Baby boomers are turning 65 at a rate of 10,000 per day, according to a Pew Research report, and that number is expected to remain steady for the next 11 years.

Whether these boomers retire at 65 or choose to stay in the workforce for a few more years, the number of people retiring will continue to grow at a record pace. That means the number of people whose living arrangements will change will also continue to increase. This has given rise to continuous care retirement communities gaining more ground around the country and here in the Valley.

Until the mid-20th century, most Americans didn’t retire. When they did, said Bob Roth, a member of the Governor’s Advisory Council on Aging and managing director of Cypress HomeCare Solutions, it was quietly accepted that retirement was a short interlude of just a few years before the inevitable. Today people live longer than ever, and the short interlude can now last as long as 30 years. It’s a whole new, full phase of life for Americans that many aren’t prepared for.

“It’s not a one-time conversation,” Roth said. “It’s an ongoing conversation about how you want to live out your life should you not be able to communicate, and/or should you age to the point where you can’t live alone. You know we need to have a road map and a plan.”

If seniors have made no plans for the future, their choices may be limited. If they have planned ahead, CCRCs can be a good option. These facilities can take a retiree from the active adult phase of their golden years, through assisted living and eventual final care. They can be a collection of apartments, townhomes or condos that includes common activity areas, a restaurant-like dining room, an assisted-living facility and a nursing home. Banking services, convenience stores, a golf course, swimming pools and guest accommodations also may be available.

There are three types of CCRC contracts: Class A, life-care contracts, where there is an upfront buy in and a resident’s monthly service fee remains at a predetermined rate over the person’s lifetime; Class B, modified fee-for-service, where residents pay an entry fee and also are responsible for some expenses associated with assisted living or skilled nursing; and Class C, fee-for-service, where residents usually pay an entry fee and then pay the full-market rate for the cost of care in assisted living and skilled nursing.

Arizona is home to some of the nation’s best Class A CCRCs, including Vi at Silverstone and Vi at Grayhawk, both in North Scottsdale. Owned by Vi and Plaza Companies, the cost to Live at Vi Silverstone can range from an upfront fee of between $243,000 to $1.1 million, plus monthly fees between $3,600 to $6,600 depending on the floor plan.

“Yes, we will be cost-prohibitive, but not because we’re a Class A, because either you’re able to pay this kind of money to begin with or you can’t, depending on how you planned for your future,” said Jill Wolverton, executive director at Vi at Silverstone, which opened in 2010.

The Class A CCRC may still be rare in the Valley at the moment, but Roth said more are coming.

“From what I understand, just in 2018, 20 of these communities have broken ground along the 101 from Scottsdale all the way out to the West Valley,” he said.

For those who can’t afford what Grayhawk, Silverstone and other Class As offer, Roth said there are several reputable and comfortable Class B communities in the Valley. One interesting community currently under construction in Tempe at Mill and University is Mirabella at ASU. The new high-rise senior community will provide continued education, numerous health care services, and an environment where performing arts, social, athletic and research activities are easily accessible.

While cost is the challenge for consumers, for the industry, another challenge, according to Roth and Wolverton, is staffing for everything from landscaping to skilled nursing.

“With the unemployment rate as low as it is in the Phoenix area, it does continue to be a challenge,” Wolvertone said. “A lot of our employees are traveling 30-plus minutes to get to work from all parts of the Valley.”

A lack of mass transit to the area exacerbates the problem, but Wolverton said her parent company offers a variety of benefits in a so-far-successful attempt to attract employees. That’s important in a region with more than 100 retirement communities alone.

The post Continuous care retirement communities are fueling latest trend in retirement living and care in the Valley appeared first on �鶹��ýӳ��.

As Arizona companies demonstrate every day, they are part of a national trend where giving back to the communities in which they operate involves a more holistic approach.

“Bank of America goes beyond just writing checks, as we provide pro bono expertise to nonprofits, sit on board seats to help raise additional funds, and of course offer substantial employee volunteerism,” said Benito Almanza, Bank of America Phoenix market president. “For us, giving back is not just the right thing to do; we know that it also provides employee satisfaction and helps the bottom line — a win-win-win.”

