The Arizona Manufacturers Council wrapped up Manufacturing Month with its annual , with guests getting a behind-the-scenes look at five manufacturing companies that are investing in ´ˇ°ůľ±łú´Ç˛Ô˛ąâ€™s growing economy.

“Ten years ago, manufacturing was still a comparatively small sector in Arizona,” Arizona Manufacturers Council Executive Director Grace Appelbe said. “Today, advanced manufacturing is quickly emerging as one of our state’s primary economic drivers.” 

Appelbe said that business leaders and elected officials who attended the tour were excited to see how the state’s manufacturers were innovating and expanding their footprint in the state. 

As the state affiliate of the National Association of Manufacturers, the Arizona Manufacturers Council to “promote and enhance a positive business climate for manufacturing and related industries that operate within Arizona.” The Made in Arizona Tour gives legislators and business leaders the opportunity to see the end product of policies that promote innovation and investment at work. 

The first manufacturer visited was in Phoenix. The plant primarily builds and tests engines for commercial planes used by millions everyday to travel for work and leisure. Tour guests saw first hand the technology and skills needed to build the engines. Honeywell recently its operations in Arizona, augmenting warehouse space and upgrading its distribution infrastructure.

Next, tour guests visited Nikola, an electric and alternative fuel vehicle company on the forefront of developing semi-trucks in Coolidge, Arizona. They saw how batteries are assembled on the production line and had the opportunity to take in Nikola’s electric trucks. Like Honeywell, Nikola is in the process of expanding its facilities to further increase its manufacturing capacity. 

At the end of day 1, tour guests visited Pima Community College in Tucson. The community college is focused on expanding its — hubs for equipping next-generation manufacturing workers — along with the school’s partnerships with the business community. 

Tour guests saw the new Advanced Manufacturing Center that is set to open in 2023. Attendees also viewed the $21 million to the school’s aviation center that opened just two weeks ago.

To open day 2, tour guests visited the Caterpillar facility in Tucson. Caterpillar uses the site mostly for research and development, giving tour guests the chance to see some of the company’s products and technologies.

The tour concluded with a visit to the University of Arizona in Tucson to witness the partnership between the university and Raytheon Technologies in action. 

This partnership is conducting cutting-edge hypersonics research that was showcased for tour guests. Three wind tunnels were , with the newest one being tested just last week. Additional private partners will be coming soon to further assist the project.

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In his State of the State address last week, Gov. Doug Ducey said that Arizona is no longer a “flyover state on the way to Texas.” Based on the recent slew of investment announcements from world-renowned companies, his assessment of the state’s ability to attract and retain growing businesses is on the mark. 

On January 11, EMD Electronics, a chemical supplier for semiconductor companies, unveiled its plans to build a new $28 million factory in Chandler. The company has been steadily growing its presence in Arizona since the company in Tempe in 2019.

is the North American electronics business of Merck KGaA, Darmstadt, Germany. The company’s portfolio includes a broad range of products and solutions for the semiconductor industry. 

The new tech center will allow EMD to manufacture equipment necessary to capture and grow its gas and chemical delivery systems in North America, Europe, and Asia.

“Arizona is excited to welcome EMD Electronics’ new factory,” “EMD Electronics’ Delivery Systems and Services expansion is a valuable addition to our state’s thriving semiconductor ecosystem, increasing manufacturing and transportation capabilities critical to the semiconductor production process. We look forward to continuing to grow ´ˇ°ůľ±łú´Ç˛Ô˛ąâ€™s unrivaled semiconductor supply chain.” 

This investment comes just months after Intel, one of the largest semiconductor manufacturers in the U.S., announced the plan to expand into Chandler with Fab-42. 

Sandra Watson, president and CEO of the Arizona Commerce Authority, spoke on the competitive edge this investment gives , “EMD Electronics’ investment in Chandler advances its position as a global semiconductor materials leader. The company’s enhanced presence will bolster Chandler’s position as a technology hub, creating quality jobs and supporting existing semiconductor leaders in the state.”

The $28 million factory will be designed with specifications in mind to meet business needs through additional capacity for GASGUARD and CHEMGUARD systems. At full capacity the center is expected to house at . The factory lease is long-term and the company expects to be able to start operations at the end of 2022. 

“The opening of our new factory shows our commitment to further support our customers’ ambitious growth plans. We are proud to expand our production capacity and innovation footprint in Arizona and to contribute to the state’s development as a major semiconductor hub in the U.S.,” , head of the delivery systems and services business unit within the electronics business sector of Merck KGaA, Darmstadt, Germany. 

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The passage of the federal budget, otherwise known as the Build Back Better Act, in the U.S. House of Representatives last month means that the Democratic led Senate will now take it on. The massive bill has several provisions taken straight from the Protecting the Right to Organize (PRO) Act, an organized labor-backed bill strongly opposed by the business community. 

Because the PRO Act would need 60 votes to overcome a Senate filibuster and make its way to the president’s desk, congressional Democrats instead chose to insert several elements into the reconciliation bill, which would only need a simple majority to pass. The labor provisions’ inclusion in the larger bill, however, would need to be approved by the Senate parliamentarian.

