Word On The Street: Arizona's Economic Momentum Is Building

Governor's Office

August 25, 2016

New York Times: "Bay Area Start-Ups Find Low-Cost Outposts in Arizona"
“Three years ago, Kate Rogers was caught in the Bay Area struggle. She paid the astronomical rents. She did the crushing commute. She lived the frustration of always thinking about money even though she was a well-paid professional in the booming technology industry. And then, just like that, the stress went away. All she had to do was move to Arizona.” (Conor Dougherty, Bay Area Start-Ups Find Low-Cost Outposts in ArizonaNew York Times, 8/21/2016)

Phoenix Business JournalArizona benefits from “disgruntled businesses departing the Golden State”
“A new report finds that Phoenix has benefitted greatly from disgruntled businesses departing the Golden State in recent years. In a story earlier today, we learned that Phoenix ranked No. 3 on the list of markets benefitting from California disinvestment. We've crunched the numbers and here's how that all breaks down: The value of the 67 projects gained in Phoenix totals $2.8 billion and more than 9,000 jobs. When you add in the rest of Arizona, the total tops 83 companies, $3.3 billion in capital and more than 12,000 jobs.” (Eric Jay Toll, California screaming: Here's how many jobs and capital investment Arizona gained from the Golden State in the last 8 years, Phoenix Business Journal8/16/2016)

Medium: Arizona: “There’s no place better to start and grow a business” 
“Entrepreneurs shape their respective communities, and Arizona has created their own definition of success. Phoenix is thriving because its people are dedicated to fostering its community and gives entrepreneurs and small business owners the opportunity to go out and build sustainable success. We’ve taken the Silicon Valley concept and made our community the go-to destination for those who want to choose to look at the bright side. If that’s you, I invite you to come join us because in my book, there’s no place better to start and grow a business.” (Clate Mask, The Silicon Valley Concept, Medium8/9/2016)

INC. Magazine: “Supportive environment and “work-life balance” can’t be topped in Arizona.
According to think tank the Tax Foundation, the 2016 corporate tax rate in California is 8.84 percent, significantly higher than Arizona's rate of 5.50 percent. Additionally, California's maximum individual income tax rate is a whopping 13.3 percent (the highest in the nation), meaning that both entrepreneurs and their employees don't get as much to take home. (In Arizona, the maximum individual income tax rate is only 4.53 percent.) In addition to the low cost of living, some of the most frequent reasons that the Inc. 5000 entrepreneurs gave as to why Phoenix was a great place for startups included proximity to the Bay Area and the Western United States (it's a 90-minute flight from San Francisco), the supportive environment of the entrepreneurial community, and the work-life balance.” (Anna Hensel, As Silicon Valley's Prices Explode, More Entrepreneurs Head to the Silicon DesertINC. Magazine8/24/2016)

Phoenix Business Journal: With growing advanced technologies, “Phoenix is a deep participant in the digital job boom”
“Just two years into a concerted effort to shift the entire greater Phoenix economy from consumption jobs to production jobs is showing double-digit results in several advanced industries. ‘It’s an enormous effort to pivot an economy, and the data show Phoenix is starting to turn,’ said Mark Muro, senior fellow and policy director for the Metropolitan Policy Program at Brookings. ‘The signs are there Phoenix is a deep participant in the digital job boom.’ Valley business and government leaders have been pushing to change the economic base in Arizona to advanced industries by bolstering the sectors already in play.” (Eric Jay Toll, The big pivot: Phoenix-area hiring makes big turn to high-value jobs, Phoenix Business Journal, 8/17/2016)

Arizona Republic: Arizona economy “shedding” low expectations as growth surges.
“Arizona's economy is shedding its underperforming label and will start to push above the national average, according to a new report. Robert Kavcic, senior economist at BMO Capital Markets in Toronto, expects the state's economy to grow by 2.1 percent this year and 2.4 percent next year, following subpar strength over the past five years.” (Russ Wiles, Report says Arizona economy is outperforming again, Arizona Republic, 8/23/2016)

News 4 Tucson: “Whether it's semiconductors or aerospace and aviation in defense or life science companies,” Arizona businesses have a “competitive advantage."
“Arizona is known for having lower regulatory environment, lower costs of doing business, tax credits,” said Alex Rodriguez of the Arizona Technology Council. ‘All those things combined give Arizona businesses a competitive advantage to be able to grow faster.’ The Old Pueblo’s strong startup support community and proximity to the University of Arizona also appeals to tech firms. ‘Whether it's semiconductors or aerospace and aviation in defense or life science companies, there's a support system in Tucson that's growing faster and faster every day,’ he said. (Aalia Shaheed, Lower costs driving tech firms to Southwest, News 4 KVOA Tucson8/23/2016)

Phoenix Business Journal: Arizona's "low-cost" pulling California companies looking to expand.
“Arizona's low cost of doing business, quality of life, and proximity are turning the state into the “down-the-hall” office for a number of California companies. And Arizona Commerce Authority and Greater Phoenix Economic Council are well aware of the market opportunity. Companies such as DoubleDutch and Gainsight, which have employee-seeker cachets, are staffing Arizona offices faster than California facilities, because of savings in the cost of doing business. Still, the companies aren't just opening offices to pay less. Many are paying near-California wages. For example, ZipRecruiter has said California employees have asked for transfers and are keeping their compensation in the move.” (Eric Jay Toll, Arizona benefitting from California companies looking to expand, Phoenix Business Journal, 8/24/2016)