GPEC helps dozens of businesses set up shop in Arizona in past year

The Phoenix region is in the throes of a monumental run of business expansions and economic development announcements.

This year alone, Taiwan Semiconductor Manufacturing Co. upped its investment in Phoenix from $40 billion to $65 billion, the largest foreign direct investment in Arizona's history, and secured nearly $12 billion in federal CHIPS Act subsidies and loans. Amkor Technology Inc. also announced plans for a $2 billion semiconductor testing and packaging plant near TSMC, while LG Energy Solution kicked off construction of its first battery manufacturing plant in the Valley.

The Greater Phoenix Economic Council helped 49 major companies expand in the Phoenix market during its latest fiscal year, which runs from July 2023 through June 2024. That figure includes expansions from Republic Services, ASM, DSV and SolarTech, among others.

The economic development wins represented about $3 billion in capital investment and 7,431 jobs created, with an average salary of $73,000. These companies were part of a larger $50 billion in capital investment and 24,251 projected jobs that the Arizona Commerce Authority helped secure across Arizona in fiscal year 2024.

Some of the most notable Valley business expansions and announcements in the past year were:

• Factor: Last fall, the meal delivery company opened its largest facility in Goodyear with plans to eventually hire 800 people at the 301,100-square-foot space.

• Outerspace: A new third-party logistics company opened in a nearly 400,000-square-foot facility in Avondale with plans to create 500 new jobs for its high-touch operations.

• Clayco: The design-build firm Clayco opened its new Southwest regional headquarters at the Grove office building in a nearly 50,000-square-foot space in the Camelback corridor.

• FrameTec: The Campe Verde-based building components maker is going to develop a $100 million, 254,000-square-foot plant for roof trusses and wall panels in Casa Grande.

• ASM: The semiconductor equipment supplier wants to build a new $300 million headquarters and research facility in Scottsdale, creating 500 new jobs.

• Steelcase: The office furniture manufacturer is closing its California distribution center for a 211,360-square-foot warehouse in Glendale near the Loop 303.

• Republic Services: Vertical construction has kicked off on the waste disposal company's new Phoenix headquarters after the company considered moving out of state. It will hire 600 people in addition to retaining 1,000 employees in its 265,525-square-foot space.

• Lucid Group Inc.: Electric vehicle manufacturer Lucid unveiled the 3 million-square-foot expansion of its factory in Casa Grande, south of Phoenix.

Phoenix a magnet for industrial, manufacturing projects

The Phoenix area expansions have been dominated by the industrial and manufacturing industries as the U.S. tries to build up its microchip and clean energy ecosystems, and because of Phoenix's booming population and business growth.

In fact, the Sunbelt region was recognized as one of the leading markets in the nation for overall real estate growth and in the past year has been recognized as the top market for industrial construction and manufacturing growth.

Arizona is expected to come out on top for growth as plans for major projects move forward including Mack Real Estate Group's $7 billion science and technology park around TSMC and Mayo Clinic's Discovery Oasis in Phoenix. By 2033, the region could be home to more than 6 million residents, with most of the growth occurring in the West Valley and Pinal County.

But some challenges will need to be addressed as Arizona competes for economic development projects, said Brad Smidt, senior vice president of business development for GPEC, at the West Valley Commercial Real Estate Group meeting on Aug. 16.

That includes having shovel-ready sites with adequate infrastructure and zoning, strong economic incentives, housing affordability, workforce availability, power and water availability, transportation infrastructure and education funding.

At the end of June, GPEC had 260 business prospects in its pipeline — a large portion of which are either headquartered in California or internationally. An estimated 18-20% of these active prospects could convert into locates, according to Smidt.

Most of those potential expansions by the end of the fiscal year also fell in the warehouse and manufacturing category, but about 40 were for office expansions, including 13 headquarters.

About 67 of those prospects were looking for at least 200,000 square feet or more of industrial space, while at least 10 prospects were seeking at least 75,000 square feet or more of office space in the Valley.

This year's growth in the Valley builds on the previous year. GPEC helped nearly 40 businesses in fiscal year 2023 expand to the Phoenix area, which created 7,731 jobs with average salaries of $72,443.

Final Thoughts

As Arizona continues to attract top-tier businesses from across the globe, the Greater Phoenix area is solidifying its position as a hub of innovation, opportunity, and growth. With major players like Taiwan Semiconductor Manufacturing Co., Amkor Technology, and LG Energy Solution investing billions and creating thousands of high-paying jobs, the region is poised for an economic boom that will benefit both new and long-time residents alike.

For those considering a move to Arizona, the Valley offers more than just sunshine and scenic beauty—it’s becoming a magnet for industries that are shaping the future. Whether you’re looking for career opportunities, a thriving business environment, or simply a vibrant place to call home, Phoenix and its surrounding areas are proving to be the place to be. As new projects continue to break ground and companies expand their presence, there's never been a better time to make the move and be part of Arizona's exciting future.