Arizona Republic: Arizona Has More Manufacturing Than Construction Jobs Now. That's Not By Accident

Jerry Colangelo, Michael Bidwill, Craig Barrett and Sandra Watson
Arizona Republic
February 14, 2021

Ten years ago, in the wake of the Great Recession, we asked an important question: how can Arizona create the economy of the future?

It was 2011, rock bottom following three years of economic freefall that saw more than 300,000 Arizonans lose their jobs and more than $3 billion in state revenue dry up. Families were hurting all across our state.

Our economy wasn’t living up to its potential – meaning without change, Arizona faced a decade or more of lost opportunity.

We knew then that simply returning to the status quo wasn’t acceptable. Arizonans deserved an economy that afforded real opportunity, one that allowed our state and its people to determine our own future, not just react to it. It was time to start fresh and rethink our strategy. 


The focus: Attracting high-paying jobs

Over many months, then-Gov. Jan Brewer convened leaders from government, business, universities and more to imagine a bolder, different economic approach. It would be led by a new public-private agency, overseen by the best minds in the private sector.

Instead of being weighed down by unwieldy mandates, it would be equipped with the flexibility and resources to respond quickly to job creation opportunities, and win them. And it would be infused with a clear, forward-thinking mission to improve our state for business and innovation.

On Feb. 17, 2011, Gov. Brewer signed the Arizona Commerce Authority (ACA) into creation. Such a model had never been tried in Arizona before.

From the beginning, we had our eye on attracting high-paying jobs in value-added sectors, such as aerospace and defense, semiconductors, optics, photonics, bioscience and renewable energy.

The agency also took new steps to prioritize rural economic growth and support local entrepreneurs through programs such as the Arizona Innovation Challenge, the Venture Ready Accelerator and Venture Madness – all of which provide resources and mentorship to help commercialize new technologies and help early-stage ventures scale.


Employers must meet metrics to benefit

With the right structure and resources in place, the ACA’s efforts became turbo-charged with the arrival of Gov. Doug Ducey. His experience as a businessman made him a natural fit to serve as our state’s chief salesman – with the energy and vision to match.

This combination has proven highly effective. Since inception, the ACA has successfully won more than 950 competitive projects from companies that have committed to creating just more than 191,000 projected new Arizona jobs and investing $33.8 billion in our state – far exceeding our goals.

What’s more, Arizona’s success has come about the right way. Around the country, we’ve seen states take the easy route of massive incentives, paired with minimal transparency and even less accountability. Arizona has taken a different approach.

Here, Arizona’s competitiveness package is metrics-based. Companies only benefit when they fulfill their commitments, protecting taxpayers and letting our state’s true value proposition shine.  


Now, we're targeting new technologies

With strong fundamentals and under Ducey’s leadership, we’re setting a new target: making Arizona the global capital of new and emerging technologies, such as autonomous vehicles, personalized medicine, the Internet of Things, freshwater science, telemedicine, education technology, renewable energy, agricultural technology, smart materials, nanosatellites and more.

Here’s how we plan to get there:
  1. To optimize our workforce, the ACA has partnered with community colleges and universities on collaborations such as the Arizona Advanced Technology Network, developing a unified, industry-recognized curriculum to teach the skills needed for high-paying, high-tech advanced manufacturing jobs.
  2. To boost broadband infrastructure and connect more businesses and communities to high-speed internet, the ACA has overseen targeted investments in rural areas. These investments have already made a difference, and Ducey has called for more than tripling them in this year’s budget. 
  3. To help grow export opportunities for Arizona-based companies, we’ve opened new trade offices in Mexico and Israel, in collaboration with the Arizona Legislature, while forging bilateral partnerships in Canada and throughout the world.
  4. To enhance Arizona’s research and development capabilities, we’ve partnered with Science Foundation Arizona to accelerate industry-university partnerships essential to a thriving technology ecosystem.

We've scored major wins in a decade

These efforts already are leading to exciting wins for our state: Lucid Motors, Benchmark Electronics, TSMC, Zoom, Silicon Valley Bank, Raytheon, Infosys, Opendoor Labs, General Motors, Caterpillar, TuSimple, Zovio, Orbital ATK, Cognizant, Intel and many, many more.

Not to be outdone, Arizona’s startup community has caught the attention of investors around the world. Cutting-edge companies like CampusLogic, Paradox, GT Medical Technologies, Trainual and RevolutionParts – all previous Arizona Innovation Challenge winners – have helped Arizona earn the moniker, “The Startup State.”

As we set our sights on the future, it’s worth considering these facts of the last decade:
  • Since 2011, median household income has grown from $46,709 to $62,055, faster than inflation and the U.S. as a whole.
  • More than 20,000 new businesses now call Arizona home.
  • Nearly 500,000 new jobs have been added.
  • More than 400,000 people have joined the workforce.
  • Exports from Arizona companies have grown more than 40% to a record high $25 billion.

Our economy is stronger, more diverse now
 
Perhaps most importantly, Arizona’s economy has been diversified. No longer does our future solely depend on construction and development – a recipe that looks great during boom years but leads to awful downturns.

Today, Arizona has become a global manufacturing hub, where jobs in manufacturing actually exceed those in construction. It is a miraculous transformation, benefitting all Arizonans.

Now, at a time when more and more American companies are bringing jobs home, Arizona is poised for explosive growth. Our reputation is strong. We have a compelling value proposition and the toolkit to compete on a global scale. We’ve established a clear focus and have the right leadership to execute.

There’s more work to do, but one thing is clear. We no longer have to wonder about the economy of the future. It’s here, and Arizona is leading the way.


Jerry Colangelo is an international businessman and sports executive. Michael Bidwill is the owner of the Arizona Cardinals, chairman of Greater Phoenix Leadership, and a former federal prosecutor. Craig Barrett is the former CEO of Intel Corporation. All three are founding members of the ACA’s Board of Directors. Sandra Watson is the President and CEO of the ACA and was Chief Operating Officer at the time of its creation.
 

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