Manufacturers are growing more optimistic about sales and production over the coming year, but rising input costs, transportation expenses and continued global uncertainty are keeping pressure on the sector, according to a .

NAM’s Q3 2026 Manufacturers’ Outlook Survey found that manufacturers expect raw material and other input costs to increase 5% over the next 12 months. Increased raw material costs ranked as manufacturers’ top business challenge for the second consecutive quarter, followed by rising health care costs and trade uncertainty.

The results illustrate a manufacturing economy in which stronger expectations for demand are colliding with persistent cost pressures.

“Â鶹´«Ă˝Ół»­anufacturers are ready to grow, invest and compete, but the cost of doing business remains a significant challenge,” Arizona Manufacturers Council Executive Director Grace Appelbe said. “Whether it’s raw materials, energy, transportation or health care, rising costs ultimately affect manufacturers’ ability to invest in their operations and their workforce. And the uncertainty surrounding tariffs isn’t helping. Tariffs are import taxes, and manufacturers pay them when they source key inputs from abroad, putting additional pressure on costs that can ultimately be passed along to consumers. The encouraging news is that manufacturers remain optimistic about what lies ahead, and policymakers can help sustain that momentum by advancing policies that provide greater certainty and keep Arizona and the United States competitive.”

That optimism is reflected in manufacturers’ expectations for the coming year. Survey respondents projected sales, production, capital investment and exports to grow at their fastest rates in more than four years.

Manufacturers expect sales to increase 4.3% over the next 12 months and production to rise 3.8%, the highest projected growth rates for both measures since the second quarter of 2022.

“Strong demand is fueling a notable increase in anticipated sales and production growth, both projected to rise 4.3% and 3.8%, respectively, the highest growth rates for both indexes since Q2 2022,” NAM Chief Economist Victoria Bloom said. “Because of a strengthening sales forecast, manufacturers remain optimistic, though growth in the industry would likely be stronger if cost pressures eased.”

Global disruptions continue to complicate that outlook.

Among manufacturers surveyed about the conflict in the Middle East, 60.6% said conditions related to the conflict had not improved from the previous quarter, while 33.2% said challenges had worsened.

Transportation expenses are adding to those pressures. More than three-quarters of manufacturers, 77.3%, identified freight rates as a challenge, while 74.1% cited fuel costs. Trucks are especially important to the sector, with 98.6% of respondents reporting that they rely on trucking to move goods.

Manufacturers also appear prepared to make significant investments in their operations.

Nearly two-thirds of respondents, 63%, said they plan to import industrial machinery, parts or components during the next year to support existing or planned manufacturing operations. Among those companies, 69.2% expect to use the equipment to upgrade or replace existing machinery, while 63.6% said the machinery would support new or expanded operations.

NAM said the findings demonstrate the importance of policies that allow manufacturers to secure the equipment needed to expand and modernize their facilities. The organization is advocating for a U.S. Manufacturing Investment Accelerator Program designed to improve manufacturers’ access to industrial machinery.

“Manufacturers are seeing encouraging signs for growth, but they are also facing some strong headwinds such as rising costs and global uncertainty that continue to place pressure on global supply chains,” NAM President and CEO Jay Timmons said.

Timmons called for action on several priorities important to manufacturers, including surface transportation reauthorization, permitting reform, health care costs and greater trade certainty.

The quarterly results come as Arizona continues to expand its advanced manufacturing footprint, with semiconductor, aerospace and defense, electronics and other manufacturers playing an increasingly prominent role in the state’s economy.

NAM conducted its Q3 Manufacturers’ Outlook Survey from Aug. 11 through Aug. 27.

Photo: Pete unseth, , via Wikimedia Commons

The post Input costs, transportation expenses drive uncertainty for manufacturers appeared first on Â鶹´«Ă˝Ół»­.

A group of bills introduced during Arizona’s 2026 legislative session could have imposed more than $31 billion in new annual costs on the state’s economy if enacted, according to a new analysis from Common Sense Institute Arizona and the Arizona Â鶹´«Ă˝Ół»­ Foundation. 

The annual identified 119 bills involving taxes, labor policy, energy and environmental regulations and other requirements affecting businesses. Researchers were able to quantify the potential costs of 88 of those measures, estimating a combined impact of at least $31.5 billion annually. 

If the bills had taken effect together, the report estimates Arizona could have lost 424,400 jobs, seen per-capita income fall by as much as $4,100 annually and experienced a $48 billion reduction in state gross domestic product. 

