Tag Archives: Marie Lopez Rogers

boeing-phantom-ray

GPEC analyzes impact of potential defense cuts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mayor Rogers-web

Avondale mayor named NLC president

The mayor of Avondale has been named as the leader of the National League of Cities.

The NLC made the announcement Saturday that Mayor Marie Lopez Rogers would be the organization’s president for 2013.

Rogers says she is deeply honored to be elected to the one-year position.

The vote on a new president came at the end of the NLC’s annual Congress of Cities and Exposition in Boston.

The Arizona native grew up picking cotton alongside her parents, who were migrant farm workers. She was a social worker and city councilwoman before being elected mayor in 2006.

Officers in the NLC are charged with directing the organization’s advocacy and membership activities for the coming year.

regional planning agency

Regional Planning Agency MAG Elects New Officers

Avondale Mayor Marie Lopez Rogers has been elected to lead the Maricopa Association of Governments (MAG), the regional planning agency for the Maricopa region. MAG is a Council of Governments and Metropolitan Planning Organization that provides a regional forum for discussion, analysis, and resolution of regional issues, including transportation, air quality, and human services. MAG prepares the 20-year Long Range Transportation Plan and five-year Transportation Improvement Program for the region. MAG was founded in 1967.

Mayor Lopez Rogers was elected chair of the MAG Regional Council during MAG’s Annual Meeting in Phoenix on Wednesday, June 27, 2012. She succeeds Tempe Mayor Hugh Hallman, who has chaired the Regional Council for the past year and whose term is expiring.

Mayor Lopez Rogers stated that a key priority for her will be to work with the MAG Economic Development Committee and Joint Planning Advisory Council to foster a viable megaregion known as the “Sun Corridor.”

“One important priority will be for us to identify the corridor’s key economic drivers and find ways to grow those opportunities,” said Mayor Lopez Rogers. “One key area of focus for us will be working to improve our trade relations with Mexico and Canada and enhance the flow of commerce into Arizona.”

Mayor Lopez Rogers will lead the MAG organization for the next year and also will preside over the MAG Executive Committee. Mayor Lopez Rogers has served on the MAG Regional Council since 2006 and MAG Executive Committee since 2007. She served as treasurer of the Regional Council from 2010 to 2011, when she was elected vice chair. The committee serves as MAG’s finance committee and is responsible for a number of administrative responsibilities, such as amendments to the budget and contract selections. She will also serve as vice chair of the MAG Economic Development Committee, and she will continue to serve on the MAG Transportation Policy Committee. She serves as the vice president of the National League of Cities and in November will become its president.

In addition to Mayor Lopez Rogers’ selection as chair, Mesa Mayor Scott Smith was elected as vice chair. Youngtown Mayor Michael LeVault was elected as treasurer. Elected as at-large members of the Executive Committee were Scottsdale Mayor W.J. “Jim” Lane, Phoenix Mayor Greg Stanton, Queen Creek Mayor Gail Barney, and Litchfield Park Mayor Thomas L. Schoaf.

The Regional Council also appointed members of the MAG Transportation Policy Committee (TPC). New members included Lt. Governor Stephen Roe Lewis of the Gila River Indian Community and Joseph E. La Rue of the State Transportation Board. The TPC is responsible for making policy recommendations to the Regional Council on transportation issues, including the Regional Transportation Plan and Transportation Improvement Program. A full listing of all Regional Council and TPC members is available on request.

For more information on MAG, the regional planning agency for the Maricopa region, please contact Kelly Taft, MAG communications manager, (602) 452-5020. There website is azmag.gov.

desert peaks award

Desert Peaks Awards Recipients Named

During a special ceremony in June, the Maricopa Association of Governments will honor nine partnerships and individuals who have been selected to receive the 2012 Desert Peaks Awards. The prestigious awards are presented to those agencies and individuals who have demonstrated a commitment to promoting, recognizing, and attaining the ideals of regionalism.

Recipients will be honored during the Maricopa Association of Governments Desert Peaks Awards on Wednesday, June 27, 2012 at the Downtown Sheraton Hotel, 340 N. 3rd Street, Phoenix. The ceremony begins at 6:15 p.m. More than 200 people, including elected officials and business leaders, are expected to attend the ceremony.

Awards will be distributed in six categories: Public PartnershipPublic-Private PartnershipProfessional Service (two recipients were selected for this honor), Regional Partnership (two recipients were selected for this honor), Regional Excellence (two recipients were selected for this honor), and a  new category added this year, Outstanding Economic Development Champion.

