01 Overview
02 Talent Pipeline
03 Industry Ecosystem
04 Labor Analysis
05 Operating Cost Analysis
06 Quality of Life

Greater Phoenix

Advanced Manufacturing

A Top National Manufacturing Hub

More than 1,600 Arizona-based advanced manufacturing companies, including Intel, Honeywell and Boeing, make this state one of the nation’s largest supply chain contributors. Download the full industry ecosystem report to discover what makes this region a national manufacturing hub.


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Talent Pipeline
Industry Ecosystem
Labor Analysis
Operating Cost Analysis
Quality of Life


Greater Phoenix is exceptionally positioned to absorb both new-to-market and the expansion of existing manufacturing companies.

Value Proposition

Large Existing Cluster

Home to 2,843 manufacturing establishments including companies with a major presence in the region such as Intel, Honeywell, and Boeing. Major manufacturing sectors include Aerospace, Computer and Electronic Products, Transportation Equipment and Fabricated Metal Product.

Economic Development Programs

Up to $20,000/job in refundable tax credit and $9,000 of corporate income tax credits per job. Also, business owners can take advantage of additional depreciation, receive sales tax abatement on electricity, find sales tax exemptions for machinery and equipment, and Foreign Trade Zone sites can reduce property tax by 73%.

Robust Production Workforce

Greater Phoenix has a total employment of 137,858 in manufacturing establishments.

Exceptional Talent Pipeline

Greater Phoenix had over 9,700 graduates in production programs in 2018 and over 7,300 graduates in computer science, math and engineering alone. Manufacturing specific programs at the high school, community college, and university level are also available in Greater Phoenix.

Competitive Operating Costs

Greater Phoenix is substantially cheaper than major competitor markets. We’re a Right to Work state, there’s no inventory tax, and we have a 4.9% corporate income tax rate and 2.59% – 4.54% personal income tax rate.


Talent Pipeline

Greater Phoenix boasts competitive non-distance program completions at colleges and universities in the concentrations of engineering, engineering technology/technician, and general production/industrial-related programs.

Talent Pipeline: Universities

Arizona has three 4-year public universities; Arizona State University in Tempe, Northern Arizona University in Flagstaff and the University of Arizona in Tucson. Arizona State University has top ranked engineering and technology programs, with the Fulton School of Engineering undergraduate program ranking in the top 20 percent of ranked programs by U.S. News & World Report. Many of its 590 faculty members have been honored with the highest awards in their fields. The engineering school provides over 16,000 students per year advanced knowledge on challenges in energy, health, sustainability, education and security. It offers a wide range of innovative programs like E2 Camps, engineering residential communities, undergraduate research, student organizations and Engineering Projects in Community Service (EPICS), to help prepare students for occupations in the future.

Arizona State University, Northern Arizona University and University of Arizona each have a full range of engineering, engineering technology/technician and general production/industrial related programs. Examples of production programs include aerospace engineering, computer engineering, electrical and electronics engineering, mechanical engineering, industrial technology/technician, machine tool technology/machinist, welding technology/welder and others. There were approximately 9,721 non-distance production-related graduates in 2018 from the universities across Arizona and the community colleges and trade schools within Greater Phoenix. Arizona State University supplied 2,628 of these graduates.


Nationally Recognized Programs in Advanced Manufacturing

Mature Talent & Workforce Pipeline

Education is critical not only for companies trying to meet today’s demands but also for preparing tomorrow’s workforce to excel in a dynamic manufacturing environment. Arizona has an extremely competitive workforce in regards to training, quality, and availability of workers while maintaining one of the lowest costs for labor in the nation. Arizona State University, Grand Canyon University, Maricopa Community Colleges, Northern Arizona University, the University of Arizona and the University of Phoenix are among the more than 40 universities and other institutions of higher learning that prepare the region’s workforce.


Notable Companies

Advanced Manufacturing Companies Thrive in Greater Phoenix

More than 2,800 Arizona-based companies make this state one of the nation’s largest supply chain contributors for advanced manufacturing.



The companies listed have already realized the benefits of doing business in Greater Phoenix, including the region’s affordable operating environment and market advantages such as:

Manufacturing in Phoenix

The companies shown below are only a fraction of the manufacturing companies located in Greater Phoenix and surrounding regions in Arizona. Greater Phoenix’s key infrastructure makes it easy for new and existing manufacturing companies to ship and receive high-quality products, unlike other major markets.