Each year, the CECP (Committee Encouraging Corporate Philanthropy), in association with

The Conference Board, produces its “Giving in Numbers” research report on corporate social investment. In 2017, more than 250 multi-billion dollar companies with total aggregate revenues of $7.5 trillion participated in the research. The top quartile leaders gave a median total of $52.3 million to various philanthropic efforts. Of that amount, $24.9 million was in corporate cash, $18.1 million was foundation cash and $9.3 million was in non-cash, such as in-kind giving or services and especially volunteering.

Almanza said that in 2017, Bank of America in the Valley provided more than 100,000 hours of local volunteer time. At about $25 an hour, that volunteer labor was worth $2.5 million to the local community.

Bank of America pays each employee two hours per week to volunteer. The company also offers an unrestricted grant for volunteer work at any eligible nonprofit for which an employee or retiree has committed substantial time within a calendar year. For example, if an employee provides a community organization with 50 hours of volunteer time within a calendar year, the Bank of America Charitable Foundation will give the organization a $250 grant. For 100 hours, the grant is $500.

“We’re invested in the places where we live and work,” Almanza said. “We invest in our employees at home and in the workplace, so they can better serve our clients and our communities.”

According to the CECP report, 61 percent of companies offered paid-release time volunteer programs. The average corporate-volunteer participation rate was 31 percent, while the participation rate was 43 percent for the top quartile.

With locations across the state, Sonora Quest Laboratories makes an impact across Arizona. In 2017, the company gave $325,950 to local charities through contributions from its corporate office and its more than 3,000 employees. Those employees also donated more than 2,200 hours at such community-based organizations as the Salvation Army, St. Mary’s Food Bank, Feed My Starving Children and many more.

“Investment in our community, through financial and in-kind donations, along with volunteerism efforts, has been a focus of Sonora Quest Laboratories throughout its more than 20 years of operations in Arizona,” said Christina Noble, chief growth officer at the company. “Our community investment is ingrained within our company culture and the enthusiasm to serve stems from the top. For example, every Sonora Quest Laboratories senior leadership team member serves on the board of a charitable organization that positively impacts our local communities.”

According to the CECP report, three community sectors get the bulk of corporate philanthropy in all its forms. At the top is K-12 or higher education programs at 29 percent; health and social service programs come in second at 26 percent; and in third with 14 percent is community and economic development programs.

Bank of America and Sonora Quest Laboratories are just two links in a long chain of corporations in the Valley and across the state that provide critical community-based organizations and programs with not only money, but also a human touch.

“Giving back to the community is part of our culture from the beginning with our founder, AP Giannini, giving back to the California immigrant community 100 years ago, and it continues today,” Almanza said.

The post Arizona corporations follow national trend of charitable giving in all its forms appeared first on �鶹��ýӳ��.

A focus on Science, Technology, Engineering and Mathematics is vital for Arizona’s future workforce to be competitive in the global high-tech arena. Companies and state organizations have been working together to make STEM education a permanent part of school curriculums.

Intel, one of the world’s largest high-tech companies, has been reaching out to Valley schools and sending out employees to get students interested in STEM and assist teachers in furthering STEM education.

“Given Intel’s role as the creator and driver of future technologies and innovation, we believe that we have a responsibility to help prepare today’s youth with the skills they will need to succeed in the future,” said Elizabeth Shipley, public affairs regional director for Intel.

In 2016, Intel worked with the Chandler Unified School District to bring Project Lead The Way’s curriculum to two elementary schools. Through the use of hands-on projects, students were taught to solve real challenges and think of themselves as innovators. Along with providing start-up costs for the program, Intel employees often volunteer in the classroom.

“Employees also have the opportunity to share their personal stories with the students,” Shipley said. “Hearing directly from STEM professionals on what it’s like to work in the technology industry can help demystify what it means to work in a STEM field.”

Over the last five years, Intel, the Intel Foundation, and Intel employees have given more than $36 million in grants, donations and in-kind gifts to local Arizona schools, universities, and nonprofits.

This past school year, Intel expanded its Project Lead The Way to two more elementary schools in Chandler.

Many large Arizona-based companies work to promote STEM education. For example, Arizona Public Service boasts a variety of programs.

“In 2012, STEM education and STEM teacher development became the primary focus of the APS Foundation,” said Tina Marie Tentori, APS director of community affairs and executive director of the APS Foundation. Primarily through the APS Foundation, the company provides $1.4 million a year to various projects.

