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Future of Technology - AZ Business Magazine January/February 2012

The Future of Technology In Arizona: Where Do We Go From Here?

The future of technology: Science and engineering turned Arizona’s first 100 years upside down, so where do we go from here?


Think about the achievements in technology that came during Arizona’s first 100 years.

  • The first transcontinental telephone service between New York and San Francisco (1915).
  • The world’s first radio broadcasting station goes on the air  (1920).
  • Television has its first successful demonstration in the United States (1927).
  • James Watson and Francis Crick at Cambridge University describe the structure of the DNA molecule (1953).
  • The microchip is invented (1959).
  • The first test-tube baby is born (1978).
  • IBM introduces its first personal computer (1981).
  • Cellular telephones are introduced to consumers (1982).
  • Development of the World Wide Web begins (1989).
  • Dolly the sheep becomes the first mammal cloned from an adult cell (1996).
  • Apple introduces the iPod (2001).
  • Facebook is launched (2004).
  • Scientists discover how to use human skin cells to create embryonic stem cells (2007).

They are all innovations that have changes the way we lives our lives and do business.

Where will technology take us as Arizona enters its second century? How will it affect our lives? Here are technologies and scenarios that some of Arizona’s best and brightest minds see playing out in the state’s next 100 years.


The Future of Technology In Arizona


Future of TechnologyMark Bonsall
General manager and CEO
SRP

If I had to pick one technology with the potential to truly revolutionize the industry it would be finding affordable ways to store energy on a very large scale.  This would increase the value of intermittent renewable resources like wind and solar and could transform electricity into a more common commodity.  It isn’t clear that this is possible, but with the growing focus on electric vehicles and other storage technologies, it is certain there will be significant gains over the next century.


Future of TechnologyMark Edwards
Vice president of corporate development and marketing
Algae Biosciences, Inc.

Algae-based food, fiber, feed, fertilizer, fuels, and advanced medicines will transform those industries, as we know them today. The current serious problems of waste and pollution will be solved with sustainable algae-based production that recycles and reuses nutrients, water, and energy while regenerating air, water and soils. Our children’s children will have sufficient natural resources to produce the food, energy and transportation they will need.

Algae Biosciences is Scottsdale-based and focused on discovering and unlocking the powers of algae to resolve critical human issues – nutrition, health, energy and environment.


Future of TechnologySteve Sanghi
President and CEO
Microchip Technology Inc.

If I had to pick one (technology that will have biggest impact on Arizona’s next 100 years) it would be the renewable-energy complex of technologies. For Arizona, the primary renewable-energy opportunities can be broken into three categories—measurement, conservation and harvesting.  The world’s oil supply will eventually run out, and Arizona has more days of sun than most areas.  We must continue working to tap into this ever-present energy source.  At the same time, we must focus on developing the technologies that will enable individuals and companies to both measure and conserve their energy usage.  For example, Arizona has the potential to play a key role in developing the technologies that will be employed at the home, industrial and utility levels to make the burgeoning “smart grid” work.


Future of TechnologyJohn Lefebvre
President
Suntech America

The amount of energy generated through renewable sources like solar power has the potential to surpass that derived from fossil fuels in the next 50 years. We’ve already seen remarkable technological innovations in the solar field to increase efficiency, develop solutions for energy storage, and further reduce costs, with further improvements on the horizon. With over 300 days of sunshine, Arizona is naturally poised to take advantage of these advancements and its abundant resource by generating clean electricity without carbon and greenhouse gas emissions.


Future of TechnologyDiane Brossart
President
Valley Forward Association

The biggest issues facing Arizona over the next 100 years are managing a finite water supply and transitioning to a clean energy economy. Green technology and innovation will create economic and environmentally sound solutions, making Arizona the leading destination for living wisely and sustainably in a desert.

Valley Forward Association promotes cooperative efforts to improve the environment and livability of Valley communities.


Future of TechnologyKelly Mott Lacroix
Graduate research associate
Water Resources Research Center in Tucson

We do not have a silver bullet to solve our water supply and demand challenges The state and its water issues are too diverse.  Rather, there are many smaller pieces from the simple and small scale, such as rainwater harvesting, to the large and complex, such as increased reclaimed water use, that when taken together will constitute a solution.


Future of TechnologyBill Hubert
President and founder
Cology, Inc.

Universal, personal-application based technology in general, and highly-sophisticated, profile-driven applications that help consumers (students and parents in our industry) not only gain access to a broader spectrum of programs and services available – but an interactive relationship with providers that will help both sides of the “economic equation” benefit from the transaction.

Scottsdale-based Cology, Inc. is a leading provider of end-to-end private student loan origination and repayment servicing solutions for lenders.


Future of TechnologyCR Herro
Vice president of environmental affairs
Meritage Homes

In the next century, climate will take the lead role in transforming Arizona and its buildings into energy-producing solar collectors. Arizona has the ability to become the largest producer of renewable, clean energy nationwide. In residential construction, that has already started.  The first cost-effective solar communities debuted in Arizona. Meritage Homes introduced the nation’s first net-zero homes in Arizona, saving owners both energy and money. And Arizona utilities lead the country in sponsoring energy efficiency and renewable energy programs.  Arizona is shaping up to be a state powered by the sun in every way imaginable.


Future of TechnologyCatherine Niemiec
President
Phoenix Institute of Herbal Medicine & Acupuncture, College & Clinic

Technology will be used to not only focus on the tiny gene, but to see the bigger picture of the bio-energetic field of the body. Not unlike what you would see in a Star Trek movie, technology would be used to assess and heal both the body and mind, taking into account the bio-electric system. Acupuncture and Oriental medicine has been focused on individualized medicine for thousands of years, with each treatment and formula specifically adapted to an individual, changing as the person changes and moves toward health. Thus, this dynamic medicine is the forefather of modern “individualized medicine” and can work well to make modern biotechnology more effective.


Future of TechnologyDanny Murphy
Airport director
Sky Harbor International Airport

With the explosion of mobile devices, coupled with high speed wireless networks, there is a new generation that will live their lives on mobile technology, using smartphones, touchpads and other mobile devices.
In the past we used to print so many information pieces about the airport. And while we still provide printed materials to an extent, our focus is on providing information via the web and for mobile units.


Future of TechnologyDr. Grace Caputo
Director
Phoenix Children’s Hospital/Maricopa Medical Center Pediatric Residency

Moving to a system where we utilize electronic medical records will really give us the ability to shape and improve health care across the board. Pediatric healthcare will be heavily impacted as we have just started to unravel genetic bases diseases. In the future, we hope to understand the genetic process of diseases so we can treat them and ultimately prevent diseases with wellness and lifestyle changes.


Future of TechnologyCatherine Anaya
Anchor
CBS 5 News

I think the internet technology we currently use to help in our news gathering will become a bigger factor in how we do things. Smart phones  (or whatever replaces them in the next 100 years) will replace cameras and studios creating more intimacy and accessibility. That accessibility will make it much easier to hold those in power more accountable for their actions which I hope will have a positive impact on how the state’s laws are created, shaped and enforced.


Future of TechnologyMahesh Seetharam, M.D.
Medical oncologist and hematologist
Arizona Oncology

Personalized medicine through whole genome sequencing (genomics), proteomics and noninvasive imaging will pave the way for the future.  Current research to evaluate for circulating cancer cells, and evaluation for cancer in urine samples are already being studied, and holds promise for the future.


Kenneth J. Biehl, M.D.
Radiation oncologist
Arizona Oncology

Immensely precise and conformal radiation treatments in the form of stereotactic radiation, high dose-rate radiation and molecularly targeted radiation will allow radiation oncologists surgical precision in assisting the people of Arizona to improve cancer cure and control. Just as the technological advances in the past have allowed women diagnosed with breast cancer to pursue breast conservation therapy rather than mastectomy, and have allowed men to preserve erectile function with prostate cancer, future advances will allow more Arizonans diagnosed with cancer to enjoy a better quality of life along with improved cure rates.


Michael Crow
President
Arizona State University

The biggest single technology to impact the future of Arizona will be individualized learning technologies that allow individuals to master subjects in ways customized to their particular types of intelligence and learning modalities.  This technology will allow people to learn more quickly and more deeply and more broadly. Those places, hopefully like Arizona, that enable and empower this kind of learning will see tremendous positive impacts from this technological development.


Where to invest in technology

Patricia Ternes, a financial advisor with RBC Wealth Management in Scottsdale says these are the four technology sectors to invest in going into Arizona’s next century:

1. Water 
Growing imbalances in global water supply and demand are well documented. Within that heading, the companies involved with water fall into four categories: (1) activities and technologies that increase supply; (2) the building of the necessary water structure; (3) processes that help reduce demand; and (4) water management.

2. Agriculture
When you look at the growth of the world’s population companies that are involved in agriculture and food production will continue to be attractive and important.

3. Health
Another important sector will be health care services and life sciences tools and services that provide better quality of life for the aging population.

4. The unknown
The fourth sector doesn’t exist yet.  Advances are happening so fast that something new will be created that will change our lives.


Arizona Business Magazine January/February 2012

Commotions Promotions - AZ Business Magazine January/February 2012

Commotion Promotions Ranks As One Of The Fastest-Growing Companies

It began in an apartment in 1984, with a lot of passion and dedication and little room in which to work. Twenty-plus years later, Commotion Promotions has expanded to seven locations nationwide, not only marketing and promoting their clients, but making a name for themselves as well.

Over the past year, Commotion Promotions has created quite the buzz for itself, launching projects such as the One Good Turn Project, which donates $500 of promotional products to non-profit organizations monthly, as well as receiving recognitions for its work.

Highlights include earning a Best Places to Work award from Counselor Magazine and, most notably, its placement on the 2011 Inc. 500/5000 Fastest Growing Companies List.
Headquartered in Phoenix, Commotion Promotions was not only recognized for its 33 percent growth over the past three years, but it was also one of the only promotional products companies on the list.

Commotions PromotionsWhat does this recognition mean to Karen Kravitz, president of the female-owned business?

“It really means that we have, since 1984, been able to grow continually,” Kravitz says. “And certainly in an economy where people are seeing a downturn, we’ve actually grown.”

Kravitz credits the company’s success to the strong relationships with its suppliers, its sales team, customer assistance as well as its niche markets.

“We meet with our suppliers on a regular basis, so they are bringing us new pieces and product lines all the time,” Kravitz says. “And the staff is always sharing ideas, even for each other’s clients. So we work with a team approach. There are a lot of sharing of communal ideas here.”

For Commotion Promotions, it’s all about staying ahead of the game and on the cutting edge. And there are several ingredients to creating and maintaining an award-winning marketing company.

According to Kravitz, one of the main ingredients to its business success is creativity. Because Commotion Promotions has received awards for its creative pieces and campaigns, “suppliers and manufacturers will come to us before the product has hit the market, and we help guide them regarding whether it’s a valuable product to bring to market and what we think it could sell for,” she says.

The niche markets Commotion Promotions work with also sets them apart — with brands including Stop Smoking Promotions, Get Healthy Promotions, Planet Earth Promotions and Promotions for Pets, which are all found online.

“In terms of providing promotional online stores for clients, we’ve been able to implement those and that’s definitely helped our growth,” Kravitz says.

But according to Kravitz, it’s the combination of award-winning creative advice, measurable results and its “unbelievable customer service team” that doesn’t usually happen when customers purchase promotional products online — a game changer in the industry — that makes Commotion unique.

“I think over time, people will realize the value of a promotional contact you work with at a local level brings to the table, as opposed to trying to buying something online,” Kravitz says.

Kravitz’s advice to other female entrepreneurs?

“It’s OK to be a woman entrepreneur, a women-owned business, run a home, have children, work out of a second bedroom or have a toddler in the background,” Kravitz says. “As long as you have a passion and the dedication, you will succeed.”

Commotion Promotions has plans to expand into southern California and Chicago, as well as launch other niche markets over the coming year.

Commotion Promotions
2999 N. 44th St., #340, Phoenix
(602) 996-0006
commotionpromotions.com

Commotion Promotions: By the Numbers

3-Year Growth: 33%
2010 Revenue: $8.9 million
2007 Revenue: $6.7 million
Employees: 29
Founded: 1984
Industry: Advertising & Marketing
Industry Rank: #348

Source: Inc. 500/5000 Fastest Growing Companies List

Arizona Business Magazine January/February 2012

 

ACC Awards 2012

ACC Awards 2012 Finalists: A-G

Effective corporate counsel has never been more important than it is now. Arizona Business Magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel Awards, ACC Awards 2012. The 27 finalists and winners were honored Thursday, January 12 during a ceremony and dinner at the Ritz Carlton Phoenix. Here are the finalists in alphabetical order, A through G.


ACC Awards 2012 Finalists, A through G:

Jane D. Alfano
Corporate counsel
SRP

ACC Awards 2012Alfano joined SRP in 1979 and became the first female to hold the position of corporate counsel. Her strategic vision and application of the law, coupled with her ethical values and professionalism, epitomize the best of the legal profession, colleagues say. Alfano manages a law services teams that includes 12 attorneys and 20 law firms that augment SRP’s legal team. Alfano’s leadership philosophy of delivering value to the SRP executive team by providing legal remedies to meet their business strategy and goals through partnering with SRP attorneys has resulted in strong alliances with executives, SRP communities and SRP customers.


Andrejs K. Bunkse
General Counsel
Redflex Traffic Systems, Inc.

ACC Awards 2012Bunkse joined Redflex in 2009 to create a legal department for the company, which has customers in 22 states and Canada, representing more than 250 cities — each operating under its own unique set of laws. Redflex’s products have been scrutinized and have been subjected to a heavy defense litigation practice. Under Bunkse’s management of a staff of six and a wide network of lobbyists, lawyers and consultants, his department furthers Redflex’s efforts in setting positive legal precedent, improving legislative positioning, as well as defending a diverse set of external and internal legal challenges.


Clarissa Cerda
Senior vice president, general counsel and secretary
LifeLock

ACC Awards 2012Cerda manages LifeLock’s legal, compliance, government affairs, and human resources functions. She brings more than 19 years of experience in lawyering and negotiation, effective management, and strategic advising in fast-paced, technology corporations, leading law firms and even the White House. She currently sits on the board of directors of the Minority Corporate Counsel Association. Previously, Cerda held national positions on the American Bar Association (ABA), including the co-chair of the ABA’s Science and Technology Law Section’s Privacy Committee. Cerda graduated from Harvard College with an B.A. in government. She earned her J.D. from the University of Michigan Law School.


Rebecca Collins
Associate general counsel
General Dynamics C4 Systems

ACC Awards 2012Collins was responsible for all employment law aspects in establishing General Dynamics C4 Systems — which has its roots in Motorola’s military business — as a separate legal entity. Through the last decade, Collins has handled the employment law aspects of approximately eight acquisitions, along with major internal reorganizations. Combined with organic growth, this resulted in the workforce increasing to almost 11,000 employees. Collins has managed the significant employment law challenges associated with rapid growth, and is now managing the issues associated with workforce reductions necessitated  by economic conditions and reductions by the Department of Defense.


Laurence De Respino
General counsel
AMERCO (part of U-Haul International)

ACC Awards 2012In the 11 years De Respino has worked in the legal department of AMERCO, he has been responsible for sweeping changes in every facet of the legal department’s operations. Some highlights:
* He has grown the department from five to 17 attorneys.
* He values diversity, providing opportunities for women and minorities and a staff that is split equally between genders.
* He has created specialties within the legal department, adding attorneys with expertise in product litigation, class actions, insurance, business, labor, employment, and intellectual property.
* He created a discovery unit to draft requests and responses, cutting discovery costs by 50 percent in the last three years.


