Loading ...
Global Do...
News & Politics
6
0
Try Now
Log In
Pricing
Arizona is one of the fastest-growing, most dynamic economies in the nation, with Phoenix becoming the fifth most populated city. Both Fortune 500 and start-up technology companies call Arizona home, reaping the advantages of a competitive business climate and tax structure; a skilled, knowledge-based workforce; and world-class innovation, cultural and scenic resources. THE ARIZONA ADVANTAGE GROWTH INDICATORS 2000 2006 % CHANGE 2000 – 2006 State Population 5,130,632 6,305,210 23.0% Gross State Product ($billion) 158.5 216.5 36.6% Personal Income ($billion) 132.6 181.9 37.2% Per Capita ($) 25,660 31,458 22.6% Retail Sales ($billion) 36.4 53.9 48.1% Value of All Building Permits ($billion) 11.7 21.4** 82.7% Total Net Assessed Valuation* ($billion) 31.8 54.4 71.1% Department of Defense Contracts ($billion) 4.6 5.6** 21.7% National Institutes of Health Funding ($million) $110.5 $175.9** 59.2% Business is Booming! 1st on Expansion Management Magazine’s list of Top States for Recruitment & Attraction: Arizona (May/June 2007) 1st on Expansion Management Magazine’s list of Top Large Metros for Recruitment & Attraction: Phoenix-Mesa (May/June 2007) 1st on Expansion Management Magazine’s list of Top Mid-Size Counties for Recruitment & Attraction: Pima (May/June 2007) 1st in Entrepreneur Magazine’s list of the Hot Cities for Entrepreneurs - Phoenix (September 2006) 1st with the highest job-growth rates: Surprise (Money Magazine, August 2006) 1st on the Federal Funds Information for States (FFIS) index of state economic momentum (State Policy Reports, July 2006) 2nd among the ten largest metropolitan areas nationwide (Milken Institute, 2007) 2nd on Inc. Magazine’s list of the Hottest Large Cities for Doing Business: Phoenix (Boomtowns 07, May 2007) 2nd on Inc. Magazine’s list of the Hottest Small Cities for Doing Business: Yuma (Boomtowns 07, May 2007) 2nd on Forbes List for top 25 Best Spots for Job Opportunities – Phoenix (February 2007) 2nd fastest growth rate for majority women-owned firms in US (Center for Women’s Business Research 2006) 2nd city in top 15 for Jobs Created and Sustained: Tucson (Best Performing Cities 2005: Where America’s Jobs are Created and Sustained, Milken Institute 2006) Sources: Arizona Department of Economic Security, U.S. Census, Arizona Department of Revenue, Arizona Real Estate Center - Arizona State University, Bureau of Economic Analysis. * 2006 Secondary net assessed values per Arizona Tax Research Foundation **Still 2005 number PRINCIPAL ECONOMIC ACTIVITIES The major employment sectors in Arizona include aerospace, electronics and semi conductor manufacturing. Tourism, business services and back-office operations are also important sectors. Arizona's original export activities - agriculture and mining - remain significant in many rural parts of the state. Based on sheer size, the real estate and rental industries, the diverse tourism sector, and government are the largest economic sectors in Arizona. Relative to the national average, the construction sector is also unusually large because of the state's rapid growth. ARIZONA EMPLOYMENT BY SECTOR Quarterly Census of Employment and Wages [QCEW or ES-202] 2006 Q4 Employment & Wages Industry Employment Emp. % Change 05-06 Wages Agriculture & Forestry 33,830 -2.5% $21,543.45 Mining 10,633 18.7% $66,051.44 Utilities 22,753 3.1% $68,338.03 Construction 239,286 2.1% $44,899.83 Manufacturing 185,656 0.9% $61,003.38 Wholesale Trade 107,450 5.0% $61,135.97 Retail Trade 337,232 4.4% $28,578.19 Transportation & Warehousing 84,703 3.1% $45,043.97 Information 46,429 -2.1% $52,081.19 Finance & Insurance 131,374 1.8% $58,270.18 Real Estate, Rental & Leasing 53,137 3.7% $48,559.57 Professional, Scientific & Technical 130,795 9.1% $66,787.01 Management of Companies 25,167 5.5% $69,299.66 Administrative & Support 251,207 6.0% $30,246.86 Educational Services 222,762 3.0% $34,625.76 Health Care & Social Assistance 269,024 5.7% $47,647.25 Arts, Entertainment & Recreation 51,289 5.7% $36,477.93 Accommodation & Food Services 235,927 4.6% $16,433.92 Other (except Public Administration) 74,006 6.0% $29,153.09 Public Administration 152,144 3.6% $48,152.41 Unclassified 5,717 -34.2% $52,101.58 Total 2,670,521 3.9% $46,972.89 Source: Prepared by Arizona Department of Economic Security, Research Administration, in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics LABOR FORCE DATA 2000 2006 Civilian Labor Force 2,505,306 2,953,249 Employed 2,404,916 2,829,276 Unemployed 100,390 123,973 Unemployment Rate 4.0% 4.2% Source: Special Unemployment Report, Arizona Department of Economic Security, Research Administration, in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics TAXES AND