Those projects include West-MEC’s southwest valley campus, a partnership with APS and the Palo Verde Generating Station, which has programs for high-school juniors and seniors interested in careers in cybersecurity, construction and the energy industry.

APS also partners with the Teachers in Industry program to place teachers in summer internships with companies, allowing them to deepen industry knowledge they can then use in their classrooms. APS and Phoenix Suns Mini Grant program provides competitive teacher grants of up to $2,500 to fund “hands-on, interactive classroom projects that inspire students’ love of learning and teach STEM concepts in exciting ways,” Tentori said.

She added that APS approaches this focus as a responsibility, rather than an obligation.

“By 2027, STEM-related jobs will increase by 21 percent,” Tentori said. “As an employer, a business and a community member, it makes sense to invest in programs that prepare the next generation to compete in a 21st century economy.”

In 2010, the state and private industry created the Arizona STEM Network, led by Science Foundation Arizona. With a commitment from the Governor’s office, Helios Education Foundation and Freeport McMoRan Copper & Gold Foundation provided the major funding for the Network’s development. Other partners now include JPMorgan Chase & Co. and Research Corporation of Science Advancement.

“We provide professional development on our STEM Immersion Tools and STEM Resources,” said Linda Coyle, education consultant to Science Foundation Arizona. “We also help schools create strategic plans for implementing STEM across all grade levels. Our STEM tools and resources have all been extensively evaluated and are currently shared across the nation through our partners at STEMx (a multi-state STEM network).”

Along with sharing the goal of educating a STEM-savvy network for the future, Intel, APS and the Arizona STEM Network make concerted efforts to reach out to underserved students and girls who are often overlooked in the tech and science industries.

Intel supports a STEM camp for elementary school girls that is held at Chandler High School, Shipley said.

At APS, rather than creating its own program the company partners with the Girl Scouts, Boys and Girls Clubs, YMCA and other groups that target underserved populations.

“Because innovations resulting from STEM fields touch every aspect of human life, it is even more imperative that those involved represent the very communities and populations that are impacted by scientific progress,” Tentori said. “The problems of tomorrow will be complex and we will need a variety of perspectives to solve them successfully.”

The post STEM education crucial to Arizona’s future economy appeared first on �鶹��ýӳ��.

When triple-digit temperatures grip the Valley every summer, locals get an opportunity to live the life of Reilly, if only for a few days.

Summer staycations are increasingly popular for Valley and state residents as they discover that the nation’s finest resorts located right in their backyards offer the ultimate luxury experience at an affordable price.

In return, the resorts stay busy between the hot summer months and the official return of resort season in the fall.

Even as the state’s economy diversifies, tourism is still an important part of the economic mix. According to the Arizona Office of Tourism (AOT), in 2016, 43 million people visited the state and collectively spent $21.2 billion. That money supports jobs and generates tax revenue. The $3.09 billion in 2016 tax revenue equals an annual tax savings — usually through a steadying of sales tax rates and an increase in workers contributing to the state income tax pool — of $1,186 for every Arizona household. The industry supports 184,200 industry jobs.

Debbie Johnson, AOT’s executive director, said travel to the state is spread evenly throughout the seasons. Summer is the offseason for the Phoenix and Tucson regions, but up in the cool areas of northern Arizona, it’s peak season.

“Our summer marketing campaign is focused on need areas: central Arizona, southern Arizona and the Verde Valley,” she said. “We work closely with the destination marketing organizations in those regions to find out what they want us to promote and where they want us to drive traffic.”

Johnson said the number of front-line workers that hotels and resorts employ is directly related to occupancy rates and projections, so if “AOT and our community partners can help hotels and resorts fill rooms during their need periods, that keeps more workers on the job.”

The post Summer luxury staycation appeared first on �鶹��ýӳ��.

As the state’s economy continues to steadily grow after cratering during the Great Recession, some of the most robust business is taking place in the West Valley.

“The West Valley of Metro Phoenix has grown to 1.6 million residents, with 62 percent of residents being workforce age,” said Sintra Hoffman, president and CEO of WESTMARC. “Health care has a been a leading industry for this region to serve this growing and diverse population. The West Valley’s strong sports and tourism base has been a strong driver in putting the West Valley on the national stage.”

