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Arizona

Arizona's high-tech economy may lack the stature of California's Silicon Valley or the Austin, Texas, area. But it is evolving steadily, thanks to its location, workforce and quality of life. The state also was on the ground floor when it came to claiming branches of pioneering companies in the computer industry.

For instance, Intel, the world's leading manufacturer of computer microprocessor chips, has long had a growing presence in the state. Intel has announced in January that it will invest $2 billion to add at least 800,000 sq. ft. (74,300 sq. m.) of manufacturing space at its 705-acre (30-ha.) facility in Chandler. The project will add at least 1,000 new jobs to the 8,150 that already exist at the operation.

Arizona's growth has been imposing in recent years, with high-tech jobs increasing 50 percent, compared to the 20 percent national average.

A primary reason for doing well is the state's pursuit of a strategy that seeks clusters of businesses that feed on and grow with each other. The computer and software industries are a big part of that strategy, as are other electronics-related manufacturing industries. Part of that cluster focuses on the aerospace industry, which has a particularly heavy presence in Phoenix.

Manufacturing accounts for almost 15 percent of Arizona's economy and ranks third behind finance, insurance and real estate (19 percent) and the service sector (21 percent).

Another major element of Arizona's economy rests on its shared border with Mexico and increasing trade between the two. For 41 years, through its Arizona Mexico Commission, Arizona has worked to develop trade opportunities with Mexico, a tack that is paying off handsomely. Companies on both sides of the border often complement each other and sometimes have strategic alliances. Mexico is Arizona's chief trading partner, accounting for $3.2 billion in trade (an increase of 19 percent) in 1998. NAFTA is helping grow Arizona-Mexican trade opportunities.