Tag Archives: honeywell

Erin Harper, Keyser

Erin Harper Joins Keyser

Keyser announced today that Erin Harper has joined the firm. 

I am very pleased to be able to welcome such a talented and experienced project manager to our growing team,” said founder Jonathan Keyser. “Erin’s commitment to service is a perfect fit for our service based culture, and her experience and expertise will help Keyser continue to set the bar for providing best in class service to each and every client.”

Erin Harper brings 20 years of comprehensive project management experience to Keyser, having worked as a project manager for American Express, Motorola, Honeywell, and other corporate space users. Erin’s project experiences ranges from large ground up construction projects to modest tenant improvement remodels.

I am very excited to have found a company whose core values and principles for business and life are in alignment with my own,” stated Erin. “I am looking forward to making a difference, and to being a part of changing how project management is done through Keyser’s model of selfless service.”

Photo by Chris Oxley

Honeywell helps build Navy's most advanced warship

The U.S. Navy’s newest aircraft carrier, Gerald R. Ford (CVN 78), will be christened on Saturday, November 9, and Honeywell is celebrating the company’s contribution to the ship’s construction. With a workforce of approximately 132,000, Honeywell supplied a variety of systems and solutions including electromechanical valve actuators, inertial measurement units and personal protective equipment.  Honeywell’s next-generation products have enabled automation of many functions on the ship as well as reduced number of parts to be maintained for spares and provisioning, which reduces the overall operating cost. In addition, Honeywell’s personal protective equipment products are contributing to the overall safety of the men and women responsible for protecting our nation.

Ford’s christening marks the accomplishment of years of construction and design and man hours. Honeywell is part of a vital defense industrial base consisting of more than 2,000 small, mid-sized, and large businesses from 46 states that provides parts and services for Ford-class carriers.

Ford is the first new carrier design in 40 years and reflects concepts and technologies matured during 100 years of U.S. Navy carrier operations. The ship will soon take its place in the nation’s carrier fleet, where it will continue the legacy of air power “from the sea” as the cornerstone of U.S. military supremacy around the globe. Ford’s design will enable it to adapt to the ever-changing requirements necessary to support carrier aviation well into the future.

“By providing highly reliable and technologically advanced equipment in a standardized configuration, Honeywell was able to help the Navy lower the number of parts required for maintenance – and ultimately lowering the overall operating costs. Honeywell is proud and honored to stand alongside the many men and women on the Gerald R. Ford who will be depending on our technology and mission-critical equipment in the open seas,” said Mike Madsen, president of Honeywell Aerospace’s Defense & Space.

More information on Gerald R. Ford (CVN 78) is available at: http://www.thefordclass.com.

Photo by Chris Oxley

Honeywell helps build Navy’s most advanced warship

The U.S. Navy’s newest aircraft carrier, Gerald R. Ford (CVN 78), will be christened on Saturday, November 9, and Honeywell is celebrating the company’s contribution to the ship’s construction. With a workforce of approximately 132,000, Honeywell supplied a variety of systems and solutions including electromechanical valve actuators, inertial measurement units and personal protective equipment.  Honeywell’s next-generation products have enabled automation of many functions on the ship as well as reduced number of parts to be maintained for spares and provisioning, which reduces the overall operating cost. In addition, Honeywell’s personal protective equipment products are contributing to the overall safety of the men and women responsible for protecting our nation.

Ford’s christening marks the accomplishment of years of construction and design and man hours. Honeywell is part of a vital defense industrial base consisting of more than 2,000 small, mid-sized, and large businesses from 46 states that provides parts and services for Ford-class carriers.

Ford is the first new carrier design in 40 years and reflects concepts and technologies matured during 100 years of U.S. Navy carrier operations. The ship will soon take its place in the nation’s carrier fleet, where it will continue the legacy of air power “from the sea” as the cornerstone of U.S. military supremacy around the globe. Ford’s design will enable it to adapt to the ever-changing requirements necessary to support carrier aviation well into the future.

“By providing highly reliable and technologically advanced equipment in a standardized configuration, Honeywell was able to help the Navy lower the number of parts required for maintenance – and ultimately lowering the overall operating costs. Honeywell is proud and honored to stand alongside the many men and women on the Gerald R. Ford who will be depending on our technology and mission-critical equipment in the open seas,” said Mike Madsen, president of Honeywell Aerospace’s Defense & Space.

More information on Gerald R. Ford (CVN 78) is available at: http://www.thefordclass.com.

boeing-phantom-ray

GPEC analyzes impact of potential defense cuts

The Greater Phoenix Economic Council today released findings and recommendations from its Aerospace and Defense Market Intelligence Program, a two-phase initiative that took an in-depth look at the region’s aerospace and defense companies to determine their strengths, weaknesses and readiness for the sequestration, federally-mandated automatic spending cuts scheduled to take place on March 1 unless Congress intervenes.

As a result of the sequestration, the Department of Defense (DoD) must cut $1 trillion from its budget. Arizona has the sixth largest share of DoD contracts, and stands to lose as much as $2.3 billion in annual revenue on account of sequestration-based cuts.  Until it happens, however, the size or effects of the cuts in Arizona remain ambiguous.

In anticipation of these massive cuts, the Greater Phoenix Economic Council (GPEC) – along with its Economic Development Directors Team and the Greater Phoenix Chamber of Commerce – last year undertook a major market intelligence initiative to determine the existing strengths and weaknesses of Arizona’s aerospace and defense companies. Based on this data snapshot, the analysis also sought to understand the potential impact of sequestration on our local companies, communities, workforce and innovation base.

“As part of GPEC’s program, I personally sat down with several aerospace and defense companies located in Phoenix. The message I heard from them was resoundingly clear – the uncertainty over the timing and severity of these cuts has many of them paralyzed, and they want guidance,” said Phoenix Mayor Greg Stanton. “With 49,000 Arizona aerospace and defense jobs at stake, it’s critical that our federal leaders work together to avert this crisis or at least provide a strategic direction for where we go on March 2 and beyond.”

“Sequestration is a bad way to budget. Local companies and individuals get caught up in a political game that does little to solve our nation’s long-term financial challenges,” Mesa Mayor Scott Smith said. “Washington should follow the example of cities and make smart cuts to fix the budget rather than making arbitrary cuts that do more harm than good.”

The program consisted of two main components. The first developed an in-depth profile and analysis of 114 local companies identified by GPEC using data from the Office of Management and Budget. The second was an extensive door-to-door outreach effort to these companies, conducted by mayors, local chambers of commerce, GPEC Ambassadors (volunteers from GEC’s member companies) and municipal economic development directors and their teams.

“As a top-ranked defense state, Arizona has much to lose with the budget cuts associated with the 2011 Budget Control Act. The West Valley, proud home to Luke Air Force Base, has worked tirelessly to protect the mission of the base and to secure the F-35 aircraft,” Avondale Mayor Marie Lopez Rogers said. “Sequestration and the drastic budget cuts to defense and aerospace will undermine the efforts of the communities in the West Valley and negatively impact our local economy, which is tied closely to Luke Air Force Base and the defense-related industry.”

