Made in Arizona. It’s a tag that’s becoming more familiar as the state’s manufacturing base grows. Once heavily reliant on real estate development for its economy, Arizona now boasts more manufacturing jobs than construction. 

To celebrate this diverse and rising sector, Governor Doug Ducey declared April “Made in Arizona Month” to encourage everyone to buy homegrown products from tortillas to semiconductor chips.  

�鶹��ýӳ�� spoke to one of the state’s leaders in the industry about the sector’s evolution and impact, Mark Gaspers, chairman of the board of the Arizona Manufacturers Council (AMC), the voice of the industry.

Gaspers, who is senior manager for Boeing’s State and Local Government Operations in the Southwest, gave his take on the industry’s investment in Arizona over the past decade.  

Here’s what Gaspers had to say: 

Q: How has the manufacturing landscape in Arizona changed in the past decade?

A: A recent report shows that Arizona exports increased by over 51 percent from 2010 and 2019. During that time, manufacturers added 28,000 new jobs, an 18.7 percent increase. By 2019, there were 5,157 manufacturing businesses and 177,300 manufacturing jobs in the state.

Our success is not by accident. Arizona’s legacy companies paved the way for the innovative manufacturing and technology growth we’re seeing today.

Others played a role in pushing forward policies that have attracted new companies and accelerated growth for our long-term �鶹��ýӳ��anufacturers. Elected leaders, communities, the AMC, the Arizona �鶹��ýӳ��, trade associations and the Arizona Commerce Authority under Sandra Watson’s leadership.

Some of the policies that have proven effective are a 75 percent reduction in real and personal property taxes for Arizona Foreign Trade Zone users, refundable tax credits for manufacturers creating jobs and investing in Arizona, and a 100 percent sales factor that reduces corporate tax liability for high wage and fiscal benefit exporters. 

Arizona also created additional depreciation, reducing the taxable value of an asset, and sales tax exemptions on purchases of manufacturing machinery, equipment and electricity used in the manufacturing process.

Education is another reason for our growth. We’ve seen rapid expansion of university research infrastructure and we have robust career and technical education programs with industry collaborating on workforce needs. 

Today, these policies have diversified our economy and the breadth of the manufacturing sector. If you look at our council membership, it reflects a range of sectors and products from the Boeing AH-64 Apache to Karsten Manufacturing Ping Golf Clubs and Sub Zero appliances, to name just a few.

Q: Which sectors are seeing the most growth in Arizona?

A: We’re seeing a historic level of investment by the semiconductor industry. Plans for massive investments by Intel and TSMC (Taiwan Semiconductor Manufacturing Company) are a sign of great things to come. Not only are these companies hiring employees and investing here, they are attracting new companies and suppliers to Arizona. 

Intel’s presence, for example, resulted in $8.58 billion for our economy in 2019. And that’s before its recent of a historic $20 billion investment for two new Arizona fabs in Chandler.

We’re also grateful for Arizona Senator (Kyrsten) Sinema’s leadership in the passage of the bipartisan , which is intended to restore America’s leadership in semiconductor manufacturing. That immediately impacted Arizona’s economy as it welcomed Intel’s plan of expansion.

Arizona has always been a leader in the aerospace and defense sector, and we continue to see growth and investment by Boeing, , , and as well as medium and small companies. There’s also a robust chain of suppliers with proximity to military testing facilities such as . 

To put the extent of the aerospace and defense supply chain in context, take Boeing’s average annual spend with just Arizona suppliers— $1.4 billion per year. That’s roughly two times the economic impact of the last Super Bowl in the state every year.

Q: What does the future look like for Arizona’s manufacturing sector? 

A: The future is bright and that means jobs today and opportunities for students tomorrow. One reason I am so excited for the future is because of the innovation and collaboration we see from our education partners. 

We are fortunate to have Maricopa Community College District represented on our Board of Directors. Maricopa’s partnership with other institutions is a prime example of collaboration by education with industry. Maricopa County Community College District, Central Arizona College and Pima Community College partnered together to develop a unified, industry-recognized curriculum specifically designed to teach the skills needed for high-paying, high-tech advanced manufacturing jobs. NAU recognized this innovation and also partnered with these schools. 