None of the 119 bills included in the report became law. 

“Arizona’s economic success is not an accident. It reflects years of policy choices that have kept taxes competitive, preserved a flexible labor environment, cut red tape, and given businesses the confidence to invest and hire here,” Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry President and CEO Danny Seiden said. “We’re fortunate none of these bills became law. If they had, Arizona’s competitive advantages could have been dramatically undermined. Arizona’s competitive position is strong, but we can’t take it for granted.” 

Among the measures analyzed was an effort to repeal Arizona’s right-to-work protections, which CSI identified as the single proposal with the largest estimated economic impact. The report projected repeal could cost the state between 30,000 and 40,000 jobs and reduce annual economic growth by 21%. 

The analysis also identified nearly $3.8 billion in potential new taxes, including proposals for an additional 3.5% tax on personal income above $250,000 and an 8% tax on income above $1 million. Other measures would have changed corporate tax policy or imposed new payroll taxes on employers. 

Labor-related proposals accounted for more than $17.5 billion in estimated costs. Those bills included mandatory paid-leave programs, changes to scheduling and overtime requirements, minimum wage increases, and additional workplace mandates. 

Another 20 bills related to energy and environmental policy carried an estimated $7.1 billion in costs. Among them were proposals requiring electric utilities to generate at least half of their electricity from renewable sources and imposing new renewable energy and battery storage requirements on data centers. 

Legal and administrative proposals accounted for another estimated $3.3 billion. The measures included rent-control policies, requirements that retailers accept cash, restrictions on pharmacy benefit managers, and other business regulations. 

Katie Ratlief, executive director of CSI Arizona, said the report is intended to examine the cumulative effect of policy decisions rather than any one proposal in isolation. 

“No single policy determines the entire direction of an economy, but policy choices compound over time,” Ratlief said. “That’s exactly why we do this analysis every year. A tax here, a new mandate there, another regulatory requirement somewhere else may not seem significant on its own. But put them all together, and the economic picture can change dramatically.” 

The report also compares Arizona’s recent economic performance with Colorado, pointing to differences in the policy approaches taken by the two states. 

According to the analysis, Arizona’s inflation-adjusted GDP has grown 20% faster than Colorado’s since 2016, reversing the relationship seen during the previous decade. Arizona’s net interstate migration since 2020 is also up 18.5% compared with its average during the 2010s, while Colorado’s has declined by more than 90%. 

CSI estimates Arizona would have about 154,405 fewer workers and $26.4 billion less in real GDP today if the state had followed Colorado’s economic growth trajectory since 2019. 

The report says Colorado has enacted at least 50 measures in recent years that CSI considers detrimental to economic growth, while legislation appearing on Arizona’s annual “Job Killers” lists has not been enacted. 

Arizona Â鶹´«Ă˝Ół»­ Executive Vice President Courtney Coolidge said maintaining the state’s competitiveness will remain important as policymakers address issues including affordability, workforce, energy and water. 

“Arizona’s competitive advantage is something we have built over decades, but it is not permanent,” Coolidge said. “As lawmakers tackle real challenges around affordability, workforce, energy and water, the answer cannot be to make it more expensive to hire people, build projects and grow businesses. We need to solve problems without sacrificing the policies that have made Arizona one of the best states in the country to invest and create jobs.” 

. 

The post Report estimates rejected Arizona bills could have cost 424,000 jobs, $48 billion in GDP appeared first on Â鶹´«Ă˝Ół»­.

Arizona State University is partnering with Philip Morris International’s U.S. businesses on a new national initiative aimed at finding and funding innovative, community-driven solutions to some of the challenges facing communities across the country.

The , announced this week by PMI U.S., will award five $50,000 grants to nonprofit organizations developing practical ideas to strengthen their communities.

ASU will serve as a key partner in administering the competition and its judging process, bringing the university’s expertise in innovation and entrepreneurship to an initiative that will reach all 50 states.

“Innovation is most impactful when rooted in the needs and strengths of communities,” said Dr. Sethuraman “Panch” Panchanathan, University Professor of Technology and Innovation and Foundation Chair in Computing and Augmented Intelligence at ASU. “The Community Futures Challenge reflects a shared commitment to identifying those ideas, advancing innovation with purpose, and supporting efforts that can deliver meaningful impact across the country.”

Panchanathan, who previously served as director of the National Science Foundation, will chair the Challenge’s judging panel.