This year, two individuals were selected to receive the program’s highest honor for Regional Excellence, Avondale Mayor Marie Lopez Rogers and Tempe Councilmember Shana Ellis. Mayor Rogers was nominated “for her regional leadership in guiding the transformation of not only Avondale but the entire region through her direct engagement to ensure its economic, social and cultural vitality.” Councilmember Shana Ellis was cited for being instrumental in having the Regional Public Transportation Authority (Valley Metro) and METRO light rail work in tandem to realize significant efficiencies through a combined, streamlined regional agency.

2012 DESERT PEAKS AWARDS RECIPIENTS:

  • Public Partnership: Regional Emergency Transportation Service
  • Public-Private Partnership: City of Avondale and the Gangplank Collective
  • Professional Service: Mr. Ed Beasley, City Manager, City of Glendale; and Mr. David Smith, former County Manager, Maricopa County
  • Regional Partnership: Domestic Violence Protocol Evaluation Project; Regional Wireless Cooperative/Topaz Regional Wireless Cooperative
  • Regional Excellence: Mayor Marie Lopez Rogers, City of Avondale; Councilmember Shana Ellis, City of Tempe
  • Outstanding Economic Development Champion: The Flinn Foundation

Costs of the event are being offset through sponsorships. Gold Sponsors include Atkins North America; Cambridge Systematics; HDR Engineering; and Parsons Brinckerhoff.

Silver Sponsors include APS; Arizona Lottery; Delta Dental; Kimley-Horn and Associates; MJ Insurance; Mariscal, Weeks, McIntyre & Friedlander, P.A.; Wells Fargo, N.A.; and Wilson & Company, Inc. Engineers and Architects.

Bronze Sponsors include Arup; Burgess & Niple; The CK Group, Inc.; ECOtality, Inc.; Jacobs; Technical & Business Systems; TerraSystems Southwest; and Triadvocates.

Recipients were selected by a distinguished panel of judges who represent diverse interests from throughout the Valley. The judging panel for the 2012 Desert Peaks Awards included James K. Ballinger, director of the Phoenix Art Museum; Don Cassano, former city of Tempe councilmember and ombudsman for the Arizona Department of Transportation; Angela Creedon, assistant vice president of public affairs with Arizona State University; Michael S. Ellegood, senior consultant of public works with PSMJ Resources; Lloyd Harrell, former city manager of Chandler; and Jack Lunsford, former executive director of WESTMARC.

For more information on the Desert Peaks Awards, visit Maricopa Association of Government’s website at azmag.gov.

Photography by Cassandra Tomei

Cover Story – High Octane

High Octane

With two major NASCAR races and a huge impact on the region, Bryan Sperber and Phoenix International Raceway add plenty of fuel to the Arizona economy

 

Activity in the West Valley has hit an all time high as new hotels and mixed-use developments suddenly appear in what used to be stark dirt fields, but they are not for the upcoming Super Bowl XLII. The take-off of economic development is almost as fast as the blur of engine-revving cars circling at Phoenix International Raceway.

High OctanePIR pumps $473 million into Arizona’s economy annually, according to a recently released study on Phoenix International Raceway conducted by Arizona State University’s W.P. Carey School of Business. A staggering amount equal to what the Super Bowl is prospected to bring to the Valley. “The Super Bowl is predicted to generate $400 to $500 million,” says Julie Frisoni, marketing and communications director for the city of Glendale. “However, PIR happens every year.”

PIR’s economic impact figure is based on two NASCAR events, the second of which was added after heavy statewide lobbying in 2005.

The Study
Timothy Hogan, Ph.D., professor emeritus of ASU’s Department of Economics, directed the 2005 study. The new study updates the 2001 original study of PIR’s economic impact, but adjusts for inflation and increase in races and fans.

The raceway’s overall economic impact of $473 million takes into account visitor, organizational and induced expenditures, such as purchases by out-of-state visitors and business activities at PIR. The updated study identifies several other areas of growth including state and local tax revenues, as well as income generated directly and indirectly from PIR, which covers PIR employees’ wages and salaries and Arizona household additional income as a result of visitor spending, PIR operations and spending by PIR employees.