It’s also important to note that nearly 75 percent of the state’s research and development expenditures are housed within Arizona’s corporate infrastructure – companies like Intel, Boeing, Raytheon and Honeywell. As such, drastic reductions in their DoD contracts could result in losses in some of the state’s most significant research programs, which affect Arizona’s science position, its universities, and opportunities for increased investments and exports.

“These looming cuts represent a crossroads for our region,” GPEC President and CEO Barry Broome said. “The region’s corporate, science, civic and government partners must convene to not only mitigate job loss but also to support and protect the region’s physical assets, workforce talent and innovation from being moved out of the market.”

The findings represent a snapshot of the Greater Phoenix region’s aerospace and defense industry for a specific period of time, from May through December 2012 when the data was collected. During this time period, sequestration was considered more of a threat and less of a reality.

Top-line analysis revealed that 76 percent of the companies reported to be either stable (52 percent) or expanding (24 percent). Twenty-six percent reported that their businesses were contracting – primarily companies and operations where DoD contracts represent the largest share of their revenue base. Those that were expanding focused on diversification, including commercial and international markets, or DoD growth areas like intelligence, surveillance and reconnaissance, cyber technology, space technology and counterterrorism.

Because 2,000 companies throughout Arizona were awarded $13 billion in defense contacts in 2012 – and the industry represents 43,000 direct jobs – even a 25 percent contraction could be detrimental to one of the state’s major employment bases. For larger, Tier 1 companies, the short-term outlook is more stable as many have expanded products and services in anticipation of the cuts. However, Tier 2 companies that generally represent the industry’s supply chain are less likely to withstand the cuts due to their reliance on Tier 1 companies for contracts and subcontracts. Some of these companies have neither the access to capital or the working capital to wait it out – meaning they could be forced to lay off workers or cease operations.

Based on the program’s findings, GPEC’s five recommendations include:

1. A federal-level strategy from Arizona’s congressional leadership to either fully reverse sequestration or provide a “go forward” strategy to ensure Arizona’s aerospace and defense assets – including R&D and skilled workforce – are retained and redeployed.
2. Public and bilateral support for Governor Brewer and the Arizona Commerce Authority in their efforts to secure an FAA-designated test site.
3. A major commitment to science and technology to ensure the aerospace and defense industry’s existing knowledge and technology assets are leveraged to generate new and higher-value economic growth opportunities for our existing workforce talent while also attracting new, skill ed workers to Greater Phoenix.
4. Increased support for regional export opportunities from state and regional leaders.
5. An ongoing commitment to business retention and expansion, particularly with regards to sequestration.

To view the Aerospace and Defense Market Intelligence Report in its entirety, as well as all five recommendations, please visit http://www.gpec.org/aerospace.

boeing-phantom-ray

It takes fuel to win tech race

Many of us can relate to thinking of Arizona’s economy as an automobile race. To win, you need a smooth race course, a fast car, a winning driver and high-powered fuel.
Carrying that analogy into Arizona’s technology sector, it’s clear that a lot of resources have been invested and progress has been made in building a world-class race course.  We’ve made tremendous strides in creating a business climate and technology environment for facilitating both private and public sector support to address the needs of Arizona’s technology businesses.

The Arizona Technology Council has worked collaboratively with many different technology champions to build this course. Technology issues are supported by the Governor’s office, the state’s legislature, the Arizona Commerce Authority, the Arizona Chamber of Commerce and Industry, and more.

Technology incubators and shared space facilities such as Gangplank in Chandler, Avondale and Tucson; Hackspace and Venture Catalyst at ASU’s SkySong in Scottsdale; BioInspire in Peoria; Innovation Incubator in Chandler; AzCI in Tucson; and AZ Disruptors in Scottsdale are making sure that today’s innovators are being given the right support, tools and environment to create the next big thing.

Collectively, our wins have included the passage of a tax credit for qualified research and development that is the best in the nation, the creation of the first statewide Arizona SciTech Festival and the birth of the Arizona Innovation Institute, to name a few.
Arizona’s technology industry also has great race cars. These are the technologies and intellectual property that create wealth and jobs driven by both Fortune 500 companies and entrepreneurs.  Companies such as Intel, Microchip Technologies, Freescale, ON Semiconductor and Avnet can all be found here.  Nearly all of the largest aerospace and defense prime contractors in the nation are located in Arizona, including Boeing, Honeywell, Lockheed Martin, Northrop Grumman and General Dynamics.

The state’s entrepreneurial spirit is reflected in companies such as WebPT, Infusionsoft, Axosoft, iLinc and Go Daddy that were founded in Arizona along with the many innovators that are coming to the table every day with new ideas rich in technology.

These companies large and small are driven by some of the greatest race car drivers the nation has produced.

But when it comes to fuel, Arizona’s economy has always been running close to empty. We lack the vital capital needed to win the race. Having access to angel investors, venture capital and private equity as well as debt instruments is critical to Arizona’s success.
The situation has not been improving on the equity side of the fuel equation. To offer some relief, the Arizona Technology Council is proposing legislation that would create a system of contingent tax credits to incentivize both in-state and out-of-state investors to capitalize Arizona companies.  This program, called the Arizona Fund of Funds, would allow the state to offer $100 million in tax incentives to minimize the risk for those seeking to invest in high-growth companies.  The state government’s role would be to serve as a guarantor through these contingent tax credits in case the investments don’t yield the projected results.  Expect more information on this important piece of legislation as it advances.

On the debt side of the fuel equation, there are encouraging signs that the worst of the credit crunch may be over. Early-stage companies need access to debt instruments, or loans. Capital is needed for equipment and expansion. A line of credit can help early-stage companies through ongoing cash-flow issues. But loan activity is still modest in Arizona for small companies. It remains heavily weighted toward the strongest corporate and consumer borrowers.

Capital goes hand in hand with innovation, high-paying jobs and cutting-edge technology, products and services. Before Arizona’s economy can win the race, we will need to become more self-sufficient at providing the fuel necessary to be a winner.

Steven G. Zylstra is president and CEO of the Arizona Technology Council.

customer.service

Help to ease Holiday Shopping Customer-Service Worries

As we approach holiday shopping time, many of us start thinking about long lines, frayed nerves and dealing with frazzled customer-service representatives. However, some companies are now taking the time to turn customer-service interactions into a strong point of competitive difference that makes consumers want to come back for more, especially when price and other considerations are basically equal.

A new program from the Center for Services Leadership at the W. P. Carey School of Business at Arizona State University is designed to help make your service experiences better. It’s also meant to help improve relationships between participating companies and the firms they work with, such as suppliers, distributors and retailers.

“We worked with Honeywell to create a groundbreaking, totally online program aimed at making every single customer-service representative and field service representative completely focused on excellent service,” says Associate Professor Nancy Stephens of the W. P. Carey School of Business, faculty director of the program. “Honeywell Aerospace is the first company to decide to send every one of its customer-oriented representatives – 1,400 people — through the program. They want to make a very visible commitment to customer service, and other companies are looking at the program, too.”