Labor Analysis

Greater Phoenix has a robust supply of human capital at an affordable cost. Below is a table of median wages across peer markets for manufacturing occupations.

The table below shows annual wages at the 10th percentile, median, and 90th percentile rates for occupations related to Advanced Manufacturing.

Occupation Jobs 10th Percentile Wages Median wages 90th Percentile
General Operations Managers 38,611 $41,362 $91,198 $193,730
Laborers and Freight, Stock, and Material Movers, Hand 35,958 $22,559 $28,448 $48,577
Maintenance and Repair Workers, General 19,120 $23,905 $37,002 $59,102
Industrial Truck and Tractor Operators 8,811 $24,523 $35,339 $50,792
Packers and Packagers, Hand 8,811 $21,890 $24,281 $38,505
First-Line Supervisors of Production and Operating Workers 7,174 $34,464 $55,334 $98,440
Training and Development Specialists 6,525 $36,899 $56,832 $94,090
Inspectors, Testers, Sorters, Samplers, and Weighers 6,131 $25,141 $37,690 $60,934
First-Line Supervisors of Transportation and Material Moving Workers, Except Aircraft Cargo Handling Supervisors 5,529 $25,709 $39,040 $79,472

Operating Costs

Companies in Greater Phoenix benefit from low business costs and an advantageous operating environment.

Why Choose Greater Phoenix for Advanced Manufacturing Start-ups or Relocation Purposes

The state offers a minimalist regulatory approach, no corporate franchise tax and is constitutionally recognized as a right-to-work state. From aggressive tax credits and incentives, to programs designed to increase access to capital, the region offers direct access to Arizona’s robust, pro-business climate.

Comparative Operating Advantages

  • Minimal regulation
  • Right-to-work state
  • Low unionization
  • 90 days or less permitting, guaranteed
  • Low worker’s compensation and unemployment
  • Foreign Trade Zone (AZ Property Tax Benefit)
  • Military Reuse Zone

Lower Costs, Greater Value

  • Proximity to large markets
  • Incentives targeting manufacturers
  • No inventory tax
  • Aggressive depreciation schedules
  • 100 percent of net operating loss may be carried forward for five years
  • Sales tax exemptions on equipment and utilities used for manufacturing


Tax Overview

Greater Phoenix offers a competitive tax environment that makes it an ideal place for businesses to go to scale.

State-local Tax Burdens as a Share of State Income Total Tax Burden Per Capita
Arizona - 8.8% $3,276
California - 11.0% $5,237
Nevada - 8.1% $3,349
Oregon - 10.3% $4,095
Washington - 9.3% $4,541

Ranking on Five Component Taxes



Quality of Life

Greater Phoenix is home to hundreds of parks and hundreds of miles of hiking, biking, and walking trails.


Cost of Living

Greater Phoenix is more affordable for companies and the people that make them successful. Across all major buckets of expenses, Greater Phoenix is less expensive than all or many peer markets.


Greater Phoenix has an affordable housing market. It is significantly less expensive to own or rent in the Greater Phoenix area than in most peer markets.

See how Phoenix Compares to Other Markets

Use the calculator below to estimate your savings by relocating to Greater Phoenix, without changing careers from the advanced manufacturing industry.

Los Angeles
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Total Annual Savings

Notable Manufacturing Companies in Greater Phoenix

  • Intel
  • Honeywell
  • Boeing
  • NXP Semiconductors
  • Microchip Technology
  • Northrop Grumman
  • Infineon
  • ON Semiconductor
  • UTC Aerospace Systems
  • Medtronic Microelectronics Center
  • Cisco Systems
  • Arizona Nutritional Supplements
  • Rogers Corporation
  • Sumco Phoenix Corporation
  • MD Helicopters
  • St Jude Medical
  • Celgene
  • Abbott Laboratories
  • ASM America
  • Amkor Technology
  • Moog
  • Integrated Device Technology
  • B A E Systems
  • Motorola
  • Garmin

Want to see a full list of companies in Greater Phoenix? Download the complete report.

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