Arizona is the sixth largest and 15th most populous state in the US with a gross state product of about $383m a year.
As the capital of the state, Phoenix represents an attractive option for business start-ups and is the driving force behind the regional economy.
With numerous investment strengths, including state tax incentives for businesses, lower taxation for individuals, and a diverse economy, Arizona is emerging as an attractive option for investors, families and companies.
When it comes to low-cost environments for operating or investing in business and real estate, the opportunities to invest in Arizona are supported by a strong fiscal landscape and sustained economic stability.
These advantages include low rates of government regulation for company expansions and start-ups, making investing more seamless, the consistent availability of a highly skilled and available workforce and the draw of a high quality of life across the state.
Increasingly diverse economy offers investment opportunities
Although not as diverse as some other states, Arizona has numerous sectors and industries that are well represented.
With an approximate annual gross state product of $383bn, the economy is driven by healthcare, transportation and the government, but other sectors are emerging to offer greater investment opportunities.
Driven by new tech innovation and a collaborative business environment, a growing workforce across numerous sectors has been created.
With the consistent rise in the state’s population and a range of investment opportunities in emerging sectors, Arizona’s ability to attract new businesses has been strengthened.
Major companies that have opted to invest in Arizona, with corporate operations in Phoenix and elsewhere, include Wal-Mart, Amazon, Best Western, Boeing, Walgreens and Marriot.
Tech industry investment continues across Arizona
As the tech sector burgeons across the state, TSMC has announced an extension of its operation in Arizona.
With an additional investment earmarked to establish a second semiconductor chip plant, it is raising its investment in the state from $12 billion to $40 billion by the end of 2023.
Producing more technically advanced chips than originally proposed, this is one of the largest foreign investments in U.S. history, and the biggest ever in the state of Arizona.
Manufacturing growth driving companies to invest in Arizona
Manufacturing is an industry that is providing increasing opportunities and investment options in Arizona.
Cementing their growing reputation as global leaders, manufacturers across the state are using next-level technologies and high-tech advancements that continue to emerge as the future of manufacturing.
Such advances are being seen increasingly in thriving sectors in Arizona, including aerospace and defence, the production of electric and automated vehicles and new medical devices.
As of the end of 2021, manufacturers in Arizona accounted for just under 9% of the total workforce output in the state. In terms of employee numbers, this translates to just under 6% of the workforce.
With this number growing consistently, the drive to invest in Arizona manufacturing business is also on the rise.
Still the leading copper-producing state in the US, Arizona now has a burgeoning manufacturing industry that is fast emerging as one of the state’s most important.
When looking at who is continuing to invest in Arizona, manufacturing growth is being driven by companies in electronics, communications, aeronautics and aluminium.
Fiscal initiatives augmenting opportunities to invest in Arizona
Of the numerous investment strengths of Arizona is the business-friendly landscape created, in part, by the Arizona Commerce Authority.
Tasked with attracting investment to the state, the authority is comprised of business experts representing numerous sectors.
With a mandate and manifesto to help new and existing ventures streamline the business processes and create networks to develop greater collaboration and success, it is showcasing the opportunities to invest in Arizona.
Small business start-ups, international trade and investment, tax relief programmes and workforce training projects are all elements of these multiple and dovetailed initiatives.
The Quality Jobs Tax Credit has become a major investment strength of Arizona, especially when it comes to job creation through start-ups or expansions.
Designed to stimulate company growth, the system allows businesses that make lower capital investments but create higher paying jobs to be eligible for job creation-linked tax relief.
Investment benefits linked to job creation
Alongside other available benefits, refundable tax credits are available to qualified businesses that make a minimum $250,000 of capital investment and create net new full-time jobs within sectors including manufacturing and R&D-related manufacturing facilities.
For those looking to invest in Arizona in terms of relocating there or buying real estate, the authorities have introduced another incentive.
For companies creating full-time jobs where at least 51% of the positions pay above 125% of the Arizona median wage for certain industries, including manufacturing, tax relief is greater.
When considering the incentives offered to invest in Arizona, these fiscal benefits showcase the investment strengths of the state.
Increasing investment stimulating growth
In addition to the industries traditionally associated with Arizona, more domestic and international investment is being seen in emerging sectors.
Two of the most significant beneficiaries of these investments include the biotech life sciences and the tech industry.
With Arizona’s bioscience and healthcare industry enjoying a period of significant and sustained growth, the potential for investment in the sector is axiomatic.
According to the official industry figures, the rate of both investment and growth in the sector across Arizona is faster than in all other states.
One of the investment strengths driving this expansion is the business and investment-friendly environment created by both state authorities and the business community.
With universities, research facilities and biotech companies increasing their collaborations, the development and delivery of biotech solutions, innovative medicines, medical devices and healthcare technologies is accelerating, as is investment in the sector.
Information from Data and Statistics from Statista, Arizona Chamber of Commerce, US Census Bureau and Arizona Commerce Authority.