Despite the economic downturn triggered by the COVID-19 pandemic, Arizona’s economy has forged ahead of the pack nationally and remains on track to recover and grow faster than average as the pandemic subsides.

There are various factors that have contributed to Arizona’s economic growth during this challenging time, but the high inflow and growth of fast-growing businesses has certainly contributed to this recovery.

are companies that have a track record of unusually high growth compared to that of competitors. The presence and expansion of fast-growth firms are an indicator of future economic success and prosperity for a state or region, according to Michael Foster PhD, who led the at Harvard University. 

Arizona’s fast-growth economy

In 2019, 105 companies made the Inc. 5000 list of fastest growing private firms in America. Similarly, in a year that has been faced by much uncertainty, 2020 has allowed for more companies to come to light. 

Last year, 107 companies made the Inc. 5000 list. Arizona’s stands out nationally with 7,239% growth over the last year. Such fast growing companies are a driving force behind the economy in Arizona. 

There are many draws to being located in the Valley. Phoenix is currently the 5th most populous city in the nation, and one of the fastest growing as well. The U.S. Census showed that the city of Phoenix grew by Its infrastructure was rated among the best in the nation,  

Powerhouses of the U.S. economy

According to a new , fast-growth firms are truly the “powerhouses of the U.S. economy.” 

During the last economic downturn in the United States, approximately one-third of all new jobs were created by only 2% of the companies. These companies typically had $10 million to $1 billion in revenue and grew at an annual rate of 20% according to the report.

In addition to the growth seen in the “ScaleUps,” or fast growing firms, Arizona is also experiencing a large quantity of businesses moving in and setting up shop. 

According to company relocations resulted in more than 7,000 new jobs for the metropolitan area population. Among these various companies were ShellPoint Mortgage’s expansion into Tempe and Infosys expanding its operations into Tempe as well. Together these expansions count for over 2,000 new careers for Arizonans. 

The recent growth in the economy can also be attributed to sectors such as health care, financial and business services, and manufacturing. 

According to the U.S. Bureau of Labor Statistics, the fastest growing parts of the economy from 2019 to 2029 are projected to be in , where Phoenix’s economy has been experiencing rapid growth as of late. These careers include nurse practitioners, occupational therapy assistants, and physician assistants that are supposed to grow by at least 30% by 2029. 

“The economy is growing in what we would call the right ways because those industries are the ones that tend to be recession-resistant, according to what people have told us,” communications manager for the Phoenix Community and Economic Development Department. 

In 2019, the state’s gross domestic product was the , well above the national average. Looking at the economy amid the COVID-19 pandemic, Arizona is still doing exceedingly well. 

George Hammond at the UArizona Eller College of Management recently took a look at the  

The state is estimated to have a 20% chance of returning to pre-pandemic levels by early 2021 via a V-shaped recovery. There is a 30% chance that there will be a W-shaped recovery, which involves another state shutdown. The most likely scenario at 50% chance is the baseline recovery. This would entail the economy bottoming out which would be followed by a steady and consistent rebound in the economy. 

This growth is projected well before the United States is predicted to be back at pre-pandemic levels of performance, which illustrates Arizona’s capacity for economic expansion.

The post Silicon desert: The rise of fast-growth Arizona firms appeared first on Â鶹´«Ă˝Ół»­.

Arizona Gov. Doug Ducey updated the real estate community Friday on the state’s strong economic recovery from the pandemic and his policy priorities for his two remaining years in office. 

A ”balanced approach” to reopening businesses and Arizonans doing their part to reduce spread of the disease helped the state recover more quickly than most of the nation, the governor said.

“After a year of turmoil and challenges, we are seeing our state return to normal,” he told about 250 attendees at a virtual “breakfast” meeting of the nonprofit , which represents real estate developers in the Phoenix metro area. 

“All of our schools are fully reopening. We’ve lifted occupancy limits on our local businesses. We’ve recovered over 97 percent of the jobs we’ve lost since the start of the pandemic. We’re on pace to add over 300 new jobs by next spring.” 

Stayed on track despite attacks from far right and left 

After the initial shutdown of all but essential businesses last year, Ducey gradually brought the economy back in phases, which earned criticism from both the political right and left throughout. 

