WealthTrust-Arizona & the Greater Phoenix Economic

Chamber

Holly DeemCEOWealthTrust-Arizona

Barry BroomeCEO & PresidentGreater Phoenix Economic Council

• Founded in 1989 as a regional, public-private partnership

• Supported by Maricopa County, 20 cities and towns, and more than 155 private-sector businesses

• Provides site-selection services as well as supporting data and analysis

• Fosters partnerships between companies entering the market and key leaders/businesses in AZ

GREATER PHOENIX ECONOMIC COUNCIL

• Since inception, GPEC has assisted 500 companies to locate in the region

• Resulting in $10.5 billion in capital investment

• Creating more than 91,000 jobs

Region’s Economic Development Organization

• Markets respond, and industries cluster, on regional levels.

• The Brookings Institution recently selected Greater Phoenix to take part in its Metropolitan Business Planning Initiative, along with Syracuse, Lexington/Louisville and Memphis.

• The goal is to demonstrate the power of systematic, locally-driven regional strategies to transform, reposition and demonstrably improve the economic performance of Greater Phoenix.

• Regional collaborative model with Maricopa Association of Governments, GPEC, Thunderbird School of Global Management and Arizona State University.

Economic development and growth occurs on regional levels

REGIONALISM

REGIONAL STRATEGYCurrent Key Initiatives to Diversifying the Region’s Economy

• Clean Technology• Renewable energy• Energy efficiency• Energy storage• Smart-grid technology• Electric vehicles• Advanced materials

• Healthcare / Personalized medicine

REGIONAL IMPACT: SUN CORRIDOR INITIATIVEInter-Regional Collaboration Around California Strategy

• Partners: TREO, GYEDC, Flagstaff, Pinal County

• Approximately 23% of GPEC’s prospects come from CA.

• Corporate headquarters and Fortune 500 companies leaving CA.

• CA’s high-tech/manufacturing industry losing ground due to regulatory climate, tax burden and reputation as a difficult and costly place to do business.1

• #1 State for Alternative Energy Business Facilities Magazine

• Top State for Potential Solar Capacity by NREL

• One of the most aggressive incentive programs for renewable firms in the country

• First U.S. market to land China’s investment by a solar company

SOLAR HAS ARRIVEDTop State for Renewable Energy

REGIONAL IMPACT: FIRST SOLAR EXAMPLEFirst Solar Facility in the Mesa Gateway Area

• Potentially 4,800 jobs at full build-out

• Mesa jobs: 2,617

• Jobs to surrounding areas:

Apache Junction - 214

Gilbert - 559

Queen Creek - 274

GROWING SOLAR INDUSTRY CLUSTERCompanies that have Recently Selected Greater Phoenix

COMPANY PROJECT TYPE

LOCATION JOBS

INVESTMENT

DATE

Suntech Manufacturing Goodyear 150 $14M Oct. 2010

Rioglass Manufacturing Surprise 109 $50M Aug. 2010

Alpha Energies Headquarters Phoenix 57 $5.1M Feb. 2010

Power-One Manufacturing Phoenix 350 $11M Jan. 2010

Faist Manufacturing Phoenix 45 $5M Jan. 2011

Gestamp Manufacturing Surprise 164 $57M Feb. 2011

First Solar Manufacturing Mesa 4,800 $1,600M Mar. 2011

Fluidic Manufacturing Maricopa Co. 400 $16M Apr. 2011

Saint Gobain Manufacturing Goodyear 50 $20M Jun. 2011

3 Pending Locates Manufacturing TBD 260 $43M Q3 2011

TOTAL12 Companies

6,385

$1.82B

GPEC: LEADING INNOVATION

• According to the September NFIB Small Business Trends report, lack of demand (sales) is the largest problem facing small businesses.

• Base industry attraction creates local market demand for small businesses:

DEMAND WANTEDSmall Businesses Need Sales

FDI: ATTRACTING NEW INVESTMENT

#4 GERMANY

$212B+22%

#5CANADA

$206B+22%

#1UK

$432B- 3%

#2JAPAN$257B+10%

Top 5 Countries for Inward FDI to the U.S. Collectively Account for 56% or $1.3 Trillion

#3S

$217B+21%

#32CHINA$3.1B+185%

#3HOLLAND

$217B+21%

FDI: ATTRACTING NEW INVESTMENTCurrent FDI Jobs in Arizona

73,000 Total Jobs

73,000 Total Jobs

18,000 Manufacturing

Jobs

18,000 Manufacturing

Jobs

2,101 Green Field

Jobs

2,101 Green Field

Jobs

WHY INCREASE FDI?Promote Quality Jobs and Exports

CA TXAZ

• On average, foreign firms pay 25% higher wages and salaries than the rest of the private sector in the U.S.

• More than one-quarter (25.6 percent) of all manufacturing workers in Arizona depend on exports for their jobs.

• In 2008, trade supported 732,800 jobs in Arizona, nearly 3.6% of all jobs.

CLOZE AZ GAP ON FDI AND TRADE BANKING IN THE U.S.Neighboring states have correlation between FDI and trade

CA TXAZ

FDI 1st 21st 2nd

EXPORT 1st 25th 2nd

TARGET FOR FDI STRATEGYIf FDI position improved, job creation potential would be:

CA TXAZ

POLICYFY2012 Economic Development Policy Recommendations

Thank You