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GREATER PHOENIX ECONOMIC COUNCIL MITCHEL ALLEN VP, BUSINESS DEVELOPMENT, INDUSTRIAL
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GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

Aug 23, 2020

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Page 1: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

GREATER PHOENIXECONOMIC COUNCILMITCHEL ALLENVP, BUSINESS DEVELOPMENT, INDUSTRIAL

Page 2: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

GREATER PHOENIXECONOMIC COUNCIL

Page 3: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

OUR MISSIONAttract and grow quality

businesses and advocate

for Greater Phoenix’s

competitiveness.

Page 4: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors.

GPEC has assisted more than 740

businesses as they relocate and expand to

the region.

GPEC has brought more than 130,000 jobs to the region.

GPEC has helped bring $14.4 billion in capital

investment.

740+ 130,000+ $14.4BSINCE 1989

ABOUTGREATER PHOEN IX ECONOMIC COUNC IL

Page 5: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

GPEC PARTNERS

Apache Junction

Avondale

Buckeye

Casa Grande

Chandler

El Mirage

Fountain Hills

Gila Bend

Gilbert

Glendale

Goodyear

Maricopa

Mesa

Peoria

Phoenix

Queen Creek

Scottsdale

Surprise

Tempe

Tolleson

Wickenburg

Youngtown

GPEC MEMBER COMMUNITIES

Member Community

GREATER PHOEN IX ECONOMIC COUNC IL

Page 6: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

GPEC SERVICESIN-DEPTH MARKET DATA & ANALYSIS Analysis of current wage rates, labor force, skill levels based on occupation and industry, etc.

OPERATIONAL COST ANALYSISComparisons across major markets with analysis of transportation, real estate, tax incentives, labor costs, etc.

SPEED TO MARKET SUPPORTCity permitting, entitlements and certificates of occupancy

SITE-SELECTION ASSISTANCEListing of value-based assets, unique buildings and shovel-ready sites

ECONOMIC IMPACT ANALYSISEvaluation of your project’s economic impact and community benefitCONNECTIVITY TO KEY RESOURCES

Introductions to colleges, universities, workforce assets, state and local regulatory authorities, job training programs, startup resources, business leaders, etc.

ECONOMIC POLICY COMPETITIVENESSAnnual review of current economic development program offerings

BUS INESS ATTRACT ION

Page 7: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

ECONOMIC SNAPSHOT

Page 8: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

12

0.0

2.0

4.0

6.0

8.0

10.0

20072008

20092010

20112012

20132014

20152016

20172018

Unemployment Rate

0

5,000

10,000

15,000

20,000

25,000

19671972

19771982

19871992

19972002

20072012

May 2018

Dow Jones Industrial Average, Monthly Closing Value

Sources: BLS Current Population Survey and Consumer Price Indexes, University of Michigan Survey of Consumers, and BEA retrieved from FRED

0%

2%

4%

6%

8%

10%

19701975

19801985

19901995

20002005

20102015

Corporate Profits as a % of GDP (5-Year Moving Average)

The national picture of economic growth is strong.

Corporate Profits as a % of GDP (5-Year Moving Average)

Real GDP, Quarterly Percent Changes

Page 9: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

But the economy is producing more geographically unequal outcomes.

Shrinking share of U.S. counties matching national rates of business and job growth

Business establishments Employment

13Source: Census CBP

Page 10: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

14

…and Americans are more stuck in place than ever before.

Source: U.S. Census Bureau, State-to-State Migration Flows

0.0%

1.0%

2.0%

3.0%

4.0%

19601964

19681976

19801984

19881992

19962000

20042008

20122016

1.5

Percent of Population Moving Across State Lines

Page 11: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

The U.S. startup rate remains near its all-time low.

New Firm Startup Rate

Sources: U.S. Census Bureau Business Dynamics Statistics 15

0%

4%

8%

12%

16%

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

Page 12: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

Nearly one out of every four community banks

has disappeared since 2008

In real terms, small business lending remains

down by a quarter

$0

$200

$400

$600

$800

1995 2016

Billi

ons o

f 200

9 do

llars

75% of all venture capital concentrates in three states:

California, New York & Massachusetts

0

2,000

4,000

6,000

8,000

10,000

2000 2005 2010 2015

Number of U.S. Community Banks

Sources: FDIC and National Venture Capital Association

Inadequate access to capital limits opportunity in much of America.