But the approach worked, he said. Infection rates have dropped significantly and Arizona ranks in the top five states for the strongest economic recovery. This month, Ducey lifted almost all restrictions on businesses while social distancing and safety protocols remain in place.

“Unlike other states, we never did a shutdown here in Arizona. We withstood the calls from the extremes on both sides, and we will continue to ignore them,” Ducey said. “We always knew that fighting this virus would be dependent on the personal responsibility of everyday Arizonans.”

At the front of the priority list 

Now that the Legislature is in session, progress is being made on a number of the policy agenda goals Ducey laid out in Bills that have passed or are expected to pass this session include expansion of telemedicine statewide, wildfire prevention and inmate firefighter training, a new gaming compact, and a law to protect businesses and others from frivolous Covid-19 lawsuits. 

In listing his priorities, Ducey emphasized a few at the front of the line: meet the demand for Covid-19 vaccines; open schools and catch up students who fell behind during the pandemic; and maintain Arizona’s growing status as a competitor for industry and high paying jobs. 

Meanwhile, Arizona can expect to continue to outpace the rest of the nation moving forward, he said.

Vaccine supply should exceed demand by May 

Arizona’s mass vaccinations efforts have become a role model for the nation, Ducey said. The state has now distributed more than 2.6 million doses with more on the way. 

Arizona was the first state to launch a 24/7 mass vaccination site at the State Farm Stadium, home of the Arizona Cardinals. Last Monday, the total number of vaccinations distributed to the stadium hit the 500,000 mark, Ducey said. Other vaccination sites were also launched at Phoenix Municipal Stadium, the University of Arizona and Chandler-Gilbert Community College. 

Ducey said the only remaining challenge is meeting demand. He is working with federal officials to increase the number of doses to Arizona in the coming weeks, and has been told that supply should exceed demand in May. 

Top priorities moving forward 

Looking ahead, the picture is also bright, Ducey said. New stimulus funding coming into the state, including $12.3 billion for state government, and a growing economy, Arizona will be able to achieve most of his policy , he said. They include:

• Infrastructure projects including expansion of broadband statewide

• Mitigate the impact of Proposition 208 on small businesses 

• Assistance for students who fell behind during the pandemic 

• Planning and new technology to protect Arizona’s water supplies for the future 

• A new state gaming pack with the tribes to expand casinos on reservations and approve sports betting statewide

• Smart energy policy to ensure reliable and affordable energy  

• Forest fire prevention and protection efforts including work training programs for inmates to learn firefighting skills 

In closing, Ducey stated his commitment to keep taxes low and regulations light. He said he wants private industry to know they are a priority for the state. 

“We realize it’s a competitive situation. We’ve been winning more of our fair share of businesses choosing Arizona as a headquarters site over places like California, Texas, Florida, Tennessee, Utah, and Colorado. There’s no reason we can’t keep that going for decades in the future. Our economy is truly diversified with more on the way.” 

The post Governor talks to real estate community about pandemic recovery, policy priorities appeared first on Â鶹´«Ă˝Ół»­.

As Covid-19 continues to take its toll on Arizonans’ health and impact hospital capacity, many citizens have no plans to get immunized even though an effective vaccine is available, recent indicate. 

That’s alarming to the medical community and business groups that came together this week to discuss the economic impacts of getting vaccinated — or not. 

Vaccines are one of the nation’s most important “economic development” tools to prevent the societal and financial costs that come with disease outbreaks, said Arizona economist Jim Rounds, who spoke at the event entitled, How Vaccines Impact Arizona’s Economy. 

“That’s the most cost effective, highest return on investment, economic development project we have ever seen in this country and it has to do with distribution of vaccines,” Rounds said.

AZBio () and a coalition of health and community organizations hosted the discussion to highlight the importance of vaccines to the state’s health and welfare. 

Fifteen medical and business organizations sponsored the event including the Arizona Chapter of the American Academy of Pediatrics, Arizona Academy of Family Physicians, Arizona Nurses Association, Arizona Medical Association, Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry, Children’s Action Alliance, Grand Canyon University, and Greater Phoenix Leadership.

