02 January 2017

Mesa Office of Economic Development > FOURTH QUARTER 2016 Newsletter

Short on info graphics and nonetheless bold with a bravado pitched for publication by head honcho Bill Jabjiniak the last quarter Q4 2016 "newsletter" has been released.
Massive spending by the federal government has paid off for industries long-established here in Mesa after World War II along with newer related high-tech enterprises in cyberwarfare, security, space surveillance, defense, remanufacturing and supply chain logistics.
At the same time one of Mayor John Giles' Pie-In-The-Sky plans to spend over $120M in public monies to locate an ASU satellite campus downtown fizzled in the face of voter rejection to finance it with a transaction/sales tax hike, largely attributable to a bad privately-financed PR campaign that turned out to be a major screw-up by the "special interest groups" behind it even though they raised over $500,000 to sell it to voters. 
Industrial [as well as commercial, vocational/higher education, retail and residential growth] is expanding around two former airfields, now owned by the City of Mesa or regional partners in the southeast and northeast areas where spending on infrastructure has paid off for sprawling suburban developments.
The entire publication can be seen here

The Quick Jab
by Bill Jabjiniak
Mesa: a strategic player in aerospace and defense
For decades now Mesa has been a strategic location for aerospace and defense companies including Boeing, MD Helicopters, Orbital ATK, Nammo Talley, and Able Engineering – all with large operations in Mesa.
These companies, and many others, have landed in Mesa because of Arizona’s strategic competitive advantages.
Arizona Rankings and Accolades
According to the recent 2016 Aerospace Manufacturing Attractiveness Rankings report conducted by PricewaterhouseCoopers, Arizona is the most attractive state in the nation for aerospace manufacturing. The rankings are based on a weighted average of variables such as costs, industry size, infrastructure, stability, and workforce.
If you combine Arizona and the state of Sonora, Mexico, the region makes up the fourth-largest aerospace supply chain in the world and the largest in North America, according to the Arizona-Mexico Commission.
Here are some additional compelling Arizona statistics that the Arizona Commerce Authority shares on its website:i
  • 52,592 people employed by aerospace and defense related companies with a $5.5 billion total annual payroll.
  • $3.5 billion in total aerospace and defense exports and $9.9 billion in Federal contracts.
  • 78 college programs related to aerospace and defense.
  • 2nd largest employment in space and defense systems manufacturing.
  • 4th largest employment in aviation and aerospace manufacturing.
  • 6th largest employment in maintenance, repair and overhaul (MRO) occupations.
  • Top 10 largest employment in aviation and aerospace services.
  • Top 10 for aerospace/defense government contracts with 20,000+ transactions and $8.7 billion.
  • 1,200 aerospace and defense companies in Arizona.
Mesa Hosts the Big Players and Supply Chain Partners
Mesa is home to Boeing’s manufacturing facility of the AH-64 Apache combat helicopter as well as components, avionics, and composite parts, employing more than 4,000 highly-skilled workers. Across the street, on airport, is the headquarters for the major rotorcraft manufacturer, MD Helicopters, which builds high-performance helicopters for both civilian and military use around the world.
In addition, Mesa has helicopter service providers and maintenance, repair and overhaul (MRO) operations such as Heliponents and Able Aerospace Services. Recently purchased by global player, Textron Inc., Able also provides MRO services for fixed-wing aircraft. Other fixed-wing service providers with operations in Mesa include Embraer, Cessna, Marsh Aviation, Aeromaritime America, Falcon Executive Aviation, Jetstrip, N1 and many others.
Other key aerospace and defense players in the City include Nammo Talley, Orbital ATK, Lockheed Martin, L3 Communications, Allegiant, GECO, and WireMasters.