The competition is open to eligible U.S.-based 501(c)(3) nonprofit organizations with projects serving adults age 21 and older. Projects may be in the early-stage, pilot or scaling phase.

The Challenge will also include a four-city “innovation hub” tour intended to highlight local problem-solvers and bring together business, civic and community leaders. Phoenix will serve as one of the four stops, along with Stamford, Connecticut; Pittsburgh; and Jacksonville, Florida.

“At PMI U.S., we believe America’s next chapter will be shaped by the people not afraid to tackle difficult problems, turn bold ideas into action, and open up new routes to progress for their communities,” PMI U.S. CEO Stacey Kennedy said. “As our businesses continue to invest in American jobs, manufacturing, and innovation, the Community Futures Challenge extends that commitment by backing the people and ideas helping build what comes next.”

The initiative comes as the United States approaches its 250th anniversary and is part of PMI U.S.’s broader “Invested in America” effort. The company says it has invested more than $1 billion in U.S. operations, workforce expansion and innovation capabilities since 2022.

The Challenge is built around the premise that some of the most promising solutions to community challenges originate with the people and organizations closest to them.

A recent nationwide survey commissioned by PMI U.S. and conducted by The Harris Poll found that 86% of U.S. adults believe the most meaningful innovation solves real-world problems people encounter in their daily lives. The survey also found that 87% believe communities understand their own challenges better than outside experts, while 90% believe companies should act as community partners rather than assume they have all the answers.

ASU will help oversee a selection process designed to identify ideas with the potential to produce meaningful and scalable results.

Joining Panchanathan on the judging panel are retired Chief Master Sergeant of the Air Force JoAnne S. Bass; journalist Steve Clemons; longtime SXSW executive Hugh Forrest; University of Silicon Valley President and CEO Dr. Mark Naufel, who founded ASU’s Luminosity Lab; Atlantic Council Nonresident Senior Fellow Leah Pisar; Black Â鶹´«Ă˝Ół»­ of Arizona President and CEO Dr. Velma Trayham; entrepreneur Ted Yang; and Neuro co-founder and CEO Kent Yoshimura.

The inclusion of both Panchanathan and Trayham on the panel, along with Phoenix’s selection as an innovation hub, gives Arizona a prominent role in the national initiative.

For ASU, the partnership is also consistent with the university’s longstanding emphasis on entrepreneurship, applied research and using innovation to address real-world challenges.

Eligible nonprofits can apply for one of the five $50,000 grants at .

The post PMI launches national Community Futures Challenge with ASU appeared first on Â鶹´«Ă˝Ół»­.

The Maricopa County Stadium District has appointed senior business executive Mark Winkleman as Executive Director.

Winkleman will serve as the Stadium District’s CEO and administrative lead – overseeing the organization’s finances and operations, and representing the group with public officials, community stakeholders and the Arizona Diamondbacks. He reports to a 9-member Stadium District Board of Directors that was created as part of legislation signed into law last year by Gov. Katie Hobbs. Chief of among the Stadium District’s responsibilities: managing $500 million worth of tax-funded renovations at Chase Field, home of the Arizona Diamondbacks in downtown Phoenix.

Winkleman called his appointment “an honor,” adding: “My goal is to further the District’s mission by protecting and enhancing this important public asset, providing disciplined and transparent stewardship of public resources, and working collaboratively with the Arizona Diamondbacks. I believe we can successfully modernize Chase Field while maintaining strong accountability to taxpayers and ensuring that the stadium continues to provide long-term value to our community and the State of Arizona.”

Danny Seiden, president & CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry, welcomed Winkleman to the leadership role, and said the Stadium District has a vital mission to ensure Chase Field remains an essential community asset and landmark.

“Arizona loves the Diamondbacks, and the business community has worked hard to ensure they continue to have a great home right here in downtown Phoenix,” Seiden said. “I can’t wait to see the results as the Diamondbacks and Maricopa County Stadium District modernize Chase Field for the millions of people who visit this beautiful facility every year.’

Winkleman brings to the position more than four decades of executive, public-sector, real estate, legal and governance experience. He’s the founder and President of MGS Realty Partners, Inc., through which he has advised boards, investors and family offices on real estate strategy, governance, acquisitions, financing, redevelopment and asset management. Earlier, Winkleman served as Arizona State Land Commissioner, a role in which he led the Arizona State Land Department and managed State Trust land totaling 9.3 million acres.