Duration of economic recovery depends on vaccination rates

To put the pandemic’s economic impact in perspective, Rounds compared the pandemic recession with the Great Recession of 2008-09. 

About 7 million jobs were lost in the Great Recession. More than three times that amount, 22 million, were lost during the height of the Covid recession last year.  

Arizona is seeing quicker recovery than other states when it comes to jobs, he said. But certain groups, particularly low-income individuals, are disproportionately affected by the recession, he said.  

“A recession ends when the vaccine is widely distributed,” Rounds said.

To achieve full economic recovery this year, the state will need to vaccinate 20,000 to 30,000 people daily, he said. Currently, only about 8,000 a day are being vaccinated.  

Human and financial costs of not getting vaccinated

Of concern is a growing anti-vaccination movement that is largely based on misinformation, Rounds said. 

Arizona already has one of the lowest childhood vaccination rates, which is “unacceptable,” he said.

“We need to rely on science and research, not dogma,” he said. 

To illustrate the human and financial costs of not getting vaccinated, Rounds referred to research by the Centers for Disease Control that estimates that among children born in the last 20 years, vaccinations prevented more than 21 million hospitalizations and 732,000 deaths.

Another study by the American Academy of Pediatrics on children born in 2009 revealed that compliance with the recommended vaccine schedule would represent $68.8 billion in savings to society, Rounds said.

“The Covid-19 pandemic is a reminder that we have to be diligent with getting information out there and we have to continue to advance science and research to attack these problems.”

Other speakers at the event were: 

• Chandler physician Dr. Andrew Carroll talked about his experience treating hospitalized Covid patients and the importance of vaccines in eradicating disease. 
• Phyllis Arthur, vice president of infectious diseases and diagnostics policy for the Biotechnology Innovation Organization in Washington, D.C., detailed the race by companies like Pfizer and Moderna to roll out hundreds of millions more doses in the next few months.  

To view the entire presentation, go to:

Fifteen health and business organizations sponsored the event including:

The post Economist: Vaccinations fastest route to Arizona economic recovery appeared first on Â鶹´«Ă˝Ół»­.

The CEO of the largest business advocacy group in America, the United States Â鶹´«Ă˝Ół»­ of Commerce, outlined a plan to help the nation’s economy fully recover from the pandemic during his 2021 annual Address in Washington, D.C. 

First and foremost, businesses and the U.S. Congress must work to heal a divided nation and get the public vaccinated, said Thomas Donohue, the CEO of the Â鶹´«Ă˝Ół»­, who made the virtual address this month to about 10,000 attendees worldwide. 

“It’s true that, at home and abroad, we are operating at a time when people don’t always have a lot of faith in institutions. There’s mistrust in government, questions about the credibility of our democratic systems, contempt for capitalism. For different reasons, these factors have helped drive rising support for nationalism or socialism and other divisions,” Donohue said. “Some even ask if these are signals of national decline.

“Well, to that I say: no one has ever bet against America and won. We have it within us to make this a pivot point in our history.”

Call on nation to “rally for recovery” 

In his speech, Donohue urged both industry and national policymakers to “rally for recovery” through infrastructure, immigration reform, workforce reskilling, and global competitiveness. 

With 10 million American jobs lost in the last year, and small business disproportionately impacted – particularly minority – and women-owned businesses, many of which have closed – the Â鶹´«Ă˝Ół»­ is calling on policymakers to focus on a “broad-based” economic recovery. 

“Some industries, businesses, and segments of the workforce have thrived,” he said. “But it’s a very different story for those who have been negatively impacted by the pandemic. Entire industries have been decimated because people aren’t traveling, gathering, shopping, or going out like they used to.” 

To help achieve that, Donohue laid out the Â鶹´«Ă˝Ół»­â€™s priorities this year:   

Continued economic relief for those hardest hit 

Donohue said the Â鶹´«Ă˝Ół»­ will work with the incoming Congress and President Joe Biden’s administration to ensure industries, businesses and workers make it through the end of the pandemic-induced economic crisis. With continued stimulus relief from Congress, growth could return to pre-pandemic levels by the third quarter of this year, he said. 

