Tag Archives: arizona commerce authority

Northern Trust at Discovery Business Campus, rendering credit to DAVIS

Northern Trust to expand at Discovery Business Campus

Seeking to meet long-term global growth needs and expected demand for services, Northern Trust announced plans to expand in Arizona by opening a new operating center in Tempe.

The center – expected to open in mid-2015 and grow to 1,000 full-time employees over the next three years – will provide multiple financial business and banking services, with staff performing a wide variety of roles across Northern Trust business units and functions. Positions will range from entry level to highly specialized leadership roles.

“Arizona offers an exciting opportunity to address the increasing needs of our clients as our business continues to grow,” Northern Trust Chairman and Chief Executive Officer Frederick H. Waddell said. “This step will provide us with access to significant talent pools and a strategic location that will help us efficiently serve our clients.”

Arizona Governor Doug Ducey said, “Northern Trust’s decision to expand in Tempe is fantastic news, and further validation of the robust pro-business environment Arizona offers. This move will bring 1,000 quality jobs, reinforcing our reputation as one of the most competitive and attractive places to do business. While Northern Trust has been in Arizona since 1974, we are thrilled to see Northern Trust’s substantial new investment in our state.”

Tempe Mayor Mark Mitchell said the city is thrilled to welcome Northern Trust to a community of businesses that make the city great. “Northern Trust is a prestigious, global, philanthropic banking leader – we are eager to see them fully operational here, providing new, high-wage jobs, and becoming fully integrated in our community,” Mitchell said. “Their desire to be in Tempe showcases why we are a destination for businesses that want excellent quality of life, a comprehensive transportation network, great schools and a vibrant environment.”

Sandra Watson, President and CEO, Arizona Commerce Authority, said, “Northern Trust is truly an exceptional company with a distinguished 125-year history as a leading global financial institution, and its selection of Arizona for expansion speaks volumes about our state’s dynamic, pro-business environment. Our connectivity to world markets and robust talent pool continue to make Arizona a preferred state for businesses to scale their operations for global growth. We welcome Northern Trust and look forward to supporting its continued success.”

Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said, “Investment in the region from companies such as Northern Trust further solidifies Greater Phoenix’s position in leading the nation in growth in the financial services industry. Northern Trust is one of the most recognizable institutions, with a long-standing tradition of giving back to its communities. We look forward to welcoming them to Tempe and the Greater Phoenix region.”

The decision, made after several months of exploring a variety of competitive expansion opportunities, reflects several business and operational factors, including Northern Trust’s:
 Projected growth in demand for services, even in light of expanding operations in Limerick, Ireland, and the opening of a new facility in Manila, Philippines.
 Need to widen its client-support coverage to allow for time zone differences, and to supplement work of existing U.S. resources to deliver quicker response times to clients.
 Opportunity to widen talent pools and achieve greater geographic diversity.

The new office will be located in the Discovery Business Campus in Tempe. Northern Trust will occupy temporary space on the site while a new building is constructed. The permanent space is expected to be ready by the end of 2015. Pamela Higdon will serve as Director of the Arizona Operational Center. She previously held a variety of leadership roles, including Head of Planning and Development for Northern Trust Hedge Fund Services.

“The Discovery Business Campus is a strategic business destination for many national companies. We’re thrilled that Northern Trust is joining our thriving campus,” said Jim Wentworth, principal of the Wentworth Property Company, the developer of the Discovery Business Campus in Tempe. “At completion, the Discovery Business Campus will be a 136-acre master-planned Class A office, retail, flex office, and hospitality mixed-use business park, conveniently accessing Loop 101.”

Arizona has been a home for Northern Trust since 1974. Its network of three offices and more than 150 partners provide a full range of trust, private banking and investment services and employs the fourth largest number of Northern Trust staff in the U.S. At the end of 2014, Northern Trust had $6.2 billion in assets under management in Arizona.

awards

CampusLogic wins Venture Madness competition

The education and medical technology industries in Arizona were strongly represented during this year’s Venture Madness competition. The event culminated with Gilbert, Ariz.-based CampusLogic emerging victorious as the Venture Madness Champion in the final round.

CampusLogic is a student financial aid self-service platform that gives students a simple, TurboTax-like way to apply for and receive financial aid. CampusLogic delivers a Software as a Service (SaaS) solution for colleges and universities, which decreases administrative costs, lowers security risks and dramatically improves the student experience. The company’s goal is to increase borrower understanding and simplify the financial aid process. In addition to the title, CampusLogic took home the $30,000 top prize award that will help the business continue to grow.

The unique, bracket-style pitch competition, presented by Invest Southwest in partnership with the Arizona Commerce Authority, offered $55,000 in total cash prizes, which were split between the top four competitors and a People’s Choice winner. Taking second place and earning a $10,000 check was EndoVantage, a cloud-based solution for planning patient-specific endovascular treatments. RightBio Metrics, a bio fluid measurement technology company, and Beacon Biomedical, a medical diagnostic device company that provides blood tests for early cancer detection, each took home $5,000 for being among the second runners-up. Picmonic, which helps students learn using mnemonic illustrations, won the $5,000 People’s Choice Award for being ranked first most often in the public bracketology portion of the competition.

“The level of competition increased from last year ten-fold, and each company really stepped up to fine-tune their presentations and focus on the important elements of their business,” said Jonathan Ariano, chairman of Invest Southwest. “I’m impressed by all of the startups that competed this year and the way they represented the Southwest as a thriving community for entrepreneurs and investors.”

The Venture Madness competition began online in January with 64 early-stage growth companies seeding the bracket. The public was able to review each company’s video and application online and make picks by filling out their own bracket for a chance to win prizes for the most accurate bracket. During the final portion of the competition held March 4 – 6 at Talking Stick Resort in Scottsdale, the top 16 startups pitched live in head-to-head match ups before a panel of judges.

“We are excited to have been a part of this incredible event and humbled to represent the education technology industry as the winner of Venture Madness,” said Gregg Scoresby, CampusLogic Founder and CEO. “We believe the success of our innovative student self-service platform will help solidify Arizona’s position as the leading state in education technology.”

More than 250 people attended the 2015 Venture Madness conference including investors, entrepreneurs, industry experts and service professionals. For more information about the competition visit: VentureMadness.com.

Staying Innovative as a One Man Operation

Arizona Commerce Authority awards grants to innovators

The Arizona Commerce Authority (ACA) today announced the six winning companies in its Fall 2014 Arizona Innovation Challenge (AIC). These grant recipients represent innovative Arizona entrepreneurs who are creating technological solutions with the potential for global impact.

The Fall 2014 Arizona Innovation Challenge Grant Recipients are:

·       Iris PR Management – Phoenix, AZ (IT – Software): Iris PR Management is the developer of the first core management system for the public relations industry. The SaaS platform enables PR teams to manage and automate all of their daily activity, streamline efficiencies, measure performance and prove value. No other software solution for the PR industry addresses these core needs.

·       Iron Horse Diagnostics, Inc. – Scottsdale, AZ (Bio & Life Sciences): Iron Horse Diagnostics is the creator of a diagnostic platform for neurological traumas and diseases. The company’s tests support the diagnosis and management of amyotrophic lateral sclerosis (ALS), referred to as Lou Gehrig’s disease, as well as traumatic brain injury, concussions and other neurological diseases.

·       NuvOx Pharma – Tucson, AZ (Bio & Life Sciences): NuvOx Pharma is the creator of a therapeutic biotechnology for improving oxygen delivery in the bloodstream to help treat life threatening conditions, including radiation-resistant cancers. The nanotechnology platform is based on dodecafluoropentane (DDFPe) nano-emulsion, which transports hundreds of times more oxygen per dose than other materials.

·       Park Genius – Tucson, AZ (IT-Software): Park Genius is the developer of a mobile application allowing motorists to conveniently pay for parking using their smartphone. The software solution also gives parking providers a cost-efficient way to process cashless payments for their parking operations and avoid the need to purchase new and expensive hardware designed to accept credit cards.

·       Pure Chat – Scottsdale, AZ (IT-Software): Pure Chat is the developer of a live chat solution for websites that helps businesses connect to their customers from anywhere.

·       Spotlight Software – Peoria, AZ (IT-Software): Spotlight Software is the developer of a SaaS-based sales performance management platform. It is the only remote sales performance optimization tool that tracks and measures individual behavior and soft skills to drive the actionable insight required to build a high-performance sales team.

A panel of expert judges evaluated 154 applications from the Fall 2014 AIC submitted by companies based in Arizona, California, Colorado, New Mexico, Ohio, West Virginia and Virginia. The judges assessed each application on a set of criteria including technology potential, marketing strategy, quality of management team and economic impact. These companies represent high-value industry sectors that include IT software, IT hardware, bio and life sciences, cleantech/renewable energy, advanced materials, advanced manufacturing, and aerospace and defense.

“Congratulations to our newest AIC winning companies. They demonstrate the innovative spirit and next-generation thinking that make Arizona one of the top hubs for entrepreneurial excellence in the nation,” said Sandra Watson, President and CEO, Arizona Commerce Authority.