Pieces from the original legislation that made their way into the :

• Financial penalties–Allow for the National Labor Relations Board to assess up to $50,000 for each violation and $100,000 for repeat violations of fair labor practices. Additionally, these penalties would be applicable to a director or officer of the employer if the NLRB determines that they “directed or committed the violation, had established a policy that led to such a violation, or had actual or constructive knowledge of and the authority to prevent the violation and failed to prevent the violation.”
• Increased Funding–Approximately $2 billion in new funding is allocated in the bill for the Department of Labor and split among seven agences. One agency of special interest to the labor community is the Wage and Hour Division, which could create implications for the gig economy and app-based workers.
• Tax Rebate–Electric vehicles that are assembled at a unionized factory would be eligible for a $4,500 tax rebate at sale. This provision would push nonunion companies to choose between operating at a competitive disadvantage or protecting their employees 
• Rebate Program–Union contractors that perform home improvement work eligible for the “High Efficiency Electric Home Rebate Program” are slotted to receive a project bonus of $250 above non-union contractors, even when performing similar work. In order to qualify for the bonus, the contractor must abide by collective bargaining agreements and follow prevailing wage requirements. 
• Wage Requirements–Thirteen different programs in the reconciliation bill include a prevailing wage requirement for specific classes of employees. Under these requirements, all laborers employed by contractors on projects are paid at the prevailing wage rate, which is typically pegged to the union rate in the area rather than the average wage. 
• Advanced Manufacturing Production Tax Credit–Any unionized manufacturing facilities would receive an additional 10% bonus to the tax credit, which is provided for manufacturing components that are used for wind and solar power production.
• Union Campaign Funding–A $250 above-the-line tax deduction is available for workers who pay full union dues, including the dues that fund union political activities and lobbying. Unionized workers who pay agency fees cannot take the deduction. Agency fees do not support the unions political activities, meaning that this provision indirectly subsidizes union political campaigns. 

“The PRO Act is bad as standalone legislation, and it’s just as bad when it’s slipped into the larger budget bill,” Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry President and CEO Danny Seiden said. “These provisions are straight out of the Big Labor playbook and should be rejected by the Senate.”

Concerns with the Build Back Better Act for businesses do not stop at the costly labor provisions, however. The inflation and supply chain issues that the U.S. has been experiencing will be exacerbated by the passage of the bill. 

According to the seven separate estimates released by the , the bill will increase the national deficit by $122 billion in 2022. The bill is expected to have drastic inflationary implications, as it accounts for more than $153 billion in transfer payments and tax cuts for individuals. This will fuel consumption and in turn continue to increase inflation. 

Ariz. Sen. Kyrsten Sinema, D, and other Senate moderates are the last line of defense to protect the economy. Sinema previously spoke out saying that she would not support the legislation until the infrastructure bill had been passed. With theinfrastructure bill now signed into law, how Sen. Sinema and her Democratic colleague from West Virginia, Sen. Joe Manchin, will vote is under intense focus by both proponents and opponents of the bill. 

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KORE Power has chosen Buckeye, Ariz. as the location for its first lithium-ion battery production facility. The plant is slated to be a 1-million-square-foot “KOREPlex” that employs 3,000 full-time workers. 

KORE has promised that the facility will operate with net-zero carbon emissions and that it could produce enough power for up to 3.2 million homes. Further, it “will support up to 12 gigawatt hours (GWh) of battery cell production.”

According to a from the company, KORE Power is “the leading U.S.-based developer of battery cell technology for the energy storage and electric transportation industries.”

KORE’s selection of Arizona for its first factory comes amid a boom in the state’s economic prospects and the rapid expansion of its technology sector. Maricopa County, which is home to the city of Buckeye, is now the in the nation by population, and the fifth-largest county in America.

Strengthening America’s domestic battery supply chain

Lithium-ion batteries undergird everything from iPhones to energy storage, and their importance spans nearly every industry. This is increasingly true as technology develops further and people across the world become more digitally integrated.

China currently dominates lithium-ion battery supply chains, while the United States, ranked 6th place globally. China has 93 “gigafactories” which manufacture battery cells, while the U.S. only has 4. are bleak: China is slated to have 140 by 2030, and the U.S. is estimated to have 10 based on the country’s current trajectory. Even Europe will have more of these factories than America, with a projected 17 gigafactories by 2030.

The challenge extends beyond manufacturing capacity, however, and reaches into mineral extraction and processing. In fact, there is only one lithium mine in all of North America, located at Silver Peak, Nev. According to the, “Six mineral operations in Australia, two brine operations each in Argentina and Chile, and one brine and one mineral operation in China accounted for the majority of world lithium production.”

These combined statistics illustrate the niche that KORE sees itself filling. Marketing itself as the first American domestic lithium battery production company, KORE Power could lead the next generation of American high-tech manufacturing.

The Biden Administration’s focus on shifting supply chains closer to home lines up neatly with the company’s goals.

