ACA Board Meeting Sept 23 2010

Capital Investment: $13 million

Jobs Created: 150

Capital Investment: $1 billion

Jobs Created: 100


Jobs Created: 6


Jobs Created: 2,000


Jobs Created: 1,000


Jobs Created: 70


Jobs Created: 50


Jobs Created: 175


Jobs Created: 40


Jobs Created: 100


Jobs Created: 63


Jobs Created: 200


Jobs Created: 10


Jobs Created: 321


Jobs Created: 109


Jobs Created: 400

Capital Investment: $250,000

Jobs Created: 50


Jobs Created: 150


Jobs Created: 100


Jobs Created: 350


Jobs Created: 50


Jobs Created: 50


Jobs Created: 800


Jobs Created: 30


Jobs Created: 150


Jobs Created: 1


Jobs Created: 30


Jobs Created: 13


Jobs Created: 30


Jobs Created: 100


Jobs Created: 9634 Projects

Capital Investment: $1.36 billionJobs Created: 7,205

Thursday, September 23, 1010 ACA Board Meeting

Agenda1. Call to Order2. Roll Call3. The Vision Begins: Welcome and Opening Remarks4. Executive Committee Appointments5. The Vision: It’s About Leadership6. Board Member Introductions7. ACA Operations8. Arizona’s Economy and Competitiveness9. The Vision: It’s About Execution10. Closing Remarks

The Vision Begins

Governor Jan Brewer

The Vision: It’s

About

LeadershipJerry Colangelo Co-Chair

Board Member

IntroductionsJerry Colangelo

Co-Chair

ACA Operations

Eileen Klein Chief of Staff

Arizona’s Next 100 Years

Arizona’s Jobs Agenda

Advance Regulatory & Tax Reform Continue moratorium, repeal nuisance rules, promote

pro-growth tax code change Establish Governor’s Jobs Team

Key stage agencies focused on cutting “red and green tape” to expedite permitting, create jobs faster

Restore Fiscal Stability Balance the state budget, resolve the deficit while

protecting education and public safety Revamp Department of Commerce

Top state CEOs providing long-term strategy & structure for Commerce Department

Strategic Investments as Force Multipliers

Create Job Closing Fund $20 million in job training assistance to land high wage

jobs, enhance Arizonans’ workplace skills

Re-Launch state’s Job Training Program Blocked sweeps, $13.5 million available mid October

2010

Strategic Investments as Force Multipliers (cont.)

Support Innovation, Incubation and Talent Development Re-connect to Science Foundation Arizona

$10 million in matching incentives for industry – propelling projects, STEM education and graduate research fellowships

Encourage Incubators $3.5 million to nurture high tech start ups

Strategic Investments as Force Multipliers (cont.)

Bring Jobs to the Rural Areas $2M to advance economic development projects in

rural communities

Protect Our Proven Brand $250K to encourage travel to Arizona and to develop a

long-term national and international marketing strategy

Policies as Force Multipliers• Renewable Energy Manufacturing Tax Credit (SB 1403)• Renewable Energy Production Tax Credit (SB 1254)• Solar Liquid Fuel Tax Credit (HB 2370)• “Green and Grow” Policy• Small Business R&D Tax Credit / Discounted Refund

(SB 1254)• Internationally Competitive K-12 Academic

Standards / Testing• Baccalaureate Degree Production to Meet State

Priorities• Alignment of Workforce Policy with Commerce Goals• Preservation of Arizona’s Military Installations (F-35)• Long-Term Infrastructure Planning for Job Creation

$1.36 Billion Capital Investment 7,205 Jobs

Strong Operational Foundation

Organization and Management• Develop strategic focus, plans• Align functions to mission• Recruit CEO, organize talent


Budget• Identify resource needs for

operations, business attraction / retention

• Develop private partnerships


Legislation•Establish Authority, tools and resources

•Advance unparalleled competitiveness Package

"We are a young state. Arizona's best days are still to come if we make the right decisions. They are what the future requires." Governor Janice K. BrewerState of the State, 2010