Under the Arizona Commerce Authority, seven rounds of the AIC have been completed and more than 1,200 applications received for the program since 2011. Including the Fall 2014 recipients, the ACA has awarded 44 AIC grants to Arizona’s entrepreneurs to help them accelerate their businesses and advance technologies, which are diversifying Arizona’s innovation economy.

Jane Poynter, CEO of Tucson-based World View Enterprises, a Spring 2014 AIC grant recipient knows the importance of Arizona’s support of its startup community. Her company develops and manufactures high-altitude balloon technology that provides trips to near space for tourism, R&D and industry uses. World View’s unmanned balloons carry payloads for communications, surveillance, research, and launching microsatellites.

“Winning an AIC award last spring represented a key milestone for our company as well as for our relationship with Arizona,” said Poynter. “We are using our grant to begin standing up our balloon manufacturing facility. It is a key enabler for our company, and affirms that Arizona is interested in supporting innovation and the creation of manufacturing jobs in the state.”

revel

Revel Systems iPad POS expands into Scottsdale

Revel Systems, the world’s leading iPad Point of Sale platform, today announced it has expanded operations into Arizona through a new Scottsdale office. The company will create 160 new jobs during the next three years to drive its global sales growth. Revel’s Vice President of Sales, Bobby Marhamat will devote resources to create jobs and extend the local footprint in the Greater Phoenix market. Marhamat has been with Revel Systems iPad POS since June of 2014 and has successfully grown sales teams and business initiatives at companies such as Verizon Wireless and Sprint.

“Revel is building a world-class sales team here in Scottsdale, and we cannot wait to get started,” said Marhamat. “Thousands of food service and retail franchise operators and small-to-medium business owners worldwide depend on Revel’s POS platform to help grow their business. We expect 2015 will bring further interest and expansion in our offering and are excited to leverage Arizona’s vibrant talent pool to extend that momentum.”

“We’re excited to welcome Revel Systems to Arizona,” said Governor Doug Ducey. “Their decision to expand in Scottsdale is a strong testament to the pro-business climate, booming corporate base and highly-skilled workforce that have made the East Valley one of the most dynamic and fastest-growing areas in the country. I am committed to ensuring that great companies like Revel continue to look to Arizona as the premiere place to bring their business.”

“We thank Revel Systems for selecting Arizona to expand, and are excited to see its new Scottsdale operation, and innovative POS technology solutions for business, advance the growth of other entrepreneurs across globe,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “Our state’s strategic Southwest location, proximity to key regional growth markets, and competitive cost of doing business continue to provide an attractive platform for today’s leading companies to thrive and achieve their corporate success.”

This Arizona expansion news follows Revel’s announcement in November 2014 where it secured $100 million in Series C funding to strengthen support and operations in order to meet rapidly growing demand and sales for its iPad POS solution.  Additionally, last month Revel opened a UK sales and operations center in Belfast, Northern Ireland, and an IT division in Lithuania.

The Revel iPad POS platform includes complete front-end order entry, POS system and payment processing, back-end personnel scheduling, time clock and payroll, inventory management, comprehensive product/menu management and advanced reporting to successfully measure and optimize business performance.

“We are thrilled to continue Revel’s significant growth with our first office in Arizona,” said Lisa Falzone, CEO and co-founder of Revel. “Our ultimate goal is to empower business owners to start and grow their own businesses, making their lives easier along the way. As we continue to expand Revel’s global reach, scaling a talented team of salespeople will be critical to Revel’s continued success.”

Revel’s new office will be located in the Scottsdale Innovation Center and is officially open for business January 12, 2015. Candidates interested in positions at the new location can contact Revel at jobs@revelsystems.com.

technical education career training looking at petri dish

ACA names Arizona Innovation Challenge finalists

The Arizona Commerce Authority (ACA) today announced 10 finalists in the Fall 2014 Arizona Innovation Challenge (AIC), its bi-annual business plan competition that awards talented entrepreneurs who are solving today’s most challenging problems with technology-based solutions.

Each year in the spring and fall, the ACA awards to the most qualified, innovative startups and early stage companies capital to grow their businesses, advancing innovation and technology commercialization opportunities in Arizona.

The 10 Fall 2014 Arizona Innovation Challenge finalists include:

• CampusLogic, IT – Software, Gilbert
• Dermspectra LLC, Bio & Life Sciences, Tucson
• Energy Conservation Mgmt., Cleantech/Renewable Energy, Scottsdale
• Iris PR Management, IT – Software, Phoenix
• Iron Horse Diagnostics, Inc., Bio & Life Sciences, Scottsdale
• NuvOx Pharma, Bio & Life Sciences, Tucson
• Park Genius, IT – Software, Tucson
• Pure Chat, IT – Software, Scottsdale
• RightBio Metrics, Bio & Life Sciences, Scottsdale
• Spotlight Software, IT – Software, Peoria

A panel of expert judges evaluated 154 applications from the Fall 2014 AIC, assessing each on a set of criteria including technology potential, marketing strategy, quality of management team and economic impact. These companies represent high-value industry sectors that include IT software, IT hardware, bio and life sciences, cleantech/renewable energy, advanced materials, advanced manufacturing, and aerospace and defense.

Every applying company that meets the AIC’s eligibility requirements will receive constructive feedback generated from the rigorous online evaluation and scoring process. Last December, a total of 25 semifinalists were named and will be considered for participation in Venture Ready, the ACA’s mentor program that connects early stage companies with high-level CEOs to further refine their business plans and investor pitches.

The ACA will name its Fall 2014 Arizona Innovation Challenge winning companies later this month.

Phoenix AAED

AAED brings top certification to Ariz.

AAED’s 2014 Member of the Year, Susan Hyatt, has chaired the organization’s Professional Education Committee for the last two years, during which more than 600 people have participated in educational programs offered by AAED. For the last four years, she has worked with the committee to bring classes from the International Economic Development Council (IEDC) to Arizona. After facilitating six classes through the IEDC, Hyatt and AAED Executive Director Joyce Grossman brought the Certified Economic Developer (CEcD) exam to the state in December.

It’s safe to say the Arizona Commerce Authority’s vice president of business expansion knows a thing or two or 10 about educating the state’s economic developers. She and a handful of other top-notch economic developers can now also boast being a part of the inaugural graduating class of Arizona Economic Development Professionals (AZED Pros).

The AZED Pro certification will be the first time the IEDC has held an exam separate from one of its conferences.

“I took the courses because I believe in the benefits of life-long learning,” she says. “As we grow professionally, we certainly become more knowledgeable and some of us may even be considered experts. However, there are always opportunities to learn more or gain a deeper, nuanced understanding of some facet of economic development. Also, economic development encompasses such a variety of topics and requires a broad skillset. Taking these courses helped to strengthen my knowledge in topic areas that I don’t cover in my day-to-day work.”

To become an AZED Pro, a professional must take two courses in four modules: Arizona’s Economy; Incentives and Business Assistance Programs; Arizona Taxation; and Marketing and Business Development. The courses can last anywhere between a half and full day and cost up to $150.

“One of the key components of all the courses are case studies, which provide participants reallife, often Arizona-specific, examples of the concepts discussed,” says Hyatt.

Hyatt calls AAED’s education opportunities one of the organization’s greatest contributions.

“The committee has done some great work and increased professional development opportunities in Arizona, especially during a time period when budgets, in both public and private organizations, have been tight and the ability to travel outside of the state to receive training has been extremely limited,” says Hyatt.

internet

ACA names Arizona Innovation Challenge semifinalists

The Arizona Commerce Authority (ACA) today announced 25 semifinalists in its Fall 2014 Arizona Innovation Challenge (AIC), a bi-annual business plan competition awarding $3 million annually to talented entrepreneurs.

Each year, the ACA awards – $1.5 million in the spring and $1.5 million in the fall – to the most qualified, innovative startups and early-stage companies. Recipients receive up to $250,000 in capital to grow their businesses, advancing innovation and technology commercialization opportunities in Arizona.

“We congratulate the forward-thinking entrepreneurs selected as our newest AIC semifinalists,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “Arizona’s engagement with early-stage companies through its suite of targeted programs continues to spur growth, technology commercialization and capital investment within Arizona’s innovation ecosystem. With more than 1,200 applications received for the AIC since 2011, the program continues to be among the many opportunities available to innovators which have made Arizona a top hub for entrepreneurial activity and startup success.”