We have outstanding university partners that are focused on the needs of industry as well.

Arizona State University’s Fulton School of Engineering is the largest engineering college in the country. 

The University of Arizona leads the country in research in several technologies including space, hypersonics, and quantum computing.

Embry-Riddle Aeronautical University’s Prescott campus is a crucial pipeline for the future engineering and aviation workforce of tomorrow.

Q: Any concerns for this sector that need to be addressed through state or federal policies?

A: We have seen increased investment here because the state is promoting a globally competitive environment that invites capital, promotes innovation, and furthers investment in research and development. Concerns for the sector would be if these policies were dismantled. 

Additionally, the competitive landscape is not static. We should continue to build upon our policies that encourage companies to invest in research and development in Arizona.

We support continued investment in our education system but do have concerns for our smaller manufacturers impacted by the decision of Prop. 208. We are hopeful that this legislative session yields support to our small businesses. 

Workforce remains a top concern for manufacturers. In addition to our education partners’ eye to the future, their ability to rapidly respond to shocks such as the pandemic are important to all of us as Arizonans. Employment in the manufacturing industry declined by 4.6 percent at the start of Covid, but has seen a return.

We are watching with great interest the debate on Capitol Hill regarding tax reform, labor and environmental issues. 

Q: How is manufacturing helping Arizona’s economy?

A: An underappreciated aspect of manufacturing is the benefit it imparts on all other sectors of our economy. It is an industry that generates significant economic activity well beyond primary manufacturing operations. 

A report by the Rounds Consulting Group states that for every dollar of manufacturing value that is added, another three dollars and sixty cents of value-add is generated elsewhere in the local economy. Additionally, each 1,000 direct manufacturing jobs creates another 1,542 secondary jobs in every other industry for a total of 2,542 jobs.

Other sectors are benefiting, too, from agriculture to health care to retail and transportation. 

As we see in the case of TSMC, large manufacturers that have more of their supply base located in the state magnifies this multiplier effect on the economy. And as we attract higher wage positions within manufacturing with regional and other engineering centers, the impact of the multiplier effect increases as well. 

Arizona’s manufacturing sector has fared remarkably well both prior to and through the 2020 recession. In Arizona, year-over-year growth in manufacturing employment was growing at about 5 percent per annum coming into 2020, thanks in large part to recent state and federal regulatory and tax relief. 

Further, while all states lost manufacturing jobs in 2020, Arizona’s losses appear to be about half the rate observed in other states, and the state continues to attract the interest of potential new manufacturers, which bodes well for resurgent growth in 2021 and beyond.To read more about the AMC, visit: .

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A unique program at Arizona State University (ASU) that partners top students with corporations and government agencies to advance prototypes, product development and other design projects is gaining traction as a talent pipeline for modern industry. 

The program, called Practice Labs, also is helping attract businesses to the state. Not only do companies and agencies get to partner with the brightest students, they have access to ASU’s vast research offerings, laboratories and state-of-the-art as well.

Practice Labs is one example of ASU’s national leadership role in commercializing ideas and sending students into high paying careers, said Jon Relvas, who oversees the program as director of business development, Corporate Engagement and Strategic Partnerships, ASU Knowledge Enterprise. 

“The essence of this is to get students applied experience while in school so when they leave, whether it’s an undergraduate or a graduate degree program, they’re leaving ASU with experience in their field of study,” Relvas said. “Companies want to know students have worked on some challenges, and these students are leaving with major accomplishments on their résumés.”

Practice labs solve complex industry challenges

Practice Labs is designed to help businesses and government agencies achieve their “large objectives,” Relvas said.

“This is meant to help industry go after their vision, and how do we help them get there and utilize all the resources across ASU to do it.”   