Arizona’s Economic

MarketJohn Arnold

Director, OSPB

Total Arizona EmploymentArizona is projected to add 404,315 jobs by 2018

Source: Research Administration 2010-2011 Occupational Forecast, August 19, 2010

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

*2010

*2018

*Projected

IF WE DO NOTHING…

2010 Economic Sectors By Employment (2,376,000 jobs)


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Governm

ent

Trade

Professional

Health S

ervices

Leisure

FinancialA

ctivities

Manufacturing

Construction

Other S

ervices

Transportationand U

tilites

Education

Information

Natural

Resources

IF WE DO NOTHING…

2000-2010 New Jobs by IndustryArizona added 133,320 jobs


(80,000)

(60,000)

(40,000)

(20,000)

0

20,000

40,000

60,000

80,000

100,000

120,000

Health

Government

Trade, Trans.,Utilities

Leisure

Education

Other Services

FinancialActivities

ProfessionalServices

NaturalResources

Information

Construction

Manufacturing

IF WE DO NOTHING…

Projected New Jobs by IndustryArizona is projected to add 408,135 jobs between 2010-2018

0

20,000

40,000

60,000

80,000

100,000

120,000

ProfessionalServices

Trade, Trans.,Utilities

Construction

Health

Leisure

Government

Other Services

Financial Activities

Manufacturing

Education

Information

Natural Resources

Jobs Created Average Wages


IF WE DO NOTHING…

Projected New Jobs by Education Requirement

3% 2% 3%

11%

19%

62%

Professional Degree Doctoral Degree Master's Degree

Bachelor's Degree Associate Degree Less than Associate


IF WE DO NOTHING…

14.0%

10.3%

8.7%

4.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Less than High SchoolDiploma

High School Graduate Some College Bachelor's Degree orHigher

Source: U.S. Bureau of Labor Statistics, 9/3/10Source: U.S. Bureau of Labor Statistics, 9/3/10

National Unemployment by Education Level

Arizona ManufacturingCurrently makes up 6% of AZ employment.

6%

94%

Other Jobs Manufacturing


IF WE DO NOTHING…

Arizona ManufacturingProjected to add about 11,000 jobs by 2018

* ForecastedSource: Research Administration 2008-2018 Occupational Forecast, August 19, 2010

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Computer and electronic products Non-Durable Goods ManufacturingAerospace product and parts Fabricated metal products

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Computer and electronic products Non-Durable Goods ManufacturingAerospace product and parts Fabricated metal products

IF WE DO NOTHING…


Arizona Employment Change by Occupation

3.9

4.2

5.1

5.2

5.2

7.0

8.2

9.0

9.5

9.9

$52,742

$26,629

$20,164

$16,880

$18,721

$21,697

$21,095

$17,046

$66,093

$30,217

$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000

0 2 4 6 8 10 12

Accountants & Auditors

Office Clerks, General

Stock Clerks & Order Fillers

Waiters & Waitresses

Cashiers

Home Health Aides

Retail Salespersons

Combined Food Preparation & Serving Workers

Registered Nurses

Customer Service Representatives

Arizona Employment Change by OccupationThousands of jobs, projected 2008-18 Median annual wages,

May 2009

IF WE DO NOTHING…

Expansions in Employment Arizona vs. National (2008-2018)


0%

10%

20%

30%

40%

50%

60%

70%

80%

BiomedicalEngineers

NetworkSystems

MedicalScientists

RegisteredNurses

AerospaceEngineer

Arizona National

IF WE DO NOTHING…

Multiplier AnalysisJobs Created For Every Direct Job Added

Elliott D. Pollack & Company, The Job Recovery Package for the State of Arizona, Pg. 12

Industry Multiplier Accommodations 0.63 Air Transportation 2.07 Chemical Manufacturing 3.73 Commercial Construction 0.83 Computer and other electronics manufacturing 2.18 Electrical equipment and appliances 1.47 Fabricated Metal 1.10 Hospital 0.91 Mining 2.19 Nursing and residential care 0.36 Professional services 0.90 Telecommunication 2.06 Wholesale trade 1.21

IF WE DO NOTHING…

Arizona’s Economy &

Competitiveness

Dr. Dennis Hoffman Director, L. William

Seidman Research Institute, ASU

CompetitivenessDefinitions of Competitiveness – check out http://economist.asu.edu

Hoffman 2005 “Ultimately, competitive regions and cities are places where both companies and people want to locate and invest in.”

http://wpcarey.asu.edu/seidman/Reports/P3intro.pdf

Atkinson 2007 Deep Competitivenesshttp://www.itif.org/files/Deep-Competitiveness.pdf

So How Competitive is Arizona ??