Long-overdue infrastructure package 

In what has become an annual tradition, Donohue called for national lawmakers to finally pass a “fiscally and environmentally responsible” infrastructure package. 

One way to raise productivity, create jobs, and drive up incomes in a hurry is through a package to modernize infrastructure including roads and bridges and critical networks and to upgrade and expand technology like broadband to deal with the new digital economy where millions of Americans are now working remotely, he said. 

“Even in a 50-50 Senate and a House divided by 5 votes, this can be done—and it might build some goodwill for bipartisan progress on other priorities,” Donohue said. “We’ve been working on this for more than 20 years. Let’s find a way to pay for it, and let’s get moving. This year, there can be no excuses for failure.”

Reskilling an “inclusive” American workforce to meet job demand 

Reskilling workers with an emphasis on women and people of color will foster economic growth, Donohue said. The chamber will be pressing Congress for rapid training programs to connect the unemployed with jobs in new sectors. Employer-led initiatives should lead the way to align industry needs and in-demand skills.

“Some of the best-paying sectors—such as health care or financial and professional services—have more job openings than available workers. If we do this right and do it quickly, we will improve the living standard for millions of Americans and get our economy growing even faster,” he said.

Tackle racial inequality and advance immigration reform  

In addition to job reskilling, Donohue stressed that policymakers need to tackle race-based systemic inequality in education, entrepreneurship, and the criminal justice system – as outlined in the Â鶹´«Ă˝Ół»­â€™s – and immigration reforms to ensure the American workforce is highly skilled. 

Pro-business policies 

As a new government prepares to take the reins, it must not return to excessive regulation or anti-competitive taxes, Donohue warned, citing the positive effects of regulatory relief and pro-business policies on the economy before the pandemic. 

“Now is exactly the wrong time to further test the resiliency of businesses by hiking taxes or heaping on new regulations that do more harm than good,” he said.  

Global engagement to reach 95 percent of consumers 

Finally, Donohue spoke of the need for America to “reengage with the world” through a trade agenda that is focused on selling products to the 95 percent of consumers who live beyond U.S. borders. 

In recent years, the nation’s resilience has been tested through trade wars and tariffs, he said. 

“Yes, let’s make more products in America, but let’s also sell them to the rest of the world. We must extend our reach to the 95 percent of the world’s customers who live beyond our borders. We must catch up to the countries that are inking new trade deals left and right. And we must lift the tariffs that have hurt American manufacturers and farmers and have been paid by American companies and their customers.”

Donohue also called for the U.S. to reaffirm American leadership in multilateral organizations like the and the .

Engage strategically with fastest growing market: China 

China is the biggest global challenge the nation faces, Donohue said. It’s also the biggest market. 

“We must work to stabilize the relationship through strength and cooperation. At the same time we also have to confront the unfair trade and industrial policies that China uses against U.S. companies,” he said. “We must work with our allies to stand up to China, while also pursuing new negotiations with Beijing to protect our intellectual property.”

Growth is fastest path to shrink “extraordinary” expenditures of 2020 

The pandemic is far from over, but if Congress sufficiently supports the economy with the relief it needs, the nation should recover more quickly and be better able to pay down the nation’s $27 trillion debt.

Arizona Â鶹´«Ă˝Ół»­ voices optimism as new president enters office 

As President Biden entered office Wednesday, the Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry voiced its optimism in working toward common . Many of its priorities align directly with the U.S. Â鶹´«Ă˝Ół»­â€™s include tariff-free trade, an infrastructure package that includes water infrastructure and updated ports of entry, and immigration reform to help employers and workers including providing a path to citizenship for recipients of the Deferred Action for Childhood Arrival Program (DACA). 

“We’re encouraged that President Biden is going to make immigration reform a top priority of the early days of his administration,” said Glenn Hamer, president and CEO at the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry. “We will strongly support a plan that puts DACA recipients and Dreamers on a path to citizenship, which we are confident will receive broad, bipartisan support.” 

The business community also looks forward to working with the Biden administration in reforming the country’s “byzantine visa system,” Hamer said. 

“Too many jobs across the economy are going unfulfilled, but a better visa policy can help. We can also build on the promise of the TN visa class and make it easier for professionals in our USMCA partner countries Canada and Mexico to bring their talents here. We also want to work with the new administration on a plan to safely and responsibly ease pandemic-related border travel restrictions.”