“More than 500 people applied for this position, and Mark’s experience in leading both private and public organizations set him apart from the other candidates” said Board Chairman John Graham. “The Board is pleased to have such an experienced and qualified individual to be our chief executive.”

Winkleman, who earned his business degree from the University of Kansas and law degree from the University of Virginia, has held numerous Arizona civic and nonprofit leadership positions. He is former chairman of ULI Arizona, the McDowell Sonoran Conservancy and Valley Partnership, and served on boards of directors for the City of Phoenix Industrial Development Authority and Arizona State Parks.

Photo courtesy: “” by ,

The post Maricopa County Stadium District names executive director to lead group, help oversee Chase Field improvements appeared first on Â鶹´«Ă˝Ół»­.

For years, employers and working parents have understood the practical challenges created by a shortage of affordable, accessible child care. New research and polling suggest those challenges are increasingly becoming something else, too: an economic issue with growing political salience.

The numbers help explain why.

A finds that more than eight in 10 likely voters — 82% — consider the cost of childcare part of the nation’s broader concerns with the cost of living. More than three-quarters, 76%, say the cost of care for families with young children is either a crisis or a major problem.

For parents who actually pay for childcare, the issue is even more immediate. Asked to identify the two biggest cost pressures they face, 38% named childcare, putting it virtually even with groceries at 40% and behind only housing at 56%.

Those findings come as new data illustrate the size of the challenge here in Arizona — and recent economic research makes the case that childcare isn’t simply a family issue but increasingly a workforce and economic competitiveness issue as well.

Arizona families feel the squeeze

Arizona is home to more than 481,000 children age 5 and younger, according to the First Five Years Fund, and 62% have all available parents participating in the workforce.

For those families, care can represent a significant household expense. The annual price of center-based childcare in Arizona is $16,384, or about $1,365 per month. Home-based care is less expensive, but still averages $9,339 annually, or $778 per month. FFYF estimates a 17% gap between the supply of childcare and potential need in Arizona and puts the annual economic impact of the state’s childcare challenges at $3.3 billion.

Those figures align with that found Arizona’s supply of licensed child care providers has declined dramatically even as the state’s population has grown.

Arizona had 5,126 licensed childcare providers in 2002. By 2024, that number had fallen to 2,779 — a 46% decline. Meanwhile, the median daily cost of licensed center-based infant care increased from $43.03 in 2018 to $61.40 in 2024.

The problem is especially acute in some rural areas, but it isn’t confined to them. CSI found that even Maricopa County has licensed capacity sufficient for only about 13% of its infant population.

A workforce issue hiding in plain sight

For the business community, perhaps the most consequential aspect of the childcare debate is its effect on the labor force.

When parents cannot find care, cannot afford it, or cannot find care that accommodates their work schedules, the consequences eventually reach employers. Workers may reduce their hours, turn down jobs or promotions, miss shifts, or leave the workforce altogether.

The latest polling suggests the effects extend well beyond parents themselves. Nearly 40% of all voters surveyed said their own ability to work is affected by coworkers’ childcare challenges. Almost half of working parents said childcare challenges affect their ability to work, and one in five parents with young children said those challenges frequently do so.

CSI attempted to put an economic value on addressing that problem.

Its analysis estimates that making childcare sufficiently affordable and accessible could draw between 15,500 and 87,800 additional Arizonans into the labor force. Under CSI’s midpoint scenario of 50,000 new workers, the effects ripple well beyond those individuals: The modeling projects 131,700 additional jobs by year five, approximately $17.5 billion in additional state GDP, more than $13.5 billion in additional personal income and an estimated $188 million in additional state income tax revenue.

Those are significant numbers in a state where employers regularly identify access to talent as one of their most important considerations when deciding whether to expand, relocate or invest.

Political salience is growing

None of this means there is an obvious policy answer.

The childcare market presents a particularly difficult economic equation. Care is expensive for parents while wages for childcare workers remain comparatively low. Providers operate in a labor-intensive business with narrow margins, and regulations intended to ensure children’s health and safety can also increase operating costs and create barriers to adding capacity.

CSI’s research cautions against viewing increased subsidies as the only answer. It points to regulatory reform, expansion of home-based and alternative models, and policies that encourage more providers to enter the market as ways to increase supply and put downward pressure on costs.

But what does appear to be changing is the political environment surrounding the issue.

The FFYF poll found broad support for several basic objectives: 83% support ensuring that parents can choose the type of childcare that works best for their family, 73% support lowering monthly child care costs, and 71% support expanding the supply of care. Nearly half of Democratic voters surveyed said congressional Democrats should work with Republicans and President Donald Trump to pass childcare legislation.

