Arizona has a lot to offer when it comes to business. There are no state taxes, the weather is beautiful and perfect for outdoor activities, and most importantly, a strong economy produces talented people. New distribution centers and company headquarters such as Amazon, Toyota, and Apple are continuing to increase in number.
Additionally, Arizona’s skilled labor force and low cost of living make the state an attractive post-secondary growth and distribution center for companies looking to relocate or expand.
Here are a few reasons Arizona is the ideal place for your business:
1. There is no tax on business income
Thus, there are no tax rates on the company’s profit that can affect its bottom line and its ability to attract new employees and expand operations. Compared to other cities like Los Angeles, Boston, and New York City, Arizona doesn’t have the most significant state tax burden that can impact the company’s final cost.
2. Economic growth
According to the Council on Economic Forecasting, Arizona’s economy has grown over the past 20 years. Florida, Texas, and Colorado were tied with California as the fastest-growing cities in 2016.
Arizona was tied 12th in growth rate in 2016 (1%). The Fortune 500 ranked Arizona at #73 out of 500 United States metropolitan areas for expansion in 2017. It also ranked #35 in 2016 and #12 in 2015.
3. Affordable housing
Arizona has a low cost of living, which can easily be seen in the real estate prices. For example, the average home for sale in Buckeye (routinely ranked as the fastest-growing city in the US) was $217,000 in 2016 (1%). This ranked #43 out of all 50 states and was $90,000 less than California and $66,700 less than Colorado.
The median wage of Arizona salaries in 2016 was $38,000 (1%). Compared to Los Angeles and Texas, it’s significantly lower than the median wage of $51,840 (1%).
What the company can pay its workers depends on the median wage in the city or state where it operates. Therefore, Arizona’s lower-than-average median wage level makes it an attractive choice for companies that can’t afford to pay their workers a high salary.
4. Right-to-work state
Arizona has passed controversial legislation that allows companies to choose whether they want to operate as a right-to-work state or a closed-shop state.
A right-to-work state allows an employee to work for an employer without any involvement from unions or employers’ organizations that require payment of union dues. In a closed shop state, a business must hire employees only if they are part of a union and pay the union dues.
In 2014, Arizona was nicknamed “America’s Right-to-Work State. ” In turn, the state created a friendly business environment that helped remove legal hurdles that could affect its ability to operate as a company.
5. Arizona has a successful distribution and warehousing industry
The state’s largest city, Phoenix, is home to the world’s largest plane manufacturer, DHL Express, which provides an ideal distribution hub for businesses across the country.
In addition to DHL Express, Chandler is home to five Amazon fulfillment centers that continue to grow and expand their operations.
6. There’s a growing technology sector that provides jobs for skilled workers
Companies such as Apple and Google have increased their presence in Chandler. Apple announced plans to build a $2 billion campus in Mesa, which will create thousands of new jobs.
These new companies have created more than 23,000 high-tech jobs and continue to increase their presence in the state. Also, Arizona continues to grow as an IT and technology center for businesses nationwide.
7. A strong biotech industry is making its way to the state
Companies such as Pfizer, Biogen, and Lilly continue to expand their research and development operations in Arizona. This growth has helped create more than 4,000 high-tech jobs in the Phoenix metro area.
There are many benefits to Arizona’s business climate, especially when compared with the rest of the country. Companies that have chosen to move to Arizona have seen a considerable increase in their profits and a noticeable change in their bottom line.
Workforce development is significant to Arizona’s business climate and overall economy, making it an attractive place for businesses of all sizes. Various programs include; apprenticeships and technical training, workforce development programs, public-private partnerships, and partnerships with educational institutions.
Arizona has established various programs to meet the needs of business owners, supply bases, and employees. As a result of these efforts, a solid trained workforce is available to companies across the state that can enter into new opportunities.
The Arizona Business Incubator Network helps match businesses with the resources they need to get off the ground. Moreover, the Arizona Commerce Authority offers various incentive programs, such as discounts on goods and services.
Several programs are designed to help businesses find qualified employees. One of these programs is the Arizona Professionals Program, which helps educate businesses on how to hire and retain workers.
This program is available through the Arizona Chamber of Commerce and Industry, a non-profit trade organization. Arizona’s business climate benefits from the increasing number of people who choose to move to Arizona and start their businesses.
A new and growing economy is often accompanied by an increase in population, increasing the demand for goods, services, and capital. Additionally, the lower cost of doing business (including labor) leads to several benefits, such as increased profits, increased availability of goods or services, and a decreased risk of investment because their costs per dollar are lower.
FDI Intelligence, a division of the Financial Times, ranked Arizona as the top US state for foreign direct investment (FDI) potential and international readiness in terms of labor, business, and human capital. This report was produced through an analysis of several factors, including:
Arizona also ranks 7th in terms of FDI in the United States among other countries making this a great location to start a company or expand an existing one.
The Phoenix Metropolitan Statistical Area is not only the largest in Arizona, but it’s one of the fastest-growing in the country. It generates approximately $266.7 billion a year and hosts 5 of the top 500 most prominent companies in America, which include:
• US Airways Group
• Apollo Group
• Insight Enterprises, Inc.
• PetSmart, Inc.
• Alliance Data Systems Corporation
The state also has a low cost of living, with the seventh-lowest cost of living in the United States. The median household income in Arizona is $50,448, and the median home price is $171,500.
Therefore, companies that plan to relocate to Arizona can expect to benefit from running a business while paying their employees a competitive wage and keeping their overhead costs down. This benefits any company because it increases its bottom line and makes it more profitable than before.
Additionally, Arizona has a solid educational system that helps educate its workforce and the workforce of other companies. The state has made it a high priority to provide vocational training programs and education for various business fields.
Conclusion
Arizona’s educated workforce is another factor that’s attractive to businesses. The state has ranked third among states with the most advanced education system in the country. That being said, there are many career opportunities available in the state. Therefore, it’s an excellent place to set up a business or open new ones