To read a complete list of the U.S. Â鶹´«Ă˝Ół»­â€™s goals for this year, go to .

The post Infrastructure, workforce reskilling, immigration reform, global competitiveness top priorities for U.S. Â鶹´«Ă˝Ół»­ in 2021 appeared first on Â鶹´«Ă˝Ół»­.

After an abbreviated legislative session last year due to Covid-19, Arizona lawmakers stepped into the 2021 session this week under pressure to enact policies to steer the state to full economic recovery in the coming months. 

Covid relief will be the first order of business, said the incoming chair of the House Commerce Committee, Rep. Jeff Weninger (R-Chandler). 

“Covid is number one and that’s twofold: rolling out the vaccine and taking care of people, and making sure businesses can survive and thrive and they’re not damaged and go out of business for something that was completely out of their control,” he said.  

Getting the word out about existing and new federal relief programs to help  companies and individuals affected by the pandemic is also a top priority, Weninger said.

Third term as Commerce Committee chair 

Weninger, a small business owner who operates restaurants across metro Phoenix, is serving his third consecutive term as the chair of the Commerce Committee, which oversees regulatory activities that impact industries. 

During his tenure, Weninger has sponsored and co-sponsored numerous business-related bills. Among them, bills to create tax credits to spur affordable housing, expand telemedicine coverage, attract high-tech industry, and institute crowd-funding legislation to give small companies greater access to capital.

Weninger spoke to Â鶹´«Ă˝Ół»­ about what he foresees as top priorities for the 2021 session. 

Adopt business-friendly policies to attract industry, jobs 

In addition to COVID relief, maintaining Arizona’s reputation as a “tax friendly and regulatory friendly” state will be a high priority to continue to attract a diversity of industry and high paying jobs, Weninger said.

“That is why we have been so successful for the past six years. We’ve had a renaissance of businesses moving here and expanding here and growing here and that is why our budget is in the incredible shape it is in today,” he said, referring to the state’s $1 billion rainy day fund. 

Lessen negative impact from Prop. 208 tax hike 

The passage of Proposition 208 moved Â鶹´«Ă˝Ół»­p to one of the highest income tax states for certain earners and small business owners, Weninger said. 

The intent was to provide new funding for education. But tens of thousands of small businesses that file their taxes under the individual tax code could be affected as well. That threatens to severely hamper the state’s ability to retain and attract investment, he said.   

Lawmakers are brainstorming solutions to mitigate some of the impacts, particularly for small companies with 500 or fewer employees. Expect to see some tax reforms to help.  

“The voters voted it in, so how do we keep our budget in a safe place and make us attractive for this mass exodus from California and other states,” Weninger said. “We want to make sure we have policies in place that won’t have them just driving right by Arizona on their way to Texas. 

“We’ve done a great job for a while making sure that doesn’t happen, but we need to find a way to make sure that doesn’t happen with Prop. 208.”

Protection from frivolous lawsuits, regulatory reform, telemedicine

Others goals this session will be to enact legislation to protect responsible companies and organizations from frivolous COVID-19 lawsuits, promote expansion of virtual and digital services like telemedicine, and implement regulatory reforms to reduce costs on companies and individuals. 

Expect bills to close student achievement gaps, fund workforce initiatives, and improve water and transportation infrastructure, he said.  

Alcohol-to-go compromise to push up restaurant, bar profits

As a restaurant owner who had to adapt to survive the pandemic disruptions, Weninger is seeking solutions to aid the struggling bar and restaurant industry as well. One proposal is to expand alcohol-to-go for a variety of establishments. 

“We’re talking about a compromise, a new right for restaurants, bars, grocery stores that don’t have the option right now,” he said. “The bars have been hit very, very hard and they were actually completely shut down for a while, so we don’t want to take a privilege outright that they have had already — and their licenses cost a lot more.”

Federal relief programs for individuals, businesses 

For individuals and businesses financially struggling because of Covid-19, Weninger is strongly encouraging them to apply for existing and new federal relief programs including the Paycheck Protection Program and Employee Retention Tax Credit.   