According to the study, visitors from out-of-state who attend PIR events spend $160 million annually on goods and services directly and indirectly associated with the raceway including dining, entertainment, lodging, recreation and shopping throughout the Valley. However, out-of-state monetary flow will shift away from dispersing over the entire Valley and become more concentrated in the West Valley as economic development increases in the area. “Over the years, with the University of Phoenix stadium and more hotels being built in Glendale, more activity will occur over in the West Valley,” Hogan says.

PIR President Bryan Sperber says the organization is working with ASU’s sports business program to conduct a complete study update, which should be finished by spring 2008. “It’s a pretty comprehensive program,” says Sperber. “The original study covered one NASCAR race, but the Valley has evolved and changed, and the landscape of the sport has changed.”

Preparing for the Rush
In preparation for out-of-state visitors, Avondale Mayor Marie Lopez Rogers says the city has two new Hilton hotels that are already sold out for the next three years during race times, and several mixed-use developments opening in time for Subway’s Fresh Fit 500 weekend in April. PIR holds two races a year bringing in a total of 375,000 race fans to the Valley. “I remember when we first started [PIR] 17 years ago, looking forward and dreaming of what NASCAR could be,” says Sperber. “I think we’ve reached or even surpassed that dream.”

Feeding the Economic Giant
Sperber says PIR’s success is due to two key pieces of legislation that propelled the growth of NASCAR racing in the Valley.

First, the creation of the bridge over Gila River. Second, the $5 million spent in widening access roads coming from the west, where most race car fans travel from to get to PIR. A little known fact about these public improvements is that racing fans paid for them. “The public enjoys wider roads and a bridge year round, while PIR uses it a couple days a year,” says Sperber.

In addition to public improvements and huge economic impact, PIR is a privately owned entity. “Most professional sports venues are owned by the public,” says Sperber. “New changes to [PIR] are all funded privately by us. That’s well over $150 million given to the economy in addition to the races.” Which is great news for the booming West Valley.

“The more the races grow, the more PIR puts into capital investments, which will make the experience better,” says Jack Lunsford, president and CEO of Westmarc. “As the experience gets better, there is more money spent that directly affects our communities.”

Capitalizing Success
Dina Serin, economic development specialist for the city of Avondale, says PIR was a vital component of their 2007 marketing plan, which introduces a new message point and brand awareness that uses PIR’s success to help promote the city.

Marketing materials for Avondale’s Economic Development Department display the city’s slogan: Avondale is on the move… And you are in the driver’s seat.Keeping with the theme, calls to action sprinkle fliers and brochures: Rev up your RPMs at local shopping and dining destinations; shift into low gear by relaxing at one of the Hilton hotels; and take the wheel and experience Avondale for yourself.

“[PIR] is a great asset to our community and we plan on continuing to work with them,” says Avondale’s Development Director Claudia Whitehead.

Statewide Impact
AZ Business Magazine April May 2007Jacki Mieler, director of media relations for the state’s Office of Tourism, says PIR attracts people who might consider doing business or relocating businesses to Arizona. “NASCAR has a lot of high-profile sponsors who will travel to come see the races,” says Mieler.

Lunsford says the hope is that those high profile sponsors will see the growth and development happening and create new jobs that will further propel the Valley’s economy.

As PIR races into another exciting season, the economy fuels up on visitors experiencing all the Valley of the Sun has to offer.

www.phoenixraceway.com

Evolution of PIR

PIR was founded in 1964 by a group of professional sports car racers that had a dream of building a racing facility. PIR was carved out of the foothills of the Estrella Mountains in the West Valley and was intended to be a new crown jewel of American open wheel racing. At that time the tourism industry in Phoenix was just starting to grow.

It wasn’t until 1988, when NASCAR NEXTEL Cup Series racing came to PIR, that auto racing in Phoenix really became a major sporting attraction for the area. The Checker Auto Parts 500 NASCAR Winston Cup Series race in November is said to be the largest one-day sporting event in Arizona. A study by Arizona State University proves PIR’s economic impact to be among the top in the state, and demonstrated PIR’s tremendous growth over just a few years.

PIR President Bryan Sperber has a few exciting changes for upcoming events that will further propel PIR’s growth. “With every event, we attempt to introduce and try new things. We live in an entertainment world where the lines are becoming more blurry in terms of live entertainment, music and sports,” says Sperber. “We have to keep [PIR] fresh, fun and exciting.”

AZ Business Magazine April May ’07 |  Next: The Road to Success