“The partnership that’s come together between the W. P. Carey School’s Center for Services Leadership at ASU and Honeywell has really allowed us to put together a fantastic program that develops the customer-service skills for Honeywell Aerospace employees,” says Adrian Paull, Honeywell vice president for customer and product support.

Honeywell’s first class just graduated from the academy in late October, but the program can be customized by other firms. Some units are already being taken online by employees at other big-name companies.

“All companies have business-to-business relationships they want to nurture,” says W. P. Carey School of Business Dean Robert Mittelstaedt. “This new program creates an opportunity for them to really polish their customer-service skills, not only for the general public, but also for those B2B customers.”

The Center for Services Leadership helps well-known firms respond to the challenges faced as services have become a driving force in economies around the world, with less growth happening in products and manufacturing. The center’s member companies include household names like Boeing, FedEx, Honeywell Aerospace, IBM Global Services, Mayo Clinic, PetSmart, Siemens Industries, Southwest Airlines and State Farm Insurance Company.

“The companies looking at this program understand that it offers expertise from the center, including faculty instructors from the Top 30-ranked W. P. Carey School of Business,” says Professor Mary Jo Bitner, executive director of the center. “At the same time, the program is also extremely flexible, since it’s offered online. It allows for standardized training across all of a company’s worldwide locations and the chance for employees anywhere from Dallas to Shanghai to Berlin, to get out of their everyday mindsets and interact with each other and make things better for their customers.”

“Wherever we are in the world, we need to operate within the cultural boundaries of that area and provide customer service that is needed and expected by the people in that area,” says Eileen Barry, a customer support project manager at Honeywell. “The major change that the W. P. Carey School training has provided to me personally and at work each day is to always think of things through the customer’s eyes.”

Some courses in the program include “Listening to the Voice of the Customer,” “Designing Customer-Focused Service Processes,” and “Recovering from Service Failures.” The idea is to make customers happy and to address any customer disappointments with great recovery. Those who complete the program receive a certificate and are eligible for Continuing Education Units (CEUs) from Arizona State University. These units are widely used as a measure of participation in non-credit, professional development courses.

For more information about the Center for Services Leadership or the new program, go to www.wpcarey.asu.edu/csl or call (480) 965-6201.

manufacturing - Arizona Business Magazine May/June 2012

Computer & Aerospace Manufacturing – Arizona Builds Its Financial Future

Computer and aerospace manufacturing plays a significant role in Arizona’s financial future.

The economic storm that has wreaked havoc for most businesses was barely a breeze for Michael McPhie.

“We were really not affected negatively,” says the CEO of Curis Resources, a mineral exploration and development company in Florence. “The economic downturn really did not affect the demand for some commodities, so copper mining continues to be a significant economic engine for the state.”

With 10 percent of the world’s copper supply coming from Arizona, a combination of continued high demand from China and innovative and cost-effective methods of extraction allowed the copper industry — one of Arizona’s oldest professions — to weather the economic storm with little damage.

While Arizona’s Top 10 manufacturing companies added about 3,200 jobs in 2011, some of the state’s other manufacturing companies were not so lucky.

“It certainly wasn’t easy, especially for our smaller manufacturers, who make up 79 percent of Arizona’s manufacturing sector and employ four or fewer people,” says Mark Dobbins, senior vice president and secretary for SUMCO Phoenix Corporation, which manufactures silicon wafers for the semiconductor industry. “Although companies of all sizes were affected by the recession, they were probably hit the hardest.”

While the state’s manufacturing sector is holding steady, the uncertainty coming out of Washington and in the financial markets has not helped its economic recovery, according to Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry.

“The federal health care law, EPA regulations and a National Labor Relations Board that has taken positions hostile to manufacturing has likely done more to slow recovery than spur it on,” Hamer says. “The governor and the Legislature, however, have responded decisively, passing in 2011 a once-in-a-generation economic competitiveness package that makes Arizona more attractive than ever to manufacturers.”

The Arizona Competitiveness Package includes a mix of tax reforms and business incentives designed to encourage expansion among existing Arizona companies, while establishing Arizona as an attractive location for businesses worldwide.

“Arizona manufacturers have underperformed in the export arena as compared to other states in the last several years,” Hamer says. “Economic competitiveness legislation passed by the Legislature and signed by the governor last year goes far in attracting manufacturers, especially those who sell beyond Arizona borders.”

While the landmark 2011 legislation was a shot in the arm for manufacturing and business, the Arizona Manufacturers Council — which serves the state in conjunction with the Arizona Chamber of Commerce and Industry — has identified several legislative issues that are important to manufacturing in 2012, Hamer says. The Arizona Manufacturers Council is striving to:

  1. Streamline regulations and the issuance of permits.
  2. Eliminate barriers to economic development created by inadequate infrastructure for capital intensive manufacturing operations.
  3. Promote a friendlier legal environment through tort reform.
  4. Support policies that will strengthen the solvency of Arizona’s unemployment insurance system.

“We need a clearly defined economic goal and strong collaborative leadership for the next five, 10, 15 and 20 years for the state,” says Dobbins, who is also immediate past chairman of the Arizona Manufacturers Council. “We need a clear education pathway to support Arizonans’ having the job skills to meet the challenges of that goal. We have the infrastructure to become a major player in all of our primary industry sectors. Now we have to create the political will to set the state’s objective to become the international commercial and business hub of the Southwest.”

To get there, Dobbins says, “We need to rid ourselves of outdated policies that discourage businesses from relocating here and be aggressive at pursuing growth. We must invest in education and fund our schools and universities properly so they produce graduates who are vocationally skilled and/or STEM-skilled and job-ready.”

Even in the copper mining industry is transitioning into a knowledge-based workforce, McPhie says.

“We are working with local colleges so we can attract and educate the best and the brightest engineers, hydrologists and geologists,” McPhie says. “There are tremendous opportunities to make significant wages in the copper mining industry, particularly because there will be a significant numbers of retirees due to our industry’s aging workforce.”

It’s not just the mining industry that is looking for a new generation of workers. “We’ve also seen manufacturing (hiring) pick up substantially in the last month,” says Andy Ernst, regional vice president for Robert Half International, a staffing services firm.

While Dobbins says the computer and electronic product manufacturing is generally considered among the state’s strongest manufacturing areas, the production of transportation equipment — which includes the aerospace and defense industries — could be the most captivating, yet challenging, sector to watch in the next several years.

Boeing Phantom Eye

Photo courtesy Boeing

“The advent of Unmanned Aircraft Systems (UAS) in the defense sphere is extremely exciting for Arizona manufacturing,” Hamer says. “The AMC is working with the Arizona Aerospace and Defense Commission and other stakeholders to secure Arizona’s position as a leading location for research and development, manufacturing, and testing of UAS, and we are supporting Arizona’s proposal to be designated by the Federal Aviation Administration as a national UAS testing area.”

