerospace strengths take industry to new heights. G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC E 53presence at Falcon Field airport. The aerospace titan’s Attack Helicopters and Unmanned Airborne Systems divisions are headquartered in the city and make Boeing one of Mesa’s largest employers with 3,700 workers. In May of this year, AQST Space Systems chose to relocate its headquarters from Puerto Rico to Mesa’s Falcon District. The company will manufacture and assemble rockets for small satellites. The global company works with the space and defense industry, and supports industries ranging from aerospace to high-tech manufacturing, biopharma and life sciences, as well as telecommunications, space infrastructure, and scientific research and development. “Arizona has been very welcoming and good to us,” said Arnaldo Soto Jr., chairman and CEO of AQST. “We especially like the collaboration exhibited by the aerospace and tech business community, led by Gov. Doug Ducey’s pro-prosperity agenda.”The aerospace systems technologies solutions company will hire up to 125 employees including engineers, welders, technicians, satellite operators, data scientists and support personnel over the next three years. AQST expects to begin making its products by the end of 2018. “When companies decide to move their headquarters to our state, it’s a testament to the pro-business climate in Arizona,” said Ducey. “AQST has confidence in Arizona and its workforce. We are proud they’ve decided to make Arizona their home, as they continue to grow their aerospace and defense companies. We congratulate them and wish them success.” In nearby Chandler, the Chandler Municipal Airport is growing with the addition of the new 80,000-sq.-ft. development, the WingSpan Aviation Center at Chandler. The company recently broke ground on the new 4.8-acre site that will include four 2-story hangars and 28,000 sq. ft. of office space. The space is aimed at changing the face of local aviation and promoting a sky-meets-ground appeal by creating a regional travel hub. The airport is located in the technology hub of Chandler in the southeastern portion of Metro Phoenix about 18 miles from Phoenix Sky Harbor International Airport. The business airport is among the nation’s busiest general aviation airports with more than 200,000 operations annually. “This is an excellent project with direct freeway access and limited airspace delays that creates a really attractive opportunity for those who cater to the aviation business sector,” said Chandler Mayor Jay Tibshraeny. “WingSpan Aviation Center will be a unique addition to the development activity we’re seeing throughout the Airpark Area.” Phoenix Sky Harbor International Airport is the 13th-busiest airport in the country based on passenger traffic.Photo courtesy of Phoenix Sky Harbor International Airport 54 G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC EGreater Phoenix leads the way in health care treatments and research. With its reputation as a leading destination for health care treatment, Greater Phoenix’s health care sector is growing by leaps and bounds. In the next decade, the number of health care jobs in the metro area is expected to grow to nearly 54,000. That’s more than what’s expected for other health care and biomedical hubs like Minneapolis, Philadelphia and San Francisco. With eight hospitals among the top 20 for excellence, and a deep pool of talented workers hailing from institutions like Arizona State University, Midwestern University, Northern Arizona University and the University of Arizona, the area is well-suited to support that growth. Mayo Clinic in Phoenix was recently ranked the No. 1 hospital in the state and the Phoenix Metro Area, and No. 11 nationally by U.S. News & World Report. Over the last five years, the clinic has undergone substantial growth including the building of the new Mayo Clinic Building, the Proton Beam Facility and the Image Guided Operating Rooms. The Mayo Clinic opened its Scottsdale campus more than three decades ago and the Phoenix campus in 1998. Since that time, H E A L T H C A R E A N D B I O S C I E N C EUA College of Medicine Biomedical Science Partnership Building in Phoenix.Photo courtesyof Universityof ArizonaSun Czar Belous by SAVA NN A H K I N GG R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC E 55the clinic has become a vital part of the health care and medical research endeavors throughout the state and the Southwest. Mayo Clinic announced a $648-million expansion to its Phoenix campus that will double the size of the campus over the next five years. The expansion plans to increase the number of inpatient beds from 280 to 374 by 2023 and will create some 2,000 jobs, including nearly 200 physicians by 2029. The expansion, called Arizona Forward, is a five-year project with new patient areas set to open by June 2020. The expansion will include a 6-story patient tower; a 3-story building to house an expanded emergency department, laboratory medicine, radiology and pharmacy; additional parking garages; and an expanded Mayo Clinic Building that will go from three to seven stories. “Patients recognize that Mayo Clinic provides some of the best and safest care in the United States. Growing our facilities in Arizona to accommodate increased demand is essential,” said Dr. Wyatt Decker, vice president of Mayo Clinic and CEO of Mayo Clinic in Arizona. “Mayo’s commitment to the health and vitality of Arizona began when we saw our first patient in Arizona more than 30 years ago. Arizona Forward represents our commitment for the next several decades and beyond — innovating to improve the physical health of patients and the economic health of the state we call home.”In 2017, the University of Arizona opened the doors to its College of Medicine in Phoenix with a new Biomedical Sciences Partnership Building. The 10-story, 245,000-sq.