Test labs from interior design to space technology 

Each Practice Lab is created to solve the specialized need of a corporate sponsor. When a company or government agency becomes a sponsor, Practice Labs coordinates with ASU’s to find the best students for the test lab. 

Corporate sponsors can pick from any number of programs for a Practice Lab, from software design and development, drone technology, data science, and interior design to space technology. Among the most popular are engineering within Ira A. Fulton and design programs within the Herberger Institute for including architectural design, environmental design, prototype development, and product redesign.  

Since Practice Labs was initiated about three years ago, the program is seeing results including one spinout. 

The company CYR3CON, collaborated with ASU to form a Practice Lab tasked with developing  cyberattack identification software. Students helped accelerate development of a system that uses artificial intelligence, machine learning and data mining to predict when hackers are planning to strike. CYR3CON recently filed its first patent for the software which will be commercialized as part of the company’s suite of products. 

Phoenix Children’s Hospital, one of the highest ranking and largest pediatric hospitals in the country, also formed a Practice Lab with ASU students to create an app that would replace outdated medical forms. The app is designed to eliminate much of the time doctors must spend filling out electronic records every day.  

Practice Labs available year-round 

Unlike internships, Practice Labs are available to industry year-round. Also, projects are not time-limited. Companies and organizations can work with student and faculty teams from a few months to a few years, Relvas said.

“This opens up opportunities for businesses that have a challenge that they want to solve in January and they don’t want to wait until June or July for summer internships to roll around. They’re also not locked into the semester schedule.” 

ASU focus on entrepreneurship and commercialism pays off 

ASU’s focus on collaboration and research with corporate partners is one reason it has been named the most university five years in a row by U.S. News & World Report. 

Much of the credit goes to ASU President Michael Crow, whose vision has transformed Arizona’s largest university into a powerhouse of entrepreneurship and research. In fiscal 2019, its research expenditures totaled $640 million.  

Today, ASU is considered a magnet for industries like Taiwan Semiconductor Manufacturing Co., the world’s largest contract manufacturer of silicone chips. The company recently plans to build a $12 billion plant in Phoenix. The project will create over 1,600 new high-tech jobs and generate thousands of additional jobs in the state.

Communications technology company Zoom also recently announced its plans for ain Arizona. It is looking for space near ASU where it is actively recruiting student engineers. For more information about the practice labs, visit: .

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When the coronavirus two months ago limited medical practices’ ability to perform elective procedures, major health insurers across Arizona had to move quickly to find innovative ways to help providers stay in business and keep patients receiving care.

There is an overwhelming need right now. The American Medical Association that 97 percent of physician practices have experienced a negative financial impact directly or indirectly related to COVID-19. Less than half of primary care clinicians have enough patient volume and cash to stay open another month. 

Meanwhile, of primary care doctors indicate that many providers have had problems securing forgivable loans through the new federal Paycheck Protection Program (PPP). 

With insurance claims down, major health insurers in Arizona including Arizona Complete Health, Blue Cross Blue Shield, Cigna, and UnitedHealthcare are pouring resources and funding into helping providers and patients. 

Most are incorporating more flexibility for providers, helping them start or expand telemedicine, and providing resources and assistance to help them access PPP loans and financial assistance. They have eliminated and reduced many copayments, given credits on premiums, eliminated many COVID-19 related charges, and made substantial donations to help medically vulnerable populations. 

“This has been a surreal pandemic from so many factors so we need to make sure we are investing in our health care sector and ensuring that we have viable providers coming out of this process,” explained Monica Coury, vice president of legislative and government affairs for Arizona Complete Health (ACH), a subsidiary of the Centene Corporation that serves Arizonans through Medicare Advantage, Marketplace, AHCCCS and other programs. 

Innovation required 

Coury said health plan administrators have had to “think outside of the box” to help providers — and patients — survive. 

For example, when Centene learned that some members with complex care needs did not have enough data or minutes on their cell phones to receive telehealth visits, it issued funds to providers to purchase phones or upgrade patients’ phones to avoid healthcare crises. 

