#6 Arizona


#12 in Taxation and Regulation

#14 in Workforce Quality

#11 in Living Environment

Right to Work?

Regional Profile – Southwest

STATE
OVERALL REGIONAL RANK
TAXATION & REGULATION REGIONAL RANK
WORKFORCE QUALITY REGIONAL RANK
LIVING ENVIRONMENT REGIONAL RANK
Arizona
2
2
2
2
Arkansas
4
4
4
3
New Mexico
5
5
5
5
Oklahoma
3
3
3
4
Texas
1
1
1
1

Key Industries

Advanced Manufacturing, Aerospace & Defense, Biotech, Clean Energy, Optic/Photonics

Key Companies

America West Airlines

Best Western

Cold Stone Creamery

Greyhound

Honeywell Aerospace

P.F. Chang’s

Republic Services

Advantages

Arizona reduced its corporate tax rate from 6 percent to 5.5 percent.

With Mexican trade generating half Arizona’s GDP sales, the state is moving forward with Mexican trade agreement to solidify its relationship with the country below.

Challenges

Arizona is fighting a significant skills gap. To overcome it, the state needs to form relationships with the K12 education system. Little progress will be made in this area unless the Arizona government softens or eliminates immigration laws.

Key Contacts

Commerce Authority

Sandra Watson
602-845-1200
333 N. Central Ave., Suite 1900
Phoenix, AZ 85004

sandraw@azcommerce.com
http://www.azcommerce.com/

CEO Comments

“Arizona is attempting to draw business out of California with tax incentives and a much lower cost of living.”

“Arizona has a right-to-work law that does not help high turnover rates.”

“Many businesses start here and end up either shutting down after short periods of time or get bought out by out-of-state companies. Rare to find a parent company in Arizona.”

Current Developments

2016 Regional Report: The Southwest
January 13, 2016

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No 13: Arizona

No. 13

Arizona

Taxation and Regulations
Workforce Quality
Living Environment

Based on CEO Survey by ChiefExecutive.net

Key Metrics
Taxation and Regulations
  • State Corporate Income Tax Rate: 6.97%
  • Highest Personal Income Tax Rate: 4.54%
Workforce Quality
  • % with High School diploma or more: 83.8
  • % with Bachelor’s degree or more: 25.1
  • % with Advanced degree or more: 9.2
  • Patents per 100K: 29.96
  • % of Employed Represented by Unions: 8.1
Quality of Life
  • Hopsitals per 10K: 0.103
  • Elementary/Secondary Schools per 1000 people: 0.342
  • Violent Crimes per 100K: 468.71
Key Companies
  • Freeport-McMoran
  • Avnet
  • Republic Services
Other Highlights
  • Arizona fell to #11 in 2010 to #13 — the state took #8 in 2009
  • Arizona ranks 42nd in state debt per capita with $1882

Sources:
TaxFoundation.org
Statemaster.com
Bureau of Labor Statistics
U.S. Census Bureau
U.S. Patent and Trademark Office
The National Center for Public Policy and Higher Education