75%

16

Page 13: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

17

Prosperous Distressed

52 million Americans (1 in 6) live in economically distressed zip codes.

Arizona: Over 24% of the

population lives in a distressed

zip code

Learn more at eig.org/dci

American communities face disparate economic realities.

Page 14: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

18

Over 50 million Americans live in economically distressed communities.

Source: EIG’s “2017 Distressed Communities Index” covering zip codes, 2011-2015

Adults w/o High School Diploma

Poverty

Adults not Working

Housing Vacancy

Median Income Ratio

Change in Employment

Change in Establishments

Prosperous Distressed

5.7%

6.2%

20.8%

4.8%

145.9%

24.5%

12.6%

22.5%

26.7%

41.8%

14.4%

68.6%

-6.0%

-6.3%

Page 15: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

Arizona Cumulative Change in Employment by Quintile

These trends hold true locally.

19Source: EIG’s “Escape Velocity”

Page 16: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

JOB GROWTH SINCE THE RECOVERY• Greater Phoenix recovered peak pre-recession job numbers in August 2016

• Current total nonfarm payroll employment is 2,060,600

• Since the recovery began the region has gained 413,400 jobs

Source: AZ Office of Economic Opportunity Labor Statistics, June 2018, not seasonally adjusted, preliminary numbers

1600.0

1650.0

1700.0

1750.0

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1900.0

1950.0

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-17

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Jobs

in

Thou

sand

s

Greater Phoenix Job Growth

ECONOMIC SNAPSHOT

Page 17: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

JOB RECOVERY FORECAST• Greater Phoenix job growth is projected to be 2.8% from 2017 to 2018

• AZ job growth is projected to be 2.52% from 2017 to 2018

• U.S. job growth is projected to be 0.7% from 2017 to 2018

Source: University of Arizona Economic and Business Research Center, May 2018. Bureau of Labor Statistics, 2016-2026 projections.

1500.0

1600.0

1700.0

1800.0

1900.0

2000.0

2100.0

2200.0

2300.0

2400.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Projected Non-Farm Employment Growth

Jobs

in

Thou

sand

sECONOMIC SNAPSHOT

Page 18: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

EMPLOYMENT GROWTHECONOMIC SNAPSHOT

Source: Arizona State University, U.S Bureau of Labor Statistics

Rank out of 50 states

Year Rank1995 21996 21997 21998 11999 22000 52001 92002 102003 42004 22005 22006 2

Year Rank2007 172008 462009 492010 492011 272012 82013 92014 172015 112016 92017 132018 8

Year Rank # MSA’s1995 1 201996 1 211997 2 221998 1 231999 3 242000 7 252001 7 262002 5 252003 3 252004 3 252005 1 262006 1 27

Year Rank # MSA’s2007 10 292008 25 292009 23 242010 23 232011 14 252012 10 282013 7 292014 15 312015 11 322016 9 332017 10 342018 7 36

Ranking among all metro areas greater than 1,000,000

Page 19: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

COST OF LIVINGECONOMIC SNAPSHOT

The overall cost of living in the Greater Phoenix region is 5.0% below the national average.

Cost of Living Comparison for Select Markets

Region

100% Composite

Index

13.61% Grocery Items

27.59% Housing

10.06% Utilities

9.59% Transportation

4.00% Healthcare

35.15% Misc. Goods and

ServicesSan Antonio, TX 88.1 85.9 77.7 87.9 92.2 88.4 96.4Albuquerque, NM 94.9 93.2 93.5 84.4 101.4 101.3 97.1Phoenix, AZ 95.0 97.6 95.2 96.6 91.7 98.0 93.9Salt Lake City, UT 97.1 107.2 94.1 75.7 103.5 99 99.7Austin, TX 97.5 88.1 101.9 88.2 93.3 99.7 100.9Houston, TX 98.2 87.1 104.8 111.2 97.4 91.5 94.7Dallas, TX 102.1 95.1 104.9 104.8 99.3 101.5 102.5Las Vegas, NV 102.5 102.3 109.7 86.7 107.3 103.7 100.0Denver, CO 112.0 98.3 133.5 94.0 105.5 105.7 107.6Chicago, IL 123.6 108.6 155.6 90.7 126.6 101.6 115.1Portland, OR 129.3 115.6 179 78.4 106.3 107.5 117.8San Diego, CA 146.1 114.7 237.8 117.7 122.8 107.0 103.6Los Angeles, CA 148.0 113.9 240.8 107.1 125.6 109.2 108.9Boston, MA 148.2 106.2 207 141.8 110.8 135.8 130.0Seattle, WA 149.0 127.1 194.2 123.8 133.1 124.6 135.5Arlington, VA 155.7 113.8 253.7 114.5 112.4 100.9 122.9San Francisco, CA 192.9 125.8 361.2 115.6 134.4 124.9 128.9New York City, NY 238.6 138.8 494.6 118.3 130.0 115.5 148.9