For more information about these and other programs, go to: . 

The post Covid relief first order of business for Arizona House Commerce Committee Chair in 2021 appeared first on Â鶹´«Ă˝Ół»­.

To check the pulse of entrepreneurs across the nation during COVID-19, Arizona U.S. Representative David Schweikert and other members of Congress met with business owners from across the nation during a virtual roundtable last week.

The lawmakers said they wanted to hear directly from business owners so they can better craft effective legislation going forward and find gaps where small businesses are falling through the cracks. 

Schweikert said small retailers and restaurants are showing some of the highest displacement numbers, and an “unusually high” number of new business filings indicates they are starting new businesses. 

Congress needs to find a way to help them succeed, he said.

“This may be really important for the country’s economic recovery and those in the policymaking world are going to have to think about everything from access to capital, to the regulatory state, and how do we help microbusinesses that are going to be run from home for awhile,” Schweikert said. “How do you help them hit the launchpad and take off? That needs to be part of the economic recovery plan as we work through this.”

Schweikert co-hosted the event with Rep. Bill Foster (IL) and Rep. French Hill (AR) who spoke of legislation to help, including possibly extending the federal Paycheck Protection Program that helped millions of small businesses keep their employees on the payroll, their lights on and rent paid for months during COVID-19 shutdowns. 

All three, once young entrepreneurs themselves, are co-chairs of the bipartisan House Entrepreneurship , which serves as a forum for lawmakers to stay abreast of the most pressing issues facing businesses.  
The event, the Entrepreneurship Roundtable, was hosted with the . The center is a nonpartisan research, policy, and advocacy organization that works with policymakers in Washington and across the country to achieve a policy environment that promotes new business formation, survival, and growth.

Bumpy ride for all 

At the roundtable event, entrepreneurs from a range of industries including technology, real estate, digital food service, engineering, and marketing detailed the damage all experienced and what they need moving forward. 

All reported deep dives in revenues from the disruptions. All have also managed to keep their companies open. 

Federal stimulus programs helped, they said. 

“We might have survived without federal assistance, but it would have meant significant layoffs and downsizing. We did not lay off one person,” said Jimi Allen, CEO and founder of , a marketing and visual services company in Aurora, Colorado.

Almost all of the executives said they benefited from two federal stimulus loan programs created earlier this year to help businesses with 500 or fewer employees: the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, they said.  

Remote workers here to stay?

All of the companies said they have had to go to completely or partially remote operations.  

Lori Anna Harrison of Scottsdale real estate marketing firm , said working remotely has been so successful for her company, they have no intention of switching back. 

“We will never go back to brick and mortar,” said Harrison. “It hasn’t impacted clients at all. We are able to give the same level of service.”

Businesses owned by people of color being left behind 

Sky Kelley, the Black owner of Avisare, a Los Angeles company that uses artificial intelligence (AI) to help government agencies and small businesses procure contracts, said COVID-19 almost devastated her business. 

When the pandemic hit, Avisare was in the late stages of negotiating a major contract with their first private client. That deal instantly went away, she said. Other deals also fell through with government agencies that suddenly were financially strapped as well. 

Meanwhile, all of her highly skilled engineer employees, who were earning six figure incomes, had to move to independent contractor status.

When Kelley applied for a PPP loan, she was turned down. After repeated phone calls and reapplying for an EIDL loan she finally received $68,000. 

Nevertheless, Avisare has survived by scrambling to find new business, she said.

“We were able to ride through it, but we had to get really creative and do double duty while also managing kids and home and childcare.” 

Kelley also expressed concerns that businesses owned by people of color are falling by the wayside during the pandemic, especially companies owned by African Americans.

Legislation to support entrepreneurship 

After hearing from the company heads, Schweikert and the other congressional members spoke of measures they and others are making to help spur innovation and prevent entrepreneurs from falling through the cracks. 

The New Business Preservation Act, for example, would provide funding for innovation and startups. The bill also has provisions to protect women and people of color. 

Schweikert said Congress is continuing to work to come to agreement on a stimulus package for small businesses. 

America’s edge relies on entrepreneurship, he said. 