Arizona’s largest aerospace and defense companies are investing in the future of UAS, which the military uses to track enemy movements, bomb targets and move supplies without putting soldiers in harm’s way. Boeing moved its unmanned division to Mesa, where it can manufacture the A160T Hummingbird, the company’s flagship unmanned aircraft, once every 12 days. Raytheon in Tucson is working on several UAS innovations, including an operating system that would make it easier to install various brands of sensors and communicate among multiple unmanned aircraft.

But aerospace and defense isn’t the only area expected to create new jobs.

“In addition to the potential growth of Unmanned Aircraft Systems in Arizona, Intel’s $5 billion investment in a new factory in Chandler will require 1,000 workers and is creating 14,000 jobs in the construction sector in anticipation of the facility’s completion in 2013,” Hamer says. “The investment has a tremendous downstream effect on other companies.”
Renewable energy is another potential hotbed for growth.

“If it is able to overcome certain global market challenges, certainly the solar industry has big growth potential for the future of our state,” Dobbins says. “Also, as long as we, as a society, continue to be in love with personal electronics — computers, laptops, cell phones — and our cars, manufacturing in Arizona will continue to grow.”

To help that growth, the Arizona Chamber of Commerce and Industry is focused on two initiatives:

  1. Southwest<>Direct, which aims to make Arizona the international commercial and business hub of the Southwestern U.S.
  2. A collaboration between the education community and business to secure highly trained, vocational skills-certified and STEM-certified employees for today and tomorrow’s increasingly technical workplace.

“The Chamber and the AMC are (also) working together to promote a tax environment that attracts manufacturing, including reforms to the state’s treatment of income derived from capital gains, and lengthening the time businesses can carry losses forward against future profits as way of encouraging more startups and businesses that require large capital investments,” Hamer says.

Despite the increase in job creation and slight decrease in economic despair, the state’s manufacturing sector still faces some challenges.

“With looming federal budget cuts, Arizona’s defense and aerospace manufacturers stand to face some big changes,” Hamer says. “It is incumbent upon our leaders to continue to position our state as a leader in this field by aggressively pursuing Unmanned Aerial Systems flight testing, research and manufacturing in Arizona.”

Hamer says that it will be imperative for lawmakers and business leaders to have a unified vision for the future of manufacturing in Arizona.

“Arizona needs to be mindful of the growing creep of regulations and red tape that stifles business’ ability to focus on innovation and investment,” Hamer says. “Gov. Jan Brewer recognized this when her first act as governor was to institute a regulatory moratorium; the Legislature soon followed the governor’s action with a sweeping regulatory reform package of its own. Increased transparency in the regulatory sphere at all levels of government will help attract (new) manufacturing to Arizona.”

ARIZONA AEROSPACE

Here are four of the major players in Arizona’s defense and aerospace industry:

Boeing: The company’s 4,878-employee Defense, Space & Security facility in Mesa is best known for producing the AH-64 Apache attack helicopter for the U.S. Army. Additional work at the Mesa facility includes production of electrical subassemblies for the F/A-18, F-15, and C-17 aircraft.

General Dynamics: With more than 5,400 employees at its Scottsdale headquarters, General Dynamics C4 Systems specializes in command and control, communications networking, computing and information assurance for defense, government and select commercial customers in the U.S. and abroad.

Honeywell International: With more than 10,000 employees at 21 Arizona facilities, Honeywell International contracts with the Department of Defense through both their Aerospace and their Automation and Control Solutions business units. In particular, Honeywell Aerospace is headquartered in Phoenix, with major facilities in Tempe, Glendale, and Tucson.

Raytheon Missile Systems: Headquartered in Tucson with 12,000 Arizona employees, Raytheon Missile Systems designs, develops, and produces weapon systems for the U.S. military and the armed forces of more than 50 countries.

Arizona Business Magazine May/June 2012

Manufacturing Companies

Arizona’s Largest Manufacturing Companies

Arizona’s 10 largest public and privately held manufacturing companies, ranked by the number of employees based on full-time equivalents of 40 hours per week and based on industry research.

ŒRaytheon Co.
Arizona employees in 2012: About 12,000
Employment change since 2011: Added about 500 jobs
2010 revenue: $25.2 billion
Principal: Taylor W. Lawrence, president
Company’s focus: Missile manufacturing
Year founded: 1922
Headquarters: Waltham, Mass.
Phone: (520) 694-7737
Website: raytheon.com

Intel Corp.
Arizona employees in 2012: About 11,000
Employment change since 2011: Added about 1,300 jobs
2010 revenue: $43.6 billion
Principal: Paul S. Otellini, president and CEO
Company’s focus: Semiconductor manufacturing
Year founded: 1968
Headquarters: Santa Clara, Calif.
Phone: (480) 554-8080
Website: intel.com

ŽHoneywell International Inc.
Arizona employees in 2012: 10,100
Employment change since 2011: Added about 384 jobs
2010 revenue: $33.4 billion
Principal: Tim Mahoney, president and CEO, aerospace
Company’s focus: Aerospace manufacturing
Year founded: 1952
Headquarters: Morristown, N.J.
Phone: (602) 231-1000
Website: honeywell.com

Freeport-McMoRan Copper & Gold Inc.
Arizona employees in 2012: About 7,600
Employment change since 2010: Added about 600 jobs
2010 revenue: $19 billion
Principal: Richard Adkerson, CEO
Company’s focus: Mining
Year founded: 1834
Headquarters: Phoenix
Phone: (602) 366-7323
Website: fcx.com

General Dynamics C4 Systems
Arizona employees in 2012: 5,402
Employment change since 2011: Added about 376 jobs
2010 revenue: $32.5 billion
Principal: Chris Marzilli, president
Company’s focus: Defense, communications
Year founded: 1952
Headquarters: Falls Church, Va.
Phone: (480) 441-3033
Website: generaldynamics.com

‘Boeing Co.
Arizona employees in 2012: 4,878
Employment change since 2011: Added about 78 jobs
2010 revenue: $64.3 billion
Principal: Harry Stonecither, CEO
Company’s focus: Aircraft manufacturing
Year founded: 1916
Headquarters: Chicago
Phone: (480) 891-3000
Website: boeing.com

’Freescale Semiconductor
Arizona employees in 2012: 3,000
Employment change since 2011: Stayed about even
2010 revenue: $4.5 billion
Principal: Rich Beyer, chairman and CEO
Company’s focus: Microchip manufacturing
Year founded: 1953
Headquarters: Austin
Phone: (512) 895-2000
Website: freescale.com

“Shamrock Foods Co.
Arizona employees in 2012: 1,828
Employment change since 2010: Added about 47 jobs
2010 revenue: $1.650 billion
Principal: Norman McClelland, CEO
Company’s focus: Processor of dairy products
Year founded: 1922
Headquarters: Phoenix
Phone: (602) 477-6400
Website: shamrockfoods.com

”Microchip Technology Inc.
Arizona employees in 2012: About 1,539
Employment change since 2011: Lost about 21 jobs
2010 revenue: $1.487 billion
Principal: Steve Sanghi, CEO
Company’s focus: Microcontroller, memory and analog semiconductors manufacturing
Year founded: 1987
Headquarters: Chandler
Phone: (480) 792-7200
Website: microchip.com

•Orbital Sciences Corp.
Arizona employees in 2012: 1,378
Employment change since 2011: Lost about 58 jobs
2010 revenue: $1.294 billion
Principal: Christopher Long, vice president and GM Gilbert operations
Company’s focus: Aerospace manufacturing
Year founded: 1963
Headquarters: Dulles, Va.
Phone: (480) 899-6000
Website: orbital.com

Aerospace and defense industry - AZ Business Magazine March/April 2012

Aerospace And Defense Industry – Critical To Expanding Economy

Aerospace and defense industry is critical to expanding economy

When I’m asked to name one sector of Arizona’s technology community that is critical to expanding the strength of the economic recovery, I always sum it up in two letters: A&D  — the aerospace and defense industry. It’s a cornerstone industry for Arizona, as our state has seen groundbreaking innovation in this arena for decades.