Here’s a look at a few of the measures Complete Health and other Arizona insurers are taking to shore up providers and patients during the coronavirus. 

UnitedHealth Group accelerates $2 billion for provider liquidity

UnitedHealth Group announced it is accelerating nearly $2 billion to health care providers to support liquidity needs, initially investing more than $70 million to help communities in need and protect the health care workforce.

This month it also announced it is providing premium credits and discounts worth $1.5 billion to health plan members and employers impacted by the pandemic. For commercial fully insured individual and employer customers, credits ranging from 5 to 20 percent will be applied to premium billings in June.

For a complete list of resources, go to: . 

Cigna emphasizes flexibility 

Cigna Healthcare of Arizona is helping providers a number of ways, including making it easier for hospitals to transfer patients to long-term acute care hospitals, skilled nursing facilities, and acute rehabilitation facilities to help manage COVID-19 patients.

Like all insurers, helping providers move to telehealth has been a big emphasis. Telehealth now accounts for approximately 85 percent of Cigna Medical Group visits. Of these, 25 percent are virtual video visits, company officials said.

They are offering billing and reimbursement guidance for providers and free home delivery of up to 90-day supplies for prescription maintenance medications and 24/7 access to pharmacists.

The Cigna Foundation, in partnership with the New York Life Foundation, has launched The Brave of Heart Fund and is contributing an initial $50 million to the fund that provides grants and support to the survivors of frontline healthcare workers who lose their lives fighting COVID-19.

“Our customers, our employees, and our communities need us now more than ever,” said Courtney Nogas, Cigna spokesperson. “Our top priority is the safety and service of our customers, patients, clients, employees and partners. And, Cigna will continue to do our part to support those on the frontlines.”

For a complete list of resources, go to: .

Blue Cross Blue Shield launches prepayment assistance

One of the ways Blue Cross Blue Shield of Arizona (BCBSAZ) is supporting primary care providers during the pandemic is through a new prepayment financial assistance program for providers in the BCBSAZ Patient Centered Medical Home (PCMH).

These advances will help BCBSAZ PCMH providers cover monetary shortfalls due to the global health emergency and provide critical funding, so they can continue serving Arizonans in need of medical attention, the company stated. Providers can receive partial prepayment of their estimated annual quality incentive payment. 

For more information about how BCBSAZ is supporting healthcare providers, members and the community during the COVID-19 pandemic, visit:  .

Arizona Complete Health offers PPP loan and telehealth assistance

As health providers move to more virtual patient visits, Arizona Complete Health is providing $5 million to help its federally qualified health centers “stand up”  telehealth programs and support in incorporating them into their business models, Coury said.

The company also is providing webinars and other resources to help providers access PPP loans, grants and other financial assistance.

“Our physician practices and healthcare providers are mostly small businesses just like everybody else and, so, there are multiple funding streams right now to help shore up the healthcare sector,” she said. 

As the economy reopens, they will be faced with a new healthcare model, she said. 

“This will be something that sticks with us,” Coury said. “What does it look like after we transition out of this situation?  We cannot load up waiting rooms anymore. That’s going to be in the past. We’re going to have to manage through that and we’re going to have to do that together; payers, providers and policy makers.” For a complete list of Arizona Complete Health resources for providers, visit: .

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The Arizona Manufacturers Council held its inaugural Made in �鶹��ýӳ��anufacturing tour last week.

The Arizona Manufacturers Council (AMC) invited a bipartisan delegation of state lawmakers and industry leaders to tour five manufacturing facilities and a community college as part of its Made in Arizona bus tour.

The two-day event kicked off Oct. 22 at Sub-Zero, where Gov. Doug Ducey gave opening remarks about how the state’s thriving business economy attracts both big and small manufacturing companies.

“From technology and food products to aerospace, defense and beyond, more of the finest products in the world are proudly being made in Arizona,” Ducey said. “I want to send the message to the world’s manufacturers who are searching for the best place to build their products: Arizona is the place for you.”

