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Secure your future in Greater Phoenix with
Aerospace and Defense
A top hub in the nation for Aerospace and Defense.
Greater Phoenix is a top market in the nation to locate, relocate, or expand your aerospace and defense operations. In fact, the region’s aerospace and defense sector is one of the largest in the nation.
Greater Phoenix is composed of many of the largest A&D companies in the world. The emerging commercial space sector validates the market for aerospace R&D.
Greater Phoenix is home to top company HQ’s like Honeywell Aerospace and AQST, and universities recognized globally for innovation.
Greater Phoenix is home to a highly specialized workforce with specialties in a variety of relevant fields. There are a variety of business operation types that equate to a flexible labor pool.
Greater Phoenix has over 1,900 graduates from relevant programs each year with more graduates in relevant college-level programs than competitor markets, including those with larger industry clusters
Major competitor markets are up to 25% more expensive than Greater Phoenix. The state offers a number of quality incentives to further decrease operating costs for those in the aerospace and defense industry.
Below are total numbers of non-distance program completions at Greater Phoenix colleges and universities for aerospace, industrial, computer & software engineering; geographical, atmospheric, physical & Earth sciences; military technology systems design & maintenance; and air transportation programs in 2018.
Nationally Recognized Programs in Aerospace and Defence
K-12 Stem Initiatives
The Arizona STEM Network, led by the Science Foundation of Arizona, leads a number of initiatives and brings together educators of all levels to improve STEM education in the Arizona K- 12 system, improving the quality of Arizona’s talent pipeline in the long term. Among these is the HELIOS STEM Schools pilot program that develops a system to provide the infrastructure, resources and metrics needed to improve educational outcomes in STEM fields.
Location Quotient or LQ is a measure of market specialization in an industry achieved by comparing the share of that market’s employment in an industry to the national proportion of that industry’s employment. For example, Phoenix’s LQ of 2.15 indicates that the market has 115% higher concentration of the A&D cluster than the nation as a whole.
The figure below shows the magnitude and specialization of major markets’ workforce in the Aerospace & Defense cluster. As can be seen, Greater Phoenix has a large and highly concentrated workforce that outpaces aerospace hubs like San Diego and St. Louis.
For reference, the labor pool in each metro for relevant occupations in all industries has been provided below. It should be noted that several of these markets have large information technology sectors, which explains disproportionately larger counts of software developers and computer systems analysts.
|Occupation||Phoenix||Los Angeles||San Diego||San Francisco||Seattle||St.Louis||Wichita|
|Software Developers, Applications||12,871||30,043||10,969||42,980||52,769||7,721||892|
|Computer Systems Analysts||9,672||18,830||5,669||14,637||13,722||6,956||521|
|Software Developers, Systems Software||7,655||22,813||8,220||16,911||15,134||3,694||365|
|Aircraft Mechanics and Service Technicians||4,256||5,934||4,872||2,953||6,285||1,936||1,282|
|Computer Network Architects||2,275||5,142||1,496||3,802||3,347||1,489||137|
|Aerospace Engineering and Operations Technicians||719||435||922||490||413||70||353|
|Atmospheric and Space Scientists||87||241||348||162||268||62||51|
The Annual Business Operating Cost Analysis has been prepared using the following parameters as an estimate for A&D product development in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.
- $20,000,000 personal property investment
- 50,000 square foot Industrial Manufacturing, Lease
- Utilities (per month):
- Electricity: 40W, 10,00KWh
- Water/Wastewater: 3,000cf, 5/8 meter
- 150 jobs (Bureau of Labor Statistics equivalent occupations)
|Software Developers, Applications||25|
|Software Developers, Systems Software||13|
|Computer Network Architects||12|
|Computer Hardware Engineer||8|
|Computer Systems Analysts||5|
Even with the highly competitive tax environment in Greater Phoenix and Arizona, there are several tax incentives that can be utilized to mitigate operating costs. Some of the most relevant to the Aerospace and Defense industry are listed in the full downloadable report. Applicable incentives will depend on actual project parameters and varying program qualifications and requirements as determined by the Arizona Commerce Authority for each individual Aerospace and Defense companies in Phoenix.
Quality Jobs Tax Credit
Quality jobs provides tax credits to employers creating a minimum number of net new quality jobs and making a minimum capital investment in Arizona. The Quality Jobs Tax Credit offers up to $9,000 of Arizona income or premium tax credits over a three-year period for each net new quality job. The tax credit is equal to $3,000 per qualified employment position, employed for each full taxable year of continuous employment for three years. If the allowable tax credit exceeds the income or premium tax liability, any unused amount may be carried forward for up to five consecutive taxable years. Employers must cover 65% of employee health insurance premium costs. Additional program qualifications are listed below.
Greater Phoenix offers unlimited outdoor activities, quality dining experiences, night-life, family-friendly activities, and more – meeting the needs of everyone. The quality of life in Greater Phoenix is incomparable to competing regions with more affordable housing and lower tax rates. When you choose to relocate to Phoenix, you are not settling for less, in fact, you are aspiring for more!
The calculator below gives a brief overview of the potential savings you could see by relocating to Phoenix. You do not have to adjust your lifestyle or your career as Greater Phoenix is a leading region for the Aerospace and Defense sector. Take a look at your potential savings and download the complete report for more information!