Boeing, General Dynamics, Honeywell, Raytheon, Lockheed Martin, Northup Grumman and Orbital Sciences are just a handful of the state’s major industry players contributing to Arizona’s impressive resume. An Arizona economic impact study conducted in 2010 reported that compensation per employee in the Arizona aerospace and defense industry is approximately $109,000. This is 2.3 times the statewide average for all employed individuals. The study also reported when accounting for multiplier effects, the Arizona A&D industry in 2009 can account for a total of 93,800 jobs, labor income of $6.9 billion, and gross state product of $8.8 billion.

But keeping Arizona’s aerospace and defense industry healthy and at pace with the ever-changing knowledge-based economy requires competitive business policies and a coordinated effort among state and federal leaders. Recognizing the critical importance of this imperative, there has been a resurgent statewide support for A&D over the last few years.

A big step was taken when Gov. Jan Brewer created the Arizona A&D Commission. Its active members develop industry goals, offer technical support, recommend legislation and provide overall direction. Another milestone occurred when the Arizona Commerce Authority formed and designated the aerospace and defense industry as one of its foundational pillars. Through the efforts of these two organizations, a request for proposal was issued for the first ever Aerospace, Aviation & Defense Requirements Conference in Arizona. Hosted by the Arizona Technology Council in late January, this successful historic event offered a major opportunity for the A&D community to connect with potential new partners. Attendees also heard a multitude of informative speakers, including a gripping keynote address delivered by Gen. Philip M. Breedlove, the Vice Chief of Staff of the U.S. Air Force.

A new chapter in the state’s expanding role in A&D research also recently began when the Arizona A&D Research Collaboratory was formed. The organization brings leaders from Arizona’s A&D industries together with researchers from the University of Arizona, Arizona State University and Embry-Riddle Aeronautical University to work together to gain insight into future technological needs for A&D.

Although these initiatives and programs indicate that there’s a resurgence of attention on A&D in Arizona, there are several key elements upon which the industry leaders within the state must still focus. The industry can’t do it alone. We need a unified congressional delegation employing strategies focused on promoting the desirable, high-wage jobs that A&D bring to their constituents.

We also need states leaders to take the lead in advocating for federal A&D projects that are critical to the existence of the state’s industrial base. These efforts not only reap benefits to the large manufacturers but they are hugely significant to building a robust small business supplier base in the state.

Indeed there are great needs still to be met for achieving newly conceived and exciting goals for manned space flight, homeland security and connecting the world with ever-evolving modern communications technologies. With the proper support, Arizona’s aerospace and defense industry can be critical to meeting those needs.

Steven G. Zylstra is president and chief executive officer of the Arizona Technology Council.

Arizona Business Magazine March/April 2012

50 Largest Employers in Arizona - AZ Business Magazine January/February 2012

50 Largest Employers In Arizona

These are the 50 largest employers in Arizona, including public and privately held companies and not-for-profit corporations, ranked by the number of employees based on full-time equivalents of 40 hours per week and based on industry research.


50 Largest Employers in Arizona

Walmart Stores Inc.

Arizona employees in 2011: 30,634
Employment change since 2010: Added about 300 jobs
2010 revenue: $421.8 billion
Company’s focus: Discount retailer
Year founded: 1962
Headquarters: Bentonville, Ark.
Phone: (479) 273-4000
Website: www.walmart.com

Banner Health

Arizona employees in 2011: 28,353
Employment change since 2010: Added about 600 jobs
2010 revenue: $4.9 billion
Company’s focus: Health care
Year founded: 1911
Headquarters: Phoenix
Phone: (602) 747-4000
Website: www.bannerhealth.com

Wells Fargo & Co.

Arizona employees in 2011: About 14,000
Employment change since 2010: Stayed about even
2010 revenue: $93.2 billion
Company’s focus: Financial services
Year founded: 1852
Headquarters: San Francisco
Phone: (800) 411-4932
Website: www.wellsfargo.com

Bank of America Corp.

Arizona employees in 2011: 13,300
Employment change since 2010: Added about 2,000 jobs
2010 revenue: $150.5 billion
Company’s focus: Financial services
Year founded: 1904
Headquarters: Charlotte, N.C.
Phone: (800) 944-0404
Website: www.bankofamerica.com

McDonald’s Corp.

Arizona employees in 2011: 12,770
Employment change since 2010: Added about 955 jobs
2010 revenue: $22.7 billion
Company’s focus: Food service
Year founded: 1955
Headquarters: Oakbrook, Ill.
Phone: (800) 244-6227
Website: www.mcdonalds.com

Apollo Group Inc.

Arizona employees in 2011: About 12,000
Employment change since 2010: Lost about 460 jobs
2010 revenue: $4.9 billion
Company’s focus: Educational services
Year founded: 1973
Headquarters: Phoenix
Phone: (480) 966-5394
Website: www.apollogrp.edu

Kroger Co. *

Arizona employees in 2011: About 12,000
Employment change since 2010: Added about 400 jobs
2010 revenue: $76.7 billion
Company’s focus: Grocery stores
Year founded: 1883
Headquarters: Cincinnati
Phone: (623) 936-2100
Website: www.frysfood.com
* Includes Fry’s Food Stores and Fry’s Marketplace

Raytheon Co.

Arizona employees in 2011: 11,500
Employment change since 2010: Lost about 600 jobs
2010 revenue: $25.2 billion
Company’s focus: Missile manufacturing
Year founded: 1922
Headquarters: Waltham, Mass.
Phone: (520) 794-3000
Website: www.raytheon.com

JP Morgan Chase & Co.

Arizona employees in 2011: 10,500
Employment change since 2010: Added about 600 jobs
2010 revenue: $102.9 billion
Company’s focus: Financial services
Year founded: 1799
Headquarters: New York
Phone: (602) 221-2900
Website: www.chase.com

Honeywell International Inc.

Arizona employees in 2011: 9,716
Employment change since 2010: Lost about 700 jobs
2010 revenue: $33.4 billion
Company’s focus: Aerospace manufacturing
Year founded: 1952
Headquarters: Morristown, N.J.
Phone: (602) 231-1000
Website: www.honeywell.com

Intel Corp.

