Like a lot of state economies, the 2008 recession hit Arizona pretty hard. Since then, Arizona has made a strong comeback, and there is considerable business growth that creates a promising environment for more businesses in various industries to turn their heads toward the state.
Arizona has a competitive tax environment, a supportive regulatory environment where business do not have to contend with new “red tape” and Arizona is a “right to work” state with a favorable legal climate after passing civil justice legislation, Arizona Chamber of Commerce Vice President of Government Affairs and Communications Garrick Taylor told Arizona Business Daily.
Arizona welcomes any industry, but they are experiencing plenty of attention from the tech industry, with major investments from Apple, Go Daddy, GM and Intel, just to name a few.
Arizona also trades broadly in exports and imports and has stepped up to get a “piece of the global trade pie,” Taylor said.
A good example of Arizona’s importance in imports involves the southern Arizona border town of Nogales. This area imports massive amounts of produce from Mexico, which gives Arizona a “strong position in produce imports,” Taylor said.
In regards to exports, Arizona has a “tax environment more favorable to industries to create products to be sold beyond Arizona borders,” Taylor said. Intel is a good example of an industry that is benefiting from these tax provisions, which are more welcoming to exporters.
Arizona is also growing its brand on a global stage. Taylor said that there is a trade office in Mexico City, as well as trade missions in Israel and France, all of which help Arizona’s job creation.
Where Arizona faces roadblocks is in regards to federal regulations. The “continuous overreach from the Environmental Protection Agency (EPA) with new clean air and ozone standards, as well as the Clean Water Act., create serious barriers for many companies within Arizona borders.” Taylor said. “These regulations create more expense to power businesses, which trickles down into other areas of the business as well, like an increase in the cost of goods produced.” Taylor stresses that there needs to be more reasonable compromises that will not hinder business growth.
Despite certain governmental roadblocks, Arizona’s regulation and tax climate creates a welcoming environment for different industries and the outlook is optimistic.
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