Abundant, Skilled, Low-Cost Workforce
The Phoenix-Mesa metro area is well supplied with an abundant and very skilled workforce boasting a labor pool of more than two million.
Furthermore, Arizona is a right-to-work state with a very low unionization rate, the second lowest unemployment insurance taxii, and workers compensations rates that are 86 percent of the national average.iii
Mesa’s workforce talent pipeline is very strong. Mesa’s seven campuses for higher education offer specialized training for high-tech aerospace and defense industries including composites, manufacturing and electronics technology, aeronautical engineering, airport management, air traffic control, pilot training, aircraft maintenance and more.
ASU’s Ira A. Fulton Schools of Engineering have the highest engineering undergrad enrollment in the U.S. Moreover, ASU has more than 19,000 engineering students enrolled in undergrad and graduate programs.
Low Taxes, Business Friendly
Mesa and the State of Arizona are business-friendly with a low cost of doing business. Arizona has no franchise tax, business inventory tax, or estate tax, and is among the lowest in the nation for corporate and individual income tax rates. Also, businesses with multi-state operations will appreciate the transition to a 100 percent sales factor income appointment formula, which will be completely phased in by 2017.iv
Foreign Trade Zone (FTZ) #221 also offers qualified companies with deferred or reduced tariffs and a significant property tax reduction of as much as 72.9 percent.
Mesa’s Two Airport Districts and Opportunities
Falcon Field Airport
At the center of the Falcon District is Falcon Field Airport, one of the nation’s most active general aviation airports and an ideal location for aerospace, aviation and defense companies involved in manufacturing, research and development, aviation services, and MRO operations.
Falcon Field is surrounded by a 1,000-acre business district that includes six industrial parks, which can accommodate aerospace companies of all types and sizes.

Phoenix-Mesa Gateway Airport
Phoenix-Mesa Gateway Airport with three long runways, (10,400 ft., 10,200 ft. and 9,300 ft.) is the keystone of the Mesa Gateway Area and is a prime location for aerospace, aviation and defense related businesses including high-tech manufacturers and suppliers, research and development, logistics and cargo services, and MRO operations.
The airport is developing the Gateway Aerospace Park that includes 350-acres of developable land with runway/taxiway access. Surrounding the airport are more than 1,000 acres of developable land.
The airport is designated as a Military Reuse Zone, which provides tax incentives to qualified companies and a property tax reduction of up to 72.9 percent.

We invite you to learn more about Mesa’s aerospace and defense sector by downloading our Aerospace Industry Profile or by visiting www.mesaaerospace.com.

ATSU’s Audiology Foundation of America Balance & Hearing Institute introduces new program to expand reach to patients in need

BenU announces record enrollment, beach volleyball, new classroom space, Junior Chamber Program
Historic Alhambra Hotel to provide deluxe residential facility for Benedictine students
In January, BenU at Mesa students seeking housing options close to campus will have access to single or double suites in the former Alhambra Hotel offering amenities such as study areas, lounges, a café, kitchens, laundry and exercise rooms, an outdoor commons area, patio space, and parking.
The future student residence is located at 43 S. Macdonald in Downtown Mesa and is owned by Venue Projects and Community Development Partners. Students, University representatives, and City of Mesa officials are excited about its location in the heart of Downtown Mesa near the Mesa Arts Center and about a mile from BenU at Mesa’s main campus building at 225 E. Main St.
The $3.5 million renovation will initially accommodate 53 students. A second phase buildout will create space for about another 10 students.
Currently, 17 BenU at Mesa students are housed in the Phoenix Marriott Mesa on Centennial Way and a number of other students are residing in and around Mesa in apartments. There also will be up to 36 parking spaces available for BenU student use.

Cooper Hall Grand Opening at CGCC Williams Campus

Mesa Community College named among Best 2-year College for Adult Learners 

Mesa residents are earning their degree through NAU’s innovative competency-based degree program

University of Arizona’s MBA delivers proven results for professionals living and working in Mesa

Wilkes announces special pricing plan to business partners

Phoenix-Mesa Gateway Airport reports record month, new restaurant, $9.1M grant
Phoenix-Mesa Gateway Airport continues to show phenomenal growth in both passenger and economic development activity.  As the Arizona summer continued its stretch of 100 degree days, a record number of residents chose Allegiant Airlines to escape the heat.  More than 132,000 passengers traveled through the airport, marking the busiest July ever, and eighth busiest month on record. 
This news came on the heels of the announcement that Kind Hospitality, Inc. would be opening a Barrio Brewing Company restaurant at the Gateway Aviation Center.  With more than 2,000 employees working within the Mesa Gateway District, a high quality restaurant like Barrio Brewing Company offering breakfast, lunch, and dinner will be wildly popular with the businesses and more than 10,000 college students located on the nearby ASU and Maricopa Community College campuses.
Finally, Phoenix-Mesa Gateway Airport announced the largest federal grant it has received since transitioning from a fighter pilot training base to a bustling regional airport. The $9.1 million grant will be used to replace over 1 million sq. ft. (more than 17 football fields) of concrete originally placed in 1941. The yearlong project will create more than 100 jobs and help the airport better serve corporate, military and general aviation customers
For more information, visit www.gatewayairport.com



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