“Small businesses have always been, and will continue to be, an integral part of our communities,” Schweikert said.

The post Keeping entrepreneurship alive and thriving in the pandemic appeared first on Â鶹´«Ă˝Ół»­.

Arizona is positioned for a faster economic recovery than the rest of the nation, and with some strategic moves on the part of state policymakers and citizens, it should jump back to a leading spot within next year or so, according to local economists.  

“We have the chance for this to be one of the best decades ever, but it’s going to take more work to be in the top five again in terms of economic activity,” said Jim Rounds, president of Rounds Consulting Group, Inc. that advises both public and private sector entities on matters of policy and economics. 

Rounds recently spoke to Â鶹´«Ă˝Ół»­ about why the state economy is outshining the nation and what is needed to keep that momentum going.  

University of Arizona economist George Hammond, featured in a recent Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry , says the most important step moving forward is for Arizonans to stay masked, socially distanced and sanitized. Hammond directs the university’s Economic and Business Research Center at the Eller College of Management. 

“If we can avoid a significant surge in the outbreak as we go through the fall and winter months, I think we’ll continue on a gradual recovery trajectory like a Nike Swoosh type recovery, getting us back to where we were before the pandemic by mid 2021 or in the second half,” he said. 

Tough lessons from Great Recession

Prior to the pandemic, Arizona ranked in the top five in the nation for personal income growth, job growth, population growth and overall economic activity. Much of that growth was due to policy decisions made after Arizona’s economy tanked during the Great  Recession of 2008, both economists said. 

In clawing its way back, the state put several economic pillars in place. One was Governor Doug Ducey’s $1 billion rainy day fund that has proven its worth during the pandemic.  

The state’s competitive tax rates, business-friendly regulatory environment and investment in workforce training and education also have helped put Arizona in a better position than other states, Rounds said.  

Arizona jobs’ picture better than nation

Currently, Arizona is No. 3 in the country in terms of jobs growth. 

Arizona’s healthier data is in part due to it being one of the fastest growing states before COVID-19 hit. Industries like construction and remote retail have stayed strong. Gov. Ducey’s early and gradual reopening of the economy also contributed to jobs and economic growth, Hammond said. 

Personal income bolstered by federal lifelines 

Personal income also got a boost from the bipartisan CARES Act passed by the U.S. Congress in late March to help keep Americans and businesses afloat during the coronavirus shutdowns. 

These lifeline programs have helped families pay their bills and put food on the table, Hammond said. 

In the first few months of the pandemic, CARES Act programs pumped more than $17 billion into the state’s economy including:

• Increased unemployment benefits: Unemployment compensation recipients in Arizona received an extra $600 tacked on to their weekly benefit of $240 for up to two months. That injected about $8.2 billion into the state, amounting to about 2.4 percent of the state’s total personal income last year.  
• The federal Paycheck Protection Program: The program, which provides grants to small businesses to keep employees on the payroll and pay company operating expenses, injected $7 billion into the economy early in the pandemic, representing about 2.1 percent of personal income in 2019. 
• Recovery rebates:  Rebates provided another $2 billion to citizens in the state.
• “So somewhere north of 5 percent of Arizona’s personal income last year was injected into Arizona’s personal income in just a couple of months,” Hammond said. “I think that’s had a significant impact in our ability to deal with the pandemic so far.”

Strategy for moving forward 

A state economic jobs package would be a good step forward to help reskill society, Rounds said. 

“We need to focus on high wage job creation and high tech and make sure universities are supported because they are going to be a supplier of this high wage workforce,” he said. 

Another measure that could stimulate recovery would be state assistance for the tourism industry, the hardest hit large sector, Rounds said.  

Currently, the tourism industry is down about 45,000 jobs. Additional state funding of $10 million a year could do a lot to stop other states from “stealing that pent up demand for tourism activity from under us,” Rounds said.

Meanwhile, state policymakers will have to work “very hard” to pull Arizona out of this downturn, Rounds said.  

“The concern now is, can we continue the momentum into the recovery? I think we can. People forget, we always outperform the U.S.

“When times are good we do better than the U.S. When times are bad, we’re even better.”

