Arizona’s Manufacturing Landscape Thrives Amidst Rapid Growth
In a remarkable surge, Arizona’s manufacturing sector is experiencing unprecedented growth, marking the fastest rate of job expansion in nearly 30 years. The state is quickly becoming a hub for high-tech industries, drawing significant investments that solidify its position as a manufacturing powerhouse.
PHOENIX, AZ (October 4, 2022) – As Manufacturing Month unfolds, Arizona sees a remarkable upswing in manufacturing employment and economic output, driven by investments in high-tech sectors such as semiconductors, electric vehicles, and biotech.
Currently, over 180,000 individuals are employed in Arizona’s manufacturing industry. The state ranks third nationwide in semiconductor manufacturing employment and is among the top five for aerospace and defense manufacturing jobs.
Sandra Watson, President and CEO of the Arizona Commerce Authority, highlighted the state’s growth, stating, Arizona’s emergence as an advanced manufacturing powerhouse means more good-paying jobs and high-value industries in our state. This Manufacturing Month, we are proud to celebrate Arizona’s manufacturers large and small and continue to support their growth and success.
Manufacturing Growth by the Numbers
Arizona has seen an addition of 14,100 manufacturing jobs over the past year, reflecting a growth rate of 7.8%, significantly surpassing the national average of 3.7%. Durable goods manufacturing, in particular, is expanding at the fastest pace since 1995.
Between 2015 and 2021, the state’s manufacturing contribution to Real GDP jumped from $25.2 billion to $32.8 billion—a 30.4% increase, which is more than double the U.S. rate of 14%.
Support Programs for Local Manufacturers
The Arizona Commerce Authority (ACA) is committed to bolstering small and local manufacturers through initiatives like the Small Business Bootcamp, the Small Business Digital Academy, and the Arizona Manufacturing Extension Partnership. These programs offer operational assistance and training to small-to-mid-sized manufacturers.
Since April 2020, the Small Business Bootcamp has conducted over 250 sessions with participation from more than 200 speakers and 12,600 attendees across all 15 Arizona counties. The program was honored with the Best of Arizona “Excellence in Economic Development” (EDDE) Award in April. Moreover, the Small Business Digital Academy has supported over 220 small businesses through its eight cohorts.
Key Manufacturing Developments in 2022
Several significant manufacturing projects have been announced in Arizona this year:
- Corning plans to establish an optical cable manufacturing facility in Gilbert, creating 250 jobs.
- Nucor is investing $100 million in a new melt shop at its Kingman bar mill, adding 140 jobs.
- Enviro-Log will open a wax box recycling and firelog manufacturing facility in Glendale, bringing over 50 jobs.
- Solvay is constructing an electronic-grade hydrogen peroxide facility in Casa Grande to support the U.S. semiconductor market.
- U.S. Merchants acquired a facility in Glendale for manufacturing and distribution, with plans to employ 600-700 people.
- Steel Jupiter leased a facility in Sahuarita for manufacturing and research operations.
- Bespoke Manufacturing Company is establishing an apparel manufacturing plant in Phoenix, generating over 250 jobs.
- PowerPhotonic selected Sahuarita for its U.S. headquarters and manufacturing facility.
- Nestlé is investing $675 million in a new beverage manufacturing facility in Glendale, creating over 350 jobs.
- Edwards plans to establish a facility in Chandler for the semiconductor industry, creating 200 jobs.
- Kohler is building a manufacturing facility in Casa Grande, adding over 400 jobs.
- XNRGY is constructing a 1-million-square-foot facility in Mesa, generating over 900 jobs with a $300 million investment.
- Sunlit Chemical is initiating a $100 million manufacturing plant in Phoenix, its first in the U.S.
- EMD Electronics is opening a new factory in Chandler, creating over 100 jobs with a $28 million investment.
Additionally, Intel’s $20 billion investment in Chandler was recognized as one of the “Manufacturing Projects of the Year” by Area Development Magazine. Arizona also received its fourth Gold Shovel Award for high-value job creation and capital investment in 2021.
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