Learn More: 928-757-0934www.mohavedevelopment.org

SUCCESS STORIES Mohave County

“What do I love about Mohave county? Loyalty and dedication from the workforce. Affordable real estate. And the proximity of my three major hubs: California, Las Vegas and Phoenix.

All of these attributes have helped propel the Mohave County facility to the most effective plant of the Tissue group.”

- Luc Beaudoin, Plant ManagerCascades, Inc.’s most profitable plant (Kingman, AZ)

TDL IN MOHAVE COUNTYWith a strategic location within a one-day, round-trip drive of major metros like San Diego, Los Angeles and Phoenix, moving your transportation, distribution or logistics company to Mohave County just makes sense. We’re already home to companies that specialize in freight hauling, storage, distribution, trucking, warehousing, and air and marine freight. And we have plenty of room for more.

Move your business to Mohave County and discover benefits like:

• A workforce trained and experienced in transportation, distribution and logistics

• Easy access to California and the western United States

• Low business costs and some of the lowest taxes in Arizona

• Industrial parks near each major city

• Programs that make it easy to connect with suppliers, businesses and workforce in the Mohave County area

• A backdrop of vast blue skies, desert landscapes, over 1,000 miles of freshwater coastline and the breathtaking Grand Canyon West

The workforce is made up of dedicated, hardworking folks. Logistically, the region is an excellent strategic location for distribution and backhauling.

Geographically, there is easy access to Phoenix, Las Vegas, Flagstaff and Los Angeles, not to mention the Grand Canyon, Hoover Dam and many tourist attractions.

- Jim Robertson CDME,CDS,CTP.KDC General ManagerMcKee Foods (Kingman, AZ)

COMPARATIVE ANNUAL NONEXEMPT LABOR COSTS vs. Phoenix, Las Vegas, Reno/Sparks, West Jordan

COST OF BUSINESS Land, Building and Electric

INDUSTRIAL LAND & BUILDING COSTS

Cost/acre: $6k-$240k Lease rate(sq.ft./mo.): $0.25-$0.50 Construction(sq.ft.): $50-$90

LARGE ELECTRIC (Unisource Energy)

Basic/month: $16/mo. Demand/kW: $14.12Energy charge/kWh: $0.004085;$0.057991 $0.004085;$0.057991

INCENTIVES Financing and Cash

• Arizona Job Training Grant Program

• Quality Jobs Tax Credit Program

• Sales Tax Exemption for Machinery & Equipment

• Research & Development Income Tax Credit Program

• Accelerated Depreciation Schedules

CONTACT US FOR DETAILS: 928-757-0934

JOB TITLE NUMBER OF WORKERSMOHAVE COUNTY, AZ

PHOENIX, AZ

LAS VEGAS, NV

RENO/SPARKS, NV

WEST JORDAN, UT

Warehouse Worker 20 $11.25 $12.40 $12.24 $12.49 $12.05

Material Handler 25 $13.22 $14.54 $13.98 $14.66 $14.11

Order Filler 30 $10.89 $11.98 $11.82 $12.09 $11.63

Light Assembly 10 $11.82 $13.01 $12.82 $13.10 $12.63

Packer 10 $10.84 $11.93 $11.77 $12.03 $11.58

Maintenance Mechanic 4 $17.73 $19.52 $19.27 $19.68 $18.98

Maintenance Electrician 3 $19.35 $21.30 $21.02 $21.48 $20.69

Stock Clerk 5 $10.67 $11.75 $11.59 $11.84 $11.42

Shipping & Receiving Clerk 12 $13.22 $14.54 $14.36 $14.66 $14.11

Forklift Operator 12 $14.82 $16.33 $16.11 $16.45 $15.85

Truck Driver - Light 5 $14.11 $15.54 $15.34 $15.67 $15.11

Truck Driver - Heavy 10 $16.61 $18.30 $18.06 $18.44 $17.77

Security Guard 5 $13.03 $14.36 $14.17 $14.46 $13.94

Inventory Control Clerk 12 $14.31 $15.76 $15.55 $15.88 $15.31

Traffic/Rate Analyst 6 $18.00 $19.82 $19.56 $19.97 $19.27

Secretary 6 $13.58 $14.96 $14.75 $15.07 $14.54

Total Nonexempt Workers 175

Weighted Average Hourly Earnings (1)

