As was the case with many state economies, the 2008 recession hit Arizona hard.
Since then, however, the state has made a strong comeback. Considerable business growth has created 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 businesses do not have to contend with new “red tape”; and the privilege of being a “right to work” state with a favorable legal climate after passing civil justice legislation, according to Garrick Taylor, vice president of government affairs and communications at the Arizona Chamber of Commerce.
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 recently told Arizona Business Daily.
A good example of the importance of Arizona’s imports involves the southern Arizona border town of Nogales, an area that imports massive amounts of produce from Mexico.
“This gives Arizona a strong position in produce imports,” Taylor said. “And Arizona has a tax environment more favorable to industries to create products to be sold beyond Arizona borders.”
Taylor went on to say that Intel is one such example of an industry that is benefitting from these tax provisions, which are more welcoming to exporters.
Arizona is also growing its brand on a global stage. Taylor explained 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 road blocks is with regard to federal regulations.
“The continuous overreach from the Environmental Protection Agency 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 believes that there needs to be more reasonable compromises that will not hinder business growth.
Despite certain governmental road blocks, Arizona’s regulation and tax climate create a welcoming environment for different industries -- and the outlook is optimistic.
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