That is noteworthy at a time when affordability is likely to remain central to the political conversation.

Housing, groceries, energy and other household expenses tend to dominate discussions about the cost of living, but for many families with young children, childcare increasingly belongs in that conversation, representing one of the largest bills they pay.

And unlike many other household expenses, the availability and price of childcare can determine whether a parent is able to work in the first place.

That makes childcare unusual in the affordability debate: Addressing it has the potential not only to reduce pressure on household budgets, but also to increase labor-force participation and expand the pool of workers available to employers.

This latest research suggests policymakers should expect childcare to command greater attention, not simply as a family issue, but as an affordability, workforce, and economic growth issue with increasingly significant political implications.

Image courtesy Creative Commons Attribution-NonCommercial 4.0 International License

The post New research underscores child care’s growing economic stakes appeared first on Â鶹´«Ă˝Ół»­.

The Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry has been named the recipient of the 2026 Conference of State Manufacturers Associations Leadership Award, a national honor recognizing work on behalf of the manufacturing sector.

The National Association of Manufacturers this week during COSMA’s annual meeting in Colorado Springs, Colorado.

COSMA members serve as the NAM’s official state partners, representing manufacturing priorities at the state level while helping elevate federal policy issues from across the country. A selection committee made up of previous award recipients evaluates nominees based on advocacy, organizational excellence, innovation, industry promotion and growth.

The Arizona Â鶹´«Ă˝Ół»­ was selected in part for its work on a first-in-the-nation federal air-quality policy outcome affecting the Phoenix-Mesa region.

Earlier this year, the U.S. Environmental Protection Agency approved Arizona’s Clean Air Act Section 179B demonstration, preventing the region from being reclassified to “Serious” ozone nonattainment based on pollution originating largely outside the state’s control.

The Â鶹´«Ă˝Ół»­ and Arizona Manufacturers Council had spent years advocating for the change alongside state, regional and federal partners. The decision spared manufacturers and other employers from additional permitting requirements, emissions-offset mandates and other regulatory costs that would not have addressed the primary sources of the region’s ozone levels.

“The Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry has blazed a trail for all manufacturers by helping the EPA align federal policy with scientific reality and pragmatic solutions,” said Michele Siekerka, president and CEO of the New Jersey Business & Industry Association and COSMA chair.

Siekerka said the Arizona effort provides other states with “a replicable playbook for collaborative and effective advocacy.”

NAM President and CEO Jay Timmons also cited Arizona Â鶹´«Ă˝Ół»­ President and CEO Danny Seiden’s bipartisan approach and broader advocacy on behalf of manufacturers.

“Danny Seiden exemplifies the best of manufacturing association leadership in the United States,” Timmons said. “By leading with integrity, focusing on bipartisan solutions and delivering an impact across our sector and the communities we serve, Danny has earned wide respect not only from the business community but lawmakers of both parties and at all levels.”

Timmons said manufacturers and families across Arizona benefit from Seiden’s “care, drive and stewardship,” adding that the NAM was proud to recognize his advocacy.

Seiden said the award reflects the work of the Â鶹´«Ă˝Ół»­â€™s staff, members and partner organizations across a range of policy and economic-development priorities.

“We’re grateful to COSMA and the NAM for this recognition,” Seiden said. “It means even more coming from organizations that understand the work it takes to support a strong manufacturing sector.”

He said the Â鶹´«Ă˝Ół»­â€™s efforts have included work on federal air-quality policy, building public support for new investment and advancing the infrastructure needed to support Arizona’s continued economic growth.

“This award reflects the effort of our entire team, our members and the partners who have worked alongside us,” Seiden said.

The Arizona Â鶹´«Ă˝Ół»­ works with the Arizona Manufacturers Council to advocate for policies affecting manufacturers across the state, including regulatory, workforce, infrastructure and economic-development issues.

The post Arizona Â鶹´«Ă˝Ół»­ receives national manufacturing leadership award appeared first on Â鶹´«Ă˝Ół»­.

A broad coalition of U.S. business organizations, including the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry and the Arizona Manufacturers Council, is urging Congress to approve a long-term reauthorization of the Export-Import Bank of the United States (EXIM), arguing the agency plays a critical role in helping American manufacturers compete globally.