The 25 Fall 2014 Arizona Innovation Challenge Semifinalists include:

• Adosia, LLC, IT – Software, Tempe, AZ
• Allbound, IT – Software, Scottsdale, AZ
• Cactus Semiconductor, Advanced Manufacturing, Chandler, AZ
• CampusLogic, IT – Software, Gilbert, AZ
• Crowd Mics, IT – Software, Mesa, AZ
• Dermspectra, LLC, Bio & Life Sciences, Tucson, AZ
• Energy Conservation Mgmt., Cleantech/Renewable Energy, Scottsdale, AZ
• EZ Dump Commercial, Advanced Manufacturing, Phoenix, AZ
• HiringSolved, IT – Software, Chandler, AZ
• Iris PR Management, IT – Software, Phoenix, AZ
• Iron Horse Diagnostics, Inc., Bio & Life Sciences, Scottsdale, AZ
• MWI Laboratories, Advanced Materials, Tempe, AZ
• Next Alternative, Inc., Cleantech/Renewable Energy, Chandler, AZ
• Numa Tactical Eyewear, Advanced Materials, Phoenix, AZ
• NuvOx Pharma, Bio & Life Sciences, Tucson, AZ
• Park Genius, IT – Software, Tucson, AZ
• PoG Technologies, LLC, Cleantech/Renewable Energy, Peoria, AZ
• Pure Chat, IT – Software, Scottsdale, AZ
• RightBio Metrics, Bio & Life Sciences, Scottsdale, AZ
• Salutaris Medical Devices, Inc., Bio & Life Sciences, Tucson, AZ
• Sentinel Internet Systems, IT – Software, Phoenix, AZ
• Smart Service Desk, IT – Software, Chandler, AZ
• Spotlight Software, IT – Software, Peoria, AZ
• Universal Bio Mining, Bio & Life Sciences, Tucson, AZ
• Zero Shock Seating, Advanced Manufacturing, Chandler, AZ

A panel of expert judges evaluated 154 applications from the Fall 2014 AIC submitted by companies based in Arizona, California, Colorado, New Mexico, Ohio, West Virginia, and Virginia. The judges assessed each application on a set of criteria including technology potential, marketing strategy, quality of management team and economic impact. These companies represent high-value industry sectors that include IT software, IT hardware, bio and life sciences, cleantech/renewable energy, advanced materials, advanced manufacturing, and aerospace and defense.

Every applying company that meets the AIC’s eligibility requirements will receive constructive feedback generated from the rigorous online evaluation and scoring process. All semifinalists also will be considered for participation in Venture Ready, the ACA’s mentor program that connects early stage companies with high-level CEOs to further refine business plans and investor pitches.

The ACA will name its Fall 2014 Arizona Innovation Challenge finalists in early January and the winners later that same month.

economic development - 8 honored

APAC Customer Services’ expansion to create 1,100 jobs

APAC Customer Services, Inc., a leader in global customer care outsourcing solutions, in partnership with the Arizona Commerce Authority (ACA) and Tucson Regional Economic Opportunities, Inc. (TREO), announced Monday an expansion in Phoenix and Tucson that is expected to bring more than 1,100 jobs to Arizona’s Sun Corridor over the next three years.

Jack Jones, Chief Operating Office of Expert Global Solutions, Inc., APAC’s parent company, stated, “Having lived in the state of Arizona for a number of years, I am a big fan of the ‘Sun Corridor.’ Access to qualified and experienced customer service personnel, top educational institutions and great weather make the state an ideal place for us to grow.”

City of Tucson Mayor Jonathan Rothschild echoed Jones’ sentiments and recognized APAC’s long history and significant presence, “APAC has been a major employer in Southern Arizona for many years, currently employing nearly 2,000 of our citizens. We know every business has a choice of where to operate and the City of Tucson continues to make this a business-friendly climate for its existing employers to expand.”

“This is a positive step for Phoenix, Tucson and the entire Sun Corridor,” Phoenix Mayor Greg Stanton said. “For our economy to grow, we must continue to work together as a region and as a state.”

During the first year, the partnership is expected to generate over 300 new jobs in Tucson – split between APAC’s two sites in the city – and an additional 135 jobs to its site in north Phoenix. Throughout the next two years, the state is expected to benefit from 669 additional jobs (382 in Tucson and 287 in Phoenix), bringing the overall three-year job creation total to over 1,100 jobs for Arizona.

“APAC is the global leader in its industry serving top brands around the world, and we thank the company for its continued commitment to Arizona as it undertakes its next phase of growth,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “APAC’s investment and expansion in Phoenix and Tucson will create hundreds of professional services jobs for Arizonans across our state.”

Commenting on the growth, Joe Snell, President and CEO, TREO, stated, “State leaders, local officials and economic development partners joined together to deliver an important win for the economic recovery: nearly 700 new jobs here in Southern Arizona.”

“We’re pleased that APAC’s existing presence in the Sun Corridor mega-region continues to grow,” said Sharon Bronson, Chair, Pima County Board of Supervisors. “Tucson’s high-quality, bilingual workforce is a key competitive advantage in today’s global economy.”

APAC delivers tailored solutions to leading companies in many industries, including communications, education, financial services, government, healthcare, insurance, retail, technology, transportation and logistics, travel and hospitality and utilities. Headquartered in Illinois, APAC currently operates at the following locations in Arizona:

·       Tucson East: 1650 S. Research Loop, Tucson, AZ  85710
·       Tucson West: 2929 E. Corona Road, Tucson, AZ  85756
·       Phoenix: 20401 N. 29th Avenue, Phoenix, AZ  85027

In terms of the jobs that are coming to the state, Jones commented, “We’re excited about the opportunities we’re bringing to local communities. For us, it’s not simply about jobs. It’s about providing a chance for people to build a rewarding career and make a difference within our company.”

The new jobs created by this expansion are full-time positions that will work to support major clients. The positions will include both call center, leadership and support roles.

rsz_tractorsupply_representativephoto

Tractor Supply Company plans Arizona distribution center

Tractor Supply Company (NASDAQ: TSCO), the largest rural lifestyle retail store chain in the United States, announced Monday plans to build a new distribution center in Casa Grande, Ariz.

“The addition of a new distribution center in the Southwest is key to our western expansion strategy,” said Greg Sandfort, president and CEO. “Arizona’s proximity to our Western stores provides an ideal location for our new facility which will allow us to achieve lower transportation costs and faster delivery to our stores. Casa Grande has an excellent workforce, and we appreciate the hard work of the local and state officials who assisted us through the process.  We look forward to a very long and productive partnership with the Casa Grande community.”

The Phoenix office of JLL completed the 100-acre land sale that will bring a new Tractor Supply Company distribution center to the rail-served, 416-acre Central Arizona Commerce Park in Casa Grande.

“It is exciting to welcome Tractor Supply and to continue to bring manufacturing and distribution-focused companies together in Casa Grande,” said JLL Managing Director Bill Honsaker. “Central Arizona Commerce Park is about making connections – connections that link West Coast ports inland and that deliver the benefits of this very strategically located, cost effective and business-forward environment.”
Honsaker, along with JLL Managing Directors Anthony Lydon and Marc Hertzberg, are the exclusive brokers for Central Arizona Commerce Park.

“Tractor Supply Company will be a great addition to the community and will be joining many other agricultural, industrial, and commercial businesses in Casa Grande that have quick access to several transportation routes,” said Bob Jackson, Casa Grande Mayor. “We’ve worked diligently over the years to have the proper infrastructure in place for current and future growth, and have improved the efficiency of the permitting process to create a friendly business environment. We welcome Tractor Supply Company to the community and thank them for choosing Casa Grande as the site for their first western distribution center.”

Tractor Supply executives and local government officials held a ceremonial groundbreaking event today, November 17, at the Casa Grande distribution center site located in the Central Arizona Commerce Park. The facility is expected to begin operating in the fourth quarter of 2015 and will be approximately 650,000 square-feet in size, with the potential to create more than 250 local jobs.

“The new Tractor Supply investment will bring needed jobs to the Casa Grande community,” said Barry Broome, President and CEO of the Greater Phoenix Economic Council. “This further bolsters the city’s position in building out a future industrial employment corridor, and we are excited to have them in the region.”

Tractor Supply Company’s new distribution center will have the potential to service approximately 250 stores in the Southwest region. Currently, the company operates more than 1,360 stores in 49 states across the country.

“We are thrilled that Tractor Supply Company selected Casa Grande for expansion and thank them for investing in Arizona,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “Our state’s strategic Southwest location and world-class infrastructure system provide companies a platform to access key regional and global growth markets, which help to advance their businesses and long-term corporate success.”

Central Arizona Commerce Park provides a premier distribution facility for the Southwest and is situated near the confluence of the I-10 and I-8 offering access to other regional infrastructure assets supporting businesses operating in Casa Grande and the broader region.

insight enterprises - cloud messaging solutions

Zenefits will create 1,300 Jobs at new Scottsdale office

Today the Greater Phoenix Economic Council was joined by the Arizona Commerce Authority, Maricopa County and the City of Scottsdale in welcoming Zenefits to the Greater Phoenix region.

Zenefits, the free, cloud-based human resources technology company that automates and eliminates time-consuming paperwork for small and medium-sized businesses, announced today plans to create over 1,300 new full-time jobs over the next three years, and the launch of a new, nearly 100,000-square-foot office in Scottsdale, Ariz.

“We’re thrilled to open our new office in Scottsdale, which will allow Zenefits to meet the growing demand from thousands of small businesses who want to focus on their people instead of paperwork,” said Parker Conrad, CEO and co-founder of Zenefits. “The greater Phoenix area has a talented workforce and an expanding tech community, and Zenefits is excited to grow our team both here and in San Francisco.”

Zenefits is widely considered to be one of the fastest-growing tech companies in recent history. Its user base is on track to grow 1,600 percent in 2014, and in a little over one year in business, the company has signed up more than 2,000 businesses serving over 50,000 employees across 47 states.