Brad Gazaway
Vice president and corporate counsel
The Dial Corporation

ACC Awards 2012Gazaway is a former corporate and securities attorney for Snell & Wilmer (1998-2003) and a 1992 graduate of the U.S. Naval Academy. He graduated in 1998 from the University of Iowa law school. While working with Gazaway, other attorneys are impressed not only with his professional demeanor and practical approach, but with his passion for the company and the pride he takes in the company’s accomplishments. Both Gazaway and Dial value community involvement, opening their headquarters for a United Way tour, with Gazaway sharing his personal interest in helping those less fortunate with those who toured.


David Glynn
Chief administration officer and general counsel
OneNeck IT Services Corporation

ACC Awards 2012Glynn has built the legal department at OneNeck from scratch into a small, efficient, well-rounded department that assists and ensures the success of the company. Among his accomplishments:
* He was the leader in the buyout of OneNeck from the publicly held parent company in 2001, including capitalization.
* He has led the acquisition of three private companies in 2003, 2007 and 2008.
* He led the $95 million sale of OneNeck to a publicly held telecom provider in 2011.
* He has converted all legal files electronically, allowing the department to have quick and easy access to all records.


Go Daddy Group
In-house legal department

Go Daddy LogoIn the past 10 years, the Go Daddy legal department has grown from a one-woman show to a staff of nearly 100, with 55 percent of them women. This unique department, which encompasses legal, network abuse, domain services, compliance, privacy, and government relations departments, extends its reach far beyond traditional legal issues. With guiding mantras of “do the right thing” and “know your client,” the legal department is intimately involved with its clients’ operational aspects. The department serves as an industry leader, drives public policy in the Internet realm, and still finds time to vigorously promote inter-departmental interactions.


Lukas Grabiec
Corporate counsel
Intel Corporation

ACC Awards 2012Despite being a junior-level attorney, Grabiec has taken on significant responsibilities and acts as a counselor for high-level Intel executives. In the past year, Grabiec has earned multiple Division Recognition Awards from Intel for his work on important and ground-breaking projects. Some examples:
* Grabiec seized an opportunity and drove Intel’s participation in the first Poland-Silicon Valley Technology Symposium at Stanford, marshaling Intel resources and laying groundwork for future collaboration with the Polish government and university officials.
* Grabiec completed negotiations for the funding of a major high-performance computing program with a large research-based U.S. government agency.


Arizona Business Magazine January/February 2012

ACC Awards 2012

ACC Awards 2012 Finalists: N-T

Effective corporate counsel has never been more important than it is now. Arizona Business Magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel Awards, ACC Awards 2012. The 27 finalists and winners were honored Thursday, January 12 during a ceremony and dinner at the Ritz Carlton Phoenix. Here are the finalists in alphabetical order, N through T.


ACC Awards 2012 Finalists, N through T:

Dennis Naughton
General counsel
Danny’s Family Companies

ACC Awards 2012Naughton accepted the position of general counsel with Danny’s Family Companies just as the nation was beginning to understand the extent of the economic destruction resulting from the great recession. It soon became apparent that the company would need to restructure if it was to survive. Naughton masterfully navigated the company through the perilous and complex legal waters of a Chapter 11 corporate restructuring. The company’s continued success and emergence from Chapter 11 is due in part to Naughton’s insight and legal leadership. He is a native of Arizona and graduate of Brophy College Preparatory in Phoenix.


ON Semiconductor
In-house legal department

ACC Awards 2012On Jan. 1, 2011, the acquisition of SANYO Semiconductor increased the ON law department from 29 to 47 legal professional. Still, the law department remains the smallest department in the company and consistently benchmarks favorably for cost expenditures for similarly situated in-house law departments. In recognition of the law department’s significant role in closing the SANYO deal, the M&A Advisor awarded the deal with the Major Transaction of the Year award for mergers and acquisitions from $500 million to $1 billion. On a personal note, department members participate in a wide variety of community service projects — from youth programs to animal rescue.


Karen Paul
General counsel
MD Helicopters

ACC Awards 2012According to David Kash, a partner at Ryley Carlock & Applewhite in Phoenix, Paul did a “great job for a company in an economy under very trying times.” Paul’s great work paid off in 2011 as MD Helicopters was awarded a $186 million contract by the Army to build rotorcraft for training exercises in Afghanistan. Among her duties:
* Contract negotiation and drafting — national, international, sales, distribution, procurement, U.S. government, complex commercial and intellectual property licensing, ownership, transfers and development.
* Regulatory compliance.
* Intellectual property and contracts portfolio and systems development and management.


Jessica M. Pena
General counsel
Tekco Management Group, LLC

ACC Awards 2012In three years at Tekco, Pena has fundamentally reinvented the company’s approach to enforcing its intellectual property rights. Pena’s innovative use of unfair competition claims in conjunction with copyright enforcement is just one example of her ability to find new ways to tackle old, entrenched problems. Additionally, Pena’s innovative approach to intellectual property rights enforcement ignited a renewed effort against online copyright infringement in the adult entertainment industry. Due to her innovative and successful approach to stopping online copyright infringement in her industry, Pena was invited to organize and moderate a panel at the 23rd North American Entertainment, Sports & Intellectual Property Law Conference.


Amy Rasor
Deputy general counsel
American Traffic Solutions

ACC Awards 2012Colleagues say Rasor has what it takes to create and maintain a well-oiled legal team as an in-house counsel. Some of her accomplishments include:
* Leading the legal aspects of two company acquisitions and countless lawsuits.
* After joining the legal team at ATS as the first associate general counsel, she was promoted to deputy general counsel the following year. She works with two other attorneys and two paralegals.
* Colleagues say Rasor is unequalled in her ability to foresee potential legal issues and head the off before they become a real problem for the company.


Michael Reagan
Executive vice president and general counsel
Kahala Corp

ACC Awards 2012Reagan has been Kahala’s general counsel since January 2000. From 1993 to 1995, he served as a senior accountant with Deloitte & Touche in Phoenix in its audit division. He is currently a licensed attorney, as well as a licensed Certified Public Accountant (CPA), in the state of Arizona. Reagan holds a B.S. in accounting from the University of Arizona and a J.D. from Arizona State University. In Reagan’s 12 years at Kahala, the company has grown from a handful of employees to more than 250, from one brand to 14 brands, and the legal department has grown from one lawyer to six lawyers and 10 paralegals.


Mark Rodgers
Associate general counsel
Insight Enterprises, Inc.

ACC Awards 2012Rogers’ responsibilities include corporate governance work, SEC reporting, mergers and acquisitions, financing, design and implementation of compliance programs, internal investigations, negotiation of contracts and litigation and labor and employment management. He sits on Insight’s Disclosure Committee and currently chairs the Investment Committees for the company’s 401(k) and Non-Qualified Deferred Compensation plans. Rogers was named a “Super Lawyer” in the 2007 Southwest Edition of Law & Politics Magazine and was the only in-house counsel named as a Super Lawyer in the edition. He is admired by colleagues for his great judgment, a key asset to outside counsel when analyzing facts and the law to develop strategies.


Cindy Sehr
Senior counsel
Catholic Healthcare West (Chandler Regional Medical Center)

ACC Awards 2012Sehr has 25 years of experience as an attorney and 20 of those years have been devoted to healthcare law. Working in the healthcare field, there are many components that a legal department has to take into consideration to abide by regulations set by the state and federal governments. Sehr has made those regulations easier for everyone on the CHW staff to understand. Through Sehr’s leadership and expertise, the medical centers have been able to navigate and overcome hurdles with a strong sense of support, guidance and leadership toward the correct and proactive steps that need to be made.


Thomas F. Tollison
Senior assistant general counsel — marketing group
U-Haul International, Inc.

ACC Awards 2012Colleagues say Tollison is an inspiration to those around him. “He inspires us to work hard and improve our craft,” said Isaac P. Hernandez, an associate at Ballard Spahr. “He inspires us to be leaders and to be involved with our communities. He reminds us to take a moment to smell the roses and enjoy life.” Among Tollison’s professional accomplishments is the negotiation of a multi-million-dollar asset/stock purchase of a telecommunications company, as well as providing lead counsel to the largest division on U-Haul — its marketing group.


Arizona Business Magazine January/February 2012

ACC Awards 2012

ACC Awards 2012 Finalists: H-M

Effective corporate counsel has never been more important than it is now. Arizona Business Magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel Awards, ACC Awards 2012. The 27 finalists and winners were honored Thursday, January 12 during a ceremony and dinner at the Ritz Carlton Phoenix. Here are the finalists in alphabetical order, H through M.


ACC Awards 2012 Finalists, H through M:

George Hittner
Corporate secretary, general counsel, vice president of governmental relations
American Traffic Solutions

ACC Awards 2012Hittner has overseen more than 150 lawsuits for ATS throughout the country, ranging from minor cases to multi-million-dollar class actions, with a 98 percent win rate since October 2008. Some highlights:
* Under Hittner’s leadership, ATS has never lost a constitutional challenge to one of its programs.
* Hittner led the successful legal strategy which resulted in a decision by the 6th Circuit U.S. Court of Appeals that found the Akron, Ohio, intersection and speed camera safety ordinance legal and constitutional.
* Hittner’s focus on election law has protected the photo enforcement industry from illegal elections, including having three illegal elections declared invalid.


Christine Jones
Executive vice president, general counsel and corporate secretary
Go Daddy Group

ACC Awards 2012Jones is the leader for all legal affairs at Go Daddy. Go Daddy’s legal department is unique in that it encompasses functions that are not traditionally seen in corporate legal departments. Jones supervises more than 100 people in the legal, domain services, network abuse, and government relations departments. Jones has become and industry leader and activist in addressing Internet abuse, and she created the government relations department at Go Daddy to establish a respected presence and voice in Washington. To keep up to date, Jones enables legal professionals to present in-house continuing legal education programs on a monthly basis.


Sara Lee Keller
Executive vice president and general counsel
Clear Channel Outdoor, Inc. — Americas

ACC Awards 2012Since Keller was hired on Jan. 4, 2011, she has grown the legal department from four attorneys to seven. Issues that were traditionally handled by outside counsel are now handled in-house, resulting is cost savings and better management of external spending. Some opinions of her work:
* “Our legal team at Clear Channel Outdoor is becoming a full-service firm right inside the four walls of the company,” said Joe Bagan, Clear Channel’s COO.
*  “This collaboration has improved our overall effectiveness as measured by successful outcomes, more closely managed costs … greater business impact, and improved client satisfaction,” said Ron Cooper, CEO of Clear Channel.


Christopher Kevane
Senior vice president and general counsel
Rural/Metro Corporation

ACC Awards 2012Kevane has been advising and managing the legal affairs for Rural/Metro for more than seven years, the past two as senior vice president and general counsel. His recent accomplishments include managing all legal matters related to:
* The successful close of Rural/Metro’s acquisition by affiliates of the global private equity firm Warburg Pincus LLC.
* The successful acquisition of multiple competitor companies throughout the nation.
* Regulatory matters related to SEC reporting mandates.
* Legal issues and settlement negotiations related to federal and state Medicare and Medicaid audits and compliance matters.
* Contract matters and negotiations surrounding executive departures and hiring.


Mark Larson
Vice president and chief litigation counsel — aerospace and transportation systems
Honeywell International

ACC Awards 2012Given Honeywell Aerospace’s content on global aircraft, chances are that if an aircraft accident occurs, Honeywell will be involved in litigation and Larson will ultimately become involved. Larson oversees a large, complex and diversified docket, encompassing litigation and arbitration matters throughout the world. Through skillful negotiation, Larson managed to settle a number of significant claims last year alone, saving Honeywell hundreds of millions of dollars, as well as protecting Honeywell’s product reputation and brand. In his 11 years at Honeywell, Larson has had just one trial loss. He accomplished all that while reducing outside counsel spending by almost 50 percent since 2007.


Ryan Liebengood
Intellectual property attorney
ASM America INC

ACC Awards 2012Colleagues admire Libengood for his unselfish community service. “I have been in the legal field for more than 40 years and as an in-house attorney for more than 15 years,” said Gary A. Smith, general counsel for Phoenix Engineering Services in Mesa. “Rarely have I seen a relative newcomer to the law become so enthusiastically involved in the community.” Libengood became a member of the Mesa Family YMCA, offering his assistance as the organization transitioned from a fitness facility to a service organization supporting a low-income population. He also volunteers with the Mesa United Way Volunteer Income Tax Preparation Program.


Virginia Llewellyn
General counsel and corporate secretary
Barrett-Jackson Auction Co., LLC

ACC Awards 2012Llewellyn has been general counsel at Barrett-Jackson since 2005. In this role, she is responsible for managing all the company’s legal affairs and overseeing outside counsel relationships. She serves as corporate secretary and works closely with other members of the senior management team on establishing and implementing company policies and procedures as they apply to employees, customers, and external business partners. She also serves as the primary liaison to the company’s media partners, including Fox’s SPEED Channel, which broadcasts more than 100 live hours of Barrett-Jackson events each year to more than 80 million homes.


Matthew D. Mitchell
Vice president legal, associate general counsel
Apollo Group

ACC Awards 2012Mitchell’s original responsibilities for Apollo — one of the largest employers in Arizona — were limited to the employment area, but he has since taken on litigation and regulatory responsibilities. Some highlights:
* He has been instrumental in implementing standard processes for the engagement of outside counsel (including outside counsel guidelines and electronic billing), e-discovery and litigation holds, Apollo board litigation updates specific to both the company and the for-profit education industry, and litigation tracking.
* Has assumed responsibility for securities litigation, derivative actions, wage hour class actions, qui tam litigation, and consumer litigation.


Harriet Mountcastle-Walsh
Vice president and general counsel
Honeywell International

ACC Awards 2012Since assuming the role of aerospace general counsel in 2005, Mountcastle-Walsh has forged a successful vision for the Honeywell Aerospace, Law, Contracts and Export (LC&E) function. Some highlights:
* Developed policies, procedures and best practices to streamline functionalization and reduce total expenses by more than 35 percent.
* Consistently strives to upgrade talent in her 400-person department through hiring efforts, and through a training, mentoring and a development process.
* Enabled growth at Honeywell through the development of its patent portfolio and IP licensing.
* Proactive litigation management has helped reduce Honeywell’s spending on outside counsel by more than 50 percent.


Arizona Business Magazine January/February 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

Matt Likens - AZ Business Magazine January/February 2012

First Job: Matt Likens, CEO Of Ulthera, Inc.

Matt Likens, CEO of Ulthera, Inc., discusses her first job working on a muck farm on Ohio, his first job in the healthcare industry, his biggest mentor and more.


Matt Likens

Title: CEO
Company: Ulthera, Inc.

What was your very first job?
When I was 10 years old, my brother — who is two years younger than me — and I worked on a muck farm in Ravenna, Ohio. We would be picked up at 6 a.m., go to the farm, crawl around on our hands and knees all day, weeding crops that were grown in this very rich, black, wet soil called muck. It was mostly mustard plants and assorted other crops. Then, when the plants were ready, we would harvest them.

What did you learn from that first job?
It taught us the value of hard work. We didn’t have a privileged childhood, so it was a way for us to become self-sufficient and do the things we wanted to do, whether it was buying baseball cards or soft drinks. I learned that earning your own way in life is the right this to do.

Describe your first job in your industry.
My first job in the healthcare industry came in 1978 as a sales representative for Baxter Healthcare, working in their transfusion medicine business, selling blood collection containers and everything used to transfuse blood and blood components.

What lessons did you learn from your early industry jobs?
Right out of college, I got a job selling industrial tape for Johnson & Johnson in Minnesota against 3M, which had an 85 percent market share. So I learned rejection very early in my career, but I also learned the value of having a good second supplier. Companies with such a dominant market share tend to get arrogant and take their business for granted. So if you work hard and portray yourself as a credible second supplier, it’s a way to get in the door.

What were your salaries in your first job and first industry job?
My salary at the muck farm was 35 cents an hour. My salary at Johnson & Johnson was $13,000 per year.