Source: C2ER Cost of Living Index 2017 Annual Average

Page 20: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

CURRENT MAKEUP OF INDUSTRY• The recovery was led by Professional and Business Services, Health Care and Social Assistance, Leisure and

Hospitality, Finance and Insurance, and Government.

Source: AZ Office of Economic Opportunity Labor Statistics, June 2018, not seasonally adjusted, preliminary numbers

Industry Job Gains in Recovery % GrowthTotal Nonfarm 413.4 25%Professional and Business Services 82.6 31%Health Care and Social Assistance 69.5 36%Leisure and Hospitality 59.1 35%Construction 44.4 53%Finance and Insurance 41.5 39%Retail Trade 36.1 18%Manufacturing 20.1 18%Transportation and Utilities 19.0 32%Educational Services 10.3 26%Information 10.1 37%Government 9.2 4%Real Estate, Rental, and Leasing 7.6 22%Other Services 2.7 4%Wholesale Trade 1.0 1%Natural Resources and Mining 0.2 7%

Current Employment by Industry

ECONOMIC SNAPSHOT

Page 21: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

CURRENT MAKEUP OF INDUSTRY• Overall diversification of industry employment remains similar to diversification pre-recession.

• Most significant changes are a relative growth in Health Care and Social Assistance, and decline in Construction and Retail Trade.

Source: AZ Office of Economic Opportunity Labor Statistics, June 2018, not seasonally adjusted, preliminary numbers

Pre-recession Employment Diversity Current Employment DiversityProfessional and

Business Services

17%

Government

13%

Retail Trade

13%

Leisure and

Hospitality

10%

Health Care and

Social Assistance

9%

Construction

8%

Manufacturing

7%

Finance and

Insurance

6%

Wholesale Trade

5%

Other Services

4%

Transportation and

Real Estate, Rental, and Leasing Educational Services Information

1% Professional and

Business Services

17%

Government

11%

Retail Trade

12%

Leisure and

Hospitality

11%

Health Care and

Social Assistance

13%

Construction

6%

Manufacturing

6%

Finance and

Insurance

7%

Wholesale Trade

4%

Other Services

3%

Transportation and Utilities

Real Estate, Rental, and LeasingEducational Services

2%

Information

2%

ECONOMIC SNAPSHOT

Page 22: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

WAGE GROWTH• In Greater Phoenix and AZ, overall real personal income and real per capital personal income grew faster than the

national average from 2015 to 2016.

Source: Bureau of Economic Analysis, May 2017.

Real Personal Income (millions of chained 2009 dollars)

2015 2016 % GrowthGreater Phoenix 179,220 183,922 2.62%Arizona 257,734 264,358 2.57%United States 14,201,215 14,363,078 1.14%

Per Capita Real Personal Income (chained 2009 dollars)

2015 2016 % GrowthGreater Phoenix 39,235 39,455 0.56%Arizona 37,889 38,265 0.99%United States 44,255 44,450 0.44%

ECONOMIC SNAPSHOT

Page 23: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

PER CAPITA PERSONAL INCOME

Source: Federal Reserve Bank of St. Louis, July 2018

Year Per Capita Personal Income in Dollars

2000 $28,847.00 2001 $28,878.00 2002 $29,210.00 2003 $30,094.00 2004 $32,220.00 2005 $34,817.00 2006 $37,597.00 2007 $38,478.00 2008 $37,609.00 2009 $35,047.00 2010 $34,867.00 2011 $36,376.00 2012 $37,757.00 2013 $38,121.00 2014 $39,758.00 2015 $41,443.00 2016 $42,218.00

ECONOMIC SNAPSHOT

Page 24: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

HOUSING MARKET TRENDS• Home prices are trending steadily upward, and increased by 7.26% in Greater Phoenix from May 2017 to May 2018.