This is the largest expansion from a California-based tech company into the Greater Phoenix region since PayPal in 2010. Zenefits has already hired 60 new local employees, and plans to expand to more than 1,300 full-time employees within the next three years. The company’s new office will occupy 94,000 square feet of office space in the Scottsdale Galleria Corporate Center.

“We want to welcome Zenefits to Scottsdale, where it joins a growing field of exciting and innovative tech companies who are drawn here by all the elements that ensure a motivated, skilled workforce, an outstanding quality of life and a positive business environment,” said Scottsdale Mayor W.J. “Jim” Lane. “We are delighted to welcome Zenefits to Scottsdale – they will be an incredible addition to our business community and our City’s economy.”

The expansion into Scottsdale will enable the company to meet the needs of its rapidly increasing customer base. Zenefits is now in the process of hiring a range of new employees for the Scottsdale office, including HR specialists, sales representatives, account managers and executives, and client support staff. Zenefits currently employs more than 390 workers in its San Francisco headquarters, up from just 15 at the beginning of the year.

“Zenefits is one of the fastest-growing tech companies in America, and we are tremendously excited that its leadership selected Arizona for a major expansion that will advance its corporate growth goals,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “Our state’s surging technology ecosystem and highly-educated workforce continue to attract innovative companies seeking to develop operational hubs to help drive business growth and enhance their competitiveness across the country.”

Zenefits automates a wide range of time-consuming, administrative HR tasks that companies otherwise have to handle manually, including: benefits and payroll, hiring, taxes and compliance, employee life events, health insurance and more. Zenefits’ cloud-based HR platform connects seamlessly to a company’s existing third-party benefits systems, so that businesses and employees can manage these systems from a single, beautifully designed dashboard.

“We are thrilled that Zenefits chose the Greater Phoenix region for its first big expansion,” said Barry Broome, President and CEO of the Greater Phoenix Economic Council. “Zenefits will provide a substantive impact to the innovation ecosystem, creating 1,300 new jobs in the ICT sector over the next three years, spurring growth and contributing to our broader economy.”

The core Zenefits service is 100 percent free to customers because it is able to collect fees from all kinds of benefit providers. This unique business model is one of the reasons Zenefits has been able to attract so many users so quickly. As of June, the company has raised $84 million from prominent investors including Andreessen Horowitz, Institutional Venture Partners (IVP), and Academy Award-winning actor and investor Jared Leto.

Trucks CrossingBorderat Nogales

4 big ideas shaking up Arizona-Mexico trade

While all of us have no doubt been busy getting enlightened by the endless stream of political TV ads, there have been lots of exciting things happening to grow Arizona’s cross-border trade profile with our neighbor Mexico.

Matchmaker, matchmaker, make me a match Dennis Smith and the team at the Maricopa Association of Governments deserve applause for the launch of the new website, BIEN, which not only means “good” or “right” in Spanish and French, but is an acronym for Building an International Economic Network.

Via BIEN, businesses in Arizona can set up an online profile that can connect them with buyers and sellers beyond our borders. Users can search for a business by distance, industry type or name.

As MAG Chair and Youngtown Mayor Michael LeVault said, the site “allows companies in Arizona, Mexico and Canada to directly connect with each other using technology instead of travel to broaden their customer base.”

BIEN is a great new tool in Arizona’s trade toolbox. Kudos to MAG for making it happen.

Down Mexico way Years since it was shuttered, Arizona once again has an official presence in Mexico’s political and economic capital city.

I was proud to join recently a delegation of about 70 business, academic and political leaders led by Arizona Commerce Authority CEO Sandra Watson, Phoenix Mayor Greg Stanton and House Speaker Andy Tobin, for the official ribbon-cutting in Mexico City of the state’s new trade office, a joint project with the city of Phoenix. U.S. Ambassador to Mexico Tony Wayne, the consummate diplomat and an outstanding representative our country’s interests, was on hand to mark the special occasion.

Before the new office’s opening, not only was Arizona falling behind border state competitors like Texas and California, but even states like Iowa maintained a presence in Mexico City. Meanwhile, Arizona was nowhere to be found in Mexico’s largest city, despite Mexico being our state’s largest export market.

Re-opening the office is the right move at the right time. We have seized on this unique moment in Mexico’s history. Reform-minded President Enrique Peña Nieto has positioned his country to grow rapidly by opening Mexico’s energy sector to foreign investment. With a new trade office, Arizona and Mexico businesses alike now have a one-stop shop to start making the connections that will remind folks on both sides of the border of what an incredible asset our international border is to our economy.

As Gov. Brewer said, “As long as we continue to pursue and capitalize on important business and investment opportunities, we will enjoy a strong, continually thriving and mutually-beneficial partnership with Mexico long into the future.”

A port of opportunity The newly redesigned Mariposa Port of Entry in Nogales is open for business just as the busy produce season is ready to kick into high gear.

The Chamber’s Garrick Taylor blogged about the new port last week, but the big takeaway is that while a redesigned Mariposa is great for Arizona-Mexico trade, its value will be diminished if the feds don’t adequately staff the inspection booths. Even the most modern port of entry can’t efficiently move cargo if there’s not enough personnel to carry out the inspections.

Kudos to the entire Arizona congressional delegation, which last week sent a letter to Department of Homeland Security Secretary Jeh Johnson making clear that Arizona’s land border ports have real staffing needs that need to be addressed.

Expand the travel zone When former Mexico President Vicente Fox was in town a few weeks ago, the MAG team touted the effort it’s leading to expand Arizona’s travel zone statewide to Mexico visitors. The idea makes a lot of sense, and it’s something the Chamber supports.

Under current law, Mexican nationals with a valid Border Crossing Card (BCC) entering Arizona at certain land border ports can travel only as far north as Tucson before being required to secure further documentation and pay an extra fee. Traveling to places like Phoenix or Flagstaff requires an extra step and increased hassle in what should be a more seamless process. After all, the travelers who have valid BCCs have already been vetted at a U.S. consulate in Mexico, they still undergo inspection at the port of entry and, if the inspecting officer desires, the traveler can still be referred for more involved secondary screening or even be denied entry.

Doing paperwork with travelers who want to visit the Grand Canyon or go shopping in Scottsdale is not a good use of limited Customs and Border Protection personnel resources. Arizona’s travel zone has been expanded once before. It’s time to open up the whole state to Mexican tourism.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry, which is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans.

assembling-opporunities

Manufacturers Find Business-Friendly Environment In Arizona

Gov. Jan Brewer has done a lot to make Arizona more competitive for manufacturing, economic development leaders say.

“The repeal of the energy sales tax on gas and electricity is very big for us,” says Mark Dobbins, co-chairman of the Arizona Manufacturing Partnership at the Arizona Chamber of Commerce and Industry. “We have a business friendly reputation and this change makes a big difference in our attractiveness to manufacturing.”

But there is one piece of the puzzle that still creates concern.

“Businesses wanting to relocate to Arizona are impressed with the business-friendly climate in the state,” Dobbins continues. “The question I hear most is, ‘Will I find an educated and experienced workforce for my business?’”

Concerns over education bring the Partnership and other economic development advocates around to the next focus — a quality, educated workforce to serve Arizona’s growing job demand. The conversation started with business, the community colleges, state universities and schools during the depths of the recession.

“The tax cut makes a major difference for a corporation,” says Barry Broome, CEO of the Greater Phoenix Economic Council. “Tesla, if it locates here, saves $30 million to $40 million a year with that bill in place.”

Broome considers SB1413 the most important bill for business in the current session. “The (manufacturers electricity sales tax) exemption brings us in line with most of the rest of the country; only 15 states had such a tax. For big power users, this is a make-or-break proposition. High technology companies spend more on power than payroll.”

“Continuous innovation is what keeps Arizona competitive in manufacturing,” says Sandra Watson, CEO of the Arizona Commerce Authority. “We believe that the future is in research and development and Arizona has one of the most competitive R&D tax credits in the country.”

The ACA manages that tax credit and it’s not handed out lightly or just for large manufacturers. The state has seen much of its manufacturing employment growth, now six percent of the workforce, from the smaller businesses. The ACA makes the credit available to any sized qualifying firm.

The state’s manufacturing history is sometimes lost in the ads for golf courses and new subdivisions. “We have a history of solid manufacturing in the state that goes back 50 or 60 years,” recounts Steve Macias, president and CEO of Pivot Manufacturing, Arizona Commerce Authority board member, and chairman of the Arizona Manufacturers Council, which falls under the umbrella of the Arizona Chamber of Commerce and Industry. “This gives us a solid workforce with experience, ability and productivity that is a plus for any manufacturer wanting to relocate or expand.

In addition to the cut on the utility sales tax, SB1484 was another breakthrough for manufacturers. The bill created energy tax credits that can be claimed by manufacturers generating renewable energy to power Arizona operations.

Dobbins says that Arizona has all the right assets in place for manufacturing today, but can’t rest on what we have now for the future. “We need to invest more to build our assets up,” he says. “We need a lot of work to build our competitive logistics infrastructure.”

He lists logistics where the state needs to invest more money and projects. “We’re in great shape when it comes to passenger traffic with Sky Harbor and (Phoenix-Mesa) Gateway airports. We need to do more for air freight.”