In a July 21 letter to lawmakers, 319 companies, trade associations, state chambers of commerce, manufacturers’ groups and local business organizations from all 50 states called on Congress to pass a robust 10-year reauthorization of EXIM before its authorization expires later this year.

The coalition argues that export financing has become an increasingly important competitive tool as foreign governments expand support for their domestic industries. The letter notes that more than 115 foreign export credit agencies are actively supporting exporters in their respective countries and points to China’s estimated $24 billion in medium- and long-term export credit support in 2024, more than four times the volume officially supported by the United States.

“EXIM is an essential tool that helps American exporters compete globally and level the playing field,” the organizations wrote, adding that the bank’s financing programs can determine whether U.S. companies win international contracts, expand operations and create jobs.

According to the coalition, EXIM authorized $8.7 billion in transactions during fiscal year 2025, supporting approximately 40,000 American jobs. More than 87% of those transactions directly benefited small businesses. Since 1992, the bank has generated a net $9.8 billion for the U.S. Treasury while maintaining a low default rate.

“Â鶹´«Ă˝Ół»­anufacturers compete in a global marketplace every day. The Export-Import Bank helps ensure that American companies aren’t forced to compete with one hand tied behind their backs while foreign governments aggressively finance their own industries,” Arizona Manufacturers Council Executive Director Grace Appelbe said. “A long-term reauthorization of EXIM will provide the certainty businesses need to invest, grow, and support high-quality manufacturing jobs here in Arizona and across the country, which is why we’re urging Congress to act.”

Beyond extending the agency’s authorization for a decade, the letter calls on Congress to strengthen EXIM’s ability to operate during board vacancies, expand its China and Transformational Exports Program, and revise lending restrictions that the coalition says unnecessarily limit the bank’s competitiveness against foreign export credit agencies.

Arizona organizations signing the letter include the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry, Arizona Manufacturers Council, Arizona Regional Economic Development Foundation, Buckeye Valley Â鶹´«Ă˝Ół»­ of Commerce, Chandler Â鶹´«Ă˝Ół»­ of Commerce, Coolidge Â鶹´«Ă˝Ół»­ of Commerce, Fountain Hills Â鶹´«Ă˝Ół»­ of Commerce, Greater Phoenix Â鶹´«Ă˝Ół»­, Mesa Â鶹´«Ă˝Ół»­ of Commerce, Nogales Santa Cruz County Â鶹´«Ă˝Ół»­ of Commerce, PHX East Valley Partnership, Scottsdale Area Â鶹´«Ă˝Ół»­ of Commerce, and The Â鶹´«Ă˝Ół»­ of Southern Arizona. The National Association of Manufacturers coordinated the nationwide sign-on effort, which drew support from major corporations including Boeing, Ford Motor Co., Lockheed Martin, Siemens Energy, Toyota Motor North America and the U.S. Â鶹´«Ă˝Ół»­ of Commerce, along with hundreds of state and local business organizations.

image via

The post Business coalition, including several Ariz. groups, urges Congress to approve long-term EXIM reauthorization appeared first on Â鶹´«Ă˝Ół»­.

The Arizona Supreme Court has declined to review a legal challenge involving a planned hotel development in Marana, leaving in place an appellate ruling that the project’s development agreement is not subject to referendum.

The Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry participated through the Arizona Â鶹´«Ă˝Ół»­ Legal Center, filing an amicus curiae brief urging the Supreme Court to let the lower court ruling stand.

“This is a significant result for Marana and for communities across Arizona that rely on a predictable development process,” said Vanessa Pomeroy, chief counsel of the Arizona Â鶹´«Ă˝Ół»­ Legal Center. “The courts have now consistently recognized that the referendum power cannot be used to reopen every administrative action taken to implement a land-use plan that has already been publicly considered and adopted. Businesses need to know that when they follow the rules and a project receives the required approvals, those decisions will carry some measure of finality.”

The case began after Marana rejected referendum petitions challenging a development agreement for a planned hotel project. A Pima County Superior Court judge sided with the town, and the Arizona Court of Appeals later upheld that ruling, finding the agreement carried out an existing development plan and was therefore not subject to referendum.

The agreement covers approximately 19 acres of town-owned property near Marana Main Street and Civic Center Drive and is tied to the Rancho Marana West Town Center Specific Plan, adopted in 2008. The plan calls for a mixed-use town center that could include commercial, retail, office, entertainment, residential and hospitality uses.