• Entrepreneurship• Business Climate• Workforce• Space Availability• Infrastructure

Entrepreneurship U.S. Composite Index – 16th, down from 10th in 2008

10th 20th 30th 40th 50thNo.1Source: Charting a Course for Arizona’s Technology-Based Economic Development – Milken Institute, 12/09

21st Increase in Number of Companies Receiving VC Investment (2005-2006)

17th in Patents Issued per 100,000 people (2007)

3rd in Business Starts per 100,000 people (2006)

20th in Venture Capital Investment as Percent of GSP (2007)

39th in Venture Capital Investment and Growth (2006-2007)

44th in Business Incubators per 10,000 establishments (2008)

19th in Number of Companies Receiving Venture Capital per 10,000 Firms (1996-2004)

Arizona Business Climate: #1 is best

• Arizona’s 2010 Business Tax Climate: Ranks 28th

• Individual Income Tax: Ranks 23rd from the bottom and in DC tax study 10th

• Corporate Income Tax: Ranks 22nd • 6.968% flat rate on all taxable corporate income

• Current Sales Factor = 80%

• Operating Costs: Ranks among lowest in nation • Unemployment Insurance – AZ ranks 5th

• Worker’s Compensation – AZ ranks 6th

• Additional Depreciation (personal business property)

• Year 1: additional 30% Year 2: additional 46%• Year 3: additional 62% Year 4: additional 78%• Year 5: additional 94%

Arizona Business Climate: #1 Is Best

• Real and Personal Business Property Taxes: Ranks 35th

• Note: Business Property is assessed at twice the rate of residential property

Science and Tech Workforce

10th 20th 30th 40th 50thNo.1

16th in Computer Experts In The State

24th in Percentage Of The Population With PH.D.s

15th in Percentage of Bachelor’s Degrees In Science And Engineering

20th in Percentage Of State With Computers In The Home

23rd in Technology/Science Workforce

21st in Percentage of Recent Science And Engineering Degrees

11th in Technology Concentration and Dynamism

Source: Charting a Course for Arizona’s Technology-Based Economic Development – Milken Institute, 12/09

IndustrialExisting Inventory in Total RBA: Phoenix – 288,735,753 sqft (20th)Tucson – 38,123,850 sqft (85th) Vacancy %: Phoenix – 16.6% (10th highest)Tucson – 11.2% (55th)

Commercial Space Availability Vacancy Comparison in 141 U.S. Markets

Source: COSTAR 2010 Mid-year Report

Office Existing Inventory in Total RBA: Phoenix – 154,316,749 sqft (17th)Tucson – 22,997,370 sqft (79th)

Vacancy %: Phoenix – 21.4% (1st)Tucson – 12.0% (57th)

Infrastructure http://wpcarey.asu.edu/seidman/Reports/P3/infrastructure.pdf

• Over $800 Billion in Infrastructure needs to serve growth over the next 25 years

• State pace of Infrastructure investment has slowed

• Need to consider innovative solutions- PPP’s- Toll Roads- Infrastructure Banks

Infrastructure

Source: National Competitiveness Council of Ireland, www.forfas.ie/ncc/about_competitiveness.html

Competitiveness Growth Pyramid

Donald Cardon President & CEO,

ACA

The Vision: It’s

About

Execution

ACA Objectives

• To assemble the collective strengths of an actively involved Governor, Speaker Of The House, President Of The Senate and Academia leadership with a diverse representation of Arizona’s top CEOs for one purpose… “To significantly and deliberately advance Arizona’s economic future into a pronounced global competitiveness position.”

• To focus such strengths on specific objectives relating to

how Arizona advances the appeal of its core assets throughout the global marketplace.

ACA Objectives

• To provide the private sector with an aggressively increased opportunity of engagement within both the Executive and Legislative bodies of Arizona.

• To establish an environment where the sense of urgency and increased communication break down the silos of fragmented efforts and competitive dysfunction.

• To understand this is not political, nor is it about anyone or industry in particular…it is about the future of our state and how we distinguish ourselves within a global marketplace that is dynamic in nature.

Local Economic

Development Community

ACA

IT’S

ABOUT

EXECUTION

Science and Technology

Aerospace and Defense

Small Business

and Entrepre-neurship

Renewable Energy

Legislative Leadership

Private SectorAcademia

GovernorRural

Business Advisory Council

Business Retention

Documents

ACA Board Meeting Sept 23 2010