01 Overview
02 Talent Pipeline
03 Notable Companies
04 Labor Analysis
05 Operating Cost Analysis
06 Arizona Tax Incentives

Standard manufacturing thrives in  

Greater Phoenix

A top national hub for standard manufacturing

 

Greater Phoenix is a top market in the nation to start, relocate, or expand your standard manufacturing business operations. In fact, the region’s standard manufacturing sector is one of the largest in the nation.

 

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Contents

1
Overview
2
Talent
Pipeline
3
Industry
Ecosystem
4
Labor
Analysis
5
Operating
Cost Analysis
6
Statutory
Incentives
1

Overview

An Environment to Support and Grow Industry

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

Value Proposition

Large Existing Cluster

Greater Phoenix is home to 2,843 manufacturing establishments. Companies with a major presence in the region include Sub- Zero, Cardinal Glass, CMC Steel, Anderson Windows and Doors, and JBS. Major standard manufacturing sectors are fabricated metal products, food, nonmetallic mineral product, printing, furniture, plastics and rubber, and wood products.

Economic Development Programs

Standard manufacturing companies can receive up to $20,000 per job in refundable tax credits. The state offers $9,000 of corporate income tax credits per job. Companies can also receive sales tax abatement on electricity and natural gas, sales tax exemptions for machinery and equipment, and Foreign Trade Zone sites can reduce property tax by 73%.

Key Infrastructure

Greater Phoenix offers access to Interstates 8, 10, 17 and 40. It is also served by Union Pacific and BNSF Railroads. Sky Harbor International Airport serves 10 major freight carriers. There are planned highways throughout the region for expected expansion. Multiple industrial gas manufacturing companies are located within the region as well.

Competitive Operating Costs

It is substantially cheaper to operate your standard manufacturing business in Greater Phoenix than in other major competitor markets. Arizona is a right-to-work state, benefiting both employers and employees. The state also offers no inventory tax, a 4.9% corporate income tax rate, and 2.59-4.54% personal income tax rate.

Robust Production Workforce

Total employment is 137,858 jobs in manufacturing establishments throughout the region.

2

Talent 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.

The Talent Pool in Greater Phoenix is Unmatched

Arizona has an extremely competitive workforce regarding 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, 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.

Nationally Recognized Programs in Standard Manufacturing

3

Notable Companies

The standard manufacturing cluster accounts for over 57,000 jobs in Greater Phoenix. Below are some of the industries in the standard manufacturing cluster where Greater Phoenix excels. Download the full report to see the top companies by employment in the cluster.

Standard Manufactoring in Phoenix

Companies Headquartered in Greater Phoenix

Listed below are just a few of the companies that manufacture food products, furniture, textiles, and more in Greater Phoenix. These companies, among many more, have headquarters and manufacturing operations in the region. With plans for expansion, relocation, or even starting a standard manufacturing business, considering Greater Phoenix as your home-base is guaranteed to bring success.

Recent Locates and Expansions

Companies continue to see the benefits of locating in Greater Phoenix. The following companies are just a sample of the many companies that have brought operations to the region from 2015 to 2019.

Banne Health
Godaddy
Honeywell Aerospace
4

Labor Analysis

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

Labor Costs

The table below shows the employment for the following standard manufacturing occupations in the selected metros.

Occupation Phoenix Reno Las Vegas Riverside
General and Operations Managers $91,198 $95,844 $108,098 $101,727
Laborers and Freight, Stock, and Material Movers, Hand $28,451 $29,937 $27,310 $29,411
Maintenance and Repair Workers, General $37,002 $40,293 $43,909 $41,270
Assemblers and Repair Workers $28,717 $29,128 $29,411 $28,123
Industrial Truck and Tractor Operators $35,339 $37,449 $34,861 $34,382
Packers and Packagers, Hand $24,282 $27,026 $20,904 $26,043
Shipping, Receiving, Traffic Clerks $31,847 $36,123 $31,221 $33,259
First-Line Supervisors of Production and Operating Workers $55,334 $59,134 $53,914 $59,555
Inspectors, Testers, Sorters, Samplers, and Weighers $37,692 $36,673 $32,282 $36,535
Welders, Cutters, Solderers, and Brazers $39,715 $39,375 $47,861 $38,438
Electrical Engineers $101,724 $89,580 $86,528 $87,898
5

Operating Costs

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

The Annual Business Operating Cost Analysis has been prepared using the following parameters as an estimate for standard manufacturing operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.

Assumptions

  • $5,000,000 personal property investment
  • 50,000 square foot Industrial Manufacturing, Lease
  • Utilities (per month):
    • Electricity: 75KW, 50,000KWh
    • Water/Wastewater: 3,000cf, 5/8 meter
  • 150 jobs (Bureau of Labor Statistics equivalent occupations)
Operations Employment
Computer-Controlled Machine Operators 30
Laborers and Material Movers, Hand 20
Helpers-Production Workers 20
Machinists 20
Team Assemblers 20
First-Line Supervisors of Production Workers 12
Inspectors, Testers, Samplers, and Weighers 10
First-Line Supervisors of Laborers and Material Movers 5
Shipping, Receiving, and Traffic Clerks 5
Industrial Truck and tractor Operators 5
Industrial Production Managers 2
General and Operations Managers 1
Total 150

Total Operating Cost by Region

6

Arizona Tax Incentives

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 for standard manufacturing companies in the region.

 

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.

Standard Manufacturing in Phoenix

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

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