Who is your biggest mentor?
Harry Cramer, who was the CEO at Baxter when I left. I have a book in my office that Harry wrote called “Values Based Leadership.” If Harry said it, he also acted that way, so his words and actions were absolutely in synch with each other. That was an excellent example and I’ve tried to emulate that  as I’ve moved past Baxter and into the startup world.

Arizona Business Magazine January/February 2012

Mobile Banking - AZ Business Magazine January/February 2012

Mobile Banking Causes Security Concerns

Use of phone apps skyrockets 45 percent in six-month span, but how safe are they?

The smart phone is becoming to banking what the knife has become to bread: It’s changing the way we consume.

Mobile Banking - AZ Business Magazine January/February 2012

“Mobile banking has had the biggest impact on financial institutions since the introduction of ATMs,” says Paul Stull, senior vice president of strategy and brand at Arizona State Credit Union, the first credit union to introduce mobile banking in Arizona.”The convenience of being able to use a mobile device to manage funds, track balances and pay bills is a huge advancement in convenience and time savings for consumers.”

According to comScore, a leader in measuring the impact of the digital world, the number of people using mobile banking applications on their smart phones jumped an astounding 45 percent from December 2010 to June 2011. Nearly 14 percent of the total U.S. mobile audience accessed mobile banking services in June 2011, an increase of 21 percent from the fourth quarter of 2010.

Mobile Banking - AZ Business Magazine January/February 2012

“New functionality, such as person-to-person payments and mobile check deposits, continue to gain traction, accelerating user adoption,” says Dan Stewart, president for Mutual of Omaha Bank in Arizona. “Banks that ignore the trend will find themselves missing what is fast becoming a standard bank offering.”

Not many banks are ignoring the trend. In a recent survey of the top 25 financial institutions in the United States, Javelin Strategy & Research found that 23 of those 25 institutions offer some sort of mobile-banking service SMS/text, downloadable applications, WAP/browser, or a combination of all three, known as a “triple play”. Thats an improvement from 2009, says Mary Monahan, research director at Javelin, when less than 50 percent of the same banking institutions played active roles in mobile space.

“Mobile banking is a must-have now,” says Monahan.

Wells Fargo is one of the institutions that blazed the mobile-banking trail and offers the triple play.

Mobile Banking - AZ Business Magazine January/February 2012“Wells Fargo launched its mobile channel in 2007 by listening to our customers,” says Brian Pearce, senior vice president and head of the Retail Mobile Channel at Wells Fargo’s Internet Services Group. “They told us that they wanted easy and convenient access to their balances, transfer capabilities and the ability to pay a bill while on the go. They also told us that they wanted to be able to access their information regardless of their phone model and carrier plan. To meet these needs, we offer a triple play mobile web, Apps for Android, iPhone, Blackberry and Palm, and text banking.”

And Wells Fargo continues to improve the ease of use and is adding new bells and whistles to make banking easier.

“We’ve just recently enhanced the design of our mobile experience with a simplified navigation and streamlined screen designs,” Pearce says. “We also added a GPS feature for our wf.com ATM locator and new commands and enrollment options for our text banking application.”

Banks are finding that mobile banking is good for the bottom line.

Mobile Banking - AZ Business Magazine January/February 2012“Mobile banking adds to customer acquisition and retention, reduces call volume to the call center, and takes the convenience of Web banking one step further,” says Craig Doyle, Arizona market president of Comerica Bank, which has launched mobile banking apps for the iPhone, BlackBerry and Android. “This technology also forces the industry to focus more on the customer and carefully evaluate what products and services we can offer to better serve them.”

While smart phone users are the biggest users of mobile banking, the exploding popularity of mobile tablets like the iPad is expected to alter the mobile banking landscape even further, experts say.

“The tablet is going to be a game changer,” Monahan says. “Banks have to be ready.”

Apps for tablets will require some thought, since consumers spend more time browsing on mobile tablets than they do on mobile phones, Monahan says. “Banks will have to have deeper dives, and its going to be key for banks to have a tablet-specific app.”

Even as the use of mobile banking skyrockets, there is one issue that is keeping it from reaching a fever pitch.

“The main reason consumers dont move to mobile banking is because of security concerns,” Monahan says. “Consumers want to know that their mobile interactions and transactions are encrypted, and they want some assurance that they will be reimbursed for losses associated with a mobile-banking breach. Banks need to educate consumers about what they offer and how they are protecting the mobile channel.”

Educating consumers is something that Comerica said is vital to growing its mobile banking channel.

“Comerica always has security in mind and is constantly evaluating better ways to protect our customers,” Doyle says. “We encourage our customers to take the proper precautions to protect themselves. We feature information about good security practices on our Comerica.com website and our mobile banking microsite so our customers can be properly educated and protect themselves.”

To help ease its customers security concerns, Monahan says banks should at least do these three things:

Post mobile banking security guarantees on their websites. Guarantees should be prominent, on the homepage, so consumers can quickly find them.

Banking institutions offering mobile banking through downloadable apps should have the ability to remotely deactivate apps that could be infected or contain malicious code.

Every institution should spearhead a strong consumer education campaign that educates consumers about safe mobile-banking practices, while also informing them about mobile offers and services provided by their banks or credit unions.

Arizonas banking leaders say those security concerns are not going unnoticed.

“All mobile technology used by Arizona State Credit Union complies with federal financial institution regulations requiring the use of multi-factor authentication technology,” Stull says. “In addition, the Credit Union will be adding new security improvements during 2012 that will use virtual intelligence to learn user behavior and detect variances in usage that may indicate unauthorized activity.”

Bankers point out that mobile banking can actually be a great tool to use to keep your money secure because you have 24-hour access to your financial information.

“We feel that the ‘anytime, anywhere’ nature of mobile banking gives customers a great tool to monitor their accounts and stay in control of their money,” Pearce says.

5 Ways To Protect Yourself

1. Set the phone to require a password to power on the handset or awake it from sleep mode.

2. Whether you’re using the mobile Web or a mobile client, don’t let it automatically log you in to your bank account. Otherwise, if your phone is lost or stolen, someone will have free access to your money.

3. Avoid sharing your password, account number, PIN, answers to secret questions or other such information. Don’t save this information anywhere on your handset.

4. Immediately tell your bank or mobile operator if you lose your phone.

5. Review account statements. If you do notice any unusual transactions, call your bank immediately and dispute the transactions.

For more information on mobile banking and ways to protect yourself visit the Wells Fargo website at wellsfargo.com.

AZ Business Magazine January/February 2012

Medical Technology - AZ Business Magazine January/February 2012

Medical Technology: Increasing Longevity, Healthcare Costs

Advances in technology are great, experts agree, but costs need to mimic the rest of the economy.

As Arizona enters its second century and health care costs soar, we can’t help but ask: Has the technology that helps us live longer become too costly? Are we living too long? And who will pay for the high-tech advances that keep us going?

Leading healthcare experts in the Valley say our lifespan has increased, but not as much as most people think, they say. Though they agree that residents may have to work longer, most believe that is because of problems with the economy overall, not from the increasing cost of healthcare.

Technology has improved, they say, but the changes will soon get more amazing. Some of this will be costly, but improved technology can also make healthcare more efficient and less expensive in the long run.

And none of these experts believe Arizona residents live too long.

Medical Technology - AZ Business Magazine January/February 2012“I suspect that people used to say that humans were living too long back when people lived 50 years or 60 years,” said Dr. Vishu Jhaveri, chief medical officer and senior vice president at Blue Cross Blue Shield of Arizona. “People may have the instinct to want to live longer, but what they really want is to live longer and healthier.”

Dr. Ed Staren, president and chief executive officer at Cancer Treatment Centers of America’s Western Regional Medical Center in Goodyear, agrees.

“I certainly don’t think people live too long,” says Dr. Ed Staren, president and chief executive officer at Cancer Treatment Centers of America’s Western Regional Medical Center in Goodyear. “I greatly value the chance to learn from those more experienced than we are. The purpose of medicine runs parallel to the right of an individual to a healthy life, to empower them to pursue life to the best of their abilities.”

The mission statement for Blue Cross Blue Shield, Jhaveri notes, “is to improve the quality of life for all Arizonans, not just our customers.”

Healthcare and its new technology are not the major factors in a long life, says Dr. John Hensing, executive vice president and chief medical officer of Banner Health. Genetics, diet and nutrition and exercise are what count the most, he says.

“Do you smoke? Do you get regular exercise? What do you eat? Do you take care of yourself?” Dr. Hensing asks. “Those factors contribute much more to longevity. That being said, of course, there are certain people alive today because of improvements made in medical technology. These are people who 100 years ago would not have survived. But technology is only a modest factor in longevity.”

We do, of course, live longer and longer, but in general our lifespan has increased fairly slowly. According to the U.S. Census, the average life expectancy for men and women combined in the United States was 78.3 years in 2010; it was 76.8 years in 2000.

So how will we pay for the health care that gives us extra years and stronger bodies?

“The new technology allows us to be more efficient in the cost of delivering care,” says Dr. Greg Mayer, senior vice president of the Hospice of the Valley.

Those cost-saving methods can include electronic transmission of medical records; video visits to the doctor for routine illnesses; or even robotic surgery with the robot controlled by a doctor who is hundreds or thousands of miles away from the operating room.

“Many areas of technology are very high in cost, and we’re all aware that the increases in these costs cannot be sustained in future,” Dr. Mayer says. “If we aren’t smarter and more efficient in our use of health care, it won’t be helpful. It will just be fancier care.”

In the drive to cut expenses, he says, patients will probably find that less complicated medical care will be delivered by highly qualified middle level personnel like nurse practitioners, rather than doctors. “There have to be changes because we can’t sustain the current system financially. There aren’t even enough physicians to meet all the needs,” Dr. Mayer says.

Of course, medical technology has brought on major changes in how serious diseases are treated, the doctors say. Cancer is a prime example.

When Dr. Staren of the Cancer Treatment Centers of America started practicing in the 1980s, the bulk of cancer diagnoses were based on just looking at the size and shape of a tumor or on what could be seen by analyzing cells under a microscope. Treatment was limited to drugs and chemotherapy that had not changed much in 25 years.

Now, doctors have electronic equipment to look at cancers on the molecular level and differentiate among individual tumors and types of cancer. Targeted therapies can use drugs to block the growth and spread of cancer by interfering with specific molecules involved in tumor growth. These targeted therapies may be more potent than chemotherapy and radiotherapy and less harmful to normal cells.

“Now, cancer is being treated as a chronic disease, much like diabetes,” Dr. Staren says.  “There have been true paradigm shifts in treatment.”

It’s possible to treat tumors with minimal access to the body by delivering drugs through small pinholes in the abdomen, chest or brain. “This is process innovation that can result in lower costs and reimbursement,” Dr. Staren says.

“Right now, we’re going through transformation of our health care and how it’s paid for,” Dr. Hensing says. “We’re in a period of non-sustainable growth of costs. That has to change. The growth of costs must flatten out to a cost trend that looks like the rest of the U.S. economy – whether health care is paid for by employers or the government or both. We need a better way to deliver services, and they will be delivered in a more economical way. It will take the better part of a decade to do it.”

“There is unquestionably a much better prospect for better quality and Medical Technology - AZ Business Magazine January/February 2012quantity of life due to technology,” said Dr. Rafael Fonseca, deputy director of the Mayo Clinic Cancer Center. “But escalating costs remain a challenge.”

Costs are higher in the United States than around the world, he says, but that’s partly because the U.S. carries most of the cost of research and development. He sees room for containment of costs. “The notion that everything has to be managed by doctors must change,” Fonseca says. “Nurses can get a history and do a medical exam;. There can be electronic consultation. Nurses can deal with day-to-day problems with specialists handling individual cases.”

Here are the five things that Valley experts say will shape health care in Arizona as the state enters its second century:

Medical Technology

More improvements, including less invasive surgery, targeted drugs and therapies.

Cost containment

More use of nurses and trained technicians to give care.

Medical education

Training for technicians and nurses so they can administer more care.

Lifestyle education

Promotion of better nutrition and more exercise.

Growth of facilities

New clinics and hospitals in Arizona attracting patients from around the world.

Arizona Business Magazine January/February 2012

Public Projects - AZRE Magazine January/February 2012

Public Projects: Keeping Construction Companies Alive

Of the 15 Arizona school districts that asked voters in November to approve bonds to build or renovate education facilities, 11 got the go-ahead despite the lingering recession.

That’s good news for many of the state’s construction companies that have relied on publicly-funded projects to boost business and keep workers employed as private investment in new buildings plummeted with economy.

And for public entities with the need and the seed money, it’s a good time to snag a good deal in a highly competitive market for construction materials and services.  But while public projects have helped, government spending has not been the great savior of the industry, according to Arizona’s construction company leaders.

The recession has taken its toll on public building plans with shrinking tax revenue sopping up funds pegged for new schools, city halls, police stations or libraries.  And as absolutely essential projects get checked off the list, public spending is expected to dwindle.  However, at least some projects are still getting budgeted and built, says Bo Calbert, president of McCarthy Building Companies’ Southwest Region.

“From 2003 to 2007, we probably had our best market in decades, but by 2008, everybody knew we were in trouble,” Calbert says.

“Private (projects) stopped overnight.  Public work continued.”

Citing a recent market outlook report for Phoenix-Mesa-Scottsdale, Calbert says overall construction value slipped 40% in 2008 from its 2007 high, tumbled another 23% in 2009 and 27% in 2010.  The report predicts 2011 value will increase 40% when the final numbers are compiled, but will sag slightly this year (2012) before heading back up in 2013.

Building During the Recession

Much of the 2011 increase is a result of federal stimulus funding for schools, infrstructure, solar-fueled projects and other green upgrades, Calbert says.

Among the infrastructure projects McCarthy landed is construction of the $140M, first phase of the PHX Sky Train, a people mover pegged to connect Phoenix

Public Projects - AZRE Magazine January/February 2012

Sky Harbor International Airport visitors and employees to the terminals, light rail system and parking lots.

McCarthy’s usually packed education division had a 2011 workload values at about $110M, Calbert says.  That’s down from a high of $170M in 2008.  And about 40% of the 2011 business was out-of-state work as McCarthy took jobs in New Mexico to make up for Arizona’s shortfall.

“Public work has kept us going, but we had to go beyond Arizona,” he says.  Among the school projects McCarthy snagged during the recession is  a $20M addition and renovation for Barry Goldwater High School, says Terry Bohl, the company’s education services director.  Parts of that multi-faceted project were completed during summer 2011 break, and other non-disruptive work is still ongoing, he says.

During the summer break, McCarthy completed 600,000 SF of school construction in Metro Phoenix, including the new buildings, renovations and mechanical upgrades. Still in the works is a new, $12M, 80,000 SF elementary school in Chandler, Bohl says.

Chandler is one of the few Arizona cities able to afford other-than-school public projects during the downturn.  The city broke ground on a $74M city hall complex in mid-2009.  After leasing, saving and budgeting for 25 years, Chandler didn’t have to borrow money to build it, says spokeswoman Jane Poston.  Best of all, Chandler’s project came in $10M under original budget thanks to the sagging economy.

“We had significant cost savings building in a recession,” Poston says.  Designing a much-needed firehouse as solar-fueled and LEED-certified helped Gilbert land a $3M federal grant from the American Recovery and Reinvestment Act, says spokeswoman Beth Lucas.

Maricopa County also saved a bundle by opting to build during the recession, says Thomas Goderre, district operations manager for Gilbane Building Company.

Gilbane teamed with Ryan Companies US on a 700,000 SF superior court tower in Downtown Phoenix (construction value $260M).