Next, the delegation visited PepsiCo in Tolleson; Boeing in Mesa; Benchmark Electronics in Phoenix; Raytheon in Tucson; and the Pima Community College Aviation Technology Center in Tucson.

“The Arizona Manufacturers Council thanks all of these innovative companies for opening their doors to show off how their products are improving lives and creating jobs,” AMC Executive Director Allison Gilbreath. “This Made in Arizona tour gave us a small glimpse into the exciting things that are happening in Arizona’s thriving manufacturing sector. From kitchen appliances to helicopters, Arizona is on the cutting-edge of manufacturing technology, creativity and quality.”

Among the state legislators was state Rep. Joanne Osborne, R-Goodyear, who served as the lead legislative coordinator for the tour.

“I am so pleased that there was such enthusiasm among my colleagues on both sides of the aisle to learn more about the pioneering manufacturing occurring in Arizona, and what we as lawmakers can do to help the sector grow,” Osborne said. “The more we can visit with job creators to learn about their challenges, their workforce, and their plans for the future, the more responsive we can be in crafting smart policies that encourage job growth in manufacturing and across the entire economy.”

State Senate President Karen Fann and House Speaker Rusty Bowers joined the bipartisan delegation of 18 lawmakers, which Gilbreath said was especially encouraging.

“Not only did we have an outstanding turnout of state legislators, but we were honored to welcome the leaders of the two legislative chambers,” Gilbreath said. “My hope is that this tour was educational for all of the lawmakers involved and that it will result in future policy reforms that will prove beneficial to the manufacturing sector and spur job growth.”

The trip was part of the AMC’s celebration of Manufacturing Month, which also included the group’s in early October.

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A packed Tempe hotel conference room was the site of a Thursday night public hearing on Resolution Copper, a proposed copper mine in northeast Pinal County near Superior, Ariz., that will be the nation’s largest once mining operations begin.

The hearing was the sixth in a series hosted by the Tonto National Forest, providing supporters and opponents of the project an opportunity to comment on the Draft Environmental Impact Statement, which assesses various environmental components related to the project in accordance with the National Environmental Policy Act.

In addition to public hearings, the Forest Service has made resources , including environmental documents, informational videos and explanatory fact sheets about the mine’s effect on air quality, public safety and more.

“The U.S. Forest Service deserves tremendous credit for the work they’ve put into this draft EIS,” Arizona Mining Association Executive Director Steve Trussell said during his testimony. “The process has reached unprecedented levels of engagement and transparency. That is a testament to the way this process has been conducted.”

Supporters of the mine touted the responsible manner in which environmental concerns have been addressed as well as the project’s economic benefits.

The DEIS estimates the project will result in 3,700 jobs and approximately $1 billion in economic benefit — an estimate the Arizona �鶹��ýӳ�� of Commerce and Industry says might be too low.

“We believe that the Forest Service may have underestimated local tax revenues that will be realized through construction activities and new commercial development such as housing, hotels, retail and more, which will occur as a result of the operation,” �鶹��ýӳ�� spokesman Garrick Taylor said during his testimony.

Southern Arizona Business Coalition Vice President Rick Grinnell testified that the demand for copper is growing, which the Resolution project can help meet.

“Since 1950, the population of the world has gone from a little over 2.5 billion people to over 7.7 billion people— over 3 times,” Grinnell said. “Since 1950, the need of copper has gone up nine times and will continue to do so. We can’t live in a world today without mining.”

Anticipating the need for talented workers once the project comes online, Resolution Copper is partnering with schools in Superior to help prepare students for careers in the mining field and other industries.

“They are funding an incubator and entrepreneurship center in Superior to develop local small business,” Trussell said. “They have provided $1.2 million to the Superior School District and will modernize classrooms and enhance curriculum.”

The Resolution project was made possible by a federal land exchange under the 2014 National Defense Authorization Act, one of 80 land exchanges included in the bill. The project received bipartisan support from the Arizona congressional delegation at the time of the bill’s passage.

on the DEIS will be accepted until Nov. 7.