WESTMARC was created in 1990 to serve as the main policy advocacy organization for the West Valley. For many years, the organization has focused on transportation, the preservation of Luke Air Force Base and promotion of higher education. Hoffman said all that work is paying off with more higher education opportunities in the West Valley, a talented aerospace workforce and, in particular, thriving new freeway connections.

“The West Valley’s location in proximity to California, and the Los Angeles and Long Beach ports of entry, perfectly positions this region to capture companies from the West Coast,” she said. “The West Valley is just a quick five-hour truck travel time from California.”

Pat Feeney, SIOR, senior vice president of CBRE Industrial and Logistics, said the West Valley has always been somewhat of a “best kept secret” — at least until the Loop 303 opened all its ramps in the fall of 2017.

“You could almost feel the increase in activity that September when it opened,” Feeney said.

Hoffman said WESTMARC and its partners also are actively recruiting office users, information technology and aerospace. Feeney added that manufacturing has been playing a larger part in the West Valley’s business growth, along with ecommerce, the pharmaceutical industry and third-party logistics.

“Companies are focusing on the location of the warehouse more today than in the past,” he said. “Locating in Phoenix is putting a check in a lot of the boxes on their list of criteria for their decision. … At the same time we are an excellent alternative to service the 36 million plus population and markets of Southern California from an economic standpoint.”

Yes, land is cheaper, but it’s the state’s lack of excessive regulatory red-tape that also attracts companies. In addition, there is also the ratio between the number of people who live in the West Valley compared to those who actually work there. Residents are eager for a good job opportunity that can put an end to one-hour long commutes mornings and evenings.

Hoffman points out that while “37 percent of all finance and insurance workers in Maricopa County live in the West Valley, only 12 percent of those office jobs are located here. There is tremendous opportunity for those industries to be successful upon opening their doors.”

As for the future, Feeney said “we are going to soon see two new players. I look to see, in the very near future, the small to mid-size industrial tenant locating here to facilitate the larger users we have been seeing, and a use we have not seen in the past — the back office administrative users.”

The post The West Valley’s business attraction continues to flower appeared first on �鶹��ýӳ��.

In a region more accustomed to spreading out rather than up, the Valley is seeing an increase in the construction of multifamily housing, mostly due to recovery from the Great Recession.

“A couple of reasons for the increase in multifamily development are that from 2008 through 2012, we saw little to no new development of new apartment communities, so there was a clear need for communities,” said David Fogler, an executive managing director the Southwest Multifamily Advisory Group at Cushman & Wakefield’s Phoenix office. “In addition we have seen a demographic shift (both locally and nationally) that has led to a demand for well-located, urban type multifamily housing within walking distance to entertainment, shopping and employment.”

Fogler said Cushman & Wakefield began seeing an uptick in multifamily home construction in 2012-2013

According to a report by Fannie Mae, since 2012, approximately 29,000 apartment units were delivered in the Valley, mostly in Chandler, Gilbert, Tempe and Mesa. There are an additional 14,500 units underway, representing an estimated 4.2 percent increase in inventory for this year. The largest of these is the Pacific Proving Grounds North Community Plan in Mesa, which will deliver an estimated 3,500 units in 2019.

“Most real estate professionals see the current market as very active, but most would not necessarily describe it as a boom,” Fogler said. “While certain submarkets such as Downtown Phoenix, Tempe and Midtown Phoenix are seeing a significant amount of new development, other areas such as the West Valley are seeing very little new development. Compared to previous cycles, the amount of new supply is really not out of line with demand.”

Yes, more people are moving to the Valley than they were during the Great Recession, but that number is still below the population growth the region experienced before the economic collapse, said local economist Elliott Pollack, CEO of Elliott D. Pollack and Company, an economic and real estate consulting firm in Scottsdale. The demographic shift, however, is playing a role in the increased need for multifamily housing.

“A lot of baby boomers have sold their homes and are living in upper-end apartments and use the money they had in their homes to support their new lifestyle,” Pollack said. “Also, because millennials are getting married roughly seven years later than baby boomers did, that means they’re going to be in apartments for a lot longer.”