Arizona employees in 2011: 9,700
Employment change since 2010: Stayed about even
2010 revenue: $43.6 billion
Company’s focus: Semiconductor manufacturing
Year founded: 1968
Headquarters: Santa Clara, Calif.
Phone: (480) 554-8080
Website: www.intel.com

Target Corp.

Arizona employees in 2011: 9,300
Employment change since 2010: Added about 500 jobs
2010 revenue: $65.4 billion
Company’s focus: Discount retailer
Year founded: 1962
Headquarters: Minneapolis
Phone: (612) 304-6073
Website: www.target.com

US Airways

Arizona employees in 2011: 8,926
Employment change since 2010: Added about 150 jobs
2010 revenue: $11.9 billion
Company’s focus: Airline
Year founded: 1981
Headquarters: Tempe
Phone: (480) 693-0800
Website: www.usairways.com

Catholic Healthcare West

Arizona employees in 2011: 8,291
Employment change since 2010: Added about 500 jobs
2010 revenue: $9.9 billion
Company’s focus: Health care
Year founded: 1986
Headquarters: San Francisco
Phone: (602) 406-3000
Website: www.chw.edu

Home Depot Inc.

Arizona employees in 2011: About 8,000
Employment change since 2010: Added about 350 jobs
2010 revenue: $66.2 billion
Company’s focus: Home improvement
Year founded: 1978
Headquarters: Atlanta
Phone: (714) 940-3500
Website: www.homedepot.com

Walgreen Co.

Arizona employees in 2011: 7,750
Employment change since 2010: Stayed about even
2010 revenue: $63.3 billion
Company’s focus: Retail drugstores
Year founded: 1901
Headquarters: Deerfield, Ill.
Phone: (847) 940-2500
Website: www.walgreens.com

Safeway Stores Inc.

Arizona employees in 2011: 7,500
Employment change since 2010: Stayed about even
2010 revenue: $41.1 billion
Company’s focus: Grocery stores
Year founded: 1926
Headquarters: Pleasanton, Calif.
Phone: (480) 894-4100
Website: www.safeway.com

American Express Co.

Arizona employees in 2011: 7,465
Employment change since 2010: Added about 200 jobs
2010 revenue: $30.2 billion
Company’s focus: Financial services
Year founded: 1850
Headquarters: New York
Phone: (623) 492-7474
Website: www.americanexpress.com

Freeport-McMoRan Copper & Gold Inc.

Arizona employees in 2011: About 7,000
Employment change since 2010: Added about 935 jobs
2010 revenue: $19 billion
Company’s focus: Mining
Year founded: 1834
Headquarters: Phoenix
Phone: (602) 366-7323
Website: www.fcx.com

Pinnacle West Capital Corp.

Arizona employees in 2011: 6,900
Employment change since 2010: Stayed about even
2010 earnings: $330.4 million
Company’s focus: Electric utility
Year founded: 1985
Headquarters: Phoenix
Phone: (602) 250-1000
Website: www.pinnaclewest.com

Bashas’ Supermarkets

Arizona employees in 2011: 6,641
Employment change since 2010: Lost about 1,800 jobs
2010 revenue: Unavailable
Company’s focus: Grocery stores
Year founded: 1932
Headquarters: Chandler
Phone: (480) 895-9350
Website: www.bashas.com

Scottsdale Healthcare

Arizona employees in 2011: 6,556
Employment change since 2010: Added about 55 jobs
2010 revenue: Unavailable
Company’s focus: Health care
Year founded: 1962
Headquarters: Scottsdale
Phone: (480) 882-4000
Website: www.shc.org

UA Healthcare

Arizona employees in 2011: About 6,000
Employment change since 2010: Added about 2,050 jobs
2010 revenue: Unavailable
Company’s focus: Health care
Year founded: 1971
Headquarters: Tucson
Phone: (520) 694-7737
Website: www.u.arizona.edu

Circle K Corp.

Arizona employees in 2011: 5,690
Employment change since 2010: Added about 590 jobs
2010 revenue: $16.4 billion
Company’s focus: Convenience stores
Year founded: 1951
Headquarters: Laval, QC, Canada
Phone: (602) 728-8000
Website: www.CircleK.com

General Dynamics

Arizona employees in 2011: 5,026
Employment change since 2010: Added about 1,810 jobs
2010 revenue: $32.5 billion
Company’s focus: Defense, communications
Year founded: 1952
Headquarters: Falls Church, Va.
Phone: (480) 441-3033
Website: www.generaldynamics.com

Boeing Co.

Arizona employees in 2011: 4,800
Employment change since 2010: Added about 100 jobs
2010 revenue: $64.3 billion
Company’s focus: Aircraft manufacturing
Year founded: 1916
Headquarters: Chicago
Phone: (480) 891-3000
Website: www.boeing.com

Carondelet Health Network

Arizona employees in 2011: 4,690
Employment change since 2010: Added about 124 jobs
2010 revenue: About $601 million
Company’s focus: Health care
Year founded: 1880
Headquarters: Tucson
Phone: (520) 872-3000
Website: www.carondelet.org

Mayo Foundation

Arizona employees in 2011: 4,522
Employment change since 2010: Added about 138 jobs
2010 revenue: $7.9 billion
Company’s focus: Health care
Year founded: 1864
Headquarters: Rochester, Minn.
Phone: (480) 301-8000
Website: www.mayo.edu

CVS Caremark Corp.

Arizona employees in 2011: 4,500
Employment change since 2010: Added about 50 jobs
2010 revenue: $96.4 billion
Company’s focus: Pharmaceutical services
Year founded: 1993
Headquarters: Nashville
Phone: (615) 743-6600
Website: www.caremark.com

Salt River Project

Arizona employees in 2011: 4,346
Employment change since 2010: Lost about 392 jobs
2010 revenue: $2.7 billion
Company’s focus: Utility supplier
Year founded: 1903
Headquarters: Phoenix
Phone: (602) 236-5900
Website: www.srpnet.com

Costco Inc.

Arizona employees in 2011: 4,151
Employment change since 2010: Added about 951 jobs
2010 revenue: $76.2 billion
Company’s focus: Membership discount stores
Year founded: 1976
Headquarters: Issaquah, Wash.
Phone: (602) 293-5007
Website: www.costco.com

Abrazo Health Care *

Arizona employees in 2011: 4,089
Employment change since 2010: Added about 951 jobs
2010 revenue: $1.5 billion
Company’s focus: Health care
Year founded: 1997
Headquarters: Nashville
Phone: (602) 674-1400
Website: www.abrazohealth.com
* A division of Vanguard Health Systems

Albertsons Inc.

Arizona employees in 2011: 4,000
Employment change since 2010: Lost about 450 jobs
2010 revenue: $5.9 billion
Company’s focus: Grocery and drug stores
Year founded: 1939
Headquarters: Boise, ID
Phone: (602) 382-5300
Website: www.albertsons.com

FedEx Corp.