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Government and business representatives from along the Arizona-Mexico border met at the Fresh Produce Association of the Americas in Nogales, Ariz., Friday to discuss commerce-related concerns for the region.

“What I really want… is to learn what we need to do specifically — when it comes to Nogales, when it comes to Douglas, when it comes to our border communities — to make sure that we’re doing everything possible so that this region can continue to prosper,” said Glenn Hamer, president and CEO of the Arizona �鶹��ýӳ�� of Commerce and Industry.

“This whole area is an incredibly vibrant community,” Hamer said. “It’s leading the way for the state of Arizona.”

State infrastructure, especially in the border region, has been of prime concern for Arizona Gov. Doug Ducey, said Juan Ciscomani, senior advisor for regional and international affairs at the governor’s office.

“He respects and appreciates this area; that’s why he’s been here quite often,” said Ciscomani, who also serves as vice chair of the Arizona-Mexico Commission (AMC) board.

Ducey included funding in his fiscal year 2020 state budget plan for a cold storage inspection facility on the border in Nogales, he said.

“The relationship overall with Mexico has been a key priority for the governor, and [the AMC has] been saying and demonstrating that for now almost five years,” Ciscomani said.

Guillermo Valencia, chairman of the Greater Nogales and Santa Cruz County Port Authority, started off the discussion by describing the interconnected nature of the Nogales communities on each side of the Arizona-Mexico border.

“As a community, Nogales, Arizona, doesn’t stand by itself,” Valencia said. “Nogales, Sonora, is a very important part of our community.”

“Our students go to school there; your students come to school here,” he said. “We go to church there; they come to church here. They come to our parks here; they come to our stores here. We go to the dentist over there; we go cut our hair over there. There’s a big synergy that goes on between both communities, and we depend a lot on each other.”

Friday’s discussion focused on issues affecting businesses that depend on cross-border trade for success, specifically the produce and manufacturing industries.

The Tomato Suspension Agreement, a  between the United States and Mexico that kept tomato supply high and prices low, ended May 7, resulting in a 17.5 percent tariff on tomatoes.

“We’re now facing down duties this week,” said Lance Jungmeyer, president of the Fresh Produce Association of the Americas. “A typical tomato company in Nogales… could be facing $500,000 in cash deposits per week just to stay in business. So, you multiply that over the course of a year, and you can see that it’s very difficult for companies to remain in this business.”

On the other hand, there are new opportunities on the horizon, Jungmeyer said, such as the proposed cold storage inspection facility in the governor’s budget.

“That’s an opportunity to bring in items that we’re not touching at all right now,” Jungmeyer said. “We barely bring in any berries at all, and that’s one of the fastest-growing items out of Mexico. There are other temperature-sensitive items that don’t come to Nogales at all. That’s going to open up a huge opportunity, so it’s a small investment that could pay off for years and years and years, and so that gives us opportunities to promote the corridor and the wait times and system improvements.”

The local port authority in Nogales follows the business community’s lead to determine what the most important challenges are, said Bruce Bracker, vice-chairman of the board for the Greater Nogales-Santa Cruz County Port Authority and supervisor for Santa Cruz County’s third district.

First and foremost, Nogales ports of entry — DeConcini for vehicles and Morley Gate for pedestrians — are extremely shorthanded, leading to long delays crossing the border into the U.S. from Mexico, Bracker said.

“Both of these ports of entry just are not equipped to deal with the needs of today,” Bracker said. “They were built 20, 30 years ago… they’re a floodplain, they don’t have enough passenger vehicle lanes, they don’t have enough pedestrian lanes, and it’s choking our downtown.”

Nogales is losing retail business on both sides of the border because residents don’t want to risk an excessive wait to cross, Bracker said.

“They don’t know what they’re going to get when they walk up to the border — whether it’s going to be a 15-minute crossing, a 20-minute crossing or a two-hour crossing,” he said.