$13.09 $14.41 $14.17 $14.52 $13.99

Total Annual Base Payroll Costs (2)

$4,361,588 $4,801,412 $4,721,444 $4,838,064 $4,661,468

Fringe Benefits (3) $1,570,172 $1,728,508 $1,699,720 $1,741,703 $1,678,128

Total Annual Nonexempt Labor Costs

$5,931,760 $6,529,920 $6,421,164 $6,579,767 $6,339,596

(1) For distribution center in third year of operation based upon current wage rates and fringe benefits. Wage rates reflect field research and industry sources placing the facility in a competitive hiring position in each respective labor market. Job descriptions reflect a representative mix of key job functions for a hypothetical distribution warehouse facility employing 175 nonexempt workers. (2) Based on an estimated 36 percent of total annual base payroll costs. Costs include all statutory benefits, pay for time not worked and company-sponsored benefits.(3) Assumes 1,904 hours worked per year per employee based on 12 paid holidays and a two-week vacation. Source: The Boyd Company, Inc.

JOB TITLE NUMBER OF WORKERSMOHAVE COUNTY, AZ

PHOENIX, AZ

LAS VEGAS, NV

RENO/SPARKS, NV

WEST JORDAN, UT

Warehouse Worker 20 $11.25 $12.40 $12.24 $12.49 $12.05

Material Handler 25 $13.22 $14.54 $13.98 $14.66 $14.11

Order Filler 30 $10.89 $11.98 $11.82 $12.09 $11.63

Light Assembly 10 $11.82 $13.01 $12.82 $13.10 $12.63

Packer 10 $10.84 $11.93 $11.77 $12.03 $11.58

Maintenance Mechanic 4 $17.73 $19.52 $19.27 $19.68 $18.98

Maintenance Electrician 3 $19.35 $21.30 $21.02 $21.48 $20.69

Stock Clerk 5 $10.67 $11.75 $11.59 $11.84 $11.42

Shipping & Receiving Clerk 12 $13.22 $14.54 $14.36 $14.66 $14.11

Forklift Operator 12 $14.82 $16.33 $16.11 $16.45 $15.85

Truck Driver - Light 5 $14.11 $15.54 $15.34 $15.67 $15.11

Truck Driver - Heavy 10 $16.61 $18.30 $18.06 $18.44 $17.77

Security Guard 5 $13.03 $14.36 $14.17 $14.46 $13.94

Inventory Control Clerk 12 $14.31 $15.76 $15.55 $15.88 $15.31

Traffic/Rate Analyst 6 $18.00 $19.82 $19.56 $19.97 $19.27

Secretary 6 $13.58 $14.96 $14.75 $15.07 $14.54

Total Nonexempt Workers 175

Weighted Average Hourly Earnings (1)

$13.09 $14.41 $14.17 $14.52 $13.99

Total Annual Base Payroll Costs (2)

$4,361,588 $4,801,412 $4,721,444 $4,838,064 $4,661,468

Fringe Benefits (3) $1,570,172 $1,728,508 $1,699,720 $1,741,703 $1,678,128

Total Annual Nonexempt Labor Costs

$5,931,760 $6,529,920 $6,421,164 $6,579,767 $6,339,596

(1) For distribution center in third year of operation based upon current wage rates and fringe benefits. Wage rates reflect field research and industry sources placing the facility in a competitive hiring position in each respective labor market. Job descriptions reflect a representative mix of key job functions for a hypothetical distribution warehouse facility employing 175 nonexempt workers. (2) Based on an estimated 36 percent of total annual base payroll costs. Costs include all statutory benefits, pay for time not worked and company-sponsored benefits.(3) Assumes 1,904 hours worked per year per employee based on 12 paid holidays and a two-week vacation. Source: The Boyd Company, Inc.