Source: S&P/Case-Shiller Home Price Index, July 2018

0

50

100

150

200

250

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Apr-2

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May-2

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Oct-20

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2007

Jun-

2007

Nov-2

007

Apr-2

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Sep-

2008

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2009

Jul-2

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Dec-2

009

May-2

010

Oct-20

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Mar-20

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Aug-2

011

Jan-

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Jul-2

014

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015

Oct-20

15

Mar-20

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Aug-2

016

Jan-

2017

Jun-

2017

Nov-2

017

Apr-2

018

Greater Phoenix Home Price Index

ECONOMIC SNAPSHOT

Page 25: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

KEY BUSINESS DEVELOPMENT TRENDS

Page 26: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

KEY BUSINESS DEVELOPMENT TRENDSKEY BUS INESS DEVELOPMENT TRENDS

01

02

03

04

05

Corporate Services Office Optimization

Product Availability

Tech Trends Out of California

International Activity

Data Sciences and Marketing Automation

Page 27: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

CORPORATE SERVICES OFFICE OPTIMIZATION

Page 28: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

FINANCIAL SERVICES JOB GROWTH 2013 -2018CORPORATE SERV ICES OFF ICE OPT IM IZAT ION

The region is positioned for strong and continued job growth in the industry with a 25% change and more than 27,000 new jobs in the past 5 years. This is unmatched by other comparable markets considering that average earning in the region is $88.5k while others range from $111K to $149K.

Source: EMSI

Page 29: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

TOP FINANCIAL SERVICE INDUSTRIES & JOBS IN THE REGIONCORPORATE SERV ICES OFF ICE OPT IM IZAT ION

The region is growing with total of 27,000 jobs in the Financial Service Industry.

Ranking Industry DescriptionPhoenix-Mesa-Scottsdale, AZ

2013 2018

1 Depository Credit Intermediation 29,221 34,788

2 Activities Related to Credit Intermediation 21,790 24,955

3 Agencies, Brokerages, and Other Insurance Related Activities 14,297 24,187

4 Non-depository Credit Intermediation 16,087 19,154

5 Insurance Carriers 16,892 18,806

6 Securities and Commodity Contracts Intermediation and Brokerage 9,621 11,848

7 Other Financial Investment Activities 5,134 7,168

8 Monetary Authorities - Central Bank 62 64

9 Other Investment Pools and Funds <10 16

10 Insurance and Employee Benefit Funds <10 <10

Total 113,121 140,996

Source: EMSI, 2013-2018

Page 30: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

TOP 15 GPEC LOCATESCORPORATE SERV ICES OFF ICE OPT IM IZAT ION

Over the last 5 years, the following firms have created 12,355 new jobs in the financial service or corporate service industry.

Page 31: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

PRODUCT AVAILABILITY

Page 32: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

INDUSTRIAL VACANCY RATEPRODUCT AVA I LAB I L I TY

Source: CoStar

The region's vacancy rate will continue to decrease based on data from the last 5 years that shows the rate changing from 11% to now 6.3%. This demonstrates strength in market demand to absorb industrial real estate.

Page 33: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

5 -YEAR SF AVAILABILITY BY CLASSPRODUCT AVA I LAB I L I TY

Source: CoStar

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

Class A Class B Class C

Page 34: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

ADVANCED MANUFACTURING INITIATIVEPRODUCT AVA I LAB I L I TY

GPEC had 21 industrial manufacturing locates in

the fiscal year 2018 (50% of locate activity).

Greater Phoenix had 10 million square feet

of industrial absorption in 2017.

GPEC has over 100 active manufacturing

prospects in the pipeline.

21 10M 100+The lack of building inventory has lost approximately 75

manufacturing or advanced manufacturing projects.

75

Page 35: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

EMPLOYMENT OVERLAYSPRODUCT AVA I LAB I L I TY

• The Employment Overlay Initiative provides clients certainty, speed to market, and cost savings.

• Employment Overlays are intended to allow prospective employers and property owners the ability to efficiently move through the entitlement and permitting process, saving them time and money.

Develop and create a customized permitting timeline to help identify areas in which can speed up the entitlement process.

