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Cut Costs & Scale Fast in AZ

Scale Your Manufacturing Operations Quickly

Companies in Greater Phoenix benefit from low business costs and an advantageous operating environment. 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. California-based businesses make up 28% of the region’s business attraction pipeline, explore why.

CA vs. AZ

Compare State-to-State

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California Companies Find Success in Arizona

Below are just a few California-based companies that we’ve helped expand or relocate operations to Greater Phoenix. From headquarters to manufacturing to distribution, these businesses and more have found success in the market.

Lucid Motors

Source: GPEC Database

See the Case Study with Benchmark

Hear from Roop Lakkaraju, executive vice president and CFO of Benchmark Electronics, on how his company found success expanding manufacturing operations in Greater Phoenix.

Check the Stats

#3

for job growth
vs. California at 14th
U.S. News Report

#7

for personal income growth
vs. California at 27th

7th

best state for businesses, ranked by CEOs; California was last

The Anti-Red Tape State

Arizona offers the lowest unemployment insurance tax in the nation and fast-track permitting, which takes 90 days or less throughout Greater Phoenix. Plus, the City of Phoenix offers a number of convenient online permitting applications.

 

Source: GPEC MetroComp Tool; ADP

 

“We don’t feel like we’re on a constant microscope looking around the corner to see what new California employment regulation they did, how many types of overtime we have to keep track of, the rising cost of payroll tax, and workman’s comp and property tax, and regulations … rather than trying to focus on those items that killed our business — and it almost did — we can now focus on things to expand our business.” – Raffi Kajberouni, Vice President, H.E.R.O.S. Inc.

 

Hear more from H.E.R.O.S.’ VP on the business environment in Greater Phoenix.

By the Numbers

#1

ASU has ranked #1 in innovation for 6 consecutive years

4x

Lower natural disaster risk than CA
Data from FEMA Disaster Declaration Summary, 2010-2020

4th

most desirable metro in the country for millennials

Fastest-Growing U.S. Market

Maricopa County had the largest population growth in the U.S. over the last nine years

Source: U.S. Census Bureau

4,948,203

Greater Phoenix Population (2019)

Source: U.S. Census Bureau

190,857

Total New Residents in 2019

Source: U.S. Census Bureau

580,000

Projected Population Growth by 2027

Source: AZ Office of Economic Opportunity

With a median age of just 38.4, Greater Phoenix is a younger market than San Francisco and San Jose.

Source: ACS 1-year

Average Cost Comparison for a High-Growth Manufacturing Operation

Compare talent supply and labor costs across major metros using our metro comp tool or contact us for a custom analysis.

Comparison assumes a Capital Investment of $5,000,000; and a 50,000 sq. ft. industrial manufacturing lease with an electricity usage of 75KW, 50,000KWh, and water/wastewater usage of 3,000cf, 5/8 meter. It accounts for 150 jobs made up of: 30 Computer-Controlled Machine Operators, 20 Laborers and Material Movers, Hand; 20 Helpers–Production Workers; 20 Machinists; 20 Team Assemblers; 12 First-Line Supervisors of Production Workers; 10 Inspectors, Testers, Samplers, and Weighers; 5 First-Line Supervisors of Laborers and Material Movers; 5 Shipping, Receiving, and Traffic Clerks; 5 Industrial Truck and Tractor Operators; 2 Industrial Production Managers; 1 General and Operations Managers.

Corporate income tax rate

Cut your tax burden in half

Tap Into a Large, Diverse Labor Pool

Greater Phoenix is home to the third-largest labor pool in the U.S. and boasts an exceptional talent pool and pipeline with manufacturing-specific programs at the high school, community college and university level. More than 40 universities and other institutions of higher learning prepare the region’s workforce. Arizona’s three four-year public universities all offer a full range of engineering, engineering technology/technician and general production/industrial related programs.

“We have been able to definitely secure the talent and the number of employees that are needed, as evidenced by our production growth.” – Jim Kasselman, general manager, Dexcom

 

Read how Dexcom hired over 1,000 employees and increased revenue 43% by opening a facility in AZ. 

Check the Stats

20%

Ira A. Fulton School of Engineering’s undergraduate program at ASU ranked in the top 20 percent of programs by U.S. News & World Report

390758

total 2018 fall student enrollment in graduate & professional programs

29.5%

Arizona's management level job growth between 2014-2019 via EMSI 2020 Q3

Cost of Living in Arizona

National average = 100; Source: COLI 2020 Q3

Give yourself a major raise

Top individual income tax rate

 

Twice the home, half the cost

Median home value

 

Sources: Arizona Department of Revenue; State of California Franchise Tax Board; Zillow, ZHVI

California is only a short flight away

Direct weekly flights from Phoenix Sky Harbor:

105

San Francisco

117

San Jose

140

Los Angeles