WAREHOUSE CONSTRUCTION AND AMMORIZATION COSTS vs. Phoenix, Las Vegas, Reno/Sparks, West Jordan

MOHAVE COUNTY, AZ

PHOENIX, AZ

LAS VEGAS, NV

RENO/SPARKS, NV

WEST JORDAN, UT

Site Acquisition: No. of Acres 65 65 65 65 65

Cost per Acre (1) $50,000 $326,000 $208,000 $138,000 $189,000

Site Improvement Cost (2)

Total Land Cost $3,250,000 $21,190,000 $13,520,000 $8,970,000 $12,285,000

Construction Cost (3) $46,645,156 $50,512,387 $58,796,417 $57,045,321 $44,989,697

Machinery and Equipment $9,250,000 $9,250,000 $9,250,000 $9,250,000 $9,250,000

Total Project Investment $49,895,156 $71,702,387 $72,316,417 $66,015,321 $57,274,697

Project Amortization

Cost of Funds (Interest) 5.0 5.0 5.0 5.0 5.0

Payment Factor (4) 0.0709 0.0709 0.0709 0.0709 0.0709

Total Annual Amortization Cost $3,537,567 $5,083,699 $5,127,234 $4,680,486 $4,060,776

(1) Land costs are estimates only. Actual negotiated costs would vary by site specifics, including location, access, visibility, etc. Costs reflect fully-serviced industrially-zoned land.(2) Land preparation costs limited to normal grading and held constant for purposes of analysis.(3) Based on construction of fully-equipped 750,000 sq. ft. distribution center. Geographic differentials in building costs are based on recent BizCosts® construction cost data. (4) Assumes 25-year level amortization payments at 5.0 percent. Source: The Boyd Company, Inc.

10

10 17

8

40

25

10

20

40

70

25

80

15

15

5

5

25

100 mi

250 mi

500 mi

750 mi

1000 mi

Mohave CountyLAS VEGAS

PHOENIX

SAN BERNARDINO

RIVERSIDE

TUCSON

LOS ANGELES

LONG BEACH

SAN DIEGO

ENSENADA

M E X I C O

ALBUQUERQUE

SALT LAKE CITY

OAKLANDSAN

FRANCISCODENVER

GUAYMAS

KINGMAN

DRIVE TIMES

Drive Times from Kingman, AZLas Vegas, NV: 104 Miles / 2:00Phoenix, AZ: 184 Miles / 3:25San Bernardino, CA: 275 Miles / 4:20Riverside, CA: 284 Miles / 4:31Tucson, AZ: 305 Miles / 5:22Los Angeles, CA: 318 Miles / 5:08Long Beach, CA: 332Miles / 5:17

San Diego, CA: 380 Miles / 5:58Ensenada, Mexico: 463 Miles / 7:25Albuquerque, NM: 470 Miles / 7:09Salt Lake City, UT: 524 Miles / 8:25Oakland, CA: 607 Miles / 10:06San Francisco, CA: 618 Miles / 10:19Guaymas, Mexico: 627 Miles / 11:02Denver, CO: 914 Miles / 13:38

Mohave County Economic Development Department3250 E. Kino Avenue, 2nd Floor | Kingman, AZ 86409

Tel. (928) 757-0960 | Fax. (928) 757-0934www.mohavedevelopment.org

MOHAVE COUNTY, ARIZONA

N

INBOUND SHIPPING COSTS* WEST COAST PORT CITIES OF ORIGINOrigin City Annual

(1,000 lbs.)Mohave County, AZ

Phoenix , AZ Las Vegas, NV Reno/Sparks, NV West Jordan, UT

Los Angeles, CA 191,800 $3,110,222 $4,540,561 $3,367,511 $6,389,872 $8,328,133

Long Beach, CA 175,820 $3,006,059 $4,180,309 $3,189,086 $6,023,433 $7,735,889

Oakland, CA 63,930 $2,202,122 $2,977,101 $2,254,997 $876,412 $2,968,147

Seattle, WA 53,280 $4,605,714 $5,020,564 $4,224,447 $2,525,175 $2,868,620

Tacoma, WA 47,950 $3,873,273 $4,465,088 $3,838,865 $2,177,408 $2,618,466

MEXICAN POINTS OF ORGINTijuana, Baja 26,640 $601,768 $666,769 $630,445 $1,005,743 $1,319,453

