Tag Archives: raytheon

manufacturing

Quik Tek Assembly Expands into Tucson

Quik Tek Assembly, a minority-owned provider of contract manufacturing services, announced that it has expanded operations to the Tucson region. Quik Assembly Solutions, a division of Quik Tek Assembly, has leased an 8,000 square-foot building at 3450 S. Broadmont, Suite 120, and plans a $700,000 capital investment. The new facility will be open by April 2014.

Quik Tek Assembly, also a Raytheon supplier, provides a wide range of contract manufacturing services including circuit and cable design; PCB layout and manufacture; PCB, cable and mechanical assembly; product testing and the manufacture of complete product ready to ship.

The company plans to hire 50 new positions over the next 5 years. The jobs at the facility will be a mix of engineering, manufacturing, administrative and technician positions. Candidates interested in job opportunities can click here.

Through TREO, the company worked with community partners including the City of Tucson, Pima County One-Stop Career Center, Arizona Commerce Authority and Startup Tucson.

Adan Ortiz, president of Quik Tek Assembly, said: “Southern Arizona is a growing market, and we needed to be close to both existing and new potential customers. Additionally, we look forward to contributing to workforce development by encouraging STEM interest and providing student internships in partnership with The University of Arizona and Pima Community College.”

“Hi-tech manufacturers and suppliers to existing employers are logical fits for the Tucson region,” said Joe Snell, TREO president and CEO. “In addition, Quik Tek is committed to

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.

veterans

Advancing Arizona’s Heroes

This week, our nation took time to celebrate the enormous contributions and sacrifices of those who have served in our Armed Forces. Just in time for Veterans Day, the Arizona Chamber Foundation released its latest policy brief, Economic Opportunity for Arizona Veterans. This new report highlights the importance of veteran employment and outlines specific policy recommendations for Arizona.

Arizona is home to an estimated 76,000 Second Gulf War veterans. According to national unemployment numbers for August 2012, these veterans face an unemployment rate of 10.9 percent, compared to the national rate of 8.1 percent. These veterans serve as an untapped resource for Arizona employers – one that has the ability to significantly grow and help diversify Arizona’s economy.

Military service prepares veterans with work ethic, teamwork and leadership skills. There are clear economic opportunities and synergies between the talents veterans bring to the workforce and the needs of private industry. Yet many veterans continue to face obstacles when transitioning to civilian employment. As the report recognizes, it’s incumbent on business and elected leaders to harness this talent by:

1) Adopting best practices for hiring and retaining veterans

2) Implementing policies to  facilitate the transition from military to civilian life

3) Streamlining and clarifying the wealth of public, private and non-profit resources that are available

To that end, the Arizona Chamber has established the Veterans and Military Affairs Committee with a vision of making Arizona one of the most attractive states for veterans to live and work. The committee serves as a resource and connector for employers that are interested in helping veterans transition from military service to civilian employment. The committee also works to support public policies that aid in this transition.

The committee has created a resource toolkit to help veterans and employers navigate the wide array of resources available. Additional next steps in addressing this issue include:

1) Finalizing a specific policy proposal to allow relevant military experience to count toward the certification requirements for occupations requiring a professional license.

2) Developing a strategy for disseminating company best practices for hiring and retaining veterans, reservists and National Guardsmen.

3) Partnering with like-minded organizations and interested elected officials to provide meaningful connections between employers and veterans.

Media response to these efforts has been overwhelmingly positive. Yesterday’s edition of Arizona Illustrated featured Suzanne Kinney, executive director of the Foundation and Captain Craig Doyle, chairman of the Veterans and Military Affairs Committee, in a discussion on the report’s findings and the importance of this topic. The issue is gaining traction and the efforts of Arizona businesses are being recognized.