-ft. building in downtown Phoenix is located next to the university’s Health Sciences Education building and connected by a walkway dubbed the “Grand Canyon.”The expansion is a partnership between the state, the city of Phoenix and UA among other community partners, and will develop the campus as a major bioscience hub and education center. The economic impact of the building is anticipated to reach $2.1 billion annually. The first tenants in the $136-million building are The Center for Applied NanoBioscience and Medicine, The Flow Cytometry Core Laboratory, The Institute of Molecular Medicine and The Pediatric Infectious Disease Research Lab.“We expect this state-of-the-art facility to catapult our research into a new dimension,” said Dr. Kenneth Ramos, interim dean of the College of Medicine of the University of Arizona. “We are so proud of this new, beautiful building and look forward with great anticipation to the medical breakthroughs that will come from research conducted here.” 56 G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC Es one of the fastest-growing regions in the country, Greater Phoenix is an emerging hub of innovation with an enviable ecosystem of technology and software companies. The region, powered by leading utility companies APS and SRP, has a low risk of natural disasters and boasts high up time and low latency. With operational costs up to 32 percent less than California, Greater Phoenix companies can focus on growth.Case in point: San Diego-based Dexcom, a medical technology company, chose Mesa to manufacture its continuous glucose monitoring (CGM) systems.A CGM system provides continuous insight into glucose levels for people with diabetes, the nation’s seventh leading cause of death. Readings appear on a smart device or receiver every five minutes, providing real-time information on glucose levels and rates of direction and change. Users receive alerts when glucose gets too low or too high.Dexcom’s 180,000-sq.-ft. facility, located at a former Motorola campus in west Mesa, is projected to create more than 500 jobs. Company executives got a sneak peek at Mesa when the University of Phoenix hosted the 2016 College Football National Championship. In conjunction with the game, the Arizona Organizing Committee and the Arizona Commerce Authority invited select, out-of-state CEOs to a business recruiting event. The program offered a first-hand look at relocation and expansion opportunities. Months later, Dexcom announced its Mesa project.“We are thrilled to locate our new state of the art manufacturing facility in the Greater Phoenix area, where the health care industry is seeing accelerated growth,” said Kevin Sayer, president and CEO of Dexcom. “We did a very exhaustive study of potential locations throughout the United States, and this met a number of needs for us. It has a great workforce and it’s very close to San Diego, where all our technology is based. This area has a real good economic environment where we felt we could grow and retain people. With the size of this facility, it will manufacture a lot of product for us.”Intel’s Fab 42The world’s smallest microchip will be produced in Greater E M E R G I N G T E C HN O L O G I E Sby G A RY D AU GHT E R SACONNECT TO TECHCONNECT TO TECHDexcom, Intel, Deloitte boost a burgeoning ecosystem.G R E A T E R P H O E N I X : T HE C O N N E C T E D P L AC E 57Phoenix by software giant, Intel. Progressively smaller chips support Moore’s law, named for Intel founder Gordon Moore, which holds that computer processing power will double every two years through the doubling of the number of transistors able to fit on an integrated circuit. The new chip is to measure seven-billionths of a meter.Already Arizona’s seventh-largest employer with 11,000 workers, Intel is investing more than $7 billion to produce the revolutionary chip. It says its plant in Chandler, known as Fab 42, will be the world’s most advanced semiconductor plant upon completion. As a measure of the project’s importance, Intel CEO Brian Krzanich made the expansion announcement while in the Oval office with President Trump. “This factory,” said Krzanich, “will help the U.S. maintain its position as the global leader in the semiconductor industry.”The new chip, to be produced beginning in 2021, will help power data centers and increasingly sophisticated computers and sensors, thus enabling the development of artificial intelligence, advanced transportation, ground-breaking medical research and the Internet of Things. Much of the work at Factory 42 will be performed in the purified air of massive “clean rooms,” where employees wear protective suits to keep impurities off the chips.Fab 42 is to employ some 3,000 workers, but Intel says its multi-billion-dollar investment will create more than 10,000 long-term jobs in Arizona through businesses that will support the plant’s operations. Construction will create thousands of temporary jobs.Chandler Mayor Jay Tibshraeny says Fab 42 “will cement Chandler’s place as the technology and innovation hub of the Southwest.”Deloitte Selects GilbertWhen consulting giant Deloitte sought a tech-savvy site for its third nationwide delivery center, it looked to the Phoenix suburb named “America’s Most Prosperous City” in 2017 by the Washington-based Economic Innovation Group. Gilbert, with a population of 250,000, has a median household income of $85,581, according to the U.S. Census. Roughly 42 percent of the city’s residents have a college degree or higher.“Gilbert is the perfect home for Deloitte,” said Mayor Jenn Daniels.Deloitte’s delivery center will help clients take advantage of emerging technologies. The company says the facility will be “designed to deliver scalable technology-based solutions efficiently and effectively,” and “will provide capabilities for cloud, Salesforce, robotic and cognitive automation, blockchain, SAP, Workday and more.”The 100,000-sq.-ft. facility is expected to create some 1,500 phase-1 jobs. “As Arizona continues to attract new technology jobs,” said Gov. Doug Ducey, “we’re looking forward to adding Deloitte’s U.S. Delivery Center to that list. Deloitte’s growth here in the state is welcome news and we’re thankful for their continued investment in Arizona.” One of Intel’s smallest computing chip balanced on a pencil eraser.Photo courtesy Walden Kirsch/Intel CorporationNext >