Capital Investment: $13 million
Jobs Created: 150
Capital Investment: $1 billion
Jobs Created: 100
Capital Investment: $1 million
Jobs Created: 6
Capital Investment: $20 million
Jobs Created: 2,000
Capital Investment: $1 million
Jobs Created: 1,000
Capital Investment: $13 million
Jobs Created: 70
Capital Investment: $7 million
Jobs Created: 50
Capital Investment: $15 million
Jobs Created: 175
Capital Investment: $5 million
Jobs Created: 40
Capital Investment: $11 million
Jobs Created: 100
Capital Investment: $35 million
Jobs Created: 63
Capital Investment: $50 million
Jobs Created: 200
Capital Investment: $3 million
Jobs Created: 10
Capital Investment: $1 million
Jobs Created: 321
Capital Investment: $50 million
Jobs Created: 109
Capital Investment: $1 million
Jobs Created: 400
Capital Investment: $250,000
Jobs Created: 50
Capital Investment: $1 million
Jobs Created: 150
Capital Investment: $7 million
Jobs Created: 100
Capital Investment: $6 million
Jobs Created: 350
Capital Investment: $1 million
Jobs Created: 50
Capital Investment: $1 million
Jobs Created: 50
Capital Investment: $65 million
Jobs Created: 800
Capital Investment: $3 million
Jobs Created: 30
Capital Investment: $40 million
Jobs Created: 150
Capital Investment: $1 million
Jobs Created: 1
Capital Investment: $3 million
Jobs Created: 30
Capital Investment: $4 million
Jobs Created: 13
Capital Investment: $1 million
Jobs Created: 30
Capital Investment: $1 million
Jobs Created: 100
Capital Investment: $5 million
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
Strong Operational Foundation
Budget• Identify resource needs for
operations, business attraction / retention
• Develop private partnerships
Strong Operational Foundation
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)
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
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
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
(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
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
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
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
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
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
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…
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
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)
Source: Research Administration 2008-2018 Occupational Forecast, August 19, 2010
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