Dobbins believes Arizona’s manufacturing future is in building our exports with Canada, Mexico and South America. He’s not alone in that view. State Transportation Board Member Joseph La Rue emphasizes the same position. “Interstate 11 makes this market a crossroads. Right now, we’re just connected to the east and west.”

The state is taking effective action, says Macias. “With the change in (sales tax on energy) and (research and development) tax credit, we’re a state that is very appealing to a capital intensive business. Arizona is moving in the right direction.”

Arizona’s manufacturing opportunities are spread across the state. Most people think of Phoenix, Tucson and Yuma as the places where the businesses cluster, but small manufacturers are seeing emerging markets in Flagstaff, Prescott and Kingman, according to Dobbins.

With the tax credits and incentives offered through the ACA and some local governments, Macias says a small manufacturer can take advantage of an underemployed workforce in a rural area. Arizona provides significant tax credits and incentives for businesses to train and develop their employees. These come through ACA and the Department of Economic Security Workforce Arizona programs.

“We’ve always had aerospace, defense and semiconductors as our base,” says Broome. “We’re starting to build manufacturing industry clusters in high technology glass. GT Advanced Technology in Mesa and Rioglass Solar Steel in Surprise are a start. Once businesses start to cluster, more become interested because it means there’s a growing, skilled workforce.”

“We need to do more to build our workforce,” says Dobbins. “Arizona has consistently underfunded education and we’re paying that cost now. Common Core standards will give us a business-accepted measure of how our workforce stacks up. We don’t just mean in college education, but also in the important areas of technical education.”

“Common Core (education standards) are driven by business so that there is a national standard of comparison,” says Macias. “We’ve been working on the need for a trained and educated workforce so that we don’t slip into a deep recession in the future. We were too dependent on construction.”
Arizona needs to get the word out, experts say.

“When people come in to Sky Harbor, they’re overwhelmed with ads for golf, resorts and housing,” muses Macias. “That’s why they’re here in the winter. We need to overwhelm them with a message of what we do in Arizona. We do a lot, and we do it very well.

Staying Innovative as a One Man Operation

Innovators get boost from Arizona Commerce Authority

The Arizona Commerce Authority (ACA) has selected 18 recipients for AZ Fast Grant, a highly competitive grant program that provides qualified Arizona-based, early stage technology companies with intensive training and technical assistance to help them commercialize their innovations, grow their businesses and create quality jobs.

“Early stage companies play a key role in developing innovations that fuel our state’s economy,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “The AZ Fast Grant program helps companies with critical training, technical expertise and the ‘know how’ to secure additional funding and commercialization opportunities to propel their businesses.”

Companies may use AZ Fast Grant awards for professional consulting services (that may include an expert review of technology under development); a commercialization feasibility study; or other commercialization assistance such as training to compete more effectively for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding programs.

More than 50 Arizona small businesses applied for this round of the AZ Fast Grant program and awardees represent a variety of target industries.

AZ Fast Grant Recipients include (Total: $141,000, plus an additional $134,000 in leveraged funds):

* Arbsource, Tempe – Bio & Life Sciences
* Arizona Medical Systems, Peoria – Bio & Life Science
* Elliptical Mobile, Chandler – Advanced Manufacturing
* Engineering Science Analysis Corp., Tempe – Aerospace/Defense
* Grannus, Tucson – Cleantech/Renewable Energy
* Hildeez Enterprises, Peoria – Bio & Life Science
* MediCoventures, Peoria – Bio & Life Science
* Movement Interactive, Laveen – Bio & Life Science
* Kulira, Peoria – Bio & Life Science
* Prime Solutions Group, Goodyear – Aerospace/Defense
* QuantTera, Scottsdale – Advanced Materials
* Saccadous, Scottsdale – Bio & Life Science
* Score Algae, Scottsdale – Cleantech/Renewable Energy
* SiO2 Nanotech, Phoenix – Advanced Materials
* StatTransfers, Flagstaff – IT-Software
* Verve, Peoria – Bio & Life Sciences
* Vicinity Health, Chandler – Bio & Life Sciences
* YourLabs, Tucson – IT-Software

“I can honestly say the AZ Fast Grant really helped us get over the hump,” said Joe Marvin, Founder and President of Prime Solutions Group, a systems engineering and IT services company providing consulting expertise to government and defense contractors. Prime Solutions Group received AZ Fast Grant awards this year and in 2013.

With the help of AZ Fast Grant program support and technical expertise, the company recently secured $1 million in federal funding from the U.S. Department of Defense for its SBIR/STTR program submission this past fall. “We used our last AZ Fast Grant for commercialization strategy development, and that went directly into our federal proposal,” said Marvin.

Phoenix eyes Mexico City Trade Office

The Phoenix City Council on Tuesday unanimously voted to move forward with plans to partner with the Arizona Commerce Authority to open an Arizona Trade Office in Mexico City.

“Phoenix is taking the right steps to become a global city, and we’re ready to open our first trade office in Mexico City,” said Mayor Greg Stanton. “This partnership with the Arizona Commerce Authority demonstrates that we’re all committed to increasing exports, and that we know we can be more effective if we work together.”

The City, ACA and other regional partners plan to collaborate in the same office space in Mexico City. The partnership will better leverage the City’s investment and lower overall costs.

The City Council also voted to authorize the firm Molera Alvarez to represent and advance the City of Phoenix’s efforts with Mexico, specifically in the areas of trade, promotion, foreign direct investment and tourism.

Galleria Corporate Center 1, WEB

Weebly expands to Arizona, signs 25KSF Scottsdale lease

Weebly, a website creation service based in San Francisco, has signed a 25,000-square-foot office lease at the Galleria Corporate Centre, 4301 N. Scottsdale Rd. The office space will serve as the company’s North American customer operations headquarters to support its growing customer base.

Weebly’s expansion to Scottsdale will have a significant impact on the city’s economy. T The total economic impact over the course of the five-year lease term is estimated to be $256 million, according to an economic impact analysis provided by the City of Scottsdale. The company plans to bring more than 250 new positions to the city over the next three years, and will support more than two million customers from its Scottsdale office location.

“We’re extremely excited to open our new customer operations headquarters in Scottsdale. There is an amazing pool of quality talent in the area,” said David Rusenko, co-founder of Weebly. “With support from the city and the Arizona Commerce Authority, we’re looking forward to building a world-class team to support the success of our customers globally.”

The location, in the heart of Old Town Scottsdale, will allow Weebly to hire local talent to lead customer sales and support operations. Roles will include: customer sales and support specialists, team leaders, trainers, quality assurance and additional roles to be added in the future. Each new employee will become part of the company’s larger mission to help anyone start their something and easily build a business, website, blog or online store.

“The expansion of Weebly to Scottsdale was a collective effort by the city and our regional economic development partners to continue building Scottsdale’s software and technology sector,” said Scottsdale Mayor Jim Lane. “I am very pleased to welcome Weebly to Arizona and to Scottsdale.”

“It’s very fulfilling watching innovative clients like Weebly expand beyond their headquarters to new locations throughout the country,” said Cushman & Wakefield Senior Director Jon Dishotsky of San Francisco, who leads Weebly’s brokerage team along with Ryan Bartos and Matt Coxhead of Cushman & Wakefield of Arizona, Inc.
“After scouting several markets, including Denver and Austin, we were thrilled to partner with our Arizona colleagues to secure a great expansion location at Galleria Corporate Centre. The space is not only centrally located in Scottsdale, but also part of a bustling 24-7 lifestyle center, a feature important to Weebly’s unique culture,” Dishotsky said.

“This is a huge win for Scottsdale,” Bartos said. “It is exciting to see a company like Weebly expand into the Arizona market and bring some vibrancy to an already strong and growing technology tenant base. We believe this trend will continue and we look forward to witnessing their future success.”

Weebly was represented by Dishotsky and Cutter MacLeod of Cushman & Wakefield’s San Francisco office and Bartos and Coxhead of the Phoenix office. The landlord, Stockdale Capital Partners, was represented by Bryan Taute of CBRE.
“Weebly was also fortunate to have the support and guidance of the Arizona Commerce Authority (ACA), Greater Phoenix Economic Council (GPEC) and Scottsdale Economic Development Department to assist in this expansion,” Dishotsky said.

Each month, 175 million people visit more than 20 million Weebly sites worldwide. In the U.S., 33 percent of the total Internet population visits a Weebly site each month, up from 25 percent in 2013. As more people embrace the concept of the personal economy and starting a business of their own, Weebly is seeing tremendous demand for its technology which enables anyone to easily and affordably create a high-quality website, blog or online store to bring their unique idea to the world.

“Globally-focused companies continue to choose Arizona to achieve their goals for growth, and our highly skilled and available workforce is among our key advantages attracting corporate investment and expansions to the state,” said Sandra Watson, President and CEO, Arizona Commerce Authority. “We thank Weebly for selecting Scottsdale to expand its operations, and are excited to see the company help more businesses across the U.S. connect with their customers and grow through Weebly’s innovative web and e-commerce platform.”

ACA helps foster manufacturing matchmaking

“‘What is the overview of manufacturing in the U.S. and Arizona?’ That’s the question no one is asking. It’s a landscape of profound changes — especially for manufacturers who up their game and move up the value chain.”

