Why Phoenix for Business? - PhoenixCEOCFO.com

Why move to Phoenix?

1. Phoenix has a diverse economic base of Companies.
2. Phoenix is the 6th largest city in the United States.
3. Phoenix has a reasonable tax environment.
4. Phoenix has a strong University and Community College system.
5. Phoenix has a world class international airport.
6. Phoenix is close to California and the Pacific.
7. Phoenix has angel and venture capital firms.
8. Phoenix is close to Mexico.
9. Phoenix has a great quality of life.
10. Phoenix has a good standard of living.

http://aceawards.net/2005_winners.htm

High-tech employs over 50,000 people in over 630 firms

The High-Tech cluster includes the computer hardware, electronic equipment, semiconductor, telecommunications, and related industries. Companies included in the high tech industries would be Intel, Motorola, Microchip Technology, On Semiconductor, Honeywell, Avnet, Amok and others.

Bio-industry in Greater Phoenix employs nearly 10,000 people in over 550 firms

The bioindustry cluster includes businesses that provide products and services characterizing life science activities (excluding health care delivery) such as medical and surgical devices, pharmaceuticals, medical technology, research and testing. Phoenix has been making a push to develop the biotech industry by developing center in downtown Phoenix at which the International Genomics Consortium (IGC) and the Translational Genomics Research Institute (TGen) are located. http://www.tgen.org/

Companies in Biotech are Sonora Quest Laboratories, Bard Peripheral Vascular, Vantage Mobility, Inc., Arizona Natural Resources, Watson Pharmaceuticals Inc., Medicis, Naturally Vitamins, Interface Inc., Polymicro Technologies, Lincoln Laser and Ribomed.

Software in Greater Phoenix employs nearly 12,000 people in over 1,800 firms

The Software cluster includes businesses that develop, market or distribute software products for business, scientific or personal use. Greater Phoenix has a well-established base of firms in software and high-tech industries including JDA Software, McKesson Corp., Information Network Corp, Computer Guidance Corp, MediServe Information Systems, Business Integration Group Inc., Oracle Corp., ICM Conversions Inc., ILinc Communications and Evans Newton Inc.

Aerospace in Greater Phoenix employs nearly 39,000 people in over 279 firms

The Aerospace cluster includes manufacturing firms involved in the production of aircraft, aircraft engines, guided missiles, space vehicles, space vehicle propulsion units, as well as search and navigation equipment. Service sector operations include air transportation and courier services, airport and terminal services, and aircraft repair facilities. Electronics industries are especially important suppliers to aerospace industries.

Some of the larger companies in the Aerospace industry are Honeywell, America West Airlines (US Airways), Southwest Airlines, The Boeing Company, General Dynamics C4 Systems, Orbital Sciences Corporation, Goodrich Corporation and Mesa Air Group.

Advanced Business Services in Greater Phoenix employs nearly 167,000 people in over 13,000 firms

The Advanced Business Services cluster includes financial institutions in the credit, lending, collections, investments, and brokerage sectors.

Greater Phoenix has a well-established base of firms in the advanced business services industry, including Wells Fargo, Bank One, American Express, Discover Financial Services, DHL Worldwide Express, and USAA. Bank of America, Vanguard Health Systems Charles Schwab & Co. Inc.

Sources of information:

http://www.gpec.org/infocenter/topics/Industry_Clusters/index.html
http://www.gpec.org/infocenter/topics/Economy/index.html

Statistic	Year	Value
Population:	2004	3,524,175
Median Age:	2002	32.9
Labor Force:	2004	1,765,200
Employment:	2004	1,632,900
Unemployment %	2004	4.1%

Arizona has a flat-rate corporate income tax that was lowered in January 2001 to 6.968 percent. A $50 minimum tax liability is imposed for each tax period. The tax base starts with Arizona gross income, which is equal to federal taxable income plus the federal deduction taken for state taxes paid. Arizona gross income is then adjusted by a number of additions and subtractions to arrive at taxable income.

