Arizona & the Valley of the Sun

“Phoenix…..is growing in areas as disparate as aerospace, financial services and online education. That city is in the midst of such a boom that experts project it will be the scene of the greatest regional expansion in our lifetime”. Business 2.0. magazine (2006)

Arizona is primarily noted for its desert climate with its hot summers and mild winters but much of the state is high country featuring pine forests, striking rock formations, and mountain ranges. Arizona borders New Mexico, Utah, Nevada, Colorado and California and shares a 389 mile border with the states of Sonora and Baja California in Mexico. Aside from the famous Grand Canyon, there are numerous National Forests, Parks, Monuments and Indian Reservations. Recreational pursuits can run the gamut of snow skiing to water sports, and from world-class golf to stunning vistas on an endless number of hiking and biking trails.

For the past decade the “secret” has been out and Arizona has been aggressively discovered by personal relocations, consumers and business. Arizona is now one of the top states in housing starts, population growth, and job growth. Arizona has been realizing population in-migration gains of up to 200,00 people a year with all expectations of realizing consistent gains for the next five decades topping the mark of 13.34 million by 2055. The high quality of life, affordable housing, excellent climate, age demographics and social infrastructure, long-term water supply, reliable utility infrastructure, and range and depth of schools insures a consistency of growth unmatched by almost any other large metropolitan area in the nation.

PHOENIX METROPOLITAN AREA

Phoenix is the hub for commercial activity within the Southwest United States. Surrounding the city of Phoenix are over 20 communities that create the Phoenix Metropolitan Area and are collectively known as the “Valley of the Sun”. These cities include Scottsdale, Paradise Valley, Tempe, Mesa, Chandler, Sun City, Fountain Hills, Gilbert, Peoria, Tolleson, Buckeye, Surprise, and many others.
Phoenix is the fifth most populated city in the U.S. In 2000, the population of the Phoenix Metro area was over 3.2 million. Forecasts show the Phoenix Metro area growing to over 4.5 million in 2010 and close to 6 million by 2020.

Fast Company magazine sought out cities that in recent years have evolved into centers for the so-called creative class: the combination of scientists, engineers, artists and professions that create urban success, and has recognized Phoenix as one of the Top 10 “Fast Cities” for 2005

Site Selection magazine ranked Greater Phoenix as one of its Top Cybercities based on 6 factors ranging from university research and development to quality of life.

Forbes Magazine in 2006 listed Phoenix as #3 Best Cities for Singles.

POPULATION

Maricopa County leads nation in numerical population growth and Pinal County is #6 for nationally for percentage increase. (U.S. Census Bureau). Trend lines suggest that this growth will extend well into the future. In 2006, Arizona’s state population exceeded 6 million.
In 2005, Phoenix was #6 nationally for population. Phoenix has now passed Philadelphia in 2007 as the 5th largest city in America by population. In the years 1990-2000 Phoenix recorded a phenomenal 35% population increase.
Arizona’s fast growing population is younger than the national average. The state’s median age is 34.2, compared to the U.S. at 35.3 years. The proportion of those younger than 25, as well as those over 65, is roughly the same as the nation as a whole.

ECONOMY

Arizona’s economy is larger than such countries as Ireland, Finland, and New Zealand. Arizona currently has the 21st largest economy among states in the United States.
Phoenix Sky Harbor International Airport is ranked the 5th busiest airport in the world for operations (takeoffs and landings). It is the 8th busiest in the U.S. and in 2007 the 14th busiest in the world for passenger traffic. Sky Harbor is now increasingly focused on International expansion with a new overhaul planned for Terminal 2 to increase plane density inline with this expansion. New international routes with new carriers are being added every year.
Arizona has created strategic initiatives in the biosciences which has put Arizona “on the map” for a significant sector in the future US economy. Landmark investments include: Translational Genomics Research Institute; the Critical Path Institute; and the BIO5 Institute, and the new SABRE at NAU. The biotech campus in downtown Phoenix includes major support and funding from goverment and corporate sources and has provided for significant expansion space, the addition of a new Biotech High School, and now numerous private and university-affiliated research companies now setting up near the biotech campus.
High-tech is a significant and growing component of Arizona’s economy, particularly the Semiconductor and Aerospace industries. The proportion of Arizona manufacturing in high-tech was 44% of total manufacturing employment. (Eller) 58 out of 1,000 private sector workers in Arizona are employed by high tech firms within the leading sectors of semiconductor manufacturing, telecommunication services and engineering services. (ASTRA 2005) Several high-tech mannufacturing industries including guided missiles and space vehicles, semiconductors, search and navigation equipment and industries related to aircraft have done particularly well recently, have high-paying jobs, and are an important export activity.
Earning over $50 million daily, Arizon’s tourism industry is at its highest point ever. In 2006, over 34 million visitors came to the Valley and spent $19 billion, a six percent increase over the previous year. (Arizona Office of Tourism)
In 2006 Arizona ranked 3rd among all states in the growth (6.8%) of the State Gross Domestic Product, behind only Idaho and Wyoming. (AZ Dept of Commerce)

1st “Top States for Recruitment & Attraction”, Expansion Management magazine (2007)

6th in nation in high-tech exports at $7 billion, AeA Cyberstates report (2006)

10 Hot Cities for Job Growth, Business 2.0 magazine (2006). “Phoenix is growing in areas as disparate as aerospace, financial services and online education. That city is in the midst of such a boom that experts project it will be the scene of the greatest regional expansion in our lifetime”.