It’s important to acknowledge the cross-section of Arizona Chamber member companies that were interviewed for the Foundation’s report: Amazon, Intel, Magellan Health Services, Northern Arizona University, Raytheon, Swift Transportation, University of Phoenix, USAA, and Wells Fargo. These companies along with the Arizona Department of Veterans Services provided valuable insight regarding best practices for recruiting and retaining vets. Many other chamber member companies, such as US Airways with their nationally-recognized Honor Flight Network, are taking action to support veterans as well. A key goal of the Veterans and Military Affairs Committee is to help other interested employers adopt proven strategies that will lead to more veterans successfully transitioning to civilian employment.

The Chamber also owes many thanks to Captain Craig Doyle for his leadership and continued service.
An Operation Iraqi Freedom veteran, Captain Doyle recently returned from the Asian Pacific Theater, his third activation since September 11, 2001. While there, he was the first Naval Reserve Officer to serve as Commanding Officer of the Naval Supply Systems Command (NAVSUP) Fleet Logistics Center (FLC) Yokosuka.  His mission included all operational, planning and logistical support for the Far East region. With both business and military leadership experience, Captain Doyle brings indispensable personal experience to this important endeavor.

We look forward to further advancing the mission of the Veterans and Military Affairs Committee during the 2012 legislative session and continuing the recognition of this issue throughout the state. We will be working diligently to help more Arizona businesses implement proven programs to recruit, promote and retain veterans and to advance public policies that support veteran employment and entrepreneurship.

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

SkySong

Innovation unites Arizona’s economic engines

When Arizona became a state 100 years ago, it was easy to identify its economic engines, those industries, innovators and locations that drove the state’s economy and employment.

They all started with C — copper, cotton, citrus, cattle and climate.
A decade later, it’s not so easy.

“We must find ways to diversify our economy, including investing in bioscience and technology, health science and innovation,” Phoenix Mayor Greg Stanton says. “We are coming out of the recession, and we need to move forward in a strategic way.”

Today’s economic engines are doing just that. They innovate, they collaborate, and the only one that starts with C is CityScape, and the only copper you’ll find there is Copper Blues Rock Pub and Kitchen and the cotton is at Urban Outfitters.

But today’s economic engines have to clear vision and direction for driving Arizona’s economy during its second century.

The Biodesign Institute at ASU
What it is: The Biodesign Institute at ASU addresses today’s critical global challenges in healthcare, sustainability and security by developing solutions inspired from natural systems and translating those solutions into commercially viable products and clinical practices.
Economic impact: The Biodesign Institute has met or exceeded all of the business goals set in mid-2003 by attracting more than $300 million in external funding since inception, and generating more than $200 million in proposals advanced in 2011 alone.
Companies it has helped grow: Licensed next-generation respiratory sensor technology to a European medical device developer; executed an exclusive license agreement for DNA sequencing technology to Roche, which includes a sponsored research agreement to develop devices in collaboration with Roche and IBM; and launched two Biodesign Commercial Translation companies.
Latest news: Led by electrical engineer, Nongjian Tao, ASU researchers have formulated a new sensor technology that will allow them to design and create a handheld sensor that can contribute to better diagnosis of asthma.
Michael Birt, director of the Center for Sustainable Health at the Biodesign Institute at ASU: “By establishing biosignatures centers, we hope to build a global network that will provide the scale necessary to overcome scientific limitations while creating a global platform to share methods, results and experiences.”

CityScape
What it is: A highrise mixed-use development in Downtown Phoenix consisting of residential, retail, office, and hotel components. The project covers three downtown Phoenix city blocks and is located between First Avenue and First Street, and between Washington and Jefferson streets.
Economic impact: Officials credit the evolution of Downtown Phoenix — led by CityScape — with helping the Valley land the 2015 Super Bowl, which will bring an economic impact of an estimated $500 million.
Companies it has helped grow: In addition to entertainment venues and top-notch restaurants, business leaders calling CityScape home include Alliance Bank, Cantor Law Group,  Fidelity Title, Gordon Silver, Gust Rosenfeld, Jennings, Strouss and Salmon, PLC, Polsinelli Shughart, RED Development, Squire Sanders and UnitedHealthcare.
Latest news: The 250-room boutique hotel, Hotel Palomar Phoenix by Kimpton, opened in June.
Jeff Moloznik, general manager, CityScape:  “The most progressive and entrepreneurial talent in the Valley have convened at CityScape. The impact our tenants’ businesses have brought to Downtown Phoenix is noticeable and significant. In an area that once lacked a central core, there is now energy, creativity, enterprise and excitement all day, every day in once central location.”

Intel

What it is: Intel is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices.
Economic impact: Since 1996, Intel has invested more than $12 billion in high-tech manufacturing capability in Arizona and spent more than $450 million each year in research and development. Intel is investing another $5 billion in its Chandler site to manufacture its industry-leading, next-generation 14 nanometer technology.
Companies it has helped grow: Intel has been a catalyst for helping to create Chandler’s “tech corridor,” which includes Freescale, Microchip Technology, Orbital Sciences, Avnet, Amkor, and Marvell Technologies.
Latest news: Intel and ASU’s College of Technology and Innovation (CTI) are developing a customized engineering degree for some of the chip maker’s Arizona-based employees. The program is based on CTI’s modular, project-based curriculum and upon completion will provide a Bachelor’s of Science in Engineering degree from ASU, with a focus in materials science.
Chandler Mayor Jay Tibshraeny: Intel likes the partnership it has with Chandler, likes doing business in Arizona, and they’re a very good corporate citizen.”

Phoenix Mesa-Gateway Airport

What it is: Formerly Williams Gateway Airport (1994–2008) and Williams Air Force Base (1941–1993), it is a commercial airport located in the southeastern area of Mesa.
Economic impact: The airport helped generate $685 million in economic benefits last year, and the airport supports more than 4,000 jobs in the region.
Companies it has helped grow: Able Engineering & Component Services, Cessna, Hawker Beechcraft, Embraer, CMC Steel, TRW Vehicle Safety Systems Inc..
Latest news: The Airport Authority’s Board of Directors announced Monday the airport will undergo a $1.4 billion expansion. There is also an effort to privately raise $385 million to build two hotels and office and retail space near the airport.
Mesa Mayor Scott Smith: “Phoenix-Mesa Gateway Airport has gone through tremendous growth and expansion and has truly arrived as a major transportation center in the Valley.”

SkySong

What it is: A 1.2-million-square-feet mixed use space that gives entrepreneurs and innovators the resources they need  to grow and thrive, and provide them an exceptional home for when their businesses begin to take off.
Economic impact: Projected to generate more than $9.3 billion in economic growth over the next 30 years, according to an updated study by the Greater Phoenix Economic Council.
Companies it has helped grow: Emerge.MD, Channel Intelligence, Adaptive Curriculum, Alaris, Jobing.com/Blogic, webFilings.
Latest news: Jobing, an online company that connects employers and job seekers nationally, relocated its corporate headquarters from Phoenix to SkySong.
Scottsdale Mayor Jim Lane: “It is hard to think of a business attraction initiative the city has recently used that has not mentioned SkySong as a major attribute. SkySong has a national reputation and as it grows it will continue to elevate Scottsdale’s standing.”

Talking Stick

What it is: This economic engine encompasses a complex that includes the 497-room Talking Stick Resort, Courtyard Marriott Scottsdale Salt River, Casino Arizona at Talking Stick Resort, Talking Stick Golf Club, and Salt River Fields at Talking Stick, the spring training home of the Colorado Rockies and Arizona Diamondbacks.
Economic impact: Salt Rivers Fields аt Talking Stick accounted fоr 22 percent оf the the attendance for Cactus League baseball, which generates more thаn $300 million а yeаr іn economic impact tо the greater Phoenix metropolitan area economy.
Companies it has helped grow: In 2011, nearby Scottsdale Pavilions — which features 1.1 million square feet of select retail and mixed-use properties — became The Pavilions at Talking Stick. Pavilions has added Hobby Lobby, Mountainside Fitness, Buffalo Wild Wings and Hooters.
Latest news: Salt River Fields at Talking Stick will be one of the ballparks selected to host the first round of the 2013 World Baseball Classic in the spring.
David Hielscher, advertising manager, Casino Arizona and Talking Stick Resort: “Our property’s diverse, entertainment-driven culture and convenient locations allow us limitless opportunities for future expansion and development.”