Arizona employees in 2011: 3,918
Employment change since 2010: Added about 330 jobs
2010 revenue: $34.7 billion
Company’s focus: Delivery, copy centers
Year founded: 1971
Headquarters: Memphis, Tenn.
Phone: (866) 477-7529
Website: www.fedex.com

Southwest Airlines Co.

Arizona employees in 2011: 3,857
Employment change since 2010: Added about 259 jobs
2010 revenue: $12.1 billion
Company’s focus: Airline
Year founded: 1971
Headquarters: Dallas
Phone: (602) 304-3983
Website: www.southwest.com

Marriott International

Arizona employees in 2011: 3,522
Employment change since 2010: Added about 722 jobs
2010 revenue: $11.7 billion
Company’s focus: Resorts and hotels
Year founded: 1927
Headquarters: Bethesda, Md.
Phone: (301) 380-3000
Website:  www.marriott.com

Qwest Communications Inc.

Arizona employees in 2011: 3,200
Employment change since 2010: Lost about 190 jobs
2010 revenue: $12.3 billion
Company’s focus: Telecommunications
Year founded: 1896
Headquarters: Denver
Phone: (800) 244-1111
Website: www.Qwest.com

United Parcel Service

Arizona employees in 2011: 3,170
Employment change since 2010: Lost about 48 jobs
2010 revenue: $49.5 billion
Company’s focus: Package delivery
Year founded: 1907
Headquarters: Atlanta
Phone: (888) 967-5877
Website: www.ups.com

John C. Lincoln Health Network

Arizona employees in 2011: 3,166
Employment change since 2010: Added about 539 jobs
2010 revenue: $551 million
Company’s focus: Health care
Year founded: 1927
Headquarters:  Phoenix
Phone: (602) 870-943-2381
Website: www.jcl.com

USAA

Arizona employees in 2011: 3,045
Employment change since 2010: Added about 74 jobs
2010 revenue: $17.9 billion
Company’s focus: Financial services
Year founded: 1922
Headquarters: San Antonio
Phone: (800) 531-8111
Website: www.usaa.com

Charles Schwab & Co. Inc.

Arizona employees in 2011: 3,001
Employment change since 2010: Stayed about even
2010 revenue: $4.2 billion
Company’s focus: Financial services
Year founded: 1974
Headquarters: San Francisco
Phone: (800) 435-4000
Website: www.schwab.com

Freescale Semiconductor

Arizona employees in 2011: About 3,000
Employment change since 2010: Stayed about even
2010 revenue: $4.5 billion
Company’s focus: Microchip manufacturing
Year founded: 1953
Headquarters: Austin
Phone: (512) 895-2000
Website: www.freescale.com

IBM Corp.

Arizona employees in 2011: About 3,000
Employment change since 2010: Stayed about even
2010 revenue: $95.8 billion
Company’s focus: Technology services
Year founded: 1924
Headquarters: Armonk, N.Y.
Phone: (800) 426-4968
Web site: www.us.ibm.com

Cox Communications Inc.

Arizona employees in 2011: 2,997
Employment change since 2010: Lost about 67 jobs
2010 revenue: $9.1 billion
Company’s focus: Telecommunications
Year founded: 1962
Headquarters: Atlanta
Phone: (623) 594-0505
Website: www.cox.com

TMC HealthCare

Arizona employees in 2011: 2,966
Employment change since 2010: Lost about 84 jobs
2010 revenue: Unavailable
Company’s focus: Health care
Year founded: 1943
Headquarters: Tucson
Phone: (520) 327-5461
Website: www.tmcaz.com

Verizon Wireless

Arizona employees in 2011: 2,901
Employment change since 2010: Added about 201 jobs
2010 revenue: $63.4 billion
Company’s focus: Wireless provider
Year founded: 1984
Headquarters: Basking Ridge, N.J.
phone: (480) 763-6300
Website: www.verizonwireless.com

Cigna HealthCare of AZ

Arizona employees in 2011: 2,865
Employment change since 2010: Added about 401 jobs
2010 revenue: $21.3 billion
Company’s focus: Health care
Year founded: 1972
Headquarters: Philadelphia
Phone: (602) 942-4462
Website: www.cigna.com

Grand Canyon University

Arizona employees in 2011: 2,818
Employment change since 2010: Added about 537 jobs
2010 revenue: $385.8 million
Company’s focus: Educational services
Year founded: 1949
Headquarters: Phoenix
Phone: (602) 639-7500
Website: www.gcu.edu

Starbucks Coffee Co.

Arizona employees in 2011: 2,783
Employment change since 2010: Added about 1,003 jobs
2010 revenue: $10.7 billion
Company’s focus: Food service
Year founded: 1971
Headquarters: Seattle
Phone: (602) 340-0455
Website: www.starbucks.com

Go Daddy Group Inc.

Arizona employees in 2011: 2,754
Employment change since 2010: Added about 441 jobs
2010 revenue: $741.2 million
Company’s focus: Internet services/technology
Year founded: 1997
Headquarters: Scottsdale
Phone: (480) 505-8800
Website: www.GoDaddy.com

These are the state’s 5 largest government employers, ranked by the number of employees.

State of Arizona: About 49,800 employees
City of Phoenix: About 15,100 employees
Maricopa County: 12,792 employees
Arizona State University: 11,185 employees
Mesa Public Schools: 8,376 employees

Arizona Business Magazine January/February 2012

2012 ACC Awards Reception

Arizona Corporate Counsel Awards Reception (PHOTOS)

Nearly 300 in-house counsel attorneys and professionals congregated at The Ritz-Carlton in Phoenix on January 12, 2012 for the first annual 2012 Arizona Corporate Counsel.

Attendees from ON-Semiconductor, Grant Thornton, Ogletree Deakins, LifeLock, Barrett-Jackson and many more notable law firms and businesses shared a wonderful evening with AZ Business Magazine and AZ Big Media, where we recognized and celebrated the winners in each category for extraordinary legal skill and achievement across a full range of in-house responsibility, exemplary leadership and their contributions to the Arizona community at large.

We hope everyone enjoyed your evening, and we look forward to next year’s event.

Thank you to our sponsors and presenters,
and congratulations ACC Award winners!


Photos from the 2012 Arizona Corporate Counsel Awards reception:

[slickr-flickr tag="acc-awards-party" items="29" type="slideshow" id="54004193@N04"]

View this album on Flickr.

Arizona Corporate Counsel Awards 2012 Winners

In-House Counsel of the Year in the Government/Public Sector:
Jane Alfano, Senior Executive for SRP Agricultural Improvement and Power District

In-House Counsel of the Year – Nonprofit:
Cindy Sehr, Chandler Regional and Mercy Gilbert

In-House Counsel at a Small Private Company:
Virginia Llewellyn, Barrett- Jackson

In-House Counsel for a Large Private Company:
Christopher Kevane, Rural/Metro Corporation

In-House Counsel of the Year for a Small Public Company:
David Glynn, OneNeck IT

In-House Counsel of the Year for a Large Public Company:
Mark Rogers, American Corporate Counsel – Arizona Chapter Arizona

Intellectual Property Attorney of the Year:
Clarissa Cerda, LifeLock

Litigator of the Year:
Mark Larson, Honeywell

Up-and-Comer of the Year:
Lukas Grabiec, Intel

In-House Law Department of the Year:
ON-Semiconductor

High-Tech Hopes For Arizona

The State, its universities and business groups work to make Arizona a high-tech powerhouse.