COSTS Arizona’s vibrant and growing economy is facilitated by a tax structure that has become increasingly competitive over the last decade: • Arizona had the highest rate of population growth in both 2005 and 2006, 3.6% in each year, among the 50 states. • In 2006 Arizona ranked 3rd among all states in the growth (6.8%) of State Gross Domestic Product, behind only Idaho and Wyoming. In 2005, Arizona tied with North Dakota for 3rd fastest growth (6.6%) of State GDP, behind Nevada and Florida. • Preliminary 2006 BEA data for aggregate state personal income has Arizona ranked 5th in growth (8.5%), behind Louisiana, Wyoming, Utah and Oklahoma, smaller states in terms of population and state incomes. Arizona ranked 1st in 2005 • The 2006 Compensation Insurance Rates report released by the State of Oregon ranks Arizona with the 4th lowest workers compensation rates in the nation. • Overall, Arizona’s comparative business costs savings versus California and the U.S. at large are generated by lower wages, lower tax burdens, and lower infrastructure costs (Economy.com) Significant business tax reductions have been adopted since 2005 and are expected to further improve Arizona’s competitive tax position: • A 20% reduction in real property tax assessment ratios is being phased in and will be fully implemented by 2011. Additionally, an accelerated depreciation schedule is available for personal property placed in service after 2008. • A “weighted sales factor” corporate income tax formula is being phased in over three years effective January 2007. • New tax credit incentives are now in effect: o Investment in early stage companies http://www.azcommerce.com/BusAsst/Incentives o Commercial solar equipment http://www.azcommerce.com/BusAsst/Incentives o Health insurance premium tax credit http://www.azdor.gov/Refunds%20and%20Credits/healthinsurancechoicesmenu.htm o Forest products http://www.azcommerce.com/BusAsst/Incentives For more information: INTERCITY COST OF LIVING INDEX FOR SELECTED CITIES –2nd QUARTER, 2007 (U.S. Average = 100) City All Items Groceries Housing Utilities Trans. Health Care Misc. Albuquerque 100.2 99.6 107.3 86.2 100.6 99.6 98.7 Atlanta 95.7 101.5 89.3 84.8 105.7 103.4 98.1 Boston 135.9 120.7 159.7 135.4 106.4 136.1 131.1 Dallas 90.9 100.4 71.0 98.5 103.8 100.5 96.3 Denver 103.7 105.1 110.9 95.7 98.9 108.5 100.5 Los Angeles 156.6 124.4 265.6 103.2 111.1 115.6 114.2 Oakland 147.7 139.7 210.8 87.3 119.1 120.7 128.6 Phoenix 100.3 99.1 100.9 92.4 104.2 101.6 101.3 Philadelphia 124.0 125.7 145.8 116.1 104.2 112.5 115.1 Tucson 100.8 102.0 99.1 96.3 101.5 103.2 102.6 Washington, D.C. 137.0 105.1 212.0 111.4 110.3 108.4 107.0 Source: C2ER published in September 2007 DEMOGRAPHICS Arizona’s fast growing population is younger than the national average. The state’s median age is 34.2, compared to the US 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. Age Distribution Age Arizona 0-14 23.55% 15-19 7.33% 20-24 6.67% 25-54 40.87% 55-64 8.42% 65+ 13.16% Population Composition Race Arizona White 88.72% Black 3.67% American Indian 5.47% Asian 2.15% Hispanic Origin* 28.6% * Persons of Hispanic Origin may be of any race. Source: U.S. Census Bureau, Census 2000. POPULATION BY COUNTY % Change 2000 2006 2000-06 Apache 69,423 74,515 7.3% Cochise 117,755 135,150 14.8% Coconino 116,320 132,270 13.7% Gila 51,335 56,800 10.6% Graham 33,489 36,380 8.6% Greenlee 8,547 8,590 0.5% La Paz 19,715 21,255 7.8% Maricopa 3,072,149 3,792,675 23.5% Mohave 155,032 198,320 27.9% Navajo 97,470 113,470 16.4% Pima 843,746 981,280 16.3% Pinal 179,727 299,875 66.8% Santa Cruz 38,381 45,245 17.9% Yavapai 167,517 213,285 27.3% Yuma 160,026 196,390 22.7% Statewide 5,130,632 6,305,210 22.9% Population Density for Arizona, 2000: 45.2 persons per square mile. Land area in Arizona: 72,730,880 acres or 113,635 square miles. POPULATION – LEADING COMMUNITIES* % Change 2006 2000-06 Phoenix (Maricopa) 1,505,265 11.9% Tucson (Pima) 534,685 8.4% Mesa (Maricopa) 451,360 11.1% Glendale (Maricopa) 243,540 10.0% Chandler (Maricopa) 235,450 24.1% Scottsdale (Maricopa) 237,120 13.9% Gilbert (Maricopa) 185,030 39.7% Tempe (Maricopa) 165,890 4.3% Peoria (Maricopa) 145,135 24.2% Yuma (Yuma) 92,160 13.7% Surprise (Maricopa) 98,140 67.0% Avondale (Maricopa) 72,210 49.2% Flagstaff (Coconino) 62,030 13.6% Lake Havasu City (Mohave) 54,610 19.1% Sierra Vista (Cochise) 44,870 15.3% * Ranked by 2006 population, counties in parentheses. Sources: Arizona Department of Economic Security and U.S. Census Bureau. Marketing and Business Attraction Arizona Department of Commerce (602) 771-1100 http://www.azcommerce.com Tourism and Recreation Arizona Office of Tourism (602) 364-3700 or 866-275-5816 http://www.azot.gov/ Arizona State Website http://www.az.gov Q3, CY 2007
