Recent announcements from some of the biggest names in American business confirm that more and more large enterprises are discovering what local companies already know: Arizona is a great place to do business.
The most recent company to announce that it was moving operations to the state was Apple. On November 4, the consumer electronics giant announced its plan to open a new manufacturing facility in Mesa. The facility, which will produce sapphire glass components for iPhones and iPads, will bring at least 700 permanent jobs to the area, in addition to 1,300 temporary construction positions. More importantly, state officials are confident that the announcement will lead to an increased high-tech presence in the area.
Being an Internet Entrepreneur myself, I tend to think that getting a big-name company like Apple to move into Arizona shows just how attractive the state’s business climate is for high-tech companies. After this announcement, I believe that more high-tech companies are going to start considering Arizona as a possible relocation site.
The domino effect of economic development that local business experts are predicting in the wake of the Apple announcement is already starting to play out. Foxconn Technology Group, the Chinese manufacturer that counts Apple as its largest customer, has stated that they may be opening a manufacturing plant of their own in Arizona.
While this new announcement is certainly an important one for high-tech business in Arizona, the high-tech industry has a long tradition in the state. Semiconductor chip maker Intel has maintained a presence in Arizona since 1979, and is scheduled to complete construction on a new $5 billion semiconductor manufacturing facility in Chandler by the end of 2013. The facility will be the company’s third high-volume manufacturing plant at its Chandler site.
The growth of large companies in Arizona is not limited just to tech companies: insurance and financial services companies are also making the move. State Farm Insurance is currently building a $600 million regional hub in Tempe Town Lake. In September, the company announced it would add 800 jobs in the area by the end of 2013. By the time the company’s Marina Heights regional headquarters project is complete in 2018, the Tempe area will be home to about 8,000 State Farm employees.
American Express has also increased its presence in Arizona in recent years. The company added a third building to its Desert Ridge campus in 2010, bringing it up to a total of 95 acres. The Phoenix area is the headquarters for the company’s financial transactions, customer information, and website divisions, accounting for an estimated 7,500 employees.
So why are more and more top companies starting to call Arizona home? According to local business experts, it starts with a unique combination of top employee talent, spurred by world-class educational institutions like Arizona State University and the Thunderbird School of Global Management. The state government also provides businesses with the one of the most powerful pieces of economic development legislation found in the United States today. The Arizona Competitiveness Package, or HB2001, gives companies access to as much as $200 million in business incentives, including refundable tax credits, reimbursable grants, and property tax reductions.
Of course, there are also intangibles that go into making a state a great place to run a business. Even the weather is agreeable in Arizona: during the winter months, the state maintains a comfortable average temperature, making Arizona a great place to do business all year round.
With all of the advantages that Arizona offers businesses, it’s no surprise to see large companies like Apple and State Farm making themselves at home in the state. I truly believe that the conclusions from the recent round of announcements are quite simple: Arizona has worked hard to show that it is a world-class business destination, and major companies have responded.
These announcements are a clear indication that the benefits of moving business operations to Arizona are real. A lot of states talk about offering a business-friendly environment, but when you start seeing major companies moving thousands of jobs to a state, like we’re seeing in Arizona now, that tells you that there’s really substance to those claims. I would expect to start hearing more of these kinds of announcements in the future.
by Jason Hope, Arizona
Jason Hope
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