When the new millennium arrived, high-technology activities in Arizona were on a slide. The industry was unable to keep pace with the job demands of an expanding population or match employment growth in other economic sectors. That was then.

The state’s high-tech picture is much brighter now. Semiconductor, aerospace, defense and optics firms continue to be major forces in Arizona’s tech industry. But there’s also a growing presence of companies specializing in biotechnology, information technology, nanotechnology, renewable energy and other areas that fit under the high-tech umbrella.

A roll call of companies with their headquarters or major divisions based in Arizona is an impressive one. That list includes names you should recognize, such as semiconductor powerhouse Amkor Technology, optical-engineering firm Breault Research Organization, On Semiconductor and the highly diversified Avnet Inc. It also includes a high-tech Who’s Who: Raytheon, Intel Corp., Honeywell International, General Dynamics, Boeing, Motorola, W.L. Gore & Associates and IBM among others. And they have been joined by relatively recent arrivals such as Jobing.com, Ensynch Inc., Google, Monster, Amazon.com and PayPal.

“With Boeing, General Dynamics, Honeywell, Intel and Raytheon, you’ve got some big players here,” says Ron Schott, executive director of the nonprofit Arizona Technology Council.

Also, while the bulk of these companies are spread across Maricopa and Pima counties, Arizona Department of Commerce spokesman David Drennon points to significant aerospace, defense and agricultural technology activity in the Yuma area and the growth of bioscience in Flagstaff.

None of this happened by chance. It took, Schott says, a lot of hard work by a lot of different groups and individuals.

“If you set up a positive business climate, these people are very, very intuitive and they’re intelligent,” Schott says. “And if they see things that are happening, people who are trying to make it a positive business state, they recognize that.”

The steps that led to the current high-tech business climate are numerous and varied.

Gov. Janet Napolitano formed the Council on Innovation and Technology in 2003 to generate new development strategies. Later, the Legislature passed such measures as the Angel Investment Tax Credit Program to entice investors, and the “sales factor” tax bill, which led to Intel committing $3 billion in a new Chandler-based 300mm wafer-fabrication facility.

Other important developments include the formation of Science Foundation Arizona and the Translational Genomics Research Institute, or TGen.

Also vital is the role being played by the University of Arizona, Arizona State University and Northern Arizona University. It’s no coincidence Google took up residence on the ASU campus.

Alaina Levine handles corporate relations for the U of A’s College of Science. She also coordinates the Professional Science Master’s Degree Program, a workforce development program that serves Arizona’s high-tech industry.

“Individual business leaders know that if they’re going to start a company here or if they’re going to bring a company here, clearly they need to know that they’re going to be able to staff it with very talented individuals and that there has to be a critical mass of those individuals,” she says. “Otherwise, it’s not worth the investment of moving or starting the company here.”

Arizona Business Magazine Dec-Jan 2008Likewise, those universities need to be widely respected for their academics and research programs. The highly regarded Eller College of Management at U of A and the Biodesign Institute at ASU are just two examples of the level of academic excellence found in the state.

Arizona’s rapid growth translates to a need for even more high-value jobs in the tech sector. And further industry growth will require the availability of vital business resources outside of the dominant population centers.

“It’s a positive, glass half-full scenario here in the state,” Schott says. “That doesn’t mean we don’t have problems, but we’re trying to work and focus on those problems and improve the environment the best we can.”

Baby Boomer Bust

Baby Boomers Bust

Companies get ready as boomers start leaving the work force

The catchy term many are using to describe the impending exodus of baby boomers from the work force sounds like the title of a science-fiction film: “The Brain Drain.

But there’s nothing fictional about it. The oldest baby boomers, a group that includes more than 78 million Americans born between 1946 and 1964, began qualifying for early Social Security benefits this year. Some may choose to work beyond the traditional retirement age and others could stay on for financial reasons, but the eventual departure of baby boomers will have a serious impact on corporate America.
This might be a particular concern in upper-management ranks, where positions are most likely manned by older, more experienced personnel and a talent pool of capable replacements is thin.

“The issue is simply that our population is getting older and the birth rates aren’t equal to the aging of the population,” says Angelo Kinicki, an Arizona State University management professor, author and consultant. “You’re going to have more people exiting than you will have entering (the work force).”

Despite this demographic shift, recent surveys from Ernst & Young and Monster Worldwide agree that few corporations are properly prepared for the challenges ahead.

“What’s going to happen here is as baby boomers retire, you’re going to have a lot of people who have knowledge that are leaving the work force,” Kinicki adds.

Kinicki says it’s vital to create systems for transferring knowledge from seasoned employees and senior executives down to lower levels through the organization.
“I’d say the more progressive companies are engaging in what we call knowledge-management programs,” Kinicki says.

But, according to a 2007 Monster study titled “Building and Securing an Organizational Brain Trust in an Age of Brain Drain,” few companies have taken such steps.

While trying to determine the level of awareness companies have of the coming brain drain and what they’re doing to prepare for it, Monster found that only 20 percent of firms had a formal strategy in place to manage and preserve organizational knowledge.

Monster concludes that “the absence of such planning leaves a valuable asset exposed to a competitive market. Firms must not only recognize the value of knowledge but actively manage and protect it.”

Kinicki says several companies in Arizona, such as Intel, APS and Honeywell, have taken a proactive approach.

One corporation that has been especially innovative is Avnet Inc., a Phoenix-based Fortune 500 company that is one of the world’s largest distributors of electronic components, computer products and technology services.

Lynn Monkelien, vice president of learning and development, says Avnet is very cognizant of the imminent retirement of baby boomers.

“(We) have started looking at all kinds of ways that we can start to manage this transition period,” she says.

Among those is a multiple-tiered program that uses top-level management to teach classes for those viewed as future leaders.

Consider the Global Organizational Leadership Development, or GOLD, program. It does more than just cover particular subjects. Managers are able to expose students to their own experiences, while studentsget a chance to build relationships with senior leaders, paving the way for future coaching and mentoring.

“I think the real benefit is going to come as we start to replace some of the oldguard with the new guard,” Monkelien says.

The company also places great importance on succession planning, according to Linda Biddle, Avnet’s vice president for talent development. Avnet’s goal is to create a steady flow of people at all levels of the organization ready to take on new roles.

“Avnet is always thinking ahead, trying to predict what things are going to impact our business from a technology standpoint, from a process standpoint and, also, from a people standpoint,” Biddle says. “What we’re trying to do is not be reactionary — we’re trying to be proactive.”

Arizona Business Magazine February 2008