Warm welcome

Arizona leaders are welcoming KORE to the growing silicon desert. 

Gov. Doug Ducey , “Not only will this facility create thousands of new jobs, it will position Arizona as an anchor in the global battery manufacturing supply chain. We’re grateful to CEO Lindsay Gorrill and the entire KORE Power team for choosing our state. We look forward to partnering in your success for many years to come to further sustainability here in Arizona around the world.”

Arizona Sen. Kyrsten Sinema , “I join all Arizonans in welcoming to our state KORE Power and its new manufacturing site that will create thousands of new jobs. Arizona is positioned to lead the nation on increasing America’s competitiveness in battery technology, and I will continue supporting this vital industry.”

Emphasizing the role that battery technology will play in efforts to combat climate change, Sen. Mark Kelly , “As one of the nation’s top producers of clean energy technologies, KORE Power plays an important role in maintaining American energy independence. This investment in our electric vehicle infrastructure and climate resiliency will continue to advance ´ˇ°ůľ±łú´Ç˛Ô˛ąâ€™s leadership in the tech sector as well as help our nation achieve its renewable energy goals.”The Arizona Commerce Authority that the new project will create 10,000 direct and indirect jobs, not to mention the 3,400 workers who will be employed to construct the facility over an approximately 18-month period.

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Technology salaries and tech job growth in Arizona are outpacing much of the nation, according to two new reports. 

Metropolitan Phoenix is experiencing some of the fastest growth in the nation in tech wages, according to a new report, In 2020, salaries increased 7.6 percent to an average $95,514, the data shows. 

That’s more than double the national average of 3.6 percent growth. It’s also not far behind the national average salary of $97,859. 

As Phoenix jumped to seventh on the list of major cities with the fastest-growing tech salaries in 2020, the state also saw a 6.2 percent increase in tech industry employment, according to a report by the .

Steven G. Zylstra, president and CEO of the council, attributes much of the growth to the pandemic. 

“The COVID-19 pandemic has increased demand for technology,” Zlystra said. “From digital tools and services designed to keep a remote workforce secure and connected, to medical devices critical to fighting the virus, the entire world has relied on technology to keep citizens safe and economies running over the past year.”

As a result, the industry is thriving globally, including in Arizona, he said. 

“As our technology ecosystem continues to grow, there’s a greater demand for talent which drives salaries up,” Zylstra said. 

Software leads the pack in contributing to higher pay 

´ˇ°ůľ±łú´Ç˛Ô˛ąâ€™s has been a key driver of the economy over the last few years, Zylstra said. 

According to the most recent , a comprehensive list of software companies in major U.S. cities, Phoenix is now host to 698 software companies. That’s up 141 companies in less than a year.

Arizona has also succeeded in attracting a diverse array of industry leaders statewide including the Taiwan Semiconductor Manufacturing Company, Nikola, Lucid Motors and Benchmark, Zylstra said.  

Other tech industries fueling salary hikes in Arizona include:

– Advanced manufacturing

-Electric vehicles

-Aerospace and defense

-Health and bioscience 

-Semiconductor 

More jobs in manufacturing than in construction

As the tech industry has grown, there are now more jobs in manufacturing than in construction, according to the

Last year, the state’s tech industry surpassed 2019 in a number of key growth metrics, according to the Arizona Technology Council’s recent fourth quarter.

Highlights from the report show:

-A 29 percent increase in STEM job postings 

-A 6.2 percent increase in employment growth in technology

-A 4.3 percent rise year-over-year in the number of tech firms

Jobs, jobs and more jobs 

The impact report shows that the percentage increases in Arizona pushed the number of tech companies here up to 10,093 and tech jobs up to 201,740. In comparison, tech jobs in California only rose 2.1 percent in 2020. 

For every 100 technology jobs created, 357 new jobs were created in other industries, Zylstra said. 

“Significant headwinds associated with COVID-19 will continue to persist, but I am hopeful as I was last quarter the strength of ´ˇ°ůľ±łú´Ç˛Ô˛ąâ€™s tech industry will continue to grow,” Zylstra said. “That growth benefits employees, employers, and consumers in every industry in the state.” 

What’s happening elsewhere 

The nation’s technologists in established and emerging tech hubs saw their salaries increase significantly during 2020, although the nation’s most prominent tech hubs are still the destination for workers seeking the highest salaries, according to the Dice report. 

In New York City, the average technologist salary rose 11.6 percent between 2019 and 2020, hitting $114,274. Boston salaries have reached $111,069, while Silicon Valley’s average pay stands at $126,801, making it the highest-paying tech hub in the U.S. 

Boston and Silicon Valley both achieved salary growth of 2.4 percent. In Austin, salaries rose 9.7 percent to $104,344 during the same period.

Emerging tech hubs also saw some of the highest growth during the year, including Charlotte with a 13.8 percent increase to $99,691, Orlando with a 13.4 percent increase to $88,598 and Detroit with a 7.7 percent increase to $90,110. 

To view the Dice report on salaries nationwide, go to:  

To read more about the state of the technology industry in Arizona, visit:

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