Magazine’s annual survey says the outlook for Arizona is positive because of attractive tax rates.
Chief Executive ranked Arizona the 10th best state for business, despite some mixed reviews.
That’s the take-away from the magazine’s eighth annual “Best/Worst for Business 2012” survey.
Responses came from 650 CEOs who were asked to grade states in which they do business.
Texas ranked as the survey’s best state for business, followed by Florida, North Carolina, Tennessee, Indiana, Virginia, South Carolina, Georgia, Utah and Arizona.
This year Arizona received four out of five stars in the survey’s three measurements. It earned its highest rating in living environment, followed by tax and regulations. Its lowest rating appeared in workforce quality.
One business leader—all of the comments are anonymous—says that Arizona has “the best bottom-line operating environment and the least regulation…It’s an overlooked west coast location.”
According to metrics compiled in the survey, Arizona’s state and local tax burden is lower than the national average (8.67% vs. 9.8%).
As a right-to-work state, Arizona is among those states whose labor-force flexibility “is highly sought after when a business seeks a location,” the survey report says.
The state ranks third in domestic net migration from 2000 to 2009 with nearly 700,000 new residents.
Arizona’s December 2011 unemployment rate was slightly higher than the national rate (8.7% vs. 8.5%), as was GDP shrinkage from 2007 to 2010 (-6.7% vs. -6.37%).
One respondent complains that the state has a “poor education rating,” low-paying jobs and high employee turn-over.
Another says that “micro mainstreet businesses” have a tough time doing business. “Counties and cities are difficult to work around.”
Arizona moved up from 13th last year and the development trend is positive, the survey says about the state.
“Entrepreneurial activity surges as companies hope for personal-property tax relief,” the survey says.
Chief Executive concludes that all states should recognize that “above all, what attracts business leaders’ attention is a cooperative attitude and a willingness to work with the private sector.”
We at Commercial Real Estate Group of Tucson feel Arizona is headed in the right direction. Arizona is in a good position to draw the attention of business leaders and commercial property site selectors in California, which ranked dead last in the survey.
We can attract those businesses with better job training programs, workable regulations at every governmental level and competitive incentives.
Commercial Real Estate Group of Tucson specializes in representing tenants and corporate users across the United States, Latin America, Europe and Asia as a member of ITRA. For more information call 520-299-3400.