Mexicali, Baja 26,640 $342,908 $413,505 $529,489 $1,042,169 $1,220,347

Nogales, Sonora 26,640 $711,028 $297,606 $794,082 $1,593,729 $1,482,099

Cd. Juarez, Chihuahua

26,640 $1,132,938 $724,224 $1,220,203 $2,020,328 $1,482,099

Monterrey, Neuvo Leon

26,640 $2,390,264 $1,980,121 $2,472,630 $3,274,427 $2,731,491

DOMESTIC POINTS OF ORGINBoston, MA 33,300 $5,808,030 $5,669,689 $5,702,027 $6,059,128 $4,989,494

Charlotte, NC 33,300 $4,563,428 $4,395,605 $4,654,541 $5,397,543 $4,326,015

Detroit, MI 33,300 $4,416,457 $4,278,116 $4,225,262 $4,583,187 $3,512,708

St. Louis, MO 33,300 $3,305,051 $3,166,711 $3,350,387 $3,868,597 $2,796,521

Houston, TX 33,300 $2,985,070 $2,472,909 $3,092,605 $4,089,819 $3,468,149

TOTALS 832,480 $43,054,332 $45,248,878 $43,546,577 $50,926,970 $51,847,631 *Annual charges reflect truckload lots of 40,000 lbs. using private over-the-road carrier to each surveyed distribution site. Projected charges based on estimated $2.54 per mile which includes cost factors such as labor, fuel, maintenance, insurance, and operating rights. Source: The Boyd Company, Inc.

OUTBOUND SHIPPING COSTS*CALIFORNIA METRO MARKETSOrigin City Annual

(1,000 lbs.)Mohave County, AZ

Phoenix , AZ Las Vegas, NV Reno/Sparks, NV West Jordan, UT

Los Angeles, CA 159,840 $3,455,966 $5,045,307 $3,741,857 $7,086,659 $9,253,922

San Francisco, CA 79,920 $3,745,084 $5,062,520 $3,858,715 $1,468,315 $4,987,013

Riverside/San Bernardino, CA

79,920 $1,557,672 $2,166,837 $1,622,825 $3,118,438 $4,378,790

San Diego, CA 39,950 $1,068,261 $1,198,166 $1,125,571 $1,875,605 $2,502,553

Sacramento, CA 39,950 $1,903,453 $2,535,609 $1,936,004.73 $442,925 $2,199,979

WESTERN U.S. METRO MARKETPhoenix, AZ 53,280 $1,098,200 $44,824 $1,321,515 $3,453,905 $2,904,625

Seattle, WA 53,280 $6,140,952 $6,694,085 $5,632,598 $3,366,900 $3,824,827

Denver, CO 53,280 $3,854,903 $4,092,966 $3,342,605 $4,710,558 $2,420,522

Portland, OR 53,280 $5,141,232 $5,984,738 $4,584,109 $2,596,994 $3,490,929

Las Vegas, NV 53,280 $497,551 $1,281,442 $13,447 $2,010,467 $1,851,251

NATIONAL DISTRIBUTION POINTSNew York, NY 33,300 $7,063,495 $6,888,652 $7,064,139 $7,543,088 $6,113,525

Atlanta, GA 33,300 $5,392,944 $5,177,674 $5,516,239 $6,706,132 $5,280,938

Chicago, IL 33,300 $5,236,058 $5,056,928 $4,896,624 $5,374,789 $3,943,124

Memphis, TN 33,300 $4,308,751 $4,127,465 $4,432,019 $5,911,030 $4,474,815

Dallas, TX 33,300 $3,284,093 $2,986,318 $3,415,344 $4,667,684 $3,955,983

TOTALS 832,480 $53,748,615 $58,343,531 $52,503,612 $60,333,489 $61,582,796 *Annual charges reflect truckload lots of 30,000 lbs. using private over-the-road carrier to each surveyed distribution site. Projected charges based on estimated $2.54 per mile which includes cost factors such as labor, fuel, maintenance, insurance, and operating rights. Source: The Boyd Company, Inc.