“The Maricopa County Court Tower project was big and constructed at the perfect time for Maricopa County, Gilbane/Ryan and the subcontractor community,” Goderre says.  “The county was able to realize construction cost savings in the range of $15M to $20M compared to a normal construction climate, while Gilbane/Ryan and the local subcontractors were able to put a lot of people to work during a very tough economic downturn.”

The court tower was completed in November.  That, along with a new Phoenix Politce precinct and four ASU student recreation centers, are among the publicly funded projects that “helped us weather the storm,” Goderre says.

Looking For New Opportunities

In Arizona, about 75% of Gilbane’s business has been publicly funded projects, he says, but Goderre sees that changing as public money dies up and private investment returns to the market.

Sundt Construction vice president Jeff Fairman says he also believes privately funded projects will take over more of his company’s resources during the next few years as cities and school districts continue to get squeezed.

Tempe-based Sundt bills about $1B in a normal year.  Business has dropped overall during the recession, but the company’s 50/50 ration of public/private business has so far remained static, Fairman says.

Sundt has about $500M worth of public work in progress right now, but most of that is in multi-year projects, he says.

Both the volume of new business and overall construction value have shrunk as pre-recession plans that weren’t shelved were at least downsized.  “The bells and whistles went away,” he says.

Besides building the new Chandler City Hall complex, Sundt landed a potpourri of publicly-funded projects during the economic downturn including K-8 and higher education buildings, municipal infrastructure projects, a federal courthouse and a U.S. Marine Corps simulator facility in Yuma.

Mesa-based Caliente Construction has specialized in upgrading or repurposing existing facilities during the downturn, says CEO Lorraine Bergman.  The company is renovating old post office space to accommodate a student center for ASU’s Downtown Phoenix campus.  Caliente has several projects completed or ongoing to make security, technology or mechanical improvements in public buildings from schools to prisons, Bergman says.  “It’s come down to necessity.  You can’t let the buildings fall apart,” she says.

Kitchell president Jim Swanson says the public sector produces “a sizable piece of our business,” typically employing about 30 percent of the company’s workforce in Arizona and California.

Commercial construction work is down for nearly all Kitchell’s business segments, Swanson says.  And public projects in no way take up the slack, he says.  Instead, he’d give props to the healthcare industry for keeping his business healthy.

For more information on the companies and public projects mentioned in this article, please visit the following websites:

calienteconstruction.com

gilbaneco.com

kitchell.com

mccarthy.com

sundt.com

AZRE Magazine January/February 2012

Short Sale - AZ Business Magazine January/February 2012

The Tax Implications From A Short Sale, Foreclosure

The truth of consequences: There can be tax implications from a short sale and foreclosure


The only sure things in life are death and taxes.

And like death, taxes can sometimes sneak up and surprise you. Some homeowners who have faced foreclosure or a short sale might be startled to learn that they may face tax penalties. And many won’t find out that they owe taxes until they open their mail and find a 1099.

“What most owners of residential homes being foreclosed upon or short selling do not realize is how uncertain, complicated and confusing the federal and state income tax rules are that apply to their situation,” says Eliot Kaplan, a partner with Squire Sanders in Phoenix.

So how is it possible that you can lose your home and still owe money?

“Cancellation of debt (COD)  is the term tax professionals use to describe the kind of income that arises for tax purposes when debt is cancelled or forgiven for less than its full face or principal amount,” says Kelly C. Mooney, a shareholder with the law firm of Gallagher & Kennedy in Phoenix. “COD income is specifically included in a taxpayer’s gross income … COD income is always treated as ‘ordinary’ income for federal tax purposes, such that the tax rates applicable to ordinary income — which can be as high as 35 percent for individuals — apply to COD income.”

Thankfully, all upside-down homeowners won’t face tax implications. Under the Debt Forgiveness Act of 2007, any debt forgiven on a loan used to purchase a principal residence is not taxable income. But if you took out a second mortgage, you might be in tax trouble.

For federal income tax purposes, a short sale or a foreclosure — whether via a judicial foreclosure or a trustee’s sale — can trigger income tax consequences, depending on whether the debt at issue is “recourse” or “nonrecourse” for federal tax purposes, says Mooney.

If your mortgage is non-recourse, your lender can’t make you pay the loan. The only thing it can do is foreclose and sell your house for payment on the debt. If the borrower defaults, the lender can seize the collateral, but the lender’s recovery is limited to the collateral.

“If the debt was nonrecourse, meaning the lender had no recourse other than to take the home back, the debt forgiveness is not taxable,” says Dale A. Walters, CPA, Keats, Connnelly and Associates in Phoenix. “However, there will be a reportable gain to the homeowner if the sales price of the home is greater than the mortgage. Many states allow you to walk away from your (no-recourse) mortgage because of anti-deficiency statutes that prohibit lenders from seeking judgments.”

States that have anti-deficiency laws are Arizona, Alaska, California, Connecticut, Florida, Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington.

Where homeowners get into tax trouble is if they are facing a foreclosure or short sale and they have taken out a second mortgage or line of credit against their home.

“All second mortgages and lines of credit are recourse loans,” Walters says.

With a recourse loan, you’re personally responsible for repaying the bank or mortgage company. If you don’t repay the loan, or default, the bank can sue you for the remaining amount due on your loan if the proceeds from a foreclosure or short sale don’t cover the amount you owe. While mortgages are typically nonrecourse debt, a foreclosure can trigger the loan to become recourse debt at the request of the lending institution.

“The difference between a ‘recourse’ loan or a ‘nonrecourse’ loan under state law is whether the lender has the right to collect the deficiency,” Kaplan says.

And what about the tax implications?

Kaplan explains using this example: A homeowner purchased a residential home in 2007 for $1 million, used $100,000 cash as a downpayment, took out an interest-only recourse loan of $900,000 that was secured by the residential home, and used the home as his or her personal residence. In 2011, when the residential home had a fair market value of $700,000, the owner voluntarily gave back the home to the lender.

“Using the foreclosure and short sale facts above, if the lender decides as part of the foreclosure or the short sale to forgive the deficiency, the owner will have taxable ordinary income equal to the $200,000 deficiency,” Kaplan says.

“Fortunately, until January 1, 2013, the U.S. and Arizona have provided for relief from having to include the lender forgiveness of the $200,000 deficiency described in the above foreclosure or short sale as taxable income,” Kaplan says.

So how do you know if you’re going to face the tax man after a short sale or foreclosure?
“The best way to know is to ask your tax advisor,” says Lawrence Warfield of Warfield & Company, CPAs in Scottsdale. “The tax from some debt forgiveness can be avoided, but the facts and circumstances of each depend on various scenarios and issues.”

Understanding the terms: Foreclosure and Short Sale

Foreclosure: When a lender acquires ownership of the residential home securing its loan either through the owner of the residential home voluntarily transferring the residential home to lender or through the lender exercising its state law foreclosure rights.

Short sale: When the lender permits an owner of a residential home which secures its loan to sell such residential home for less than what is owed to the lender under the loan. Usually, the lender receives all the proceeds from such sale.


5 questions to ask

Here are some helpful questions that you will need to ask you tax professional:

1. Can I avoid paying taxes on the forgiven debt if I was insolvent at the time of the short sale?
2. Do I have to file bankruptcy to be considered insolvent?
3. If you already went through a short sale and paid taxes can you file an amended return and get a refund?
4. Does a IRS Form 982 have to be filed in order to be eligible for tax relief?
5. Am I protected under the Mortgage Forgiveness Debt Relief Act Of 2007?


Mortgage Forgiveness Debt Relief Act (MFDRA)

Generally, the MFDRA lets you exclude from your taxable income most if not all of any cancelled or forgiven debt that might come about because of a foreclosure. There are limits, however:

1. The cancelled debt has to be on your principal residence. The debt can be from a loan that you took out to buy, build or substantially improve your home. It can also be for refinancing the mortgage on your home. Since it applies only to your principal residence, commercial and vacation properties usually don’t qualify.
2. Only debt that’s forgiven in 2007 through 2012 qualifies.
3. If you file a joint tax return with your spouse, you can exclude up to $2 million of forgiven debt from your income. If you’re married and file separately, you can exclude up to $1 million.
4. You have to report the amount of forgiven debt on a special IRS form, and attach it to your tax return.

Arizona Business Magazine January/February 2012

Commercial Development - AZRE Magazine January/February 2012

New Commercial Development Will Impact Growth In The Next 100 Years

Arizona’s economic strength and growth the next 100 years depend on the creation of new buildings, commercial development and new infrastructure

A high-speed train between Phoenix and Tucson. Toll roads on I-10 and I-17. A new shopping mall. Three outlet centers. A major development in West Phoenix. New casinos.

Solar manufacturing plants. A light rail that extends from Phoenix to Gilbert. A new interstate — I-11 — linking Phoenix and Las Vegas. State-of-the-art sports facilities.

Reality or wish list?

As Arizona looks ahead to its next 100 years, the future of the commercial real estate industry hinges on new infrastructure to keep the state’s economic engine churning while meeting the demands of a growing population.

Since the recession unloaded on the commercial real estate industry in the mid 2000s, it’s been an uphill climb for those in the industry, including general contractors, architects, engineers, subcontractors, developers and brokers.
Commercial Development - AZRE Magazine January/February 2012
“We will see a population shift to urban areas with a focus on transit- oriented development,” predicts Bryan Dunn, senior vice president at Adolfson & Peterson Construction. “Commercial property will need to be re-purposed into alternate uses due to the glut of vacant space in the real estate market.

“We will need to find creative ways to own and operate buildings in the future. There is a growing demand for public/private partnerships for municipal and educational facilities, similar to what has been done in Europe,” Dunn says.

AZRE Magazine asks some experts in commercial real estate how they see the industry changing in Arizona over the next decade and beyond. Here are their responses:

Planning and Development

“In the next 10 years, Arizona will finally adopt Tax Increment Financing (TIF) to remain competitive in the business world. The new normal is for less reliance on homebuilding as a jobs industry. Two more high rise office buildings with mixed uses on the lower floors will be built in Downtown Phoenix. In the next 100 years, high-speed rail
will run between Phoenix and Tucson in the Sun Corridor and a new, man-made lake/reservoir will be created north of Phoenix to collect upstream snow melt and serve the needs of Metro Phoenix.”
— Jon Froke, Planning Director, City of Glendale

“During the next 10 years, smaller developments that require less off-site infrastructure and result in lighter commitments from homebuilders are likely. Infrastructure requirements/costs will be lower and financial commitments will be smaller, both of which are desirable to financiers and homebuilder shareholders recovering from the recent downturn.

“In the next 100 years, development and homebuilding will undergo some of the most rapid changes ever. In Metro Phoenix and the Tucson area, densities will undoubtedly increase dramatically; we will grow upward rather than outward, as large metropolitan areas eventually do. The materials builders use will change dramatically, looking and feeling different. There will be stronger and lighter materials. Although hard to imagine, many unique, innovative homebuilding products that will be used the homes of the future have already been developed, we continue to wait for them to be rolled out to consumers.

“The continued development of solar technologies is going to have huge impact on all types of commercial development in Arizona.  Imagine buildings – retail, office, industrial, homes – not needing to be hooked up to the grid because they produce all of the energy necessary for their usage. The development of “net-zero” facilities in this market, where sun is plentiful, will have a dramatic positive effect on Arizonan’s lives.”
— Jim Belfiore, President, Belfiore Real Estate Consulting

Brokerage

“The beginning of the change is going on right now. The exchange of ownership has and will have an impact on our industry in the next 10 years. In the RTC days it took about 15 years to fully recover, this current cycle will take 5-7 years to process all of the inventory and for the next wave of owners to re-trade the properties. Banks, special servicers and the FDIC will be in charge of real estate for the long term and all of the assets that are currently under their control won’t make it back into private hands in total for 10 years.

“The medical use of retail space will be in full force, everything about this makes sense, retail buildings, namely big box spaces, have the power, the lower rents and the parking already in place to handle a medical user. This will create truly mixed-use locations.
“Internet sales fulfillment centers will hit a critical mass, even if and/or when the state begins to charge them sales tax, even at a much lower rate. Phoenix is well located, we have a growing economy and it makes a lot of sense that those are now starting to pop up here.

“In the next 100 years, buildings will be far more energy efficient, materials to build buildings will be so much more advanced than we can even imagine. In commercial buildings, there will be more bodies per square foot, more technology, less employees, smaller office size requirements. Thousands of new businesses will be created.”
— Pete Bolton, Managing Director/Executive VP, Grubb & Ellis

“Real estate growth over the next decade will be far more restrained than in the boom period in the 10 years before the onset of the recession. During that time, commercial property inventories routinely expanded by anywhere from 3% to 5% annually, driven by growing tenant demand for space and rents that steadily pushed higher. A return to that environment is unlikely anytime soon.

“Forecasting out over the next 100 years presents a pretty daunting challenge … but all of the demographic trends show Arizona will remain a growth market over the next century and population growth will spur demand for both commercial and residential real estate. Beyond demographics and quality of life factors, we believe global economic patterns will support growth in Arizona.”
— Bob Mulhern, Managing Director, Colliers International

Architecture

“The design and construction industry needs to be at the forefront of determining how Arizona is developed over the next 10 years. We need to take a hard look at the lessons learned from the past 10 years regarding unconstrained growth and sprawl, as well as from the positive developments of renewed urban focus, comprehensive transportation and development plans, and increased integrated project delivery partnerships.

“Architects have the responsibility for shaping the built environment that we all experience on a daily basis and need to ensure that built environment is increasingly sustainable, functionally practical, and aesthetically pleasing. Through technological advances and communication outlets, AIA architects will be continually educating ourselves about, and be more globally aware of industry trends and improvements that can be applied locally, so that Arizona becomes the ideal place to live, work, and play. In addition to increasingly becoming the leading stewards of our built environment through sustainable design and comprehensive planning, You are going to see an increasing significance in the role the design industry plays in the overall development of our communities.

“The industry will partner much more with government and lines will be blurred in community planning, design review, and construction inspection. Public-Private Partnerships and Integrated Project Delivery methods will become the norm, and the design and construction industry will have much more at stake in what they develop beyond their immediate financial compensation.”
— AIA response from Patrick Panetta, ASU; and Chris Knorr, SmithGroupJJR

“All industries, including commercial real estate and architecture, will need to continue to evolve and adapt to emerging technologies. Specifically in the fields of alternative energy and sustainability. I believe the next few years of those 10 years a lot of attention will need to be spent on repurposing existing buildings and facilities. We will obviously need to remain flexible to adapt to the process of becoming stabilized.

“Because technology and technological advances are changing at an exponential rate, I think the next 100 years is beyond reasonable comprehension. Who would have thought 100 years ago that we would be where we are today. However, architecture and real estate haven’t significantly changed over the past 100 years, but we also have not had the multiplying pace of technology at our disposal. Who knows, things like tele-transporting may be a reality over the next century, which of course would drastically change architecture and commercial real estate.”
— Patrick Hayes, President and CEO, PHArchitecture

Legal

“For approximately the first third or half of the next 10 years, commercial real estate will need to focus on absorption and modification to meet current needs of those projects that resulted from overbuilding during prior ‘blow and go’ times in our industry. Creativity and cost-effective adaptation will be needed to recast non-performing or under-performing commercial assets into assets that can meet the needs of current real estate users. As an example, big box retail spaces that have gone dark will need to be adapted and converted into creative uses to accommodate smaller and even different users. Cities and counties may need to modify their zoning to allow for a broader variety of uses that will meet the needs of today’s users.

“One hundred years is a long time and it is difficult and somewhat speculative to attempt to predict what changes will most impact Arizona over such a long time period. However, I suspect that big box retail will downsize as Internet shopping grows over the many years to come. I also suspect that growth in Arizona will have to adjust to demands upon the availability of water and our entire culture will eventually take on a more serious and long-term water approach to and conservation.