Brian Sherman is filled with enthusiasm. As the senior vice president of business development for the Arizona Commerce Authority, he is the manufacturing “yenta” for the state’s official economic development agency; a “yenta” being a marriage broker hooking up couples perfect for each other.

“My No. 1 goal for 2014 is bringing together well-established manufacturers with business experience and an eye on growth with the young entrepreneurs who are building businesses from ideas and need prototypes and business acumen,” says Sherman. As the designated matchmaker, Sherman and his team have a new role at Arizona Commerce.

“Arizona is a land of innovation, and that’s what gives us an edge for manufacturers,” he says. “The day of business sitting back and waiting for orders is over. ‘Cranking it out’ has moved offshore, and businesses competing in that marketplace are going to get hit hard on price points.”

“Where a small- or medium-size manufacturer is going to succeed is with technical solutions and not just products. Innovation is what makes this state great,” Sherman’s on a roll. “We’ve got well-established manufacturing businesses aligned with our key sectors—but those same businesses could move into parallel sectors and grow even more. That’s what our team at Arizona Commerce is doing. We’re positioning these businesses for the next trend.”

Parallel sectors: Family classics meet Generation Z
“We have classic family manufacturers across the state. They’ve been around for decades; some for multiple generations. The make stuff.” Sherman calls them ‘salt-of-the-earth’ companies. “They’re starting to feel some of the pressure of the sequestration and recognizing that depending on defense or government is not the road to the future.”

“Then we’ve got these young entrepreneurs. They want to write code. They want to make games and apps,” he enumerates the issues. “They think manufacturing is stodgy, dead end and offshore. But they don’t really see the full picture. They’ll tell me, ‘yes, I have this vendor over in Taiwan and he’ll make this.’ Trying to prototype a product from 10 thousand miles away doesn’t let you see how it’s going to be built.”

“Back at the small manufacturer, let’s say it’s an aerospace or defense business. That’s high-precision work. The skills going into what it’s making now can be adapted into other high-precision manufacturing—like biomedical devices.” Sherman’s enthusiasm is contagious. “So we take the tech startup and the established business, bring them together and show the young entrepreneur that manufacturing can be pretty sexy. We show the manufacturer that the tech startup has the innovations and ideas that can be adapted for future growth.”

RevAZ: Arizona Commerce Authority consulting services
Sherman’s teams at Commerce work with manufacturing businesses as consultants — and in some cases bring in outside consultants — to help businesses transition into the next economy. The service is designed to revitalize Arizona manufacturing. “Rev AZ is just a phone call away,” explains Sherman. “We show how innovation, diversification, and shared knowledge helps companies position for trends and profitably grow. We bring in the experts to help businesses manufacture — both new and old.”

Back to that prototype, he says, “If the tech startup can have the prototype built here, it gives the view of how the production floor needs to function in order to turn out the product. It brings the new generation of innovation and technology into the experienced hands of our existing manufacturing businesses. It also opens new sectors for old business.”

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phoenix

GPEC Earns Economic Development honor

Cited as one of the Best to Invest Top U.S. Groups of 2013, the Greater Phoenix Economic Council (GPEC) has once again made Site Selection magazine’s annual ranking for top U.S. Economic Development Groups.

“This recognition is a reflection of our elected and business leaders working together to promote Greater Phoenix and Arizona as business friendly,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council. “The Arizona Competitiveness Package of 2011 and subsequent economic development policies have dramatically shifted our market’s competitive position towards advanced manufacturing and other high-tech industries.”

The ranking took into account four objective categories: new jobs, new jobs per 10,000 residents, new investment amount and new investment per 10,000 residents. “This year’s Best to Invest Top Groups in the U.S. all demonstrated an ability to reach new markets while reaping significant reinvestments from their existing industries,” said Ron Starner, general manager and executive vice president of Conway Data Inc. and Site Selection magazine.

The magazine also features a ranking for top North American deals of 2013, highlighting the Apple, Inc. locate to Mesa, Ariz. The collaboration included a partnership between GPEC, the Arizona Commerce Authority, the city of Mesa, DMB Associates, Maricopa County, and Salt River Project.

Several factors contributed to determining the Top Deals of 2013, including: level of capital investment, degree of high-wage jobs, creativity in negotiations and incentives, regional economic impact, competition for the project and speed to market. “Trends among this elite group of projects include a penchant for free trade zones and an awareness that sometimes facility reuse is as good as brand new,” said Adam Bruns, managing editor of Site Selection.

Broome credits the successful consummation of the project to “years of work on infrastructure, permitting, and crafting performance-based incentives.” He also cited the ability to offer a “turnkey real estate option” as a key factor in sealing the deal.

manufacturing sector expanded

Brewer OKs tax cut law for manufacturers

Arizona Gov. Jan Brewer on Friday signed into law a bill that eliminates sales taxes on electricity and natural gas purchased by manufacturers and mining smelters, a move she said was needed to make the state more attractive to large businesses.

Brewer signed Senate Bill 1413 at a Capitol ceremony attended by a couple of dozen business leaders, calling it “another smart tax reform that will bolster job creation in Arizona and our competitive edge.”

The tax cut is expected to cost the state general fund at least $17 million a year. Brewer also vetoed money in the state budget designed to help counties make up for the losses, saying their loss was small and would set a bad precedent.

“Since becoming governor, my cornerstone priority has been to make Arizona as attractive as possible for new and expanding businesses, particularly for our manufacturing industry, which generates quality jobs and high-wage salaries,” Brewer said. “I want Arizona to be No. 1 and be the pro-business state in the nation and we have worked relentlessly to accomplish that.”

Later in the day, Brewer also signed a law providing a $5 million tax credit many say is aimed directly at Apple Inc. Senate Bill 1484 grants the tax credit to a company that installs at least $300 million in renewable power capacity to supply its own plant.

The governor touted other tax cuts, regulatory reform and business-friendly policies that she has championed since she took office in 2009. Those tax cuts have affected the state’s revenue, but she said they are important to growing the economy.

“When we bring in these new businesses it drives our economy, they bring in construction jobs, they bring in employees, they bring in money into the state,” she said. “So in the end, everybody’s ship rises.”

Brewer called for the elimination of the tax in her State of the State address in January, saying it was needed to make Arizona more competitive and draw new manufacturing to the state.

The bill received bipartisan support in both legislative chambers, although one conservative Republican in the House of Representatives dissented when it came up for a vote earlier this week.

Rep. Brenda Barton, R-Payson, says the bill places a burden on rural counties that rely on that tax base. She and other rural lawmakers managed to get $1.3 million in the budget to make up for the cuts, but Brewer vetoed that money Friday afternoon.

“I am getting to the point that a lot of these special legislation bills that we are promoting are harming the state of Arizona, and they are harming our rural counties and our rural cities, and I don’t believe we are doing a very good job of doing what’s right for the right reasons,” Barton said during debate earlier in the week. She didn’t immediately return calls seeking comment.

Others defended the bill.

“I think anytime we can support small businesses and reduce their taxes and large businesses and reduce their taxes, and allow them to reinvest in their business and reinvest in the communities and reinvest in their employees, I think we need to be looking for opportunities to do this,” Rep. David Livingston, R-Peoria, said.

Steve Macias, chairman of the Arizona Manufacturer’s Council and the operator of a machine shop that will get a small direct benefit from the tax cut, said it could bring in more manufacturing.

“Seventy percent, 80 percent of the business we do is right here in Arizona,” Macias said of his operation. “And almost all of that is to larger manufacturers, the General Dynamics of the world, the guys who make equipment for the solar industry. So when they attract those guys, I get excited because to me those are all potential customers.”

Glenn Hamer, president of the Arizona Chamber of Commerce & Industry, said 38 other states do not tax electricity use by manufacturers and cutting the tax will help the state.

“These are jobs that pay more than the median wage. They’re jobs that every other state competes for, and we’ve done something significant to make Arizona more competitive today,” Hamer said.

The tax credit bill drew the ire of conservative House Republicans, who said say the bill is unfairly tailored to benefit Apple’s planned Mesa sapphire glass manufacturing plant and picked winners and losers among the state’s industries.

Apple said in November it will open the plant and eventually employ 700 workers to provide material for its iPhone 5 cameras and fingerprint reading sensors.

The tax credit could also be claimed by other companies that build similar facilities. Tesla Motors Inc. is currently looking for a battery plant site and often mentioned as a possible candidate.

“We as conservatives have got to step away from this crony capitalist style of development,” Rep. Adam Kwasman, R-Oro Valley, said during debate on the bill Tuesday. “We cannot afford to pick winners and losers in industry. We believe in low taxes for everybody. We believe in simple rules for everybody.”

But the bill sponsor defended it, saying it was a small amount of money to help establish a large manufacturing operation. The Arizona Commerce Authority helped seal the deal with other incentives.

“I believe that they did the right thing to bring Apple here,” Sen. Bob Worsley, R-Mesa, carried the Apple bill, saying he did it because the Arizona Commerce Authority had made a commitment to the company as part of the deal to draw them here. “And the dollars are very small in the whole scheme of things with Apple being in the Valley. They could have gone to Texas, they could have gone other places and we wanted them here. It’s a good decision.”

startup

Getting an angel to open the checkbook

Governor Jan Brewer touts her policies and business regulatory climate as the reason Arizona is growing new businesses. That may be a factor, but it’s not the major reason Arizona topped the Kaufman Foundation Index of Entrepreneurial Activity in 2012. If it were the case, Arizona would have been on top again in 2013—instead of plummeting to 20th nationally.