The post Arizona headed for faster economic recovery than rest of nation appeared first on Â鶹´«Ă˝Ół»­.

The policies adopted by Gov. Doug Ducey and his administration during the outbreak of Covid-19 have prevented Arizona’s health care system from being overwhelmed and have kept most of the state’s economy open. Although we’ve still lost north of 500,000 jobs, thanks to the public’s cooperation and collaboration we’re now in Phase 1 of the economic recovery and, step by step, we’re reenergizing. 

As Gov. Ducey said in recent press conference, this new phase “is a green light to continue going forward on the way out of this pandemic. Now, this is not a green light to speed. This is a green light to proceed with caution.”

If we want to preserve the progress we’ve made and not backslide toward more infections and overstressed hospitals and risk more business closures, then we’ll all have to adhere to heightened protocols and demonstrate a commitment to responsibly protect ourselves and our fellow Arizonans.

It’s the least we can do.

The Arizona business community is deeply invested in this effort. No business wants to compromise the health of its employees, its customers, or the public, or jeopardize a broader economic reopening.

One of these protocols will include wearing masks in a variety of settings.

Already some brand name big-box retailers, which remained open during the original stay-at-home order since their continued operation was deemed essential, have announced that wearing masks will be required to enter their premises. Other retailers, which have been reopening since getting the May 8 go-ahead from Gov. Ducey, have similarly announced that they’ll require customers to wear masks.

I’ve heard the grumbling, and I get it. Wearing masks isn’t terribly comfortable, and it takes some getting used to. I received plenty of good-natured but deserved ribbing for a photo I posted on social media of yours truly at a special event with President Trump at Honeywell that showed me wearing my mask incorrectly. Over the nose next time! But businesses that are adopting policies to prevent the spread of the virus deserve our applause. They’re demonstrating a genuine concern not only for their own business, but for you, me, and the rest of Arizona.

Another protocol we’ll have to adhere to is the continued practice of physical distancing in retail establishments, dine-in restaurants, and other businesses as they welcome back customers.

Things like one-way aisles in grocery stores and tables appropriately spaced in restaurants will likely be the norm for the near future, as will new check-in procedures at restaurants where before you just grabbed an available table. And don’t be surprised if your hands get a squirt of sanitizer before you’re seated. Some businesses may ask for temperature checks.

If these minor accommodations are what it takes to protect public health and build consumer confidence to get the Arizona economy back into gear and to get tens of thousands of Arizonans back to work (and give others in vulnerable populations a chance to get a long overdue haircut as we advance phases in the reopening), then let’s do it. 

I’m encouraged that the vast majority of the feedback I’m getting is how restaurants, smaller retailers, and barbers and salons are being innovative in the steps they’re taking to protect workers and customers.

Now, not every business and customer will comply. We’ve all seen the pictures of a few places that look mostly like they did pre-pandemic. But hopefully whatever criticism they incur from the public will convince them to change their behavior.

Gov. Ducey throughout this period has wisely and prudently pursued a lighter touch than some other governors during the pandemic, and he has no desire to throw the book at anyone and disrupt any businesses any more than it already has been. A little social pressure and some education in these cases can go a long way.

The news over the last few months has been bleak, but Arizona’s has earned its share of positive headlines.

We’re in the midst of a testing blitz that has dramatically increased the number of tests given in just a few weeks. Maricopa County has undertaken a massive contact tracing effort. Honeywell is churning out millions of N95 masks as it adds 500 manufacturing jobs in the Valley. Professional sports have gotten the ok to resume games here when the leagues start up again. Hotel pools are open again. Zoom, whose video conference software has been indispensable as many of us work from home, announced it is bringing hundreds of jobs here. And, surprising everyone except the outstanding Arizona Commerce Authority team, Taiwan’s TSMC — a global semiconductor powerhouse — made international news with its plans to bring 1,600 jobs to Arizona as part of a $12 billion investment in the state.

So, the ball’s in our court. We can sustain the progress we’ve achieved, continue to control the spread of the virus, and ensure that our economy returns stronger. But it’s up to all of us to act smartly and responsibly.

Glenn Hamer is president and CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry. 

The post The ball’s in our court appeared first on Â鶹´«Ă˝Ół»­.