While the current increase in multifamily home construction may not be a boom, it has certainly helped subcontractors such as Paul Johnson Drywall (PJD).

“Business is definitely good for Paul Johnson Drywall,” said company president Robert “Cole” Johnson. “We are seeing significantly increased demand for our services, and like other subcontractors, have serious potential for growth opportunities.”

Boom or not, the increase in multifamily home construction is testing the area’s labor pool, a situation PJD is actively addressing.

“Since 2016, we have successfully hired 1,500 skilled W-2 workers,” Johnson said. “In addition to recruiting experienced drywall crews, we have programs that help to develop new drywall workers, such as apprentice programs that are attracting workers from areas around the country where construction is not as active as in Arizona.”

The post Multifamily housing in the Valley is multiplying appeared first on �鶹��ýӳ��.

The White House’s announcement on May 31 that the U.S. is slapping tariffs of 25 percent on steel and 10 percent on aluminum exports from allies Canada, Mexico and the European Union blindsided even international trade experts.

“The actions against China should come as no surprise,” said Lee McPheters, a research professor of economics at the Seidman Research Institute at the W. P. Carey School of Business at Arizona State University. “The extension of tariffs to allies such as Canada (the No. 1 supplier of steel) is hard to justify and particularly strange since the claim is made the tariffs are for national security.”

For now, the effects on Arizona’s economy may be small compared to other states, McPheters said.

“Many important Arizona industries rely on steel, including aerospace, other manufacturing and heavy construction,” he said. “However, we should not lose sight of the fact that our strongest growth sectors in recent years have been finance, health care and business services. Higher steel prices will be felt by consumers, and it is likely the overall rate of inflation will increase, but the tariffs as currently structured do not seem capable of having a major impact on Arizona’s growth. But, and this is critical, if the tariffs lead to slower national growth, Arizona will follow the national business cycle and overall growth may be affected.”

Some Arizona businesses are already feeling the sting.

Carlos Ruiz, owner and operator of Tucson-based HT Metals, thought a trade war would be averted after Congress passed its tax cut bill. Because his business custom cuts raw material for its customers, there was little he could do to plan ahead.

Ruiz said as soon as the tariffs were announced, prices for aluminum and steel “increased overnight on the products I buy. Likewise, overnight my purchasing power shrunk 25 percent.”

“The ‘national security’ claim for needing these tariffs is weak. The tariffs don’t distinguish between the mild carbon steel used to make wrought iron fencing/decorative features and the alloy steel used to make gears, bearings or ballistic plate,” Ruiz added. “The tariffs don’t distinguish between the aluminum used in aircraft/aerospace applications and the aluminum to make a computer cabinet.”

Ruiz has told his customers that they will have to accept price increases and is urging them to buy larger volumes of product.

No stranger to going toe-to-toe on trade with the U.S., Mexico struck back first, raising tariffs on steel, lamps, cheese, pork, apples, grapes and cranberries. The list may sound strange, but Mexico’s first salvo targets congressional districts heavy with supporters of President Donald Trump. The EU and Canada immediately used the same strategy.

Besides targeting key districts, the retaliation exposes the soft underbelly of the nation’s agricultural sector.

“Arizona agriculture is a $23.3 billion industry,” said Stefanie Smallhouse, president of the Arizona Farm Bureau. “In 2017, 61 percent of our agricultural exports were purchased by NAFTA trading partners. At this point, it looks like Arizona will need to worry about the potential tariffs coming from China in the way of tree nuts, wine, pork, cotton, beef and dates, but also a hit to pork and dairy from Mexico and some vegetables from Canada.”

McPheters of ASU said that a reduction in Arizona agricultural exports “would soon be followed by cutbacks and job losses among supplier industries.”

Ruiz has already written letters to Trump and Senators John McCain and Jeff Flake about the tariffs’ negative effects. The state’s agricultural sector, on the other hand, is organized and fighting.

“The Arizona Farm Bureau has been communicating with our congressional members continually as to the importance of uninterrupted trade with NAFTA countries and others around the globe,” Smallhouse said. “There is a very large coalition of agricultural groups working together as Farmers For Free Trade, spanning from a local to a national presence.”

The post How the US trade war on the EU, Mexico and Canada could affect Arizona appeared first on �鶹��ýӳ��.