Another issue is that the International Outflow Interceptor (IOI) — the sewer line from Nogales, Sonora, to the Waste Treatment Facility in Rio Rico, Arizona — needs to be upgraded. Misael Cabrera, director of the Arizona Department of Environmental Quality, is  to improve the line, Bracker said.

“We’re a great community; we’re a clean community,” he said. “Our air is clean, and our water is great. We just need to make sure that we protect our infrastructure so that it stays that way.”

Issues such as outdated infrastructure and extended wait times at the border impact the region’s economy in both seen and unseen ways, Valencia said.

“There are people that say, ‘I won’t go. I won’t use it… I won’t cross the border,’” Valencia said. “And they eliminate that from their plans, so that hurts.”

Workforce shortages and border wait times are affecting the local manufacturing industry as well, said Joshua Rubin, account manager at Javid, a Nogales, Arizona-based maquiladora founded in 1983.

Mexican maquiladoras are unique to other manufacturers in that they operate under  established to lower production costs for U.S. manufacturers. Production equipment can enter Mexico duty-free, and finished products can be exported to the U.S. from Mexico at lower tariffs than from other countries.

“The maquila industry, we’re growing,” Rubin said. The industry is expanding, and Javid is seeing more clients than ever before, he said.

There are about 3,000 vacant jobs in the maquiladora industry now, even with an employment increase of 4,000 employees in the past year, Rubin said. As the industry continues to grow, the need for a larger workforce supply grows, too, he said.

“One of the big things that we’re noticing is that a lot of the U.S. companies are seeing the talent that there is here in Mexico,” Rubin said. “It’s a little bit cheaper to be able to manufacture down here, so we have customers that are sending a lot more of their product line down here.”

One of Javid’s clients is even closing down its Pennsylvania facility in favor of having 100 percent of its operations in Mexico, he said.

“The population growth is at a lower pace than the demand for new employees of the maquiladora industry right now,” said Humberto Ramírez, vice president of Javid. “We do need the regional increase of people coming up from out-of-state to come to the borders to look for better-paying jobs, especially now that the minimum wage at the border line increased to double, and it’s a lot higher than it is in the rest of the country, so we can compete salary-wise with the rest of the country.”

One unintended consequence of Mexico’s  near the U.S. border — the result of sweeping economic changes by the country’s current  — is that lower-wage jobs are now approaching or even surpassing the wages of entry-level manufacturing jobs, Ramírez said.

“The Oxxos, the supermarkets that were paying way below the industry — because of this minimum wage increase, all of a sudden they were at the same level,” he said. “They’re competing with us, which created a spiral of turnover… so we’re just adapting to those [changes].”

Now, the maquiladoras want to hire migrant workers from other parts of Latin America, Rubin said.

Companies are hiring, and migrants want to work, but it is difficult for migrant workers to obtain work visas because they are often undocumented and do not have the necessary identification, he said. Many migrants also hope to move on to the U.S. rather than stay in Mexico, he said.

The mayor of Nogales, Sonora, is “100 percent in support” of maquiladoras hiring migrants, but the industry — which makes up about 55 percent of the GDP in Nogales, Sonora — needs Mexican immigration services to get involved so workers can obtain visas, he said.

In total, there are about 100 to 120 maquiladoras employing more than 42,000 workers in Nogales, Sonora, Ramírez said.

Kevin Adam, rural transportation liaison for the Rural Transportation Advocacy Council, said infrastructure — statewide and at the border — needs immediate improvement.

“We’re under-investing by more than a billion [dollars] a year statewide, and that is no more evident than at the border,” Adam said. “Douglas has a plan; they need the funding for it to go. San Luis — same thing.”

Adam said he fears the issue will not be addressed until the state sees a noticeable loss of revenue, which could create “tremendous problems” for the border region.

“At the same time, [there is] tremendous opportunity for economic development if in fact you do see the positive changes,” he said. “We need the infrastructure down here to be a selling point for trade; we don’t need to be shooting for minimal standards.”

Adam and Jungmeyer pointed to State Route 189, which will see , as an example of much-needed infrastructure improvement projects.

It took seven years to “cobble together” funding for SