Northern Arizona is beloved by many Arizonans as a shaded retreat from the desert heat, where Ponderosa pine trees and small-town charm define daily life and weekend trips. In recent years, the region, stretching from Flagstaff’s high-altitude innovation corridor to the fast-growing communities of Show Low, is turning its attention to making a larger impact on Arizona’s economic landscape.
Strategic investments in infrastructure, housing and workforce development are helping Northern Arizona transition from a quiet getaway into a dynamic hub for industry, entrepreneurship and sustainable growth.
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Flagstaff
Perched at 7,000 feet and surrounded by the San Francisco Peaks, Flagstaff has always had a unique economic identity built on environmental conscientiousness and ski town entertainment. Today, that identity is evolving as the city doubles down on innovation, business attraction, and, as always, sustainability.
“We break it down into business attraction and then business retention and expansion,” says Jeff McCormick, Flagstaff’s economic development manager. “Our strategic plan highlighted our strengths in astronomy, aerospace, aviation, advanced manufacturing, biomedical sectors, food processing, forestry products and of course, our strong sustainability focus.”
A centerpiece of Flagstaff’s entrepreneurial ecosystem is Moonshot, the city’s business incubator and accelerator. Currently home to 31 startup tenants, Moonshot offers local entrepreneurs access to capital guidance, marketing support, legal counsel and mentorship, helping tenants transform ideas into scalable companies.
This focus on innovation is supported by targeted infrastructure projects:
• Flagstaff Pulliam Airport improvements and plans for a 32-acre adjacent technology park to attract bioscience and advanced manufacturing firms.
• Direct access to two interstate highways and the BNSF rail line, providing competitive logistical advantages.
• Business-friendly partnerships with Northern Arizona University (NAU) to connect graduates in engineering, business, and healthcare with local employers.
Flagstaff is also tackling two of Arizona’s most prominent hurdles for growth in 2025: housing and skilled workforce shortages. McCormick points to projects like Milltown, a mixed-use residential development, and the J.W. Powell corridor plan as examples of the city’s continuing commitment to addressing these issues. Collectively the projects will add 5,000 new housing units over time, including options for students and workforce housing.
Sustainability remains a guiding principle for the municipality’s growth, with Flagstaff’s Climate Action and Adaptation Plan encouraging development with a commitment to long-term environmental stewardship. Local initiatives like the Innovate Green Challenge incentivize businesses to reduce emissions, conserve water and introduce green practices.
“Flagstaff wants to be around for the next hundred years,” McCormick emphasizes. “Sustainability isn’t just a buzzword, it’s embedded in every decision we make.”
Show Low
Nestled along the Mogollon Rim among the White Mountains, Show Low is experiencing its own transformation. Historically known as a tourism and recreation hub, the city is now diversifying its economic portfolio with industrial development, entrepreneurship and workforce-focused housing.
“We are very pro-growth and pro-development,” says Economic Development Director Steve North. “Our processes are designed to be quick, collaborative, and business-friendly. If you want to build in Show Low, we’re ready for you.”
Key focus areas for Show Low include:
• Industrial recruitment, particularly outdoor-focused manufacturers and aviation-related companies.
• The arrival of a new Amazon distribution facility, supporting distribution and logistics activity.
• A 20,000-square-foot business incubator and commercial kitchen, funded through Economic Development Administration (EDA) grants, to support local entrepreneurs and food-related startups.
To support this growth, housing development are always top of mind. Show Low’s workforce housing initiative provides impact fee waivers, sales tax rebates and flexible development standards targeted to residents earning 60-120% of area median income. In addition, public-private partnerships could deliver 250 new multifamily units, supporting teachers, first responders and retail employees.
North also highlights Show Low’s regional collaboration efforts. Through the REAL AZ development group, the city works with neighboring municipalities in Navajo and Apache counties to recruit companies and coordinate economic strategies, helping the broader region to grow together.
Building the foundation
Northern Arizona’s success hinges on more than just beautiful landscapes — it’s supported by strategic investments in infrastructure and workforce readiness.
Companies such as Loven Contracting — which has active projects across the region — are delivering infrastructure built to connect communities, improve mobility and lay the groundwork for growth.
Among Loven’s most impactful projects are:
• Flagstaff’s Downtown Connection Center, a $25 million federally funded project serving as a transit and civic hub, built with American-sourced mass timber.
• Overpass and underpass improvements, including the Lone Tree overpass, designed to alleviate long-standing rail-related traffic bottlenecks.
• Transit-oriented housing connections, such as a new underpass linking future housing developments to Northern Arizona University.
“Flagstaff’s construction market remains strong,” says Jon Hansen, president of Loven Contracting. “We’re seeing a lot of investment in housing, infrastructure and community facilities that reinforce local workforces and support sustainable growth.”
This hands-on approach to infrastructure ensures that as new industries and residents arrive, Northern Arizona is prepared with the housing, roads and skilled labor needed to sustain long-term prosperity.
Northern Arizona on the rise
From Flagstaff’s tech-forward, sustainability-driven growth to Show Low’s pro-development, workforce-focused expansion, Northern Arizona is charting a clear path toward long-term economic success.
The formula is consistent across communities:
1. Invest in infrastructure to unlock new development.
2. Support workforce housing and training to keep talent local.
3. Foster entrepreneurship and industry diversification to build resilience.
As the Valley grows hotter and busier, the call of the high country is not just for recreation, it’s for the future. Businesses and residents alike are finding a place in Northern Arizona to thrive, innovate and contribute to another part of the state’s great economic story.
“We see a lot of opportunity within individual communities,” Hansen says, “from housing and workforce to making sure we have the fire stations, the police stations, the healthcare to support growth.”
As summer temperatures continue to creep up in the Valley and Tucson, McCormick concludes “Flagstaff will be the benefactor of that, attracting businesses that want to expand but also enjoy the 25- to 30-degree difference.”
