What are Arizona's Economic driving factors?

[nuplanner]

I wish we could, but we are in competition with others, and we are not winning. Speaking to a guy about the MLS team, he said many business owners outside of AZ think we are racist due to the immigration issue. I don't know how big that is, but it might be an issue.

We are primarily focused and our economy runs on growth, has done so for 30-40 years. Motorola was a big jump, but we have fallen with big companies. We have landed some big companies, but the cost of moving a companies headquarters, rebirth of downtowns where these centers are and so forth make it hard to move. I just think we need to stop relying on growth to keep our economy going.

[convulso]

We are primarily focused and our economy runs on growth, has done so for 30-40 years [...] I just think we need to stop relying on growth to keep our economy going.

[MJLO]

The valley is growing at a clip, but I wouldn't put it in league with Atlanta and Houston. Both of those cities have a strong central core, Phoenix has almost no core, and has to fight with it's suburbs for regional importance. Not to mention that for all the growth we do have. There are far to many voices here that stand in the way of not just growth, but any kind of progress that could really help catapult Phoenix to where it probabally should be in terms of national recognition.

[MJLO]

I think '08 is a perfect example of how Phoenix can falter when the economy goes south. With out big companies to really stabalize things, when it's bad, it's a worse in the valley. I'm using my education to assume that Phoenix will emerge from this recession a little behind most of the country. I think you can still count on growth in the future, because of the favorable climate. But without a couple Giant companies here at least, the economy will stay the same, when it's good it's outstanding, when it's bad, it's horrid. From 00 to 06 there was so much real estate speculation, it inflated the economy to fake unsustainable numbers, but back then noone thought about it because everyone was rakin in the dough. It wasn't just housing, it was commercial, industrial, and office. I think the perfect example of this is in the north part of Peoria, on Lake Pleasant PKY. Where it intersects with Happy Valley there are four huge strip mall developments, one on each corner, the two that were there first are mostly filled, except that they have lost a couple big stores and probabally will lose at least one anchor. The two across the street are EMPTY! There just isn't the population for all that retail out there. The home builders stopped building in 07 and the growth stopped, I bet there is at least 500k sq ft of empty retail space out there. Thats the story all over the valley.

[arcturus]

From what I can see, If the construction slows down. AZ could be in a world of hurt.

[MJLO]

Well the diversification of an economic base is something that can take decades. Look at Michigan, they've been pushing for diversification for years, and they have with alot more success than most of the country realizes. But the Auto industry is still the noose around it's neck. Most people dont realize it's a leader in Biotech, R&D, and Pharmecuticals too.

In AZ's case, it's a financial services, back office mecca. All of the major banks have huge job presences in Phoenix. Because of AZ's stable climate, alot of data centers are there. There are probabally more call center jobs, than in any other place in the country. High paying finance jobs everywhere too. During the past ten years in the population explosion, just as many educated people moved there, as did the blue collar workers without education. Obviously AZ has a been hit with a double whammy, financial and construction. But Arizona's service sector which is the other huge base, is much more stable than construction. In terms of unemployment, it is still below the national average, and below other sun belt golden children such as North Carolina and Georgia. That will change in the coming months i'm sure.

If you ask me, construction in Arizona would be hit anyway, but nowhere near as hard as it has been. In '04 '05 and '06, people were litterally making hundreds of thousands of dollars a year on buying and selling homes. Housing was a commodities market, just like oil. Speculation drove the prices sky high, and people were still buying because the ceiling wasn't in site. People are still flocking to Arizona in droves, Arizona still gained more people in '08 than any other state, most of them out flowing from the midwestern rust belt and mexico. I think it will continue to grow at a much higher rate than the rest of the nation, and as the housing stock starts drying up, you'll see construction start coming back to life. The thing I worry about is that leadership and residents dont learn a lesson and it happens again ten years from now when credit floweth over again.

[convulso]

I think it will continue to grow at a much higher rate than the rest of the nation, and as the housing stock starts drying up, you'll see construction start coming back to life. The thing I worry about is that leadership and residents dont learn a lesson and it happens again ten years from now when credit floweth over again.

[MJLO]

I'm suprised, Arizonas economy is still fairing better than much of the nation even with the bubble bursting. It's a shame, It doesn't have dozens of powerhouse fortune500 companies to create stability. PHX will never truly be a player unless it can gain the stability and notoriety that places like MSP, and SEA have, because they are huge knowlege based economies, home to those huges companies.