“LAWSUIT CLIMATE” RANKING*Arizona: 13th California: 46th *Source: Institute for Legal Reform WORKERS COMPENSATION RANKING*Arizona: 6 California: 43*Source: Actuarial and Technical Solutions, Inc., Workers Compensation State Rankings, 2009 Edition. UNEMPLOYMENT INSURANCE - ESTIMATED AVERAGE TAX*Arizona: 2%; Arizona’s new employers’ tax rate is 2% for 1 year.California: 4.96%; California’s new employers’ tax rate is 3.40% for 1. year.*Sources: CCH-EXP, State Tax Guide, 2010 Unemployment Insurance Tax Rates; U.S. Dept. of Labor, Employment & Training Administration: “Average Employer Contribution Rates, by State, Calendar Year 2010.” OVERALL STATE PER CAPITA TAXATION & NATIONAL RANKING*Arizona: $1,799; 11th lowest in the nation California: $2,733; 39th lowest in the nation*Source: U.S. Census Bureau, Governments Division, States Ranked by Total Taxes: 2009 and Population Estimates: 2009. COST OF LIVING*Cost of Living in Mohave County, AZ, is significantly more affordable than in California.*Source: ACCRA Cost of Living; Speirlings Best Places, July 2011.

UNION ACTIVITY*Arizona is a right to work state and has the 13th lowest union membership rate in the nation. Mohave County, AZ, offers a business environment essentially free of union membership. California is a forced unionism state and has the 47th lowest union membership rate in the nation.*Source: U.S. Dept. of Labor, Bureau of Labor Statistics, Table 5: Union Affiliation of Employed Wage & Salary Workers by State, 2010.

Learn More: 928-757-0934www.mohavedevelopment.org

Source: National Right to Work Legal Defense Foundation, Inc. (2010)

ARIZONA VS. CALIFORNIA Business Cost Comparison

CORPORATE INCOME TAX*Arizona : 6.968% California: 8.84%*Source: The Tax Foundation, February 2011.

STATE PERSONAL INCOME TAX*Arizona: 2.59% - 4.54% California: 9.55% - 10.55% (3rd highest in the nation) *Source: The Tax Foundation

STATE SALES TAX*Arizona: 6.6% California: 8.25% (highest in the nation) *Source: The Tax Foundation GASOLINE TAX*Arizona: $0.19/gallon California: $0.48/gallon (highest in the nation)*Source: The Tax Foundation

PERSONAL PROPERTY TAX*Arizona: First $10,000 - 2.59% Next $15,000 - 2.88% Next $25,000 - 3.36% Next $100,000 - 4.24% Over $150,000 - 4.54% California: First $7,168 - 1.25%Next $9,826 - 2.25%Next $9,827 - 4.25%Next $10,412 - 6.25%Next $9,822 - 8.25%Next $952,945 - 9.55%Over $1,000,000 - 10.55% State imposes an alternative minimum tax

*Source: The Tax Foundation, February 2011.

Freight hauling. Tax climates. Freight storage and distribution. Solid Workforce. Access to Pacific ports. Available Land. Good partnerships. Low operating costs. Distance to my customers. Infrastructure. Truck-ing, rail hauling and warehousing. Incentives. Lower cost of Moving Goods. Transportation and Logistics.Real Estate values. Access to major highway, rail and airport. Industry salary 42% Lower than the National Average.

You’ve got priorities. We’ve got a lot to offer.

EASY ACCESS TO CALIFORNIA

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