“Arizona will need to adapt its economy to more self-sustaining business that is not so dependent upon growth and real estate development. Thus, over the next 100 years Arizona will need to modify its tax and development schemes to accommodate more industry and manufacturing. Finally, Arizona will develop more political clout in Congress and the federal government as its population grows and the state’s economy continues to mature.”
— Don Miner,  Director, Fennemore Craig PC

Construction

“The impact construction will have in Arizona over the next 10 years will start with job creation. As the market comes back, the industry will be a leader in putting people back to work. We will need people to fill both direct construction jobs, and jobs that are indirectly related to construction. Every $1B spent in construction results in a total of 20,000 direct and indirect jobs. These jobs will help the middle class, the hardest hit in the last few years in terms of job loss.

“Construction is one of the top five industries nationally, and by then (10 years from now) it will be back among the top five industries for Arizona. Finally, the use of public/private partnerships will increase to meet community needs for amenities, infrastructure and growth.”

“Also, in Arizona, construction will be essential in reshaping the suburban landscape of our past into the more blended and integrated urban and semi-urban environment for the future. We are seeing new demographics that have families from multiple generations that live under one roof, and this factor along with other market forces will increase density in the mixed-use urban environment.”
— Eric Hedlund, Executive Vice President and COO, Sundt Construction

Finance

“Financing will always be a key part to Arizona’s growth. How products and services will be delivered will continue to evolve. As the market heals more competition enters into the marketplace thereby giving more investors access to capital. Assuming the economy has healed and is robust, I see a lot more choices for investors, developers and consumers in the next 10 years when it comes to the availability of financing.

“In the next 100 years? The market will always go up and down and therefore there will be more boom and busts as the decades roll forward. The difference in the future is access to information becoming more available than previous decade. The speed of that information will cause market trends to shift faster. Volatility could be more frequent.”
— William L. Spart, Senior VP, Wells Fargo Bank-Real Estate

For more information on Arizona’s construction projects and new commercial development, visit az.gov.

AZRE Magazine January/February 2012

Graph 1

GPEC: Plans To Revive The Economy

Look past the Valley’s long, slow climb out of a difficult recession to the next 10, 20, even 100 years and you see a potential hotbed of wealth and productivity: a regional economy that has diversified from its traditional reliance on growth and housing. That’s the vision painted by board members and financial supporters of the Greater Phoenix Economic Council ( GPEC ), which has been working since 1989 to leverage the many strengths of the entire metro area.

In the 22 years since its inception, GPEC already has assisted 488 companies in their moves to the Valley, which by its own count translates into 88,610 jobs, $9.96 billion
in capital investment and $3.1 billion in payroll.

In the next century, look for GPEC to shape the following sectors and services:

Municipalities

The greatest influence GPEC will have on Valley cities will be to help leaders think of themselves as a unified economy, says Mayor Scott Smith of Mesa, which is one of the 19 cities and towns that contribute financially to GPEC.

“That sounds like a simple thing, but it’s actually been a very challenging task,” Smith says, with the East Valley vying against the West Valley, city fighting city, and “Phoenix fighting everyone else” for economic development opportunities.

In the coming decades, economic activity will continue to consolidate in cities, Smith says. Already, about 85 percent of the nation’s gross domestic product is generated in cities and it is estimated that 90 percent of the new jobs created will be in metro areas. GPEC will continue to play a major role in helping cities get beyond parochialism and work together to create a regional economic powerhouse.

“The Sun Corridor is not some figment of someone’s imagination,” says Smith, referring to the corridor stretching from the middle of Yavapai County south to Tucson that is expected in the next century to merge into one integrated metro area. “We see it growing every day.”

“GPEC plays a central role in that,” he says. “We are learning how to work better together.”

Technology

The Arizona of the future will do a better job developing a culture of innovation for small, high-tech companies, says Steve Shope, president of Sandia Research Corporation and a
GPEC board member.

A short-term goal that may reap long-term benefits would be to help companies attain funding through the U.S. government’s Small Business Innovation Research program, which awards funds for research and development that has the potential to be commercialized.

“In Arizona, we’re not doing a very good job of bringing that money into the state,” says Shope, who would like to see the figure double to $50 million.

The state needs a better representation of venture capital in general, he says, and thus needs to nurture venturecapital-ready companies.

Shope is a member of GPEC’s new Innovation Council, which he says is developing a framework for how it will operate and hopes to have a master plan this year.

Another way GPEC will shape the future of the technology industry is by continuing to focus on clean tech companies, particularly renewable energy companies and those involved in residential construction and high-efficiency housing.

Unmanned aerial vehicles, a subset of Arizona’s already mature aerospace and defense industry, is a sector that “is in the Model T stage, but has potential for gigantic growth,” Shope says.

Housing

Looking back, one can see how homebuilding and construction became primary drivers of the state’s economy, says Andy Warren, president of Maracay Homes and a GPEC board member.

Looking forward to the next century, GPEC will play a major role in helping to diversify the Valley’s economy so housing plays a less dominant role in it. If GPEC can do that, Arizonans won’t be held hostage to vicious boom-and-bust cycles inherent in the real estate industry.

“If GPEC is successful, the housing industry will be a less significant player in our economy over the next century and that will be a wonderful thing,” Warren says. “The amplitude of those cycles can be pretty extreme.”

It has been estimated that Arizona has lost 300,000 jobs in the recession, with the bulk of those coming from the construction and retail sectors.

GPEC’s efforts to lure high-wage, high-quality jobs in the clean technology, healthcare and aerospace sectors and its efforts to strengthen manufacturing will be instrumental in diversifying the economy of the future, he says.

A key to that strategy is GPEC’s commitment to supporting competitive tax incentives and policies that promote growth, and its work bringing together officials and policy makers throughout the region. “It’s a great collaborative effort,” he says.

Law

When GPEC reaches out to businesses considering a site in the Valley, one of the first things business leaders ask is, “‘Do you have the legal talent in Arizona and in Phoenix to do the things we want done?’” says Barry Halpern, a GPEC board member and partner at Snell & Wilmer.

In that respect, GPEC and the legal community have a symbiotic relationship that will only deepen in the next century as GPEC brings more sophisticated and diverse industries to the Valley, Halpern says.

The legal profession in the Valley — already a diverse community — will have to rise to the needs of emergent industries.

Almost all aspects of economic development require legal representation, including the demand for capital financing or the need for representation in emerging niches like the solar industry, agrees Scott Henderson, a shareholder at Polsinelli Shughart and a GPEC board member.

“GPEC will shape the legal practice as it attracts more businesses and more industry and those businesses will require a greater depth of legal talent,” Henderson says. “To that extent, local law firms will want to play a greater role in the growth of the state. The growth of the economy helps everybody—lawyers are no exception.”

Banking

The near future for banking in Arizona is brightening as lending activity has increased and most banks’ biggest problems are behind them, says Jim Lundy, GPEC vice chairman and president and CEO of Alliance Bank of Arizona.

“The recovery is slow, it’s bumping along the bottom, but it is there,” says Lundy, who also serves as chairman of the Arizona Bankers Association.

The long-term prognosis for banks is a bit harder to predict, but Lundy says he is sure of one thing: it is inextricably linked with a diversified Arizona economy that is not dependent on population growth.

In that sense, GPEC’s goal of fostering cooperation between cities and creating a diversified economy will directly shape the industry.

“Our success and our growth depends on companies that actually produce something,” Lundy says. All the important emerging industries — like healthcare, clean tech and aerospace — create spin-offs in the economy that are good business for the banking sector.

“We need successful enterprises to make those loans to,” he says. “At the end of the day, if the banking sector is going to grow successfully it needs GPEC and its role in helping get Arizona’s economy growing again.”

Education

It’s not hard to figure out why leaders in the field of education sit on GPEC’s board of directors: education is essential to economic development, and vice versa.

“As we look to the future, we see that growing the right talent for the new markets that will be out there is imperative,” says GPEC chairman Bill Pepicello, president of the University of Phoenix.

That may require more coordination between Arizona’s “robust” array of higher education institutions—statefunded universities, community colleges and private institutions. “I envision campuses as multi-functional areas that are working cooperatively on the ground and online to serve Arizona,” he says.

Arizona’s education of the future will also need to be “efficient and effective,” says Rufus Glasper, chancellor of the Maricopa County Community College District.

In the next 30 years, he says more than 1.8 million new jobs will be created in Arizona and these jobs will require students who are competent in what is know as the STEM fields: science, technology, engineering and math.

Educational delivery systems will include more online, hybrid and fast-track training, he says, and willuse mobile devices and social media to create more access to new ideas, networks and educational exchanges.

Like Pepicello, Glasper envisions closer relationships between secondary schools, post-secondary colleges and universities.

Manufacturing

The Midwest has always been known as the heavy industry manufacturing hub of the United States. But Arizona in the next century could attract more technology manufacturing, says Steven Zylstra, president and CEO of the Arizona Technology Council, which has worked alongside GPEC in the past to nurture the tech industry here.

“To the surprise of a lot of people, manufacturing is actually coming back to the United States,” he says. Wages and manufacturing costs in China are rising, so companies that sent manufacturing overseas are finding that once they pay for shipping, it’s cheaper at home.

Areas of promise include the manufacturing of medical devices, bioscience-related products, renewable-energy equipment and the semiconductor industry.

When it comes to the semiconductor industry, that optimism is warranted, agrees Jason Bagley, a government affairs manager at Intel in Arizona.

Intel has always manufactured most of its leading-edge products in the United States, he says, and plans to continue doing so. Since 1996, it has invested $12 billion in manufacturing in Arizona, not including two projects currently under construction in Chandler.

For more information about GPEC visit, gpec.org

Arizona Business Magazine January/February 2012

Arizona Centennial Series - AZ Business Magazine January/February 2012

Arizona Centennial Series: Looking Ahead At The State’s Next Century

Arizona Centennial — Forward thinking: Algae, solar, personalized medicine or none of the above? Some of Arizona’s greatest minds look ahead at the state’s next century

A century ago, Arizonans with an entrepreneurial spirit ventured deep into the deserts and mountains in search of gold and copper. Today, as Arizona celebrates its 100th birthday, their counterparts are exploring the unknown frontiers of biotechnology and renewable energy.

“Imagine the technologies of 100 years ago,” says Steven Zylstra, president and CEO of the Arizona Technology Council. “Now, think about how far we have come. Only a very few science fiction writers even envisioned the technologies that are now a part of our everyday lives. It is very likely that (100 years from now), the mix of industries and companies will be very different. There will be subsectors that don’t even exist yet. One thing is sure, there will be more technology than ever to drive our economy and improve our quality of life.”

So with 100 years in the history books, what’s in store for Arizona’s next century? One expert says algae will be Arizona’s 21st-century gold rush. Will Arizona’s yet-to-be-written history prove him to be right?

As part of the Arizona Centennial Series, Arizona Business Magazine asks some of the state’s greatest minds how they see Arizona taking shape over the next decade and beyond.


Economy

Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business at Arizona State University

The next 5 years will be a period of agonizingly slow recovery from the Great Recession. Arizona employment will return to post-recession levels within two to three years, but new, more frugal spending habits will put a damper on growth. The next 25 years has the potential to be a period of strong growth. Under historical growth assumptions, Arizona’s population will almost double within 25 years, as the state grows to more than 10 million residents.  Phoenix will have a population between 7 and 8 million, larger than the entire state today.  Immigration will exceed 125,000 every year by 2030.  Over the next 25 years, to accommodate growth, more than 1 million single-family homes will be needed, a seemingly impossible pace of building compared to conditions today.In the next 100 years, the gap between those with education, training and skills and those without will grow even greater as technology will benefit those who develop, control and use it.

Lee Vikre, senior vice president, organizational development and consulting, BestCompaniesAZ, LLC

In the next 10 years, the Arizona workforce will be more diverse than ever before, with wide spans in age ranges of workers and greater cultural diversity. White males may become the minority. Entrepreneurship will be ingrained in workers of all ages who were affected by the recession. This entrepreneurial, independent atmosphere will continue to define Arizona. Homegrown, innovative businesses in the fields of technology, manufacturing, healthcare, and sustainable energy will prosper. The movement towards creating great workplaces will move from a novelty to mainstream as both workers and management discover the competitive advantage of a culture of trust.

Patricia Ternes, financial advisor, RBC Wealth Management, Scottsdale

For the next 100 years, we need to address the concept that the world is flat.  Right now, we have multiple currencies and multiple stock markets. The financial services industry needs to better integrate the products and services we offer our clients worldwide. In 100 years, there will probably be huge, world-wide investment markets that are available to everyone 24/7.  This will increase the complexity of planning one’s financial future.


Technology

Steven Zylstra, president and CEO, Arizona Technology Council

In the next 10 years, the biosciences and renewable energy (and even the broader clean tech) sectors will become significant components of our economy.  Aerospace and defense, semiconductor and electronics, ITC, and optics will continue to grow.  The technology sector will be an ever-increasing component of our economic landscape, leading to more diversity.

Mark Edwards, PhD., vice president of corporate development and marketing, Algae Biosciences, Inc., Scottsdale

Arizona has the critical elements for algae production including lots of sunshine, waste and brine water for nutrients, CO2, and cheap land.  The state has a competitive advantage for algae production and will become the algae capital world. Arizona will go from two firms producing algae in 2011 to 200 algae firms in 2020. Arizona producers will cultivate algae for food, feed, fertilizers, pharmaceuticals, cosmeceuticals, nutraceuticals, functional foods, medicines and advance compounds. In the next 100 years, Algae will become the leading industry in Arizona, eclipsing tourism; more than 80 percent of all medicines, vaccines and pharmaceuticals will be made predominately from advanced compounds derived from algae; our fossil-based transportation system will transform to a sustainable algae-based transportation system.

Steve Sanghi, president and CEO, Microchip Technology Inc., Chandler

Given this expansion and the number of semiconductor players that have operations in Arizona, the semiconductor industry is likely to have a significant impact in this state over the next 10 years. This expansion will lead to a sharp increase in the growth of well-paying, high-tech jobs in our state. Take the case of medical advancements.  Over the next 10 years, we will see a significant expansion in the use of semiconductors for surgical and analysis equipment; in portable, wearable and implantable medical devices; and in the cost-cutting use of remote medicine, where patients will be monitored by medical professionals in lower-cost regions.

I will, however, add one cautionary note to the optimistic picture I have just painted.  The formation of new start-up companies is driven by the availability of venture-capital funding. Arizona continues to be plagued by a scarcity of risk capital, as most venture-capital firms are located in California, Texas and Massachusetts. The result is that those states continue to attract the bulk of VC-backed startups.  While Arizona has been a technology hotbed in recent years, we must fix this problem if we are to remain the “Silicon Desert.”


Environment

Diane Brossart, president, Valley Forward Association

In the next 10 years, Arizona will diversify its economy through green jobs and technology. Renewable energy sectors will proliferate with solar leading the way. In the next 100 years, we will become the solar capitol of the world. Light rail connects Valley cities. Commuter rail takes us across the nation. Arizona is a burgeoning hub of economic activity. Parks and open space dot the landscape. Innovation and technology abound. Our legislature is enlightened and the green revolution leads to new water sources in our vibrant desert oasis, now free of particulate pollution.

Kelly Mott Lacroix, graduate research associate, Water Resources Research Center, Tucson

Over the next 100 years, our water management will need to be flexible and progressive enough to allow us to prosper in the face of supply uncertainty from changes in climate and the continuing growth of our economy.  Arizonans will have to make decisions about what we value most about this state and those decisions will dictate how the water issue changes Arizona.

Larry Howell, CEO and president of KEBAWK Response Technologies, a Scottsdale-based engineering company that responds immediately to hazardous or catastrophic disasters

Environmentally-conscious companies like KEBAWK are going to continue to grow and have a much more pivotal role in growing the economy in the next 10 years as businesses strive to be as sustainable as possible. What was once a trendy, cottage industry is now a must for businesses.


