State needs a push in the right direction
For the last four years Arizona has been stuck at the bottom of the top 25 most business-friendly states, according to the Pollina Corporate Top 10 Pro-Business States for 2014.
While it’s good that Arizona hasn’t fallen out of the top half in the most recent state rankings by Pollina Corporate Real Estate Inc. Chicago, it shows that it has stalled in its efforts to attract businesses.
We at Commercial Real Estate Group of Tucson see that the most striking aspect of Arizona’s ranking and report card this year is that they’re barely different from previous years.
That’s a problem when businesses looking to relocate, expand or start operations begin comparing states not only for their current conditions, but their progressiveness.
The annual report ranks and grades states on 19 factors that focus on labor, business expenses and quality of life. It also measures how good are a state’s incentives for attracting businesses and how well it markets itself to new and existing employers.
Arizona Ranks 19th
This year Arizona ranked 19th among the 50 states. We think that’s a position that will get us on some site selection lists for consideration.
Arizona was 21st in 2013; 17th in 2012 and 21st in 2011. Before that, Arizona sat in the bottom half of all states.
Its highest rankings among individual categories were 1st in the unemployment insurance tax index and 6th in theproperty tax index.
Its worst rankings were 49th in sales and gross receipts tax and 45th in its violent and property crime rate.
Arizona’s overall grade was a “B” this year, compared to “C” last year and “B” the year before.
Don’t get us wrong. Our high ranking overall means businesses will give us a serious look.
But when our lowest grades deal with quality-of-life issues, this should be a wake-up call to our state legislators.
It is not enough to make the business-operations environment inviting. If businesses cannot attract people willing to live in Arizona, they won’t want to locate here.
Arizona’s Pro-Business Report Card
- Right to work
- Unemployment insurance costs
- Business inventory tax
- Property tax
- Workers compensation
- Individual tax index
- Regulatory environment
- Litigation environment
- Cost of electricity
- Long-term budget planning
- State’s marketing efforts to new and existing employers
- College completion
- Average teachers compensation
- Corporate tax index
- Transportation infrastructure
- High school completion
- Funding/College student
- State-offered economic development incentives
- Unemployment rate
- Sales and gross receipt tax
- Crime rate
Commercial Real Estate Group of Tucson specializes in representing tenants and corporate users across the United States. For more information call +1-520-299-3400.