Translational Genomics Research Institute

What it is: TGen is a non-profit genomics research institute that seeks to employ genetic discoveries to improve disease outcomes by developing smarter diagnostics and targeted therapeutics.
Economic impact: TGen provides Arizona with a total annual economic impact of $137.7 million, according to the results of an independent analysis done by Tripp Umbach, a national leader in economic forecasting.
Companies it has helped grow: TGen researchers have collaborated with Scottsdale Healthcare, Virginia G. Piper Cancer Center, Mayo Clinic, Ascalon International Inc., MCS Biotech Resources LLC, Semafore Pharmaceuticals Inc., Silamed Inc., Stromaceutics Inc., SynDevRx Inc., and Translational Accelerator LLC (TRAC). and many others.
Latest news: When TGen-generated business spin-offs and commercialization are included,  Tripp Umbach predicts that in 2012 TGen will produce $47.06 for every $1 of state investment, support 3,723 jobs, result in $21.1 million in state tax revenues, and have a total annual economic impact of $258.8 million.
Michael Bidwill, president of the Arizona Cardinals: “TGen is one of this state’s premier medical research and economic assets, and is a standard-bearer for promoting everything that is positive and forward-looking about Arizona.”

University of Arizona’s Tech Park

What it is: The University of Arizona Science and Technology Park (UA Tech Park) sits on 1,345 acres in Southeast Tucson. Almost 2 million square feet of space has been developed featuring high tech office, R&D and laboratory facilities.
Economic impact: In 2009, the businesses that call Tech Park home had an economic impact of $2.67 billion in Pima County. This included $1.81 billion in direct economic impacts such as wages paid and supplies and services purchased and $861 million in indirect and induced dollar impacts. In total, the Tech Park and its companies generated 14,322 jobs (direct, indirect, and induced).
Companies it has helped grow: IBM, Raytheon, Canon USA, Citigroup, NP Photonics, and DILAS Diode Laser.
Latest news: A 38.5-acre photovoltaic array is the latest addition to the Solar Zone technology demonstration area at Tech Park. Power generated from the facility will be sold to Tucson Electric Power Co., providing power for  about 1,000 homes.
Bruce Wright, associate vice president for University Research Parks:  “By 2011, the park had recaptured this lost employment (resulting from the recession) with total employment increasing to 6,944. In addition, the number of tenants had expanded from 50 to 52 reflecting the addition of new companies in the Arizona Center for Innovation and the development of the Solar Zone at the Tech Park.”

missiles

Raytheon shoots down allegations it stole trade secrets

Tucson-based Raytheon Missile Systems is denying allegations raised in a former partner’s lawsuit that it stole missile warhead trade secrets.

Ordnance Technologies North America Inc. filed a federal lawsuit against Raytheon in May. The Arizona Daily Star reports it is seeking a court order halting Raytheon’s use of the bunker-busting warhead technology used in Tomahawk missiles as well as monetary damages.

Raytheon has declined comment. But a recent court filing by the company says it developed the Tomahawk missile warhead at the heart of the suit independently. Raytheon also says purchase orders for designs from Ordnance gave Raytheon ownership of any intellectual property developed under the contracts.

It says that means even if it was using the designs it owns them under terms of the contracts between the companies.

manufacturing - Arizona Business Magazine May/June 2012

Computer & Aerospace Manufacturing – Arizona Builds Its Financial Future

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Boeing Phantom Eye

Photo courtesy Boeing

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

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

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

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

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

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

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

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

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

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

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

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

ARIZONA AEROSPACE

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

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

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

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

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

Arizona Business Magazine May/June 2012

Manufacturing Companies

Arizona’s Largest Manufacturing Companies

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

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

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

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

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

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

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

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

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

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

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