2007 “America’s 50 Hottest Cities“, Expansion Management magazine & 1st for “Top Large Metros for Recruitment and Attraction” (Phoenix 2007) & 1st for “Top Mid-Sized Counties for Recruitment & Attraction” (Pima 2007)

Greater Phoenix ranked 1st (for fifth straight year) in Cognetics Inc’s “Annual Index of U.S. Entrepreneurial Hot Spots“

Greater Phoenix ranked 6th in Forbes “Best Places for Business and Careers” (2006)

Phoenix and Tucson are among Top 25 Cities for “Doing Business in America”, Inc. Magazine (2004)

EMPLOYMENT

With only a 3% unemployment rate (one of the lowest in the U.S.) Phoenix was recently named the #1 job market by Bizjournals.
1 out of every 30 jobs created in the United States during the first 9 months of 2007 were in the Greater Phoenix Metro area. (Pollack)
Since 2005, Phoenix has ranked #1 in employment growth among all U.S. metro areas greater than 1 million. Construction in 2005 created nearly 25,000 new jobs. In 2006 construction is expected to add an additional 11,000 new jobs trailing professional and business services (27,200), trade, transportation, and utilities (19,100), government (13,100), and financial activities (12,200). Educational and health services will add 10,400, leisure and hospitality 9,200, and manufacturing 3,800. 2006 is expecting to generate over 110,00 new jobs, wage increases by private sector workers of 4.9%, and personal income growth of 9.4%. Long-term employment growth studies forecast the State of Arizona to remain in the #2 spot through 2030.
The median household income stands at $50,651 (2006) which is above the national average.

URBAN REDEVELOPMENT

Currently in the midst of a massive $600 million expansion and renovation project, upon its completion in 2008, the Phoenix Convention Center located in downtown Phoenix will total almost 2 million sq. ft. and offer nearly 900,000 sq.ft. of versatile event and meeting space on its 26-acre campus. The new Convention Center will now be the 9th largest in the U.S. and currently is booked 2.5 years into the future. The economic impact of the new Center is expected to be $500 million by 2013.
Downtown Phoenix’s government-initiated Biomedical Campus continues to expand and is seen as a key to bring high-wage jobs to the region, expand educational opportunities and diversify the state’s economic base. (see: Phoenix Biomedical Campus can generate billions annually for Arizona)
ASU has now located a now rapidly-expanding campus in downtown Phoenix with a range of programs including the entire nursing and journalism programs which will soon be housed in new facilities currently under construction. Multiple new buildings under construction including dorms and facilities have also provided a boost to retail and redevelopment efforts in the area including urban parks, high-rise apartments, and many new infill residential projects. UofA has also located a new medical school into the south edge of what is now the Biotech campus.
RED Development has begun construction on CityScape, its 2.5 million square foot retail, residential, office and hospitality complex in downtown Phoenix. Wachovia Corp. recently announced that it will be the anchor tenant in the 600,000-square-foot CityScape office tower. Other office towers are now under construction and development to accommodate the scarcity of contiguous class-A office space.
The Metro light rail system, currently the nation’s largest transportation project and expected to cost over $1.4 billion dollars, is under construction which will connect the metro areas of Phoenix, Tempe, and Mesa. Already extension plans are under development which will build the system to the west into Glendale, north from Tempe into Scottsdale, and connect directly with a light rail system being developed separately to accommodate to increasing traffic around and from Sky Harbor Airport.
Scottsdale, Tempe, Glendale and Mesa have all dramatically transformed and expanded their urban areas in the past decade. Tempe and Scottsdale have seen the most dramatic changes built on very strong urban economic bases. A new lake now serves as the backdrop to a rapidly-urbanizing Tempe downtown with new office, condos, apartments and retail supporting the growing economic base of financial and professional services as well as the sprawling ASU campus next door. Downtown Scottsdale was always seen as an obvious choice for redevelopment and expansion. The “cachet” of Scottsdale has been around for decades and the downtown area has alway had a strong mix of galleries, restaurants, retail and resorts. The dramatic growth over the past decade in north Scottsdale was fueled by the airpark, corporate relocations, new business development, retail, resorts, luxury homes and gated communities. Now with that growth, crimped by high costs of land and low-density zoning, is pointed towards the urban areas with numerous resorts, condos, apartments and retail now under construction throughout downtown Scottsdale and the new canal district.

UTILITIES

Arizona is home to the nation’s largest nuclear plant Palo Verde. Reasonable energy rates are offered by statewide power companies, rural electric cooperatives, and municipal utility systems.
Other energy sources including coal and hydroelectric (the world famous Hoover Dam) are readily available.
Arizona leads the nation in the availability of solar energy with over 300+ days of sunshine. 14 new generating plants are planned across the state and the State is ramping up a major government funded and supported initiative to boost solar production and research well into the future.

