Phoenix Business Climate In Good Shape, Despite Missing Two Opportunities

Date: August 19, 2015

Related Content: News Economy Phoenix, AZ

Cost And Talented Workforce Key Drivers In Business Interest

Despite losing two major jobs projects, the economy of the Phoenix metropolitan area remains strong and the city remains attractive to employers. The Phoenix Business Journal notes a site selector for an unnamed company praised Phoenix for its workforce and added that there is strong demand for the type of employees that reside in the city. Additionally, the selector commented that Phoenix competes strongly with Austin, where “wages…are climbing to a point that they are on parity with Seattle and close to Silicon Valley.” Along similar lines, management consultant Gregg Wassmandorf said, “Our major talent study was revealing. Phoenix does really well in many industry sectors,” though he called for the state to boost job training. Earlier reporting in the Phoenix Business Journal quoted the chief executive of one of the companies looking to relocate to the city: “I don’t want to embarrass any city. (Greater Phoenix Economic Council) and (Arizona Commerce Authority) did an excellent job in trying to land the deal. … It’s not their fault, they have to work with the realities of the market and the realities of competition.” Other managers faulted the state’s reputation for education and high competition between companies for specialist employees, though one added: “Phoenix came close to making the final cut. … It has a good business climate.”

What This Means For Small Business

While these opportunities could have brought 3,000 jobs to the region, Phoenix remains an attractive business climate due to its skilled workforce and relatively low labor costs. Maintaining this competitive edge and attracting investment will requires boosting education and job training. The challenge to state leaders will be achieving this without increasing the burden on small businesses.

Additional Reading

NFIB detailed recent changes to the state’s tax code that will help small business owners.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

Related Content: News | Economy | Phoenix, AZ

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