Permits must be reviewed within five business days.

Identify a team of senior planners and reviewers.

The community will identify and designate the design standards.

As long as design standards are met, approvals can made administratively at the community level.

Page 36: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

TECH TRENDS OUT OF CALIFORNIA

Page 37: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

SAAS COMPANY GROWTHTECH TRENDS OUT OF CAL I FORN IA

• SaaS continues to be a leading industry coming out of the Bay Area.

• Over the years, GPEC has helped several SaaS companies grow and expand to the market, notably DoubleDutch, Gainsight and Upgrade, which recently announced further expansion.

• The GPEC pipeline also has about a dozen SaaS-related projects in various stages of the pipeline. At least two are expected to make an announcement that Phoenix will be the location for their satellite office in Q3.

Page 38: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

VENTURE CAPITAL ACTIVITY IN ARIZONATECH TRENDS OUT OF CAL I FORN IA

• Much of Arizona’s VC activity is in the SaaS space as well. Key success stories include:

• Integrate closed a $23 million E round June 2018

• CampusLogic received a $55 million private equity investment in April 2018

• Emailage has doubled the size of their HQ in Chandler over the past year due to 80% year-over-year growth

Page 39: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

CALIFORNIA DEAL PIPELINETECH TRENDS OUT OF CAL I FORN IA

Of the active prospects in the pipeline, 27.2% of the total are California deals.

91PROSPECTS

3

171

12

4

4

11

34

3

3

1

21

3

71

17

1

2

13

3

3

2

11

42

85LOCATION UNKNOWN

1

Page 40: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

VENTURE CAPITAL TREND DATA 2013 -2018 TECH TRENDS OUT OF CAL I FORN IA

• The average deal size in the financial industry is $3.42M• There are 12 deals in the last 5 years accounting for $41.1M of total funding

Source: CBInsights

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INTERNATIONAL ACTIVITY

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FY19 FDI STRATEGYI NTERNAT IONAL ACT IV I TY

• The strategy will focus on supporting the development of The Connected Place, with regards to:

• Growth-stage companies that have already closed on A round or higher developing IP and are looking to bring new products and services to the U.S. market in:

• Artificial Intelligence

• Cybersecurity/Blockchain

• E-commerce• FinTech

• Health-Tech/Wearable Robotics

• High-value electronics, semiconductor and aerospace manufacturers, and supply chain that are developing IP and looking to bring new products and services to the U.S. market

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INTERNATIONAL OUTREACHI NTERNAT IONAL ACT IV I TY

• Sales missions to Hong Kong, Taiwan and Mexico City will take place next month.

• In Q1 we are also executing 3 workshops in the U.K. for the FinTech Sandbox:

• Media FinTech Sandbox Launch Event: London• Monday, September 17

• West Coast Workshop: Manchester

• Tuesday, September 18

• AZ FinTech Sandbox 1-2-1 Clinics: London

• Wednesday and Thursday, September 19 & 20

• We will attend The MedTech Conference later this month.

INTERNATIONAL

18.2% OF ACTIVE PROSPECTS IN THE PIPELINE ARE

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DATA SCIENCES & MARKETING AUTOMATION

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DATA SCIENCES & MARKETING AUTOMATIONDATA SC IENCES & MARKET ING AUTOMAT ION

96,96520.3% 56EMAILS SENTOPEN RATE LEADS GENERATED

SINCE DECEMBER 2017…

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PE & VC FUNDING AUTOMATION CAMPAIGNDATA SC IENCES & MARKET ING AUTOMAT ION

Company receives funding

Decision maker identified, email

generated & verified using

software

Contact information & relevant data entered

into marketing automation database, platform & campaign

Contact receives 3 personalized emails over the

course of 3 weeks

Emails track link clicks and GPEC

website engagement

Qualified & responsive contacts transferred to CRM

as leads

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VC FUNDING AUTOMATION CAMPAIGN RESULTSDATA SC IENCES & MARKET ING AUTOMAT ION