Health

Dr. Grace Caputo, director, Phoenix Children’s Hospital/Maricopa Medical Center Pediatric Residency

I see medical education as a dominant force in Arizona, especially with the growth of the University of Arizona campus downtown. Innovative pediatric care will continue to be a highlight at Phoenix Children’s Hospital, but healthcare overall will continue to improve our community as birth to age 5 is the fastest growing population in Arizona.

Catherine Niemiec, president, Phoenix Institute of Herbal Medicine & Acupuncture, College & Clinic

In the future, acupuncture and oriental medicine (AOM) will fill the gaps created by high insurance rates, fewer primary care physicians, and seemingly incurable or chronic conditions. Acupuncture can be available for the same cost as a co-payment, supporting the need of those who have no insurance or who need to seek different care beyond what their insurance will cover. A report on “Complementary and Alternative Medicine in the United States” cites widespread use of CAM, with more future visits to CAM providers than to primary care physicians (with most of these visits paid out-of-pocket).

Kenneth J. Biehl, M.D., radiation oncologist, Arizona Oncology

Long-term changes for the use of radiation in cancer care will involve a combination of treatment directed at the molecular level and immense precision with external radiation. Targeting cancer with radiation at the molecular level has been developed for only a handful of cancers to date. The struggle to find and develop cures at the molecular level will be one of the determining factors in how the people of Arizona will receive cancer treatment for the next hundred years.

Mahesh Seetharam, M.D., medical oncologist and hematologist, Arizona Oncology

In the next decade, electronic medical records will continue to evolve to help coordinate care between the various providers to optimize outcomes. It is very difficult to predict given the current labile healthcare environment.  The concept of universal healthcare is very possible, but with that comes the need for additional providers and resources to provide the necessary care.  Personalized medicine could be a reality in the next decade or two, and this will certainly improve outcomes.


Banking

Lynn Crane, executive vice president, bank operations and services, Mutual of Omaha Bank in Arizona

Mobile devices will replace plastic cards.  This will completely change the “check out” experience at retailers. Arizona shoppers will be able to scan merchandise as they pick it up off the shelf and make payment without stopping at a checkout counter when they leave the store. On the negative side, this transition to non-traditional delivery channels will make bank branches less relevant. Online financial consultants will replace branch employees and a trip to the bank will become a thing of the past for Arizonans. Some branches will close and the industry will require a smaller workforce. The future value of currency will not rely on paper, but on digital data, so heightened security concerns and demand for data protection will prevail.  As a trusted source of security, banks will play a much larger role in helping Arizonans secure their valuables and their future.

Craig Doyle, Arizona market president, Comerica Bank

Some of the industry segments critical to our future are aerospace and defense, semi-conductor manufacturing, business services technology, health care and renewable energy.  Effectively supporting their growth requires a deep understanding of supply chains and related capital markets.  It will take time, but the Arizona banking industry should help facilitate the appropriate capital markets so that Arizona is competitive with other major economic regions in helping companies, form, grow and mature.


Education

Michael M. Crow, president, Arizona State University

Within 10 years, ASU will be America’s finest example of a widely accessible research intensive public university and in this mode it will be capable of operating at a very rapid and large scale for educational competitiveness for Arizona.  In this mode, the university will have deployed its assets to maximize the competitive position of Arizona through its role as a comprehensive knowledge enterprise producing fantastic graduates, ideas and new technologies. ASU will be a critical asset for Arizona going forward over the next 100 years as the knowledge based economy or at least knowledge driven adaptation and innovation to the uncertainties and the complexities that lie ahead in the areas of global finance, economic competitiveness, environmental sustainability and so forth will be such that what universities like ASU do will be more important than ever.  This is true specifically for ASU in the context of Arizona as Arizona in the next 100 years grows and matures into America’s preeminent example of a free enterprise driven innovation catalyzed state.

Bill Hubert, president and founder of Scottsdale-based Cology, Inc., which helps lenders enter the student loan market

At some point, the cost of education is going to have to “normalize” within the overall economy.  For decades, cost of attendance, whether private or public, traditional or trade-based, has increased at much higher than normal rate.  Our business of providing financial services that connect students and families with a broad spectrum of relationship based funding sources will certainly help increase access and drive down overall costs – of program administration, funding sources, and even institutional administrative costs.

Deanna Salazar, senior vice president and general counsel of Blue Cross Blue Shield of Arizona

I believe that by supporting community outreach efforts similar to the Green Schoolhouse Series, which makes schools healthy and green “inside and out” through the development of an integrated health and wellness curriculum and green gardens to promote nutrition and wellness in disadvantaged schools, BCBSAZ will continue to be positioned as a leader who is genuinely taking care of the health of Arizonans, in both traditional and non-traditional ways that create a better future for all. For years to come, it’s BCBSAZ’s hope for the green gardens to teach children about healthy eating and physical activity by allowing them to use and maintain the garden.


Marketing

Kristin Bloomquist, executive vice president, general manager, Cramer-Krasselt

As I look into a crystal ball, the marketing world as we know it will change dramatically in the next 100 years. It will be forever changed even in the next 10 years. However, brands will not go away. In fact, they will be even more valuable both in the next decade and in the next century if they can evolve as we evolve, as our technology evolves. Those brands that increase in value over time will have very different ways of communicating with consumers. Everything will be personalized. Everything will happen in real time. There’s a good chance that 100 years from now, as far as commercial messaging and targeting goes, “Minority Report” will be seen as an amazingly accurate forward-looking documentary rather than a work of fiction.

Rob Davidson, co-owner of Phoenix-based Advertising firm Davidson & Belluso

Think of how social media has drastically impacted communications with customers and prospects in recent years. Marketing and advertising will keep changing at an even faster rate as new technology becomes available. Smart phones and tablets have already become standard channels of any marketing plan. Companies who stay on top of the latest marketing tools and learn about their customers changing behaviors are the ones who will be successful in reaching their target markets.


Energy

Mark Bonsall, general manager and CEO, SRP

In the next decade, the growth in wind and solar will continue to be strong, but will still provide a relatively small portion of the needed energy just because the scale of what is needed is so large. It is likely most of the new baseload resources will be fueled by natural gas.  New drilling and recovery technology is providing access to vast quantities of natural gas within the U.S. at relatively low costs, at least so far.  This provides a good bridge to develop systems that can improve the efficiency of solar systems, address the intermittent nature of most renewable resources, find safe and more cost-effective ways to deploy nuclear power, and provide the time for innovative new ideas we aren’t even aware of now.

John Lefebvre, president, Suntech America

With supportive policies, the solar industry will continue to grow and flourish, creating a major employment sector for the state. Additionally, every year the cost of solar is driven down, getting closer and closer to achieving grid parity in the U.S. As solar becomes a market-driven industry, Arizona is poised to be a major global solar industry hub, particularly with the continued development of large-scale solar projects. Ultimately, I hope to see energy generated from solar grow to a significant percent of the U.S. energy supply portfolio and eliminate our dependence on foreign oil, providing a low-cost solution to power our homes and cars. With solar, the sky’s the limit.


Housing

Rachel Lang and Marcy Briggs, loan officers for the Briggs-Lang team of Cobalt Mortgage

The rental market will continue to strengthen with long-term renters. We also see a stabilization within the Arizona real estate market due to the mortgage underwriting guidelines remaining more conservative than they were five years ago, and slightly less conservative five years from now.

Alan Boughton, director of commercial operations, W.J. Maloney Plumbing

As the population in the West increases and the demand for water intensifies by a seemingly unpredictable water supply and snow pack, innovation in low-flow plumbing fixtures could be our industry’s greatest impact on Arizona as more people are forced to live with less water.

CR Herro, vice president, environmental affairs, Meritage Homes

Homes will be built to work better, use fewer resources, be healthier, and adjust to the needs of owners. On the fringe of the market today are homes that can adjust the transparency of windows, extend and retract solar shades, turn on lights, change thermostat settings over a smart phone, and achieve net-zero energy demand. These changes allow homes to adapt to the unique needs of its occupants, offer more control, and waste less energy and resources (money) in their operation.


Transportation

Danny Murphy, Airport director, Sky Harbor International Airport

The biggest evolution our industry will experience is a transformation of the entire national air transportation system to avoid gridlock in air travel, called “NextGen.” This means moving from ground-based technologies to a new and more dynamic satellite-based technology.  While airport delays are minimal in Arizona, our passengers are impacted most when traveling to and from other locations and this technology will greatly improve that. Over the next 100 years, continental investment and enhancements to the state’s main airports will be critical to serve the needs of Arizona’s growing population.


Entertainment

Brad Casper, president, Phoenix Suns

In continuing to operate at the forefront of innovation, the Suns will offer fans the most technologically advanced atmosphere in professional sports, while emerging as the most winning franchise in NBA history. Through strategic partnerships, the Suns will act as a catalyst towards creating a sustainable entertainment and business environment, unmatched by any NBA/WNBA organization.

Catherine Anaya, chief journalist, KPHO CBS 5 News

I think in the next 100 years the marriage between television and computers will be such that we will be doing everything we do on a computer. There will still be a place for television news. However, I don’t think we’ll see it in the studio format we’ve been accustomed to seeing. I think we’ll end up shooting and broadcasting our news via our smart phones or whatever those evolve into in time. As a result, I think it will create more intimacy and interaction among Arizonans. That may or may not be a good thing as familiarity lines will get blurred.

Teri Agosta, general manager, Pointe Hilton Squaw Peak Resort

The hospitality industry will continue to drive revenue into the Arizona market through increased travelers, due to the aging demographic, who will have more leisure time and money to spend. Also business travel will continue to grow as corporations realize people need direct contact with team members and clients to build a successful business, and webinars and teleconferencing do not meet these needs.  Also, our consistent weather will become more valuable to travelers, who will scrutinize their travel spending even more.

Melody Hudson, public relations manager, Gila River Gaming Enterprises

The opportunity for new job creation will become more prevalent than ever before with potential capital expansion opportunities which could result in not only new construction positions, but new positions within the Enterprises’ casinos as well. This potential growth could also result in an increase of revenues for both local and national businesses that supply goods and services to the Enterprise. Additionally, potential growth from not only Gila River Gaming  Enterprises, but the gaming industry in general in Arizona,  would result in larger amounts of funding going to the state for education, tourism, wildlife conservation and emergency services.

Carey Pena, co-anchor, 3TV News at 10 p.m.

There is a generally accepted theory of human knowledge that says:  today, we know 5 percent of what we will know in 50 years. In other words, in 50 years, 95 percent of what we will know will have been discovered in the past 50 years.  That makes it hard to imagine what 100 years will look like.

Arizona Business Magazine January/February 2012

 

Flagstaff, Scottsdale CVB - AZ Business Magazine January/February 2012

Flagstaff And Scottsdale CVB See Solid Returns On Investment

Flagstaff Convention and Visitors Bureau and the Scottsdale CVB see dividends from marketing dollars spent

The old saying, “You have to spend money to make money” is especially true in the case of Arizona tourism. Two cases in point are the Flagstaff and Scottsdale Convention and Visitors Bureaus (CVBs). They can quantifiably demonstrate that investing in tourism creates a return.

“We’ve always done a good job of marketing Scottsdale,” said Rachel Sacco, president and CEO of the Scottsdale CVB. “We know it’s the right message because visitors are responding.”

The Scottsdale CVB’s 2010-11 annual budget is $9.7 million and generates $31 in economic impact for every $1 invested in the organization. The Flagstaff CVB has a budget of $1.5 million and helps spur an economic impact of $501 million for the region.

Much of the funding for tourism marketing comes from visitors themselves.

In March 2010, Scottsdale voters passed a 2 percent increase in the city’s bed tax, bringing it to 5 percent. This, combined with an increase in occupancy, led to a 79 percent jump in bed-tax collections from 2009-10 to 2010-11. Half of the new monies support capital projects and special events; the other half supports marketing efforts.

In Flagstaff, the CVB is a division of the city and is fully funded by a portion of the 2 percent “BBB” tax, which stands for “bed, board and booze,” or hotels, restaurants and bars. It generates roughly $5.2 million, and the CVB gets 30 percent of that. The city council allocated an additional $250,000 in marketing dollars to the CVB from March to June 2009 from the city’s Economic Incentive Fund. Flagstaff CVB director Heather Ainardi said that investment helped Flagstaff see a slight bump in April and May of 2009 and prevent big tourism losses in the long run.

“When the rest of the state had double digit declines (in tourism indicators),” Ainardi said, “we were only having minor 2 to 3 percent drops.”

Average daily rates from hotel bookings and revenues per available room were up in 2011 in both Flagstaff and Scottsdale. Occupancy also was up in Scottsdale. And independent studies showed 91 percent of all people who received a Scottsdale visitors guide either made a booking or visited Scottsdale within the next year. Sacco attributes the high number to target marketing.

First, they pinpoint areas that have always had a high interest in Scottsdale: chilly places such as Canada, Minnesota, San Francisco, Chicago, Denver and parts of the East Coast.
Second, they invest in knowing their customers: What do they read? Which activities do they like?

“We won’t send someone who’s interested in art a message about sports” and vice-versa, Sacco said. “We know what messages resonate with them.”

As one result of this targeting, sports bookings have increased 160 percent, she added. Groups and meetings contribute $64.8 million in economic impact.

The Scottsdale CVB should see their budget increase further this coming year to $10.5 million, which hopefully will mean even more of an uptick in tourists.

“The less ability we have to communicate to visitors why they should come here, the less revenue that is brought in,” Sacco said.

For more information about the Flagstaff CVB or the Scottsdale CVB, visit the following links:

flagstaffarizona.org
scottsdalecvb.com

Arizona Business Magazine January/February 2012

Tourism Industry - AZ Business Magazine January/February 2012

Arizona Tourism Industry Has A Billion-Dollar Impact On Economy

Economic engine: Arizona tourism industry packs an economic punch of $17.7 billion yearly

Tourism is one of the largest industries in Arizona, but it isn’t just about hotels and golf courses.

Its direct economic impact of $17.7 billion has helped keep the state afloat during some of its darkest economic days, and the ripple effect is even greater. Those dollars spill over to a host of businesses, from the farmers who supply produce to the hotel restaurants to the car dealers who sell vehicles to the banquet servers. They also help keep our police officers and firefighters on the streets, thanks to tax revenues.

“That trickle-down money does affect everyone who is a citizen of Arizona, to some degree,” said Sherry Henry, director of the Arizona Office of Tourism.

And the money keeps coming, thanks to nearly 37 million overnight visitors annually.

“It’s so important to recognize the tourism industry is always here,” Henry said. “Even in recessionary times, people are still traveling.”

Tourism spending was up 7.9 percent in Arizona from 2009 to 2010 and has increased 25 percent since 2000. Overall, it’s still down 7 percent from its heyday of 2007, but most other indicators are moving in the right direction: Tax revenues, occupancy rates and demand are all up from 2009.

“It’s not that we don’t feel the effects of the recession,” Henry said, “but we’re still in the game.”

While the state has lost 11 percent of its tourism jobs since its high of about 173,400 in 2007, the industry still brings in $48 million a day. Tourism is the number one export industry in Arizona.

One way that benefits every resident directly is when the tax bills come. Taxes from tourism generate $1.3 billion in local and state revenue, which pays for everything from public safety to parks to libraries.

“When you look at the taxes generated, (tourism) saves every Arizona resident $1,000,” Henry said. Her agency, which was created in 1975, is responsible for marketing the state as a whole with multiple programs: advertising, public relations, community outreach, trade and media, and digital and social media, to all domestic and international visitors.
“(Travelers) have a lot of choices, so it’s important your destination stays in top of mind,” Henry said.