WATER RESOURCES

Arizona leads the nation in water resource planning and water management efforts.
Arizona’s long-term water supply is insured with a combination of surface water supplied retained in reservoirs, local ground water aquifers, and Colorado River water. This is further augmented by vast amounts of water available to the interior through the Central Arizona Project. Arizona’s water allocation from the Colorado River is 2.8 million acre feet/year compared with 4.2 million a.f. in California and only 330K a.f. in Nevada. Arizona’s water allocation puts it in a superior position than both California, which has seen its population and agricultural growth strain its water needs, and especially Nevada due to unrestrained housing growth which has now put it far ahead of a sustainable water supply. In fact, Lake Mead is already at historical lows which indicate restriction for future housing growht in Las Vegas.
The Central Arizona Project (CAP) canal is a 336 mi canal diverting water from the Colorado River into central and southern Arizona. It is the largest and most expensive aqueduct system ever constructed in the US.
Scottsdale Water Campus is the largest facility in the US to treat wastewater to drinking water standards using micro-filtration and reverse-osmosis. The Water Quality Improvement Center (WQIC) in Yuma is the largest desalination system in the US, Battelle (2006)

CLIMATE

Arizona has the most numbered days of sunshine in the nation averaging 300+ per year.
While the city of Phoenix is situated in the desert, desert conditions actually exist in only 40% of Arizona.
Arizona has a wide variety of localized weather conditions due to its large area and variations in elevation. Lower elevations are primarily desert, with mild winters averaging 60F through the summer months averaging 90-100F. The higher plateaus have appreciably cooler climates with cold winters and mild summers. The average rainfall is 12.7”. Two rainy seasons occur with the monsoons in the summer months (primarily July – early Sep) and cold fronts coming from the Pacific Ocean during the cool winter months.
Debilitating weather is rare with few instances of tornados or effects from very peripheral hurricanes. Unlike other areas such as: the west coast and the effects of earthquakes, proximal fires, and high rainfall; the central plains and issues of drought and tornados; the intense cold systems and higher cost of fuel hitting the north and northeast; or the devastation brought on to the southern and eastern coastal states by hurricanes and even potentially rising sea waters, Arizona remains immune to the effects of small to large-scale disasters. Population in-migration to the state increases after the effects of these many tragedies on other areas and may in-fact increase as the potential effect of global warming impacts micro-climates and sea levels in other parts of the country.

UNIVERSITIES

Arizona State University is a comprehensive public metropolitan world-class research institution enrolling more than 64,000 undergraduate, graduate, and professional students on four campuses throughout the Phoenix Metro Area. In addition to major expansion of many faculties and the new downtown campus, ASU is currently investing $300 million into new research facilities.
Located in Tucson, the University of Arizona enrolls over 36,000 students and is one of the nation’s top 20 public research institutions with world class faculty in fields as diverse as astronomy, plant science, biomedical science, business, law, music and dance.
Northern Arizona University has a student population of over 20,000 and is located in Flagstaff.
Embry-Riddle Aeronautical University is located in Prescott and one of the world’s top-ranked schools for aeronautical and aerospace engineering.
Thunderbird, The Garvin School of International Management is ranked as the top International Business School in the world for the 9th year in a row (U.S. News and World Report). It has also been ranked as the 10th best business school for executive education (British Financial Times).

TOURISM

Arizona’s diverse tourism is one of the largest sectors in the State’s economy. The state boosts many national landmarks, major tourist venues, recreation and sports pursuits, destination cities, towns, and locales, casinos, climates, and topographies.
The Phoenix Metropolitan Area attracts tourists who contribute in excess of $5 billion annually to the economy.
South Mountain Park, located in the Phoenix Metro Area, is the world’s largest municipal park with 16,500 acres.
Arizona’s weather attracts several major-league baseball teams and their large fan base for Spring training each year. The “Cactus League” teams playing throughout the Phoenix Metro Area include the Chicago Cubs, San Francisco Giants, Oakland A’s, Milwaukee Brewers, L.A. Angels of Anaheim, Seattle Mariners, San Diego Padres, Kansas City Royals, and the Texas Rangers. The Arizona Diamondbacks, Chicago White Sox, and Colorado Rockies train in Tucson.
The new University of Phoenix Stadium is the first stadium in North America to feature a retractable roof and a roll-out grass field. The stadium is the home of the Arizona Cardinals (NFL), as well as the Tostitos Fiesta Bowl. Every four years, the facility will host the NCAA’s BCS National Championship football game. Super Bowl XLII will be played in University of Phoenix Stadium on Feb. 3, 2008. Adjacent to the stadium is the Jobing.com Arena which is home to the Phoenix Coyotes (NHL).
Downtown Phoenix hosts the facilities three high-profile professional sports teams. The Arizona Diamondbacks (MLB/NLWest) play at Chase Field and the Phoenix Suns (NBA) & Phoenix Mercury (WNBA) are at the US Airways Center.
The Grand Canyon is one of the Seven Wonders of the World and was carved by the Colorado River in northern Arizona. The canyon is largely contained within the Grand Canyon National Park-one of the first national parks in the United States.