“Just because there are a lot of startups,” observes Barry Broome, CEO of the Greater Phoenix Economic Council, “doesn’t provide a measure of the economic growth in the Valley.” A startup can be someone opening a consultancy, a contractor or the next Apple. Self-employment is a form of startup. The challenge is nurturing a startup so it grows with high value jobs.

Local governments and the Arizona Commerce Authority see major value with growing Arizona startups into enterprises. Chris Mackay, economic development director in Chandler says, “There’s staying power when a business is local. It’s connected to the local community and if the economy falters, the owners are more willing to keep going locally as opposed to closing up shop.” That local staying power is one reason Mackay says Chandler makes big investments in growing future enterprises.

Planting the seeds

Arizona’s new economy needs startups to scale up into enterprises. Those growing small businesses become hiring employers offering high value jobs paying home-buying income. Government policy supporting businesses that can scale up is based on simple economics.

Businesses with more than 20 employees, says the Small Business Administration, generate two of three Arizona paychecks. Those same businesses cut checks for more than 70 percent of Arizona’s private payrolls. The value in 2012 was over $100 billion.

All new businesses are “startups,” but not all startup businesses will be entrepreneurial enterprises. “There is no relation between starting a business and starting a company,” says Dr. Daniel Isenberg, Professor of Entrepreneurship Practice and founding executive director of the Babson College Entrepreneurship Ecosystem Project in Boston. “Ninety percent of companies formed don’t grow high value jobs.”

Isenberg says that the difference between a start-up and enterprise is a matter of scale. He is an international advocate for scaling a business to grow as opposed to opening a business. An entrepreneur, he points out, is a business founder with a large company that just happens to be small right now.

Arizona State University, as the new American university, is at the cutting edge of helping turn ideas into enterprise. Recently, the college joined the elite ranks of schools offering a stand-alone degree in entrepreneurship. It’s on that list with Harvard Business School, Babson, and University of Texas. Its goal is getting new businesses that can grow into the market.

Locally grown

ASU says more than 70 percent of its W.P. Carey School of Business MBA graduates remain in Arizona. Keeping these graduates in state provides the human resources necessary to building new enterprises fueling the future economy.

“Starting a company — as opposed to just starting a business — is hard work,” says Isenberg. “An entrepreneur looks at the business and sees it growing. It’s a time of sleep deprivation, hard work, and endless pitches.” Few startups achieve quality growth—less than ten percent, he believes. “The golden triangle of a growing enterprise,” he continues, “is cash, customers and people.”

“An entrepreneurial endeavor isn’t limited to startups,” Isenberg emphasizes. “University research, family businesses, mature companies, all can be turned into a growing enterprise. Most startups tend to stay small.” The key to the economic contribution of startups in Arizona is scalability. He is adamant about it, “Ambition is not a dirty word. A business founder without ambition does not significantly contribute to overall economic growth.”

“There are a number of entrepreneurial success stories arising from a new direction for an existing, mature business,” Isenberg reports. Sometimes it takes a new owner with a vision; sometimes the existing management team finds a new direction. It can be a license from a university, a new product, or an innovative use of an existing product. Entrepreneurship can occur anywhere in a business’ lifecycle.”

Bringing ideas to market

Arizona colleges are on that licensing bandwagon. Entrepreneurs complain that it takes years to license patents or transfer technology from most universities. In ASU’s Office of Knowledge and Enterprise Development, the Arizona Furnace Technology Transfer Accelerator — first project of its type in the world — slashes technology transfer time from years to months. The AZ Furnace is a joint venture of ASU, University of Arizona, Northern Arizona University and Dignity Health. Funding partners include the Arizona Commerce Authority, BioAccel, and additional support from Thunderbird School of Global Management.

“There are hundreds of patents sitting on shelves at universities that could be in the market earning money for creators, colleges and businesses,” enthuses Gordon McConnell, assistant vice president, Entrepreneurship & Innovation Group in OKED. “We started a program to get patents into the market quickly.” The startups selected for incubation in AZ Furnace are either entrepreneurs in search of an idea to market or idea-creators ready to market through a business entity. The fledgling enterprises are capital-ready in 12 months or less.

Enterprise starts with a leader and a vision. The scale of the vision is what makes the difference, says Isenberg. The vast majority of business owners are thinking of a model that gets them to the point that they’re putting money in the bank. He says, “Entrepreneurs are thinking of a model that finds smart people, willing customers and puts the cash to back into the enterprise.”

“Angels invest in businesses they understand or CEOs they respect,” says Broome. “There’s a need for more of that in the Valley. We’re just not seeing the next Apple or Google evolving here.”

Gaining visibility

“The biggest challenge about getting angel and venture money is visibility,” says Brandon Clark, region coordinator for Startup Arizona.  “If you’re a promising digital startup locally, it’s a little harder to get noticed nationally being from a region not known for its digital startups.  That’s starting to slowly shift.” National publications, FastCompany and Entrepreneur Magazine, have eyed Arizona as an emerging technology region.

The development opportunity for the small business is capital. Combine the “Broome Factor”—known businesses; known leaders—with the large number of startups, and there are too many funding requests heading towards too few checkbooks.

What makes early investors open pocketbooks to startup businesses is scalability. Businesses with potential to grow create the greatest return on investment for the angels. “It’s also makes a difference to the local economy,” says Isenberg. “Local policymakers need to change their focus from ‘startup’ to a ‘high value growth business’.”

Cities like helping scalable startups — and provide resources that build success. There’s a loyalty factor when the business grows; it typically remains in the hometown that helped it succeed. This is important to Chandler, Mesa, Peoria, Phoenix, Scottsdale, and Surprise. These five cities have specifically invested in incubators and accelerators to nurture and graduate businesses achieving market traction. Chandler, Phoenix and Tucson have involvement with collaborative workspaces — Gangplank and Co+Hoots — as well.

While an employee or two in a collaborative workspace works well for a while, the time comes when a move up is needed. Clairvoyant, an enterprise and analytics startup now in Chandler Innovations started with Gangplank. “We grew from four employees in March to 12 in April,” smiles Amber Anderson, a firm partner and its business developer. “We needed a place to meet with clients and work with a growing team.” Still self-funded, the growing entity plans to hit 20 employees by January.

Mackay explains, “We help a company like this grow and hope that as it expands it continues to locate in Chandler.” To that end, the city is working with landlords in its Price Corridor to offer “teenage” space that lets a business move from the heavily subsidized rents and back office support of the incubator into its own place—without too much sticker shock.

Support from cities

The difference by which startup is accepted into a city’s incubator is the ability to scale up from the garage to commercial space; from one employee to more than 20. Chandler and Mesa are looking for businesses with this capacity. Innovations gives lab and office space to businesses that have formed entities — LLCs, corporations, partnerships — and a business plan. Mesa’s new Technology Accelerator is planned with a similar focus, but is looking for businesses at an earlier stage. Surprise’s Arizona TechCelerator wants to shepherd a business to the angel investor stage.

In Surprise, scalability is one of the criteria to be accepted into Arizona’s oldest incubator. The TechCelerator is looking for businesses offering something outside the box or creating a new niche. “The company has to be started before we’ll consider them,” says Julie Neal, the economic development coordinator for the city’s enterprise. “They need a mentor, a plan and have to know where they are going.”

“Scaling up is difficult,” says Isenberg, “but doing it right defines the difference between the successful entrepreneur with a growth business and a startup that just stays small. Marketplaces are competitive. The startup has to acquire customers. That means overcoming inertia or changing buyer behavior. While established companies are cruising on their business platforms, the startup has to hire people, start a company, raise money, and all the while, it’s competing in the marketplace. That’s tough work.”

After incubation, the business must gain market traction. At this phase, the fledgling enterprise has product going out and customers paying for it. The kinks are being smoothed, and it’s time to move up to the next stage and grow. Isenberg says that the high growth criterion is simply 20 percent annual increases in sales or staff for five years.

Getting capital

To make this leap requires high levels of capital — the checks venture capitalists cut. The biggest challenge in Phoenix is that there are few sources for local venture capital. The venturists hang out in places like Silicon Valley, Boston, San Diego and Seattle. “There are even a couple of funds with deep ties to the Valley,” worries Clark, “but they have very little involvement in local startups.”

Clate Mask, CEO of Infusionsoft, had to travel out of town for his venture capital. “At one time, I was told that a fund wouldn’t cut a check for a firm in Phoenix because we didn’t have the workforce for success,” he says. “That’s no longer true; venture funds are seeing that there is a real climate for success in the Valley.”

Another resource for a growing business is the Arizona Commerce Authority’s “Growing Your Arizona Business” services. The quasi-public agency provides mentorship, regulatory assistance, access to incentive programs and site selection. It also works as a liaison connecting the growing business with other business resources. The agency mentors businesses in accessing federal procurement and grant opportunities as well as serving as an entrée to international trade.

