ARIZONA, LURING BUSINESS FROM CALIFORNIA OR TALKING TRASH
Arizona-Let’s Lure Industry from California
This past week the following commentary appeared on the Arizona Republic newspaper
website. Apparently, the suburb of California likes talking trash about economic development.
“Now is the time Arizona officials should be looking to California. Not for guidance but to be
recruiting industry and businesses to Arizona. We have the facilities, the labor force and the
tax structure to outperform California. California is a self-induced disaster area for industry.
So instead of politicians battling over budgets, maybe someone could be doing something
constructive for the state and bringing in more jobs.”
The following are responses from Arizonans to this commentary.
•For Arizona to become a business road-kill-eating vulture MAY be fine for Arizona, but it does
nothing positive for the nation
•Even if the businesses come, so will the present job holders with a near net zero gain for local job
seekers. Grow your own!!
•No business in California or any other state wants to come here. The only folk that want to come
here are poor Mexicans, because we are shade better than Nogales or El Paso.
•Why would a business owner move a viable company to AZ when they could choose to move to a
State with a decent public school system and a functional Legislature? Having plentiful cheap housing
in the middle of nowhere and no gun laws isn't enough to attract business. If it was we would have more
business and industry here already.
•AZ is not intelligent enough to court real industry - most at the capital are waiting for housing to recover
to solve our problems.
OUCH !
Smack Down
QUOTABLE QUOTE
Arizona is not competitive in terms of enterprise zones and tax credits. For all the talk heard in Arizona
about how much better the state's business climate is than California's, it falls short of its massive
neighbor in terms of enterprise zones and incentive programs. For example, Arizona offers a $3,000
per employee hiring credit for its enterprise zones, while California offers $38,000.
Chuck Swenson, a professor at the University of Southern California's Marshall School of Business
"California is an interesting story, nobody is interested in the fact that Arizona is in as dire a financial
situation as California ... and no one believes if Arizona collapses, the fate of the country is at stake.”
"But if California were to collapse there would be repercussions for every American, no question about it."
Adam Mendelsohn, a Republican strategist and former Schwarzenegger communications director, in
an article from the San Francisco Chronicle
Arizona's incentives programs are much like California's - nonexistent. EZ's are great if you are in them, but most businesses aren't and even if they are the limitations cause great concern larger companies. California has a great asset with it's Employment Training Panel program, but this hasn't been exploited in the competition for new jobs. Arizona's training program was co-opted last year by the legislature and emptied of funds, so training and labor force remain California's trump cards. Arizona does have a much better image in the corporate community, however, as being more responsive to businesses and having a better understanding of the job creation/economic development process. It's proximity to the Calfornia market is also a strength. Both states could use some help in designing more pro-active economic development programs, in my opinion.
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Jim - great insight and thanks for the comments. For those of you
who do not know Jim Renzas, he is one of the nation's premiere
site location consultants and is located in California.
Jim was interviewed earlier this year at the The California Executive's
Corner, CaEO - a feature at www.CaliforniaBusinessMinute.com , go
to main menu (green colored bar) place cursor at CA Insights, wait for
drop down menu then click on CaEO Corner to view page and access
interview.
Jim will be speaking and available for consultantion at this year's Site
Selection Conference this Fall in Reno. See Events at the California
Business Minute for more information.
tjohnson@CaliforniaBusinessMinute.com
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Bad news - Arizona just passed a package of incentives directed at the Solar industry, see below:
PHOENIX (July 10, 2009) — Arizona Gov. Jan Brewer on Friday signed into law landmark legislation that will allow the state to attract solar and renewable energy companies.
The Quality Jobs Through Renewable Industries program aims to stimulate new investment in solar and renewable manufacturing and headquarter operations through corporate income tax credit and real and personal property tax reduction.
The bill was the vision of Sen. Barbara Leff and designed by the Greater Phoenix Economic Council to encourage investment by solar and renewable energy companies in Arizona.
“This legislation is a welcome sign for renewable energy companies around the world,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council. “Companies that have considered coming to Arizona now have a tremendous opportunity in front of them.”
For Arizona, the program serves as an important economic development tool to grow its economy. For companies worldwide, the program opens a door to a vibrant state with a long list of assets. Arizona boasts more than 300 days of sunshine a year, has a built-in semiconductor workforce, and sits alongside the fourth-largest solar market in the world, California.
“That Gov. Brewer signed this bill into law is significant. It puts Arizona in a position to be a leader in the solar industry,” said Michael Bidwill, GPEC’s chairman and president of the Arizona Cardinals. “We look forward to working with leaders in the solar and renewable energy industry, and this program gets us in the game to bring more projects to our state.”
Arizona Department of Commerce Director Don Cardon applauded the Legislature.
"I am grateful for the vision and leadership the governor and our legislators have demonstrated in supporting this bill,” Cardon said. “It will greatly assist Arizona in securing the national lead we should possess for solar and renewable technologies.”
The news comes just as GPEC is about to lead a delegation to the 2009 Intersolar North America show in San Francisco, a conference that’s among the industry’s largest international shows in the country. The delegation includes GPEC, Arizona Department of Commerce and leadership from Fountain Hills, Peoria and Surprise.
“This is an important step in the right direction,” said Drew Zogby, president and COO of Alpha Technologies. “It’s great to see Arizona’s leaders recognize the renewable energy industry for its potential economic boost, and environmental value, to the state and throughout the country. We are excited to now have an opportunity to expand our business base in Arizona.”
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