The Economy
By Local Arizona Realtor Cody Sperber

The Metro Phoenix economy continues steady growth across a wide spectrum of industries. In September 2005 the National Research Policy Council released its study rating Metro Phoenix as the number one large metro area for new businesses and entrepreneurs. The study ranks cities on their record for creating new businesses and for adding employees to existing companies. The council attributed high rankings to the areas educational opportunities, infrastructure, business climate, quality of life and cost of living.
National companies continue to locate operations to Metro Phoenix, adding their energy to one of the nation's most diverse regional economies. Over 150 of the Fortune 500 companies maintain a presence in Metro Phoenix. Annual job growth through November 2005 was 69,700, a 4% growth rate. This placed
Phoenix second nationally among large metropolitan areas in total jobs gained. The unemployment rate for December 2005 was at 4.0% compared to a 4.9% national rate. Total job growth in
Arizona during 2005 exceeded 97,000 jobs, a rate of 4.2 percent. Job growth for 2006 is expected to exceed 100,000.
The region has worked hard and successfully to become a magnet for companies in six categories; high-technology, bioindustry, business services, software, tourism and transportation and distribution. A pattern has clearly emerged:
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Many national and international firms are locating major operations here.
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There is a strong level of less technical jobs in the service, back-office, tourism and distribution fields.
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Firms based here are expanding, contributing hundreds of new jobs.
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The contributing factors include quality of life, cost of living, a skilled work force, good universities and a favorable business climate.
Tourism, including the annual "Snowbird" migration remains a mainstay of the area's economy. Over 25 million visitors contribute 16 billion dollars in direct spending to the
Arizona economy, supporting 450,000 direct and indirect jobs. The
Phoenix area attracts a large share of that tourism market.
Call centers are another major Metro Phoenix enterprise with more than 250 centers employing 125,000 people. Among the largest operators of call centers are American Express, Discovery Financial Services, Bank of America, USAA, Charles Schwab &
MAJOR EVENTS
In 2002
While the trend is to move computer chip manufacturing overseas, Intel has invested $2 billion to upgrade its
In September 2005 locally headquartered America West Airlines merged with US Airways, taking the US Airways name. The now fifth largest
Financial firms continue to expand service and operational facilities in the area. Wells Fargo Consumer Credit invested $33 million to house
1 ,800 employees in
In October 2005, Google announced plans to open a new engineering office in the
to select a site. Initial employment is expected to reach 600. Internet marketer EBay will invest $21 million to open a
In December 1999,
San Antonio based insurer USAA obtained 500 acres in
Phoenix for a regional office/customer-service center. Operations began in 2001 with prospects for 15,000 employees in 10 years. Employment through 2005 has grown to more than 3,000 employees.
Other companies announcing new Metro Phoenix operations are; The Vanguard Group, Sabare USA, Heyco Products, IndyMac Bank, Milgard Windows, McKesson Distribution, Lydian Data Services, US Bank and Cessna/Citation, Le-Natures Beverages and Collectcorp Inc .. These companies will invest a total of $300 million, creating 1 ,800 new jobs.




