Metro Phoenix's economy (Scottsdale, Tempe, Maricopa: real estate, insurance, homes)

[vegaspilgrim]

An interesting tangent on the recent thread about housing values leads me with this idea for a new thread-- what exactly does the economy of the Phoenix area consist of? How relatively strong/weak compared to other cities is the local economy? I think it would be neat to catalogue what some of the largest employers are and especially companies that are headquartered in Phoenix. What are some growing industries there? Given the changing dynamics affecting the country and the world right now, does Phoenix have its eggs in the right basket? Does Phoenix have too much emphasis on home building and real estate development? To give the thread a positive light, what are some things Phoenix can do to become a stronger place for business? This might be especially helpful for young people starting off their careers (as I will be in about a year from now, after I finish my master's degree) who are considering Phoenix as an option.

[artvandelay]

The overwhelming cosensus answer to "Does Phoenix have too much emphasis on home building and real estate development?" is yes. I don't remember the exact number, but we have a much higher portion of our jobs tied to real estate than average.

I don't know many of the high-tech industries here, but some of the state's largest employers are Wal-Mart and Bashas grocery stores. I've heard that companies don't headquarter here because of the relatively uneducated population. Of course there are educated and even brilliant people here, but a company may have fewer of these people to choose from than if they locate in an educational hotspot.

[Hassayampa Slim]

I think you'll find the lack of tax relief and incentive subsidy's keep more companies from headquartering here than "relatively uneducated population." We were a major high tech area twenty years ago with Honeywell, Motorola, and Allied Signal along with a fair number of aerospace support companies. Once the offshore exporting of industry started, these started consolidating with other locations. Most companies now believe they can bring in whatever talent they need and are more interested in the incentives and tax breaks an area will offer.

Originally Posted by artvandelay

The overwhelming cosensus answer to "Does Phoenix have too much emphasis on home building and real estate development?" is yes. I don't remember the exact number, but we have a much higher portion of our jobs tied to real estate than average.

I don't know many of the high-tech industries here, but some of the state's largest employers are Wal-Mart and Bashas grocery stores. I've heard that companies don't headquarter here because of the relatively uneducated population. Of course there are educated and even brilliant people here, but a company may have fewer of these people to choose from than if they locate in an educational hotspot.

[exit2lef]

Some quick answers since I don't have time to go into much depth right now:

-- It is said we are over-dependent on real estate and home-building. Intuitively, that seems true, but I've never seen much documentation. I'd be interested in knowing the percent of workers employed in those industries here versus other metros. I'll have to see if I can dig up stats on that some day.

-- Wal-mart's role as the largest employer is made a big deal of, but I'd be amazed if Wal-mart is not the number one employer in many, if not most, states. There are so many Wal-mart stores with so many employees that they tend to dwarf more traditional large employers. That's something else I have to look up when I have some time.

-- As for growth industries in Phoenix, the traditional focus has been on electronics / semiconductors and homebuilding / real estate, but I think a lot of people overlook the role of these industries in the Phoenix economy:

-- aviation. US Airways is headquartered here and Southwest has a large base of operations here. Both are major employers.

-- higher education. The Maricopa Community Colleges are among the nation's largest and most innovative. Apollo Group, the parent company of University of Phoenix, employs over 10,000 people in Arizona and is now the state's third largest private-sector employer.

-- insurance. USAA has huge facillity up on I-17

The Republic recently published a list of the largest employers that was pretty eye-opening. I can't find a link right now, but I'll share it if I find it.

[MaikeerinWA]

I think that there are six Fortune 500 companies (and two in the Fortune 200) headquartered in the Phoenix area. Unfortunately one will be lost if US Airways merges with UAL (HQ would be in Chicago), but in terms of employment, US Airways/UAL would still have major operations in Arizona, just like Southwest does.

Originally Posted by silverbear

-- aviation. US Airways is headquartered here and Southwest has a large base of operations here. Both are major employers.

[Ponderosa]

Fortune 500s HQ here include: Avnet, Phelps Dodge, Allied Waste.

Major employers include:

Intel,
Honeywell
JP Morgan
Wells Fargo
Bashas

[exit2lef]

Quick update on Wal-mart.

According to stats I've found from both Wal-mart and the United Food & Commercial Workers Union, Wal-mart is the largest private-sector employer in the U.S., the world, and 25 states.

I don't think that's a particularly good thing, but it also confirms my suspicion that this is a national disease, maybe even an international disease, rather than some specific weakness of Arizona's economy.

UFCW | Wal-Mart Quick Facts

http://www.google.com/url?sa=t&ct=re...lG_yyRcd-m-mAQ

Also, here the Republic survey of the largest employers that I mentioned earlier:

Republic 100: Arizona's largest employers - data center - azcentral.com

[artvandelay]

"the lack of tax relief and incentive subsidy's keep more companies from headquartering here"

I have heard complaints from people that the city offers too many incentives to corporations, at the expense of its individual taxpayers. That's why I suggested the education level of the area, as I understood the lures to be quite strong.

[vegaspilgrim]

Other ones I can think off the top of my head are:
Uhaul-- headquartered on Central Ave. I have a friend who worked for them.
Cold Stone-- headquartered in Scottsdale. They come to the WP Carey school at ASU all the time giving presentations.
Petsmart
Discount Tire
Checker Auto Parts
PF Changs/Pei Wei
Kahala (Samurai Sams, Moe's... I think every one of their restaurants are gross, but they are hq'd in Phoenix)
Ping Golf
Troon Golf (it seems like Phoenix/Scottsdale just have a major place in the golf industry)
First Solar (recently moved into a new headquarters building in Tempe just north of the Mill Ave bridge).

[MaikeerinWA]

Petsmart is in the Fortune 500. If you expand it to the Fortune 1000, here are the AZ representatives:

140 Freeport-McMoRan (formerly Phelps Dodge)
163 Avnet
228 US Airways Group
400 Allied Waste Industries
477 Insight Enterprises
489 PetSmart
597 Pinnacle West
719 Amkor Technology
725 Apollo Group
803 Meritage Homes
918 CSK Auto
954 RSC Holdings

For an area its size, Metro Phoenix does not have a lot of the nation's largest headquarters based in it. But there are some, as shown above.

Originally Posted by vegaspilgrim

Petsmart