Arizona is a standout American state known for being home to one of the world’s natural wonders. Diversity reverberates in this region in its people and the range of economic drivers. Arizona is frequently ranked in the top 20–25 when accounting for the highest median household income in the States. The region’s economy has evolved from earlier times when it was a ‘cowboy town.’ Let’s look at the top six business categories that boost economic growth in the Grand Canyon State.
Healthcare
The healthcare sector is Arizona’s largest, with more than 400,000 Arizonans in this field. Aside from the government and Walmart, the health system non-profit organization Banner Health employs the most people. According to IBISWorld’s Arizona State Economic Profile, Banner Health employed 28,310 people in 2023.
The region’s demographics naturally foster an unwavering demand. The state currently has a larger share of adults over 65 in the US. Understandably, older people use healthcare services far more than their younger counterparts.
Despite worker shortage challenges, the Common Sense Institute Arizona (CSIA) predicts that the healthcare division will grow to $44 billion by 2033.
Hospitality and Leisure
Data from Cience indicates that 709 hospitality and leisure companies operate in Arizona. The state is home to world-class resorts, restaurants, hotels, entertainment venues, theatres, and recreational spots.
Tourism is linked to the hospitality and leisure arena, with stunning attractions such as the Grand Canyon, Sedona, Sonoran Desert, and Monument Valley bringing millions of tourists annually.
The latest information from the CSIA looking at the Arizonan hospitality, leisure, and tourism division indicates:
- $13.7 billion in revenue was generated within the hospitality, leisure, and tourism sectors in 2022.
- This industry employed 347,500 people in the same year, representing 11% of Arizona’s workforce.
Manufacturing
The manufacturing space has been one of the fastest-growing in Arizona. CSIA indicates that the sector contributes about 9% of the state’s Gross Domestic Product and 6% of total employment. These are impressive figures considering the industry’s small size and lower attention than others.
Manufacturing in the United States steadily declined from the 1980s until the end of the Great Recession. However, Arizona is a hub for new technologies, introducing some of the world’s leading manufacturing companies.
The popular manufacturing sub-sectors in the city revolve around electronic and computer parts, transportation equipment, aerospace, defense, etc. It’s no wonder that companies like Raytheon Co., Intel Corp., and Honeywell International Inc. are frequently among the top 20 employers in the state.
Mining
In Arizona’s early days, the city’s financial system relied on the five Cs: cotton, cattle, citrus, climate, and copper. The former remains the most enduring economic driver. Consequently, many regard Arizon as ‘The Copper State,’ with copper being the most mined product.
Freeport is among the companies hiring the most Arizona natives. The company operates the globe’s largest gold mine, the Grasberg mine, which also contains substantial copper reserves. Arizona contributes over 60% of all US copper, making the country the sixth-greatest copper producer worldwide.
The state is home to mines of all designs, from sand and gravel operations to massive open-pit mines. You’ll find plentiful minerals (aside from copper) like gold, silver, uranium, zinc, mercury, and tungsten. Molybdenum is particularly significant, with Freeport being among the most prominent producers of the silvery-grey metal.
Information Technology
The latest Information Technology Council (ITI) data indicates that Arizona has around 204,000 technology jobs. This is a 3.5% increase in this workforce compared to the previous year.
The prominent IT sectors in Arizona feed into primarily financial services and e-commerce. Wells Fargo, JP Morgan, and Bank of America are among the top employers for Arizonans. These banks play a significant role in the forex trading operations in the state and globally.
Amazon stands out as another notable IT-related boost in Arizona. According to AZ Central, 33,000 people called the e-commerce giant their workplace in 2023.
Agriculture
Three of the five Cs — cattle, cotton, and citrus — remain relevant in Arizona’s ever-dominant agriculture sector.
When considering the state, many uninformed people imagine deserts and a generally arid environment. Yet Arizona’s climate is impressively diverse. The state exports commodities like wheat, nuts, eggs, meat, dairy, and cotton to America and around 70 nations worldwide.
Furthermore, Arizona boasts the world’s largest pecan orchard (the Green Valley Pecan Company) and the most prominent date plantation in the States (Woodspur Farms).
According to the Arizona Department of Agriculture, agriculture generates around $23 billion for the region’s financial system.
The Diverse Economy of Arizona
The highly populated region of Arizona may not be as glamorous as the likes of New York and California. Still, residents are moderately well-off. Its booming economy consists of sectors with cultural significance, such as agriculture and mining, and those with a futuristic eye, like information technology.
