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.
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 growthvs. California at 14thU.S. News Report
#7
for personal income growthvs. 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
71%
Fewer natural disasters in AZ vs. CAData 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.
Calculate Your Real Estate Savings
Select your MSA, building type and square footage to see how much you would save on annual real estate costs in Greater Phoenix.
Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Type
Sq. Feet
Total Annual Savings
$
Calculations were performed using annual lease rates per square foot, effective property tax rates, and average costs of water, wastewater, electric and natural gas; utilities are included in office lease rates.
Sources: GPEC Metrocomp Tool; Costar Market Reports 2020
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
