SOUTHWEST SPOTLIGHT -- Site Selection magazine, November 2006

Arizona Dials in 'Quality Growth'

hen the Dial Corp. needed to find a site for a new corporate headquarters and research- and- development space, the company didn't have to look far.
The firm found what it was seeking in its hometown of Scottsdale, Ariz.
"We are excited about coming to an agreement to stay in Scottsdale and becoming part of the One Scottsdale project," Dial president and CEO Brad Casper said in announcing that Dial would build a corporate campus northeast of Scottsdale Road and the 101 Freeway. "We considered several sites for our new headquarters

Intel's $3- billion Fab 32 is under construction in Chandler.

building and decided that the One Scottsdale location best meets our needs."
   Construction began last month on the 1.2 million- sq.- ft. (111,480- sq.- m.) office complex known as One Scottsdale, says Natalie Violi, director of corporate communications for Henkel of America, the German- based company that owns Dial.
   "We looked at the demographics within a 15- mile [24- km.) radius and selected this site about four miles north of our current location," Violi tells Site Selection. "The project represents about a 10- to 15- percent increase in space."
   About 650 Dial employees will move in fall 2008 to the new campus, which will be a two- building complex containing 250,000 sq. ft. (23,225 sq. m.) for Dial operations. About 150,000 sq. ft. (13,935 sq. m.) will be built for the R&D center. The company's total investment in the project is estimated at US$150 million.
   Originally based in Chicago, Dial migrated to Phoenix in the 1980s and moved to Scottsdale in 1999.
   Casper said that remaining in Scottsdale provides the best fit for his company. "The site is attractive to us for many reasons and will be a pleasant working environment for our people," he said. "Its central location will ensure that Dial employees will have easy access to the Valley's freeway system and Phoenix Sky Harbor International Airport."
   Barry Broome, president and CEO of the Greater Phoenix Economic Council, says Dial made it clear early in the site search that the firm wanted to remain in the Phoenix- Scottsdale area.
   "There is an emphasis on quality growth in Scottsdale, and premium companies like Dial look for that," Broome says. "Our growth is being driven organically. Greater Phoenix is the No. 1 or No. 2 destination for Americans, and we are leading the entire nation in job growth."
   From 2000 to 2005, Arizona's population increased from 5.13 million to 6.04 million, fueled largely by the mass migration of people both domestically and internationally to Greater Phoenix.
   From 1990 to 2006, the total civilian work force of Arizona increased from 1.66 million to 2.82 million – an increase of 96 percent – leading the nation.
   In Site Selection's annual survey of corporate real estate executives (see cover story in this issue), respondents ranked Arizona the eighth best business climate in America.
   "Cost of living and quality of life make Phoenix and Arizona so attractive to companies," says Dina Boscardin, managing partner of Scottsdale- based Mohr Partners Inc., a firm that advises corporations on site selection strategy. "This area is not land- locked. Gilbert, Goodyear and downtown Phoenix are all very hot markets right now. The high quality of labor here, coupled with the low cost of living compared to California, makes this location extremely strong."
   Boscardin also cites the region's freeway access, international airport and "excellent demographics," including a large percentage of bilingual workers.
   "Arizona has a great base of traditional colleges and universities and technical schools," she adds. "Arizona State University has multiple campuses that serve the students. It has propelled the local economy tremendously. The type of students they produce is outstanding. And when you look at the demographic trends, based upon the quality of life and cost of living in Arizona, a lot of those graduates remain here."
   That's one reason why Arizona fares so well in attracting semiconductor plants. Bob Goforth, partner of Leak- Goforth Co. LLC, a national site consulting firm with offices in Jacksonville and Raleigh, says that Arizona and New Mexico were the first states to address the needs of the semiconductor industry by allowing fast depreciation of equipment, including clean rooms.
   "The Maricopa Community College programs in Arizona are the model virtually nationally" for educating workers who operate the technical machinery in chip plants, says Goforth. "Once the breakthrough was made, Motorola, Intel and others continued to add production because the locations are profitable."
   Intel Corp.'s Fab 32 is under construction in Chandler. The $3- billion plant will produce the next- generation 300- mm wafer. The 1 million- sq.- ft. (92,900- sq.- m.) facility will include 184,000 sq. ft. (17,094 sq. m.) of clean- room space. The project creates 3,000 construction jobs and 1,000 permanent jobs for Intel upon completion.
   Arizona ranks fourth nationally in semiconductor manufacturing employment with 22,500 jobs and fourth in defense electronics manufacturing with 8,800 jobs. The state's high- tech exports totaled $7 billion in 2005, ranking sixth.
   "The upswing in technology jobs and the surge in venture capital investments in Arizona confirm that Arizona's economy is strong," says Cory Miller, executive director of the Arizona Council of the American Electronics Association. "Venture capital in Arizona jumped by 81 percent to $148 million. Arizona remains an attractive location for technology companies to locate."

– Ron Starner