The following tax credits are available to qualifying corporations:

1. Enterprise Zone	13. Agricultural Water Conservation Systems
2. Military Reuse Zones	14. Underground Storage Tanks
3. Foreign Trade Zones	15. Solar Power and Electric Vehicle Equipment
4. Job Training Programs	16. Alternative Fuel Vehicle
5. IT Training Programs	17. Agricultural Pollution Control Equipment
6. Correctional Industries	18. Environmental Technology Facility
7. Qualified Defense Contractors	19. Neighborhood Electric Fuel Vehicle
8. Construction Materials	20. Forest Harvesting Projects and Equipment
9. Research & Development Exp	21. Motion Picture Production Equipment
10. Recycling Equipment	22. Various Contributions to Schools
11. Pollution Control Equipment
12. Employment of Former "Temporary Aid for Needy Families" Recipients

Arizona Personal Income Taxes

The state uses a graduated rate structure and the Federal Internal Revenue Code as the basis for tax computation. Arizona taxable income is equal to federal adjusted gross income, modified by a number of state additions and subtractions. This amount is further reduced by exemptions and standard or itemized deductions.

The personal income tax rates range from 2.97% to 5.04%.

Phoenix Property taxes

Arizona has two components of property taxes - primary and secondary. The total effective tax rate for businesses in Greater Phoenix is approximately 3.0 percent of net assessed value.

Sources of information:

http://www.gpec.org/infocenter/topics/Taxes/index.html
www.azdor.gov/

Greater Phoenix has a variety of higher educational opportunities that produce a steady flow of new work force entrants, as well as provide opportunities for continuing education and customized training for existing area employees and businesses.

More than 381,000 students are enrolled in institutions of higher education in Greater Phoenix.

	Name	Students	Type	Program
State Universities
1.	Arizona State University	56,171	Public	Doctorate
2.	Arizona State University West	7,105	Public	Masters
3.	Northern Arizona University	6,000	Public	Doctorate
4.	Arizona State University East	4,000	Public	Masters
Private Universities
5.	University of Phoenix	157,373	Private	Doctorate
6.	Grand Canyon University	4,500	Private	Masters
7.	Western International University	4,500	Private	Masters
8.	Ottawa University	2,618	Private	Masters
9.	Embry Riddle University	2,250	Private	Masters
10.	DeVry Institute	1,924	Private	Masters
11.	Midwestern University	1,284	Private	Doctorate
12.	A.T. Still University	1,000	Private	Masters
13.	Thunderbird-Garvin School of Int'l Mgmt.	802	Private	Masters
Community Colleges
14.	Mesa	27,332	Public	Associate
15.	Glendale	20,649	Public	Associate
16.	Rio Salado	16,092	Public	Associate
17.	Phoenix	12,720	Public	Associate
18.	Scottsdale	11,479	Public	Associate
19.	Chandler/Gilbert	8,663	Public	Associate
20.	Paradise Valley	8,516	Public	Associate
21.	Gateway	7,583	Public	Associate
22.	Estrella Mountain	5,947	Public	Associate
23.	South Mountain	4,293	Public	Associate
Other Institutions
24.	Maricopa Skill Center	5,000	Public	Certificate
25.	Universal Technical Institute	4,100	Private	Associate
26.	Apollo College	4,000	Private	Bachelors
27.	Collins College	2,143	Private	Bachelors
28.	Everest College	600	Private	Bachelors
29.	High Tech Institute	N/A	Public	N/A
30.	The Art Institute of Phoenix	N/A	Public	N/A

Sources of information:

http://www.gpec.org/infocenter/topics/Higher_Education/index.html

Phoenix Sky Harbor International Airport is the fifth busiest airport in the world for takeoffs and landings, with 550,000 arrivals and departures annually. There is also a network of eight municipal airports, including military reuse facilities, with available space to expand. Greater Phoenix has the perfect climate for flight operations, with 300 days of sunshine a year.

Information of Sky Harbor International Airport:

http://phoenix.gov/AVIATION/index.html

Destination	Distance (Miles)
Los Angeles	372
San Diego	354
San Francisco	751
Las Vegas	287

Arizona Angel and Venture Capital sources:

Alerion Capital Group
http://www.alerion.com/

Arris Ventures
http://www.arrisventures.com/

Autus Capital
http://www.autuscapital.com/

Arizona Angels
http://www.arizonaangels.com/

Baton Ventures
Gary Peterson 480-585-8570

Coronado Venture Fund
PO Box 65420 Tucson, AZ 85728

Desert Angels
http://www.edesertangels.com/

El Dorado Investment Company
http://www.pinnaclewest.com/main/pnw/AboutUs/ElDorado/default.html