Overall, the major resource in Arizona for start-up businesses is the universities. Anemic legislative funding for the schools causes their efforts to help to face the same struggles growing businesses face. Their efforts to improve Arizona’s long-term economy are stymied by a declining source of capital.

“ASU is underfunded,” complains Barry Broome. “The school has done an amazing job despite being financially crippled by budget cuts. It’s suffering from a lack of resources to take its programs to scale.” “Scalability” is applicable to the business-development programs at the universities and other public agencies just as it is for growing enterprises.

“Getting money for those programs is the top job for the next governor,” predicts Broome.
Opportunity in Arizona will come from the core of businesses growing today. They will create the jobs for the new economy and drive economic success for the next generation.

social media day

Gigya brings 200 jobs with Arizona expansion

A California firm that helps companies connect with customers through social media says it has opened a Phoenix office and plans to hire more than 200 employees within three years.

Arizona Gov. Jan Brewer touted Tuesday’s announcement by Mountain View, Calif.-based Gigya as the latest sign that her efforts to cut business tax rates and regulations is drawing new companies to the state.

Gigya CEO Patrick Salyer says the fast air access between Phoenix and the Silicon Valley, ease of setting up shop and available trained workforce made Phoenix the company’s top choice. The company will receive $450,000 for training from the Arizona Commerce Authority.

Salyer says the company has begun hiring and expects to have 50 sales, account and client management employees here by the end of the year.

Go Daddy founder and former CEO Bob Parsons is resigning as executive chairman to spend time on other ventures.

Parsons Acquires Scottsdale-based Martz Agency

Valley entrepreneur and philanthropist Bob Parsons today announced the acquisition of Martz Agency by MP Agency, L.L.C., an organization owned by Parsons. The award-winning Scottsdale based marketing and public relations firm, which will be renamed Martz Parsons, will bring creative firepower to Parsons’ growing portfolio of businesses.

Parsons has said that by looking at and structuring their marketing as a revenue generator that makes money rather than an expense item, businesses are able to not only bring attention to their brand but also increase their revenue streams. Parsons’ numerous Valley based entities, including Harley-Davidson of Scottsdale, Go AZ Motorcycles, Spooky Fast Parts & Engineering, YAM Properties, The Bob & Renee Parsons Foundation and Scottsdale National Golf Club, will be using Martz Parsons as their agency of record. The agency will immediately add talent to keep pace with the growth.

Martz Agency, founded by Carrie Martz in 1980, is among the most highly regarded agencies in Arizona. Moving forward, Carrie Martz will assume the title of CEO and the agency will continue to serve its existing clients. Existing and future accounts, including Parsons personal enterprises, will be able to leverage the Agency’s unparalleled talent and newly expanded resources to further develop and empower their brands.

“I am thrilled that someone I consider to be a marketing genius has purchased the Agency,” said Carrie Martz.  “This is a once in a lifetime opportunity for our agency and for our clients. With Bob Parsons behind us, I believe our Agency will become even more value to the clients we serve.”

Bob Parsons, like Carrie Martz, is well-known for his intense focus on providing an excellent customer experience. Moving forward, clients can expect their accounts to be managed with the same level of personalized care that Martz Agency has delivered for the last 33 years.

“It’s no secret that I am passionate about marketing,” said Bob Parsons. “The formula is simple … great brands that deliver an uncontested customer experience thrive. Martz Agency brings years of experience, professionalism and enthusiasm to the table. Together, we should knock it out of the park.”

Martz Agency’s current client roster includes Yurbuds, Arizona Commerce Authority, Toronto based Pacific Links International, Valley of the Sun YMCA, Fennemore Craig, RLC Labs, One Neck, Mirabel, The Reef Residences at Atlantis, Estrella by Newland Communities, and Olympia Group.

Business Credit Score

Progrexion Announces Phoenix Office, Hundreds of Jobs

Progrexion, the nation’s leading provider of services in the credit repair industry, today announced it is opening a new office in Phoenix, bringing hundreds of new jobs to the region.

“We are excited to enter such a dynamic and high-quality market like Phoenix to meet our growth demands. We acquired 30,000 square feet in North Phoenix for a sales call center and plan to add hundreds of hires initially, and then grow from there”, said Gene Abernethy, Senior Vice President – Human Resources for Progrexion, based in North Salt Lake, Utah.

“We are excited that Progrexion has chosen Phoenix as its new site,” said Mayor Greg Stanton. “This is one example of how Phoenix is making a big comeback in the job market. Our competitive and dynamic workforce makes us a top choice for companies looking for new opportunities.”
Progrexion used Dallas-based global location advisory firm Site Selection Group, LLC to assist in its national site search to expand its credit repair telesales operations.

“We worked closely with Progrexion to filter through a large number of potential cities to determine which location had the best chance to provide high quality associates and community support to meet Progrexion’s growth needs. Phoenix was the clear choice,” stated Samuel J. Pruitt, Executive Vice President & Principal of Site Selection Group, LLC.

“Progrexion is the national market leader in its industry, and its new Phoenix operations will allow the company to access a high-quality workforce to propel its growth initiatives,” said Arizona Commerce Authority President and CEO Sandra Watson. “Progrexion’s capital investment and expansion in Phoenix will bring hundreds of jobs to Arizonans while strengthening our state’s overall economy.”

Progrexion will host a job fair September 20 from 3-7 p.m. and September 21 from 10 a.m. to 2 p.m. at 20620 North 19th Avenue in Phoenix. They are looking for candidates to fill call center and sales agents positions. On Friday, burgers and live music will also be available. On Saturday, the job fair will feature a family carnival with a bounce house, petting zoo, face painting and prizes.

In addition, Progrexion intends to bring to the Phoenix area its robust corporate giving program, which was launched in Utah in 2012 and has already raised more than $100,000. During the job fair, Progrexion will collect food and cash contributions to benefit St. Mary’s Food Bank. For every 10 pounds of food or $10 in cash, attendees of the job fair will be entered into a drawing for many great prizes, including a flat-screen TV and a mountain bike.

“St. Mary’s Food Bank would like to welcome Progrexion to the valley and we look forward to working with a new partner in the fight against hunger,” St. Mary’s Food Bank Alliance President and CEO Beverly Damore said. “Progrexion has been a hunger hero in their home state of Utah and were quick to reach out to the World’s First Food Bank upon their arrival in Arizona – where one in four children are affected by food insecurity. We look forward to this great new partnership.”

“Progrexion’s compassion for helping others succeed is a welcome addition to the Greater Phoenix region,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council. “The region’s workforce and community strengths played a major role in their decision, and we’re proud to welcome them to Phoenix.”

“We look forward to being involved in the Phoenix community and establishing ourselves as a true employer of choice,” Abernethy said.

To find out about Progrexion’s career opportunities, visit http://www.progrexion.com/careers.

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Phoenix ranked Top 10 for foreign direct investment

Greater Phoenix was named one of fDi Magazine’s top 10 “American Cities of the Future” for foreign direct investment (FDI) strategy in 2013/14. Greater Phoenix ranked sixth among overall North and South American cities, and second in the United States behind Chicago.

“One of GPEC’s primary objectives has always been an international presence and strong performance in foreign direct investment. The fact that we were ranked second to Chicago – a true world leader in FDI – speaks volumes about our success and how far we’ve come in a relatively short period of time,” said Barry Broome, GPEC President and CEO. “While Chicago is one of America’s most illustrious cities, Greater Phoenix is still developing its brand, giving everyone living and doing business here an incredible opportunity to be a part of its legacy. There’s no question in my mind that being a top international city for business will be one of our marquee features.”

The rankings are part of fDi Magazine’s “Locations of the Future” series, which are designed to identify the most promising destinations around the world for future inward investment. Each world region is assessed over two years.

The Greater Phoenix region has seen particular success this year with the launch of an international toolkit and forum series targeting international business executives. Called “Doing Business in Greater Phoenix, U.S.A,” the toolkit is a compilation of how-to advice ranging from human resources issues, immigration law, investment parameters, taxes, import/export laws and banking.

In addition, GPEC also partnered with the Arizona Commerce Authority, Arizona State University, Green Card Fund and Tucson Regional Economic Opportunities, Inc. to form the China-Arizona Alliance, which seeks to establish extensive contacts within the government and Chinese business communities and to promote Arizona as a destination for Chinese investment.

Sandra Watson

Sandra Watson – 50 Most Influential Women in Arizona Business

Sandra Watson – President and CEO, Arizona Commerce Authority

Watson has more than 20 years of economic development leadership and experience. She and her teams have attracted hundreds of companies to Arizona that have invested billions of dollars in capital and created more than 65,000 quality jobs.

Surprising fact: “My career in economic development began in Canada. When my family and I moved to Arizona, I continued economic development work with the City of Chandler and then the state of Arizona.”

Biggest challenge: “Economic development during the recession was extremely challenging. Working with Gov. Brewer and our elected leadership to create the Arizona Commerce Authority and lay the foundation for a more sustainable economy has been incredibly rewarding and is already paying dividends through quality job creation for Arizonans.”

Fifty Most Influential Women in Arizona Business – Every year in its July/August issue Arizona Business Magazine features 50 women who make an impact on Arizona business. To see the full list, read the digital issue >>