20,73528.5%

439

EMAILS SENTOPEN RATE

PAGES VIEWED

6.6 MINAVG. TIME ON PAGE

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OUR REGION

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Population4.7M

Workforce2.3M

Median Age36

Some College62.1%

DEMOGRAPHICSOUR REG ION

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GREATER PHOENIX4,649,287

MARICOPA COUNTY4,221,684

WEST VALLEY838,045

EASTVALLEY

1,646,086

PHOENIX1,579,253

MARKET SIZE (2017)OUR REG ION

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WEST VALLEY

1,067,700

EASTVALLEY

1,925,171PHOENIX1,847,200

GREATER PHOENIXProjected growth of 20.5% to 5.60 million

MARICOPA COUNTYProjected growth of 19.5% to 5.04 million

17.0%17.0%27.4%

MARKET GROWTH (2027)OUR REG ION

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BUSINESS ATTRACTION

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122%OF GOAL

20%INTERNATIONAL

42 COMPANIES

OF LAST YEAR

$1.2 BILLION

8,606 JOBS

LOCATED IN FY18

IN CAPITAL INVESTMENT

CREATED IN THE REGION

104% 21 MANUFACTURERS LOCATED IN FY18

*Numbers as of July 1

BUS INESS ATTRACT ION

FY18 QUICK OVERVIEW

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LOCATE OVERVIEW

BUS INESS ATTRACT ION

Page 55: GREATERPHOENIX ECONOMIC COUNCIL...We are supported by Maricopa County, 22 cities and towns, and more than 150 private-sector investors. GPEC has assisted more than 740 businesses as

FY18 PROSPECT ACTIVITY

ACTIVE PROSPECTS 299

FY18 PROSPECTS 279

CAPITAL INVESTMENT POTENTIAL $15.4 B

JOB POTENTIAL 63,335

SQUARE FOOTAGE POTENTIAL 69,411,161

BUS INESS ATTRACT ION

*Numbers as of July 1

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FY2018 PROSPECT ACTIVITY OFFICE PROSPECTS INDUSTRIAL PROSPECTS

• 126 office prospects in FY18; up from 117 in FY17.

• 6 prospects over 200,000 SF in FY18; down from 11 in FY17.

• 56 prospects under 25,000 SF in FY18; up from 55 in FY17.

• 111 are looking for existing space, 8 build to suit, 7 no preference.

• 153 industrial prospects in FY18; up from 150 in FY17.

• 48 prospects over 200,000 SF in FY18; up from 39 in FY17.

• 21 prospects under 25,000 SF in FY 18; down from 28 in FY17.

• 84 are looking for existing space, 27 build to suit, 42 no preference.

BUS INESS ATTRACT ION

*numbers as of July 1

56

26

16

5

17

6

Under 25,000

25,000-49,999

50,000-74,999

75,000-99,999

100,000-199,999

200,000+

21

22

17

13

32

48

Under 25,000

25,000-49,999

50,000-74,999

75,000-99,999

100,000-199,999

200,000+

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GETTING INVOLVED AT GPEC

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GETTING INVOLVED AT GPEC

GPEC COUNCILS

INTERNATIONAL LEADERSHIP COUNCILAdvises on the direction and implementation of GPEC’s export and foreign direct investment efforts, and provides guidance to increase program impacts.

COMMUNITY BUILDING CONSORTIUMApplies collective commercial real estate experience to help capture business development opportunities and increase the region’s transactional capabilities.

HEALTHCARE INNOVATION COUNCILWorks to advance healthcare and bioscience initiatives for the region, and establish Greater Phoenix as a center of excellence, anchored by innovative assets and world-class leadership.

GPEC NEXT LEADERSHIP COUNCILAdvises GPEC leadership and the board on the development of the strategic plan, annual action plan and metrics, and the Washington, D.C. mission.

MAYORS AND SUPERVISORS COUNCILConvenes mayors of GPEC communities and county supervisors for regular updates on strategic initiatives.ECONOMIC DEVELOPMENT DIRECTORS

TEAM

Advises the GPEC president & CEO and the staff on local economic development trends, offers insight on the pulse of city and town councils, and partners with GPEC to finalize location decisions.

AMBASSADOR PROGRAMAmbassadors help communicate, educate and inform stakeholders, policy-makers, citizens and media about key regional economic development issues.

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GPEC.ORG | 2 N. CENTRAL AVE., SUITE 2500, PHOENIX, AZ 85004 | [email protected] | (602) 256-7700

GPEC4JOBS @GPEC Greater Phoenix Economic Council

GREATER PHOENIX:

THANK YOU

Where talent is bred, community is built, and business thrives