Flywheel Ventures
http://www.flywheelventures.com/

Grayhawk Venture Partners
http://www.gvp.us/

Initium Capital
http://www.initiumcapital.com/pages/1/index.htm

Intel Capital
http://www.intel.com/capital/

Lobodos Ventures
http://www.lobodos.com/

Magnet Capital
http://www.magnetcapital.com/

McKellar and Co.
http://www.mckellarandcompany.com/

Miller Capital
http://www.themillergroup.net/

Peacock, Hislop
http://www.peacockhislop.com/

Phelps Dodge Ventures
http://www.phelpsdodge.com/

Pivotal Private Equity
http://www.pivotalgroup.com/privateequity.html

Solstice Capital
http://www.solcap.com/

Starlight Capital
http://www.starlightcapital.com/

Wasatch Venture Fund
http://www.wasatchvc.com/

Valley Ventures
http://www.valleyventures.com/

WestCap Partners
http://www.west-cap.com

Note: There are a number of venture capital firms outside of Arizona that will finance Arizona companies.

Sources of Information:

Cayenne Consulting, Phoenix Office
http://www.caycon.com/arizona_venture_capital.php

National Venture Capital Association
http://www.nvca.org/members.html

Arizona Small Business Association-Capital Sources
http://www.asba.com/capital-resource/businessfinancialproviders.aspx

Ernst & Young Venture Capital reports
http://www.ey.com/

National Association of Seed & Venture funds
http://www.nasvf.org/

Mexico is a source of trade, oil and a future seaport. A US company is building an oil refinery in Yuma, Arizona with plans to eventually process Mexican oil from a pipleline that is being proposed from Mexico. Plans are also underway to develop the port in Guaymas, Mexico to relieve the congested Long Beach port. This would give Phoenix a close seaport.

Mexico is Arizona's largest trade partner, buying over $3.7 billion of Arizona-produced goods in 2004, a mixture of goods, software and computer hardware.

In 2004 Arizona's exports exceeded $13.4 billion.

Arizona Depart of Commerce Trade
http://www.commerce.state.az.us/itrade/

Arizona Mexico Commission
http://www.azmc.org/

Canada Mexico Trade Corridor
http://www.canamex.org/

The Canada Arizona Business Council (CABC)
http://www.canaz.net/

Arizona British American Business Council
http://www.babcarizona.org/pages/AboutUs.html

Thunderbird International School of Business
http://www.thunderbird.edu/

Phoenix has sports:

Phoenix has four major professional sports teams.

Arizona Diamondbacks (MLB), Arizona Cardinals (NFL), Phoenix Coyotes(NHL), Phoenix Suns (NBA)

The Cactus League spring training baseball attracts a million fans to the Valley each year.

Greater Phoenix has more than 200 golf courses and 1,200 tennis courts.

The FBR Open attracts the largest galleries of any golf tournament in the world.

The PF Chang Rock’n’Roll marathon attracts thousands from around the world.

Phoenix has outdoor recreation:

There are seven lakes within an hour of Greater Phoenix that offer fishing, boating, water skiing, picnic areas, and camping.

There are also many opportunities for hiking, mountain biking and off-road driving in and around the Greater Phoenix area.

Phoenix has culture:

There are over 40 museums and 230 art galleries in Greater Phoenix.

Phoenix is home to the internationally acclaimed Heard Museum, which spotlights southwestern and American Indian cultures.

Greater Phoenix offers performing arts including the Phoenix Symphony, Arizona Opera, and Broadway Theater.

Greater Phoenix is one of the most affordable major metro areas in the U.S.

Overall cost of living in Greater Phoenix is below the national average.

Source of Information:

Greater Phoenix Economic Council (GPEC) Information Center.
http://www.gpec.org/infocenter/index.htm

"Best Performing Cities: Where America's Jobs Are Created and Sustained."
Ross DeVol and Lorna Wallace, with Armen Bedroussian and Junghoon Ki
Milken Institute November 2004.
http://www.milkeninstitute.org/ Publications/Research Reports.

Arizona Corporate Excellence Awards
http://aceawards.net/2005_winners.htm

Arizona Department of Commerce
http://www.commerce.state.az.us/

The Phoenix Business Journal
http://www.bizjournals.com/phoenix/