Part of the money for tourism outreach comes from tribal gaming. In the fiscal year ending June 30, 2011, tribal gaming revenues contributed $5.5 million to the state’s Tourism Fund. That comes from the $79 million total they deposited to the state, with another 12 percent of their annual revenue of almost $1.7 billion going to cities, towns and counties.

In addition, said Melody Hudson, public relations manager for Gila River Gaming Enterprises, “We have a deep and wide reach as far as our philanthropic activities, too.”

Tourism weaves through the fabric of our economy in ways that aren’t always obvious. Jesse Thompson, director of sales and marketing for the Hotel Valley Ho in Scottsdale, gave a list of local businesses that the hotel supports. Zuzu, its on-site restaurant, gets a good deal of its ingredients from local purveyors such as Red Bird Farms, McClendon Farms, Duncan Farms, Crave Artisan Ice Cream and Hickman Family Farms. Audio-visual contractors, limo and taxi drivers, independent conference planners, beverage distributors, decorators, and even the company that launders their linens – sheets, towels, tablecloths, spa robes – would all be affected if business dropped.

However, Thompson is proud that revenues at the 230-room Hotel Valley Ho increased 21 percent in 2011 over 2010, and he expects an 8 percent bump from 2011 to 2012. None of the 240 to 250 employees has been laid off in six years, despite the downturn. He attributes the increase in going after more group bookings.

Another way tourism boosts Arizona’s entire economy is by making the state not only an appealing place to visit, but to live. People might come to see auto shows, sporting events or festivals and decide to make a permanent move.

“People who visit Arizona often fall in love with Arizona and plot ways they can come to work here or bring their businesses,” said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. “It’s a gateway opportunity to sell the state of Arizona.”

Because the business community recognizes the importance of both visitors and tourists who become permanent residents, they work to bring major events such as the Super Bowl to the state. Hamer calls it a “showcase for our state.” In addition, the Super Bowl generated $500 million in economic impact in 2008. He expects the number to be at least that much when the Super Bowl returns to the University of Phoenix Stadium in Glendale in 2015.

The business community also supports sports tourism in general, including spring training baseball, college football bowl games, the baseball All-Star game in July 2011, the NBA All-Star game in 2009, and amateur events such as marathons, triathlons, bicycle tours and student sports meets. And it pushed for the 2008 expansion of the Phoenix Convention Center, now one of the top 20 such venues in the nation.

“Our convention business is an important part of our tourism economic engine,” Hamer said.

Unlike other industries such as manufacturing and technology, Hamer said, much of the tourism industry can’t be automated or outsourced. And thanks to the state’s natural and man-made attractions, it appears to be an industry that’s sustainable.

“Arizona as a whole relied so much on construction,” said Heather Ainardi, director of the Flagstaff Convention and Visitors Bureau, “and in the next 10 years, tourism is going to be one of the drivers of Arizona’s economy.”

Arizona tourism industry: Economic impact of major winter Valley events

College football bowl games
(Fiesta Bowl, BCS national title game and Insight Bowl)

Economic impact: $354.6 million in 2010-11
2010-11 attendance: nearly 200,000 at all three games

P.F. Chang’s Rock ‘n’ Roll Marathon

Economic impact: $59 million
2011 attendance: about 30,000 runners

Scottsdale Arabian Horse Show

Economic impact: $52-58 million
2011 attendance: about 250,000

Cactus League baseball

Economic impact: $360 million
2011 attendance: More than 1.47 million

Waste Management Phoenix Open

Economic impact: $180 million (estimated from 2008, when attendance was 538,356)
2011 attendance: 365,062 (event impacted due to weather)

Arizona Business Magazine January/February 2012

 

Arizona Heart Walk - AZ Business Magazine January/February 2012

Arizona Heart Walk Encourages Businesses, Individuals To Lead Healthy Lifestyle

Achieving corporate health: American Heart Association’s Arizona Heart Walk encourages businesses, individuals to change the way they think about their health

Richard Schulz, CEO of HealthSouth in Scottsdale and chairman of the American Heart Association’s Arizona Heart Walk, knows a healthy lifestyle doesn’t happen by accident.

It takes work.

And something else.

“You have to make it fun,” Schulz says.

In his chairman duties, Schulz meets with representatives from companies to participate and to secure sponsorships for the Heart Walk.

The Heart Walk is a non-competitive 5K walk/run and 1-mile walk at Tempe Town Lake. The event, in its 20th year, celebrates those who have made lifestyle changes and encourages others to make changes to feel better and to live longer.

It also serves as the Phoenix chapter’s of the American Heart Association’s major fundraiser, spokeswoman Jessica Brown says. The goal this year is to raise $900,000 for research, outreach and education, Brown said.

About 15,000 people are expected to take part in the walk.

Large health-related employers tend to big players in the event, Brown says. For example, Banner Health, which runs 14 hospitals, three research centers and other properties in Arizona, had nearly 1,000 registered Heart Walk participants in 2011. Catholic Healthcare West, which operates three hospitals in the area, had 1,023.

Besides the walk, Schulz encourages companies to make a commitment to making becoming fit companies.

As part of that commitment, HealthSouth, Banner and Catholic Healthcare West have engaged in a program with the American Heart Association and American Stroke Association called “My Heart. My Life.” The program is designed to change the way Americans think about their health. It’s about embracing an overall healthier lifestyle to improve cardiovascular health.

This movement is a national rallying cry for change, Brown said, through simple behavior adjustments that help people feel better and live longer. The American Heart Association and American Stroke Association has developed a number of activities under the umbrella of My Heart. My Life. Among them: increased health education, advocacy for better public policy in important health areas such as anti-smoking laws, and helping communities find ways to eat healthier and stay physically active.

“We see examples every day at work,” Schulz says. But other kinds of companies are also climbing on the wellness bandwagon, he says.

One such company is Scottsdale Insurance. A subsidiary of Nationwide Insurance, Scottsdale Insurance specializes in excess and surplus policies as well as specialty insurance.

If you run a fund-raising golf tournament with a car as a prize for hitting a hole-in-one, Scottsdale Insurance will write a policy so that one lucky shot doesn’t submarine your charitable intentions.

Scottsdale Insurance employs about 1,400. Most are in the Valley, but the company has agents across the country.

The parent company encourages community involvement. Pete Harper, vice president of finance and CFO, was drawn to the American Heart Association because some relatives had suffered from cardiovascular problems. The Heart Walk promoted awareness of the need for fitness at the company, which has increased.

“Now, you’ll see groups of walkers at lunchtime,” he says.

Harper said that as the company became more health conscious, he did, too.

“Before, about the only thing I did was play racquetball,” he says.

A healthier workforce is more productive and experiences lower absenteeism, Harper says. Although some of the benefits are difficult to quantify, others are not.

“We’ve seen slower growth in our health care-related costs than other companies,” he says.

And heart health is at the heart of the matter. Heart disease was the No. 1 killer in the U.S. in 2009 (the most recent year that figures are available), the Centers for Disease Control reported. Stroke was No. 4.

“Heart disease is an area we have some control over,” HealthSouth’s Schulz says. “There are some hereditary factors, but there’s a great deal of literature that shows we can reduce risk with lifestyle changes.”

The good news is mortality rates from heart disease started declining around 1950 and have continued to decline, CDC figures show.

The bad news is there are some alarming developments that if they go unchecked would reverse that trend. The American Heart Association reports that about one-third of children in the United States are overweight or obese. Most experts believe childhood obesity increases the risk of heart disease and stroke in adulthood.

The American Heart Association has established a standard of ideal cardiovascular health. Right now, 1 percent of U.S. population meets that standard. Among children 12-19, the percentage is zero.

And many people are kidding themselves about the healthy lifestyle they lead, Brown said. In an American Heart Association survey, 39 percent of Americans questioned thought they were in ideal cardiovascular health.

The American Heart Association set a goal to in improve cardiovascular health of all Americans by 20 percent by 2020 and came up with My Heart. My Life.

The idea is to make simple changes that can make a big difference, such as eating healthier, exercising 30 minutes a day, controlling cholesterol and blood pressure. The organization offers online trackers for walkers and, of course, an application for smart phone users to create walking paths.

Education and awareness are important, but for a company to encourage its employees to pay more attention to cardiovascular fitness, a dose of healthy competition can boost motivation, Schulz says.

“You can have different groups compete and see who can lose the most weight,” Schulz says.

Making wellness enjoyable is key. Sharon Opitz, wellness director at St. Joseph’s Hospital and Medical Center in Phoenix, says the wellness program at the Catholic Healthcare West facility includes zumba and yoga sessions, a farmer’s market and cooking demonstration classes.

Catholic Healthcare West tries to incorporate spirituality and stress reduction in its wellness programs, says Robert Lichvar, wellness director at Chandler Regional Medical Center and Mercy Gilbert Medical Center.

20th Heart Walk

When: Feb. 25 at 9 a.m. At 10 a.m., the Heart Healthy Festival begins, and features live music, interactive booths and giveaways.
Where: Tempe Beach Park
Cost: Free, though participants qualify for a T-shirt by raising $100
Purpose: Supports the American Heart Association’s research programs and initiatives that promote the prevention, treatment and better patient care in the areas of cardiovascular disease, the leading killer in the United States.
Website: phoenixheartwalk.org
Participants: About 15,000 people participate each year
Fundraising goal for 2012: $900,000
Where does the money go: To fund research, educational programs and community outreach
Who are some of the biggest corporate participants: Banner Health, Catholic Healthcare West, Scottsdale Insurance, HealthSouth

Arizona Business Magazine January/February 2012

 

P.Y. Steakhouse - AZ Business Magazine January/February 2012

Casino Del Sol’s P.Y. Steakhouse Serves Up European-Meets-Southwest Cuisine

Mixing business and pleasure: Casino Del Sol’s P.Y. Steakhouse serves up European-meets-Southwest cuisine in a chic environment

Tucked within the newly expanded Casino Del Sol Resort in Tucson, P.Y. Steakhouse serves both a chic environment and exquisite cuisine for the guests of the well-known oasis of Southern Arizona.

The expanded Casino Del Sol boasts a Tuscan look with a rustic, yet modern design and décor. It relaxes and warms its guests with roaring fireplaces and glasses of bourbon, its lights dimmed just right. P.Y. Steakhouse provides a modern, chic escape, while maintaining that comfortable Tuscan feel.

This intimate setting’s main source of lighting came from the open kitchen located next to the dining room and separated by a four- or five-foot partition. Large porcelain chandeliers hover over the snow-white furniture, and the walls are lined with a wine bottle display. Specks of purples from the dining tables’ floral centerpieces give the restaurant that needed pop of color.

My patrons and I started off the night with glasses of red and white wine while engaging in business-laden conversation. Our waiter and waitress were patient, attentive and incredibly helpful.

Jumping from topics ranging from construction to architecture to dining favorites, the conversation quickly turned to how P.Y. Steakhouse had possibly made our respective favorite dining lists as soon as we had our first taste of the Southwest cuisine.

P.Y. Steakhouse - AZ Business Magazine January/February 2012I began the night with the Sonoran Caesar Salad, tossed with simple, minimal ingredients, including grilled tomatoes, corn bread croutons and roasted garlic mustard chile dressing. This salad presented clean flavors that left me wanting more.

I — along with the rest of my dinner mates — continued to nibble on the warm, uniquely flavored biscuits with the Arizona mesquite honey butter thinly spread and melted atop. They quickly disappeared, and we would soon realize the side dishes would surprisingly “take the cake,” as one of my dinner patrons raved to our waitress.

After concluding the business half of our evening, it was now time to put the pad and paper away and enjoy the lively ambiance and environment. It was perfect timing when our dinner entrees were delivered at that exact moment.

My entree was the Free Range Red Bird Farms Chicken, perfectly peppered; the bird was served atop creamy Yukon gold potato bacon smash with mushrooms drenched in rich velouté. The moist chicken — local and sustainable — peeled off the bone cleanly and with very little effort, with just the right amount of fat.

Three of my dinner companions tried the meat entrees, each served with Truffled Chimichurri Sauce. First up, the 6-ounce CAB Filet Mignon with a roasted garlic demi-glace, described as perfect and juicy. The Grilled Buffalo Sirloin was chosen by the waiter and didn’t disappoint. Farm to table inspired, the sirloin was served with sweet potato hash and prickly pear guajillo demi.

Lastly was the Arizona pecan crusted Colorado Saddle Chop of Lamb, with a carrot puree, a purple fingerling potato and a peppercorn port sauce.

But as I said, the side dishes were the stars of the evening — dishes included the blue-cheesed-topped, rich-in-flavor gorgonzola mashed potatoes; the creamy parmesan English pea risotto; and the Yukon gold potato bacon smash with a hint of garlic.

P.Y. Steakhouse proved to be the perfect restaurant to mix business and pleasure. For your next trip to Tucson, consider dining at this European-meets-Southwest culinary treat, headed by chef Jason Jonilonis.

P.Y. Steakhouse

5655, West Valencia Rd
Tucson, AZ 85757
(855) 765-7829
casinodelsol.com
FB: casinodelsol
Twitter: @CDSResort

Arizona Business Magazine January/February 2012

Arizona SciTech Festival - AZ Business Magazine January/February 2012

SciTech Festival Spotlights Arizona As Growing Power In Science, Technology

Techno party: SciTech Festival will put spotlight on Arizona as a growing power in science and technology

Arizona Gov. Jan Brewer says there is no better way to launch the state’s second century than by creating future leaders in industries that Brewer sees as crucial for the state’s economic vitality.

“Arizona is an emerging world leader for advances in aerospace, aviation and defense, semiconductor and electronics information technology, optics, life science, health science, renewable energy and telecommunications,” Brewer says. “Now, we must focus on ushering in the next generation of great scientific and technological leaders and must cultivate the scientific talents of all its students.”

To cultivate and inspire that talent, the Arizona Technology Council Foundation, Arizona State University and the Arizona Science Center have teamed up to create the First Annual Arizona SciTech Festival, a grass roots collaboration of more than 200 organizations in education and industry — including major employers like Microchip, Catholic Healthcare West, Raytheon and Orbital — designed to showcase how science, technology, engineering, and mathematics (STEM) could drive the state’s economy over the next 100 years.

“The SciTech Festival will be the perfect way for Arizona to start rebranding itself around science and technology,” says Chuck Vermillion, chief executive officer and founder of Scottsdale-based OneNeck IT Services.

According to Jeremy Babendure, a biomedical scientist and director of the festival, officials expect more than 100,000 people to attend more than 300 festival-related activities that will take place throughout the state over a six-week period.

“I went through the Arizona school system and then went to ASU,” Babendure says. “But when it came time for me to engage in scientific research, I went out of state. This festival will show the next generation of Arizona scientists what is going on their back yard and show them that it is possible to stay in Arizona and engage in meaningful scientific work.”

Festival organizers hope to showcase the state as a national leader in science, technology, and innovation. Activities will include workshops, conversations, debates, exhibitions, concerts, and guided tours for young people and adults.

“The festival will offer a high-profile way for Arizonans to appreciate the rich base of sophisticated research and technology in our state,” says Sethuraman Panchanathan, deputy senior vice president and chief research officer at ASU.

In addition to the three founding partners, sponsors of the SciTech Festival include, Cox, Avnet, SRP, Boeing, the Arizona Commerce Authority, the Flinn Foundation, US Airways, DPR Construction, Maricopa Community Colleges, Creative Engine and the Helios Education Foundation, which committed $50,000 to the festival.

“By supporting the (festival), Helios believes more Arizonans will become aware of the role STEM plays in our economy,” said Dr. Jo Anne Vasquez, vice president and program director, Arizona Transition Years; Teacher and Curriculum Initiatives. “In order for Arizona to be a player in the new global economy, Helios supports educational initiatives that create a college-going culture with an emphasis on academic preparation in STEM education.”

Getting Arizona’s young people interested in science and technology at a young age is one of the primary goals of the SciTech Festival, says Chevy Humphrey, president and CEO of Arizona Science Center.

