Several business-friendly high rankings recognize Arizona efforts to offer business incentives to new, growing and relocating companies.
We can officially say with confidence that Arizona is on the move up when it comes to appealing to new, relocating and expanding businesses.
For the last couple of years, we at Commercial Real Estate Group of Tucson have been questioning Arizona’s future in economic development. The surveys we typically follow have had our state hovering about in the middle. Some ranking gains, some losses in individual polls made us wonder whether new Arizona business incentives were getting any traction.
Well, 2017’s crop of rankings for business friendliness makes us wonder no more. Table shows Arizona’s business-friendly state rankings in 2017.
Generally, Arizona held steady in most of the polls and even moved up a few notches. We take that to mean that reducing the corporate tax rate and focusing on key economic development incentives are making site selectors take serious notice of our Southwest corner of the country.
Here is what some of those surveys are seeing—and telling corporate America—about Arizona.
Area Development Magazine
This magazine’s “Top States for Doing Business” rankings are made by people in the commercial real estate industry, consultants who help companies make decisions about leases and purchases.
Arizona fell out of the top 20 list—there’s no explanation of why—but made it in the top 12 states with most improved economic development policies.
The magazine says Arizona is responsive to business needs. After the business community asked for streamlined regulation, the state legislature changed the transaction privilege tax system, “streamlining the process and eliminating the need for multiple (state and local) tax licenses, tax returns and tax audits,” says the magazine.
Site Selection Magazine
The state did well with another ranking developed by industry players. A survey of corporate site selectors making commercial real estate decisions for their companies put Arizona at no. 8 for the magazine’s “Top State Business Climate Rankings.” That’s a big jump from 2016’s no. 15 position.
The survey is one of the considerations for the rankings. Overall, Arizona jumped from 18th in 2016 to 15th in 2017.
Its competitive ranking also went up, from 22nd to 16th. That was high enough for the state to win the magazine’s 2017 Prosperity Cup among eight mountain-region states, including New Mexico, Utah and Nevada.
Chief Executive Magazine
Arizona continues to stay in the top 10 of the “2016 Best & Worst States for Business,” but barely this time around (no. 9). It also continues to hold its no. 2 position in the five-state Southwest region behind Texas.
The Grand Canyon State has become a Southwest hub for financial services and data centers. Companies take advantage of Arizona business incentives and costs that are lower than in California.
The magazine quotes Chris Camacho, president and CEO of the Greater Phoenix Economic Council, as saying, “We’ve seen extraordinary growth in the financial services industry driven by the ability to access talent quickly, scale up, grow revenue and minimize costs of business.”
Arizona Business Incentives Show Results
Arizona’s efforts are proving effective in growing the state’s economy. The Kauffman Index, which measures business activity, put Arizona fourth in startup activity, sixth in growth entrepreneurship and 25th in Main Street, or existing small business, entrepreneurship.
Arizona also earned Area Development’s 2017 Gold Shovel Award for the 5- to 8-million population category. The Gold and Silver Shovel awards recognize states that get high-impact projects as a result of their economic development efforts.
“Arizona is a regular near the top of the list of states with population counts between 5 million and 8 million,” according the magazine. “Its Gold Shovel performance is the result of major projects in finance and insurance, as well as business services, mixed with a number of highly diversified manufacturing highlights.”
So what’s in the future? We echo Forbes Magazine, which raised its ranking of Arizona from 26th in 2016 to 23rd in 2017. “Though hammered during the recession,” it says, “Arizona’s outlook is strong.”
And with continuing additions to the list of Arizona business incentives, the state is getting economically stronger.
Let Commercial Real Estate Group of Tucson help you put together a package of the best Arizona business incentives for your company. Contact us, 520-299-3400, firstname.lastname@example.org.