Arizonans for Responsible Development sought to place the Town Council’s approval of the agreement before voters. Marana declined to process the petitions, arguing that the resolution implemented an existing development plan rather than creating new policy.

That distinction is central under Arizona law. Legislative actions can generally be challenged through referendum, while administrative actions ordinarily cannot.

In its June ruling, the Court of Appeals said the development agreement “furthers an already-declared policy” and concluded that the resolution was “not legislative but administrative and is therefore not referable.”

The court also rejected the challengers’ broader argument that all municipal development agreements are automatically subject to referendum, finding that state law does not eliminate the traditional distinction between legislative and administrative actions.

Pomeroy said the outcome matters beyond the Marana project because businesses, developers and local governments rely on clear rules and dependable timelines when making investment decisions.

“The referendum is an important constitutional safeguard, but it’s not a tool for creating perpetual uncertainty around approved development,” Pomeroy said. “There has to be a clear line between creating new policy and implementing policy that has already been adopted. That distinction matters for communities, employers and developers trying to move projects forward.”

The Supreme Court’s decision leaves the appellate ruling intact, ending the challengers’ effort to place the development agreement before voters.

The post Court decision clears final legal hurdle for Marana hotel project appeared first on Â鶹´«Ă˝Ół»­.

The U.S. Forest Service earlier this month issued the Final Record of Decision (ROD) for the Hermosa Critical Minerals Project in Southern Arizona’s Patagonia Mountains, completing the federal environmental review required for portions of the project planned on National Forest land. The decision follows several years of environmental study, public input, tribal and interagency consultation. 

Project developer South32 says Hermosa could produce up to five federally designated critical minerals, including zinc, silver, and manganese. The project includes a broader land package with potential for additional polymetallic and copper mineralization, positioning it as a significant domestic source of minerals tied to energy, manufacturing and supply-chain needs. 

The decision paves the way for South32 to fully develop the project beyond its privately held land, including building ancillary infrastructure such as a primary access road, a secondary dry-stack tailings facility, and allowing utility UniSource Energy Services to build a portion of a 138-kV power line on Coronado National Forest land.  

Construction is already halfway complete on private land. It was the first mining project accepted into the federal FAST-41 permitting program, which is reserved for nationally significant infrastructure projects meeting rigorous criteria.  

“From the beginning, we designed Hermosa to be a different kind of mine, and the federal review process helped make it even better,” South32 Hermosa President Pat Risner said. “Years of agency review, Tribal consultation and community engagement strengthened environmental protections, informed project refinements and shaped a project that can transform the local economy. We are grateful to everyone who participated throughout the process and look forward to continuing that engagement as we move from construction and development into operations.” 

The Final ROD also represents an important milestone in the broader national conversation around domestic critical mineral development and permitting reform. Hermosa’s advancement under FAST-41 did not reduce the thoroughness of environmental review or limit public input. Rather, the process helped improve interagency coordination, transparency, and accountability across federal agencies while ensuring the project moved through permitting in a timely and disciplined manner.  

Danny Seiden, president and CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry, said the Hermosa project also demonstrates the value of a predictable and transparent permitting process. 

“South32’s Hermosa project represents the kind of investment Arizona needs to strengthen domestic supply chains, support critical minerals production, and create long-term jobs in Santa Cruz County and across the state,” he said. “It’s also a model for how permitting should work. Hermosa has gone through years of environmental review, public input, and interagency consultation, and the project remains on track under the federal permitting schedule. That’s the kind of predictable, transparent process Arizona needs more of if we want to lead in industries critical to our economy and national security.” 

Over the course of the review process, Hermosa underwent extensive federal environmental analysis and consultation including more than 120 days of formal public comment periods, coordination across six federal and state agencies and consultation with 12 Tribes with historic affiliation to the region. 

“If we’re serious about bringing supply chains back to America and reducing our dependence on foreign countries, we need to responsibly produce more critical minerals here at home. This is exactly what the Hermosa project is doing,” said U.S. Senator Mark Kelly (D-Ariz.). “This milestone shows we can move projects through an efficient permitting process to create good-paying jobs while strengthening our national security.” 

South32 conducted extensive baseline environmental studies and community engagement before permit applications were formally submitted, allowing project alternatives, water management approaches, access roads and mitigation measures to be shaped by stakeholder input early in the process. 