“The problem we are having now, is that many of the students in Arizona who are interested in the STEM subjects in school, aren’t staying here after they graduate,” Humphrey says. “We need to find a way to get students interested in science and technology at a younger age and figure out a way to keep our talented young people here. Once we do that, we will have a better chance of attracting great minds and great companies to our state.”

Having a solid resource of home-grown talent is a topic often raised by employers looking to move to Arizona, Panchanathan says.

And for companies like Microchip Technology Inc. in Chandler, a leading provider of microcontroller and analog semiconductors, the idea of inspiring students that could become part of a home-grown workforce is one of the benefits that will be derived from the festival for generations to come.

“This is the kind of thing that can start to change the culture and get young people excited about science and engineering,” says Michelle Ragsdale, senior public relations specialist for Microchip, which is participating in three SciTech Festival events. “They will get an opportunity to see how math, science and technology shape our lives. they will have the opportunity mingle with innovators who are making a difference. They will be able to say to themselves, ‘Hey, if I take science, I will be able to do this.’”

Babendure says festival events include a Tech Crawl in Chandler, the “Science of Baseball” in Scottsdale, the “Science of Chocolate” in Glendale, and the “Science of Galileo” as part of the Arizona Renaissance Festival. All of the events, Babendure says, are meant to get Arizona resident excited about science and technology.

“The festival is designed to help the public better understand the strong relationship between the state’s current, outstanding research and technology and the immense potential it offers for Arizona’s future,” said Steven G. Zylstra, president and CEO of the Arizona Technology Council. “State and local leaders … support this initiative as a powerful vehicle for leveraging productive synergy among stakeholders in the scientific, educational, and business communities leading to increased output of future innovators in STEM and resulting in more jobs and increased economic stability.”

Brewer agrees that celebrating science and technology with events like the SciTech Festival is “critical to raising student and public awareness of the impact science and technology have on our lives and to inspire the next generation of scientific leaders.”

One of the events that Microchip is excited to be involved with, Ragsdale says, is the FIRST Robotics Duel in the Desert on Feb. 18. At the duel, FIRST (For Inspiration and Recognition of Science and Technology) high school teams will hold a scrimmage testing out their robots for the upcoming FRC (FIRST Robotics Competition) Arizona Regional. Those that watch the Duel in the Desert will get to meet the teams, talk to the teachers, and see the robots in action.

“Events like this will show young people that you don’t have to be a sports star or TV star to be famous,” Ragsdale says. “It will elevate the excitement about STEM education and open up a new world of opportunities for them.

“But in the bigger picture, the festival will put the focus on Arizona as a location and showing the world that we are paying attention to STEM education,” Ragsdale says. “Hopefully, companies will start to see Arizona not just as a place to come for the great weather, but because we are serious about creating and inspiring the next generation of innovators.”

For more information on the Arizona SciTech Festival and a complete schedule of events, visit azscitechfest.org.

Arizona Business Magazine January/February 2012

 

GPEC - AZ Business Magazine January/February 2012

GPEC Leads Cooperative Effort To Draw More ‘Clean Tech’ Industry To Arizona

Insight into innovation: GPEC leads cooperative effort to draw more ‘clean tech’ industry to Arizona

Green technology is still a relatively small part of Arizona’s economy, but its potential for growth is a bright spot on the state’s horizon.

“At a time when other economic engines have been sputtering, anticipated green job growth among Arizona’s green economy firms is quite promising,” say authors of a report prepared for state economic development officials by The Council for Community and Economic Research. It is one of two recent reports that assesses the industry and its growth potential.

While there is no standard definition of “green tech” or “clean tech,” it has been described by Clean Edge, a clean-tech research firm, as “a diverse range of products, services, and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes.” So even defining “green tech” or “clean tech” can be difficult, The Council for Community and Economic Research acknowledges.

That is why the Greater Phoenix Economic Council ( GPEC ) is embarking on a 12- to 18-month study to better define Arizona’s clean tech sector, says its president and CEO Barry Broome.

It’s a big undertaking, Broome says, but an important one given the impact that clean tech, particularly renewable energy, will likely play in driving the state’s future economy.

In fact, Broome predicts that renewable energy — particularly solar energy companies and the extensive supply chains that grow up around them, as well as companies that produce energy-efficient technologies — will become major players in Arizona in the future.

“It’s going to be our biggest industry outside of healthcare,” he says. “In 10 years, 100 percent (of homes built in Arizona) will be solarized at some level.”

That economy includes not just traditional solar manufacturers, but also materials producers — companies that make smart meters, water-use monitors and biodegradable drywall, for example.

The numbers

Overall, Arizona was home to 30,716 green jobs in 2010, about 1.3 percent of total statewide employment, according to the research report, titled “Green Jobs in Arizona 2010.”

But it says green jobs were expected to grow at a healthy 8.6 percent clip in 2011, outpacing the projected rate of 0.7 percent for all other jobs.

A second report by Battelle, a non-profit research organization, parallels the assessment that the green economy in Arizona is still emerging, but can expect strong future growth, particularly in renewable energy, greenhouse gas reduction and energy-efficiency sectors.

One key factor in this growth is a state leadership that creates a business climate that promotes innovation, the report says.

Faces behind the numbers

If you want to put a name to those numbers, turn to Greg Armstrong, chief operation officer for Rioglass Solar, a Spanish company that makes tempered glass reflectors and is the primary manufacturer for Abengoa Solar, which is building a 280-megawat solar power plant near Gila Bend.

Rioglass placed its U.S. headquarters and manufacturing operation in Surprise and plans another $45 million in capital investments.

The company was considering sites in Denver, Albuquerque and even Mexico when it visited the Surprise location, Armstrong says. The method GPEC used to draw Rioglass Solar to Arizona is a good example of what the state needs to continue to do to lure renewable energy companies, he says.

GPEC organized a meeting on site, in a tent, that brought together all the principal players in the effort: state officials, Surprise representatives, utility employees and economic development officials.

That was a first for Rioglass, Armstrong says, and an indication of what came next:  Surprise waived some fees involved in the expensive process of siting the plant, invested in infrastructure upgrades and created an expedited permit package that enabled Rioglass to break ground in January and take occupancy by July.

For more information about GPEC, visit gpec.org.

Arizona Business Magazine January/February 2012

 

Barry Broome, GPEC - AZ Business Magazine January/February 2012

GPEC’s Barry Broome Outlines Plan To Attract More High-Paying Jobs

Roadmap for the future: GPEC President Barry Broome outlines plan to attract more high-paying jobs, keep the ones we have

The Greater Phoenix Economic Council ( GPEC ) is beginning 2012 with an updated roadmap, the first leg of a five-year strategic plan, says its CEO and President Barry Broome.

Along with its historical mission to attract high-quality, high-paying jobs to the Valley, Broome says 2012 will also see GPEC bolstering its retention and expansion efforts, particularly in the aerospace industry.

Broome took time recently to list four of this year’s goals in the strategic plan. Look for GPEC to:

1. Help the Arizona Commerce Authority get off the ground. The public-private entity was established last year to create jobs and investment in Arizona. Broome says GPEC is working to coordinate efforts, leverage each other’s strengths and avoid duplicating efforts.

2. Work more diligently on retention and expansion, particularly in the aerospace industry, which is facing potential cuts by Congress’ Joint Select Committee on Debt Reduction, otherwise known as the Supercommittee.

“We’re analyzing 800 aerospace companies as we speak,” Broome says. “We want to make sure we really understand the aerospace sector.”  Information gleaned from analyses will be used to help cities identify companies under threat of budget cuts and find ways to support them.

Using the analytical skills of GPEC’s research team and internalizing it to Arizona is a new undertaking, he says, one that will help everyone better understand the sectors that drive the Valley’s economy. Historically, researchers have — among other things — focused on understanding the California market and which companies there may be candidates for relocation.

3. Support with data and information solid economic development tools. GPEC will be “meticulously” going over Gov. Jan Brewer’s veto letter for Senate Bill 1041, which would have cut the rate at which a business’ property is assessed if it committed to constructing or expanding in Arizona. The bill was meant to complement the larger, business-friendly tax package passed earlier by the Legislature. Broome says if a policy effort emerges to resurrect some of those ideas, GPEC will support it with data and technical expertise.

4. Focus on science and technology. GPEC established an Innovation Council last summer whose mission is to better understand and cultivate opportunities in the high-tech sector, says GPEC board member Steve Shope, president of Sandia Research Corporation and a member of the council.

For more information about GPEC and CEO/President Barry Broome, visit gpec.org.

Arizona Business Magazine January/February 2012

 

AZRE Magazine Digital Issue

AZRE Magazine January/February 2012: Centennial Issue

January/February 2012 Centennial Issue:

The Centennial Issue

In this special Centennial issue, AZRE looks ahead to the next 100 years within the commercial real estate industry. Also, AZRE features 30 companies that could have an impact on the industry in 2012. You’ll also find out which project are new to the market over the next few months, how public projects are providing work for general contractors, and find out which two Valley specialty schools are going through renovations. Also read more about Chase Field’s new health club and movie theater, and lastly, the best and brightest industry leaders have been chosen — find out who they are.

Take it with you! On your mobile, go to m.issuu.com to get started.

Barrett-Jackson - AZ Business Magazine January/February 2012

Barrett-Jackson, Russo And Steele Draw Visitors, Pump Money Into Valley Economy

Economic Engines: Classic car auctions — Barrett-Jackson and Russo and Steele — draw visitors, pump money into Valley economy

If Steppenwolf was performing in the Valley this month, the band might want to tinker with the lyrics to “Born to be Wild.”

“Get your motor runnin,’ head out into Scottsdale, lookin’ for some auctions, and there are plenty coming our way.”

Two of the premiere classic car auctions in the United States call Scottsdale home in January.

The Barrett-Jackson Classic Car Auction takes place from January 16-22 at Westworld of Scottsdale; and car enthusiasts can also hit the Russo and Steele Collector Automobile Auction from January 18-22 at its location near Scottsdale Road and Loop 101.

“The highlights to this year’s auction event would have to be the event site,” says Russo and Steele spokeswoman Stephanie Quinn. “The main structure will have all the auction elements that people have come to know and love, such as staging lanes of up to six lanes of automobiles awaiting their turn on the block, vendors with everything from automobile memorabilia to high fashion, and of course the auction in the round auction block.”

But the auctions aren’t just about showing off cool cars. It’s big business. Despite the sluggish economy in the 2011, Barrett-Jackson beat its 2010 sales figures, generating almost $70 million from the sales of about 1,200 vehicles. Russo and Steele had 2011 sales of more than $21 million.

The auctions are also a boost to the local economy and neighboring businesses as more than 300,000 people are expected to pour into Scottsdale to attend the two events.

Barrett-Jackson will feature 27 vehicles from the Jimmy Richardson Collection, representing a variety of autmobile categories from the past nine decades, but all have one common charasteristic: they are all fast.

“Jimmy Richardson, one of the leading classic automotive collectors in the world, is providing an opportunity to own a unique offering of vehicles from his personal collection,” says Craig Jackson, chairman and CEO, Barrett-Jackson.  “Jimmy will consign all of these vehicles at no reserve which will be a major component that adds excitement.”
Russo and Steele will have some showcase cars as well.

“People can expect some of the finest European sports, American muscle, hot rods and custom automobiles at Russo and Steele,” Quinn says. “We are featuring more that 700 automobiles and have some spectacular automobiles such as the 1965 Shelby Cobra 427 CSX3127 Prototype that changed automotive history by paving the way for the production of all 427 street Cobras; and the ‘Noland Adams’ 1953 Chevrolet Corvette NCRS Duntov Award 99.8 (United States Postal Service) Stamp Car, making its debut on the auction floor for the first time ever.”

Russo and Steele Collector Automobile Auction

When: January 18-22
Where: 18601 N. Scottsdale Rd., Scottsdale
Tickets: russoandsteele.com

Barrett-Jackson Classic Car Auction

When: January 16-22
Where: WestWorld of Scottsdale, 16601 N. Pima Rd., Scottsdale
Tickets: barrett-jackson.com

Arizona Business Magazine January/February 2012

 

Elizabeth Reich - AZ Business Magazine January/February 2012

Elizabeth Reich, Make-A-Wish Foundation Of Arizona

Elizabeth Reich, president and CEO of Make-A-Wish Foundation of Arizona, discusses how Make-A-Wish was founded, its challenges, how they make wishes happen and more.

Elizabeth Reich

Title: President and CEO
Company: Make-A-Wish Foundation of Arizona


What is something people don’t know about Make-A-Wish?

Most people don’t know that it was founded here in Arizona in 1980 after some DPS officers and a customs agent learned of a boy with leukemia whose one wish was to become a police officer. They decided to help make his dream happen. He got a uniform, was checked out on mini-motorcycle, and the experience was very meaningful to him. When he died, he was buried in the uniform and he was issued. After the officers saw the impact the wish had on the boy and his family, they said , ‘We should do this again,’ and it grew into what it is today. We have 62 chapters in the U.S. and we are in 35 countries worldwide. Make-A-Wish is Arizona’s gift to the world.

Video by Cory Bergquist

What has been your biggest challenge in this struggling economy?

We are 100 percent dependent on dollars from people and corporations to make our wishes come true and those dollars are fewer and farther between. People know that Make-A-Wish does great things, but sometimes they don’t see them as necessary things.

How do you show them that they are a necessity?

Fortunately, a 2010 study of more than 2,000 Make-A-Wish families and volunteers shows the impact of a wish beyond that moment — the impact on the family, the impact on the volunteers and the impact on that child through the rest of his or her life. Many of our Make-A-Wish children live to be adults. That wish experience has impact on their ability to recover from their illness. So as a result of the wish impact study, we can now say our wishes are not a ‘nice to have,’ they are a ‘need to have.’

What is your most rewarding moment at CEO of Make-A-Wish?

It’s always the most recent moment. There was a young lady who graduated early from high school and was No. 3 in her class. Originally, her wish was to go to Italy. But her wish changed. She said, ‘I want to focus on school. I want to focus on becoming a doctor.’ So her wish was for a laptop computer. Not only was her wish for a laptop granted, but she got an iPad, an iPod, and a desk to put the laptop on. She was so gracious and so thankful. It’s something that is going to enrich her life for years to come and it was her one true wish.

Are there common threads in the wishes?

Our wishes fall into four categories: I wish to be, I wish to go, I wish to have, or I wish to meet. But more and more, kids today are adding a fifth category: I wish to give. They use their wishes to give back. We are working with one girl whose wish is to have a national forum where she can talk about the importance of being a bone marrow donor. We are working with morning shows right now to arrange a platform for her so she can get her message out.

How do you make the wishes happen?

We have wonderful staff members called wish managers. They have to be part travel agent, part logistician, be multi-skilled, and have to work in concert with our volunteers. When you’re granting 251 wishes, like we did last year, you’re dealing with a lot of logistics and a lot of juggling. I like to say that we cry here every day. We cry for good things and we cry for bad things. But we know what we’re doing makes a difference for that child and for that family and that feels so good.

Vital Stats: Elizabeth Reich

    • Joined Make-A-Wish Foundation of Arizona in 2010
    • Graduated from Whittier College with a degree in political science
    • Previous jobs include vice president of advancement at Childhelp; CEO at VisionQuest 20/20; and vice president of development at Banner Health Foundation
    • From 1998-2003, was executive director of what is now called The Governor’s Office for Children, Youth and Families, consisting of the Governors’ Divisions for Women, Children, Prevention of Family Violence, Drug Policy, Volunteerism, Community Outreach and Character Education
    • Raised money to support Banner Desert Medical Center and Banner Children’s Hospital in Mesa. Led the first stages of a capital campaign, successfully obtaining several seven-figure gifts

Arizona Business Magazine January/February 2012