The Final ROD confirms that environmental protections, mitigation commitments, and adaptive management measures are integrated into the approved project. Throughout the review process, South32 refined Hermosa’s design in response to agency feedback, Tribal consultation and community input, including: 

• Redesign of the dry-stack tailings facility to avoid sensitive plant species; 
• Design of a Primary Access Road, necessary for expansion, to also reduce traffic impacts to Patagonia and outdoor recreation areas; 
• Surface and ground water quality and quantity monitoring beyond state level requirements; 
• Wildlife crossings and habitat protections; 
• Cultural resource avoidance measures; and 
• Operational refinements are designed to reduce emissions, noise, and surface disturbance. 

In total, South32 committed to more than 135 conservation, mitigation and monitoring measures developed in coordination with federal agencies, Tribes and local stakeholders. Many of those commitments will become federally enforceable components of the final Mine Plan of Operations, and associated management plans outlined in the Final ROD. 

“The Final Record of Decision for Hermosa is another important milestone for Nogales. It reflects years of collaboration to ensure the Hermosa project is developed in a way that balances economic opportunity with environmental stewardship,” said Nogales Mayor Jorge Maldonado. “South32 is making a long-term investment in the people and future of Nogales through investments like its remote operating center “Centro”. Hermosa has the potential to create new opportunities to support good-paying jobs and help ensure that more of our young people can build successful careers right here at home, and we appreciate South32’s commitment to developing Hermosa responsibly while creating opportunities for local families, students and businesses.” 

With a surface footprint of 750 acres and projected to use approximately 90% less water than other mines in the region, South32 designed Hermosa to minimize its environmental impact. Once in operation, Hermosa would help transform and grow the local economy and create up to 900 good-paying jobs during peak operations, and support investment across surrounding communities for decades to come. 

The post Hermosa critical minerals mining project reaches major federal permitting milestone  appeared first on Â鶹´«Ă˝Ół»­.

Arizona small businesses struggling with rising health insurance costs will soon have more coverage options after Gov. Katie Hobbs signed HB 2693, legislation spearheaded by the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry that expands access to multiple employer welfare arrangements, or MEWAs.

Nationally, the pressure is especially acute for the smallest employers. A 2024 JPMorganChase Institute analysis found that health insurance premiums consumed a larger share of compensation costs for lower-revenue businesses, with firms under $600,000 in annual revenue seeing a median health insurance payroll burden of nearly 12%, compared with 7% for firms above $2.4 million.

Sponsored by Rep. David Livingston (R-Peoria), the legislation allows small employers to join qualifying organizations, like the Arizona Â鶹´«Ă˝Ół»­, that can negotiate health benefits on behalf of a broader pool of participants. For Arizona’s smaller employers, the MEWA model offers a framework to build greater purchasing power in a market that often gives larger businesses more leverage.

“This bill is about giving small businesses more choices,” Rep. Livingston said. “When employers can come together through an association, they have a better opportunity to access coverage the way larger employers do, with more people in the risk pool and more leverage to manage costs.”

The law also expands eligibility to include sole proprietors, working owners, and employers with as few as two eligible employees. When coverage is available, eligible employers may be able to seek plans through a qualifying statewide chamber of commerce or a statewide business league.

Arizona is not starting from scratch. Similar MEWA models are already in use in other states, including Missouri, where the Missouri Â鶹´«Ă˝Ół»­ Federation’s Â鶹´«Ă˝Ół»­ Benefit Plan has used a MEWA structure since 2017 to help small employers join a larger self-funded pool. The Missouri Â鶹´«Ă˝Ół»­ says the plan has grown to nearly 4,000 covered groups and more than 45,000 covered individuals.

As HB 2693 moves into implementation, Missouri’s experience provides Arizona policymakers and business leaders with a useful point of reference for how a similar model can expand coverage options for small employers.

“HB 2693 allows for greater flexibility, expanded choice, improved stability, and lower costs,” said Danny Seiden, president and CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry. “For small businesses working to attract and retain talent, those benefits can make a meaningful difference for employers and employees across Arizona.”

Thanks to this legislation, the Â鶹´«Ă˝Ół»­ is launching a MEWA program that will help Arizona’s small businesses, the backbone of our economy, have access to more affordable and flexible health coverage.

As that program takes shape, the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry has created an HB 2693 website where employers can learn more about MEWA and add their support for expanding health coverage options for Arizona small businesses.

For small employers facing rising benefit costs, HB 2693 creates a new option for more stable, affordable coverage, helping businesses better support employees and compete for talent.

The post New law brings more health coverage options for Ariz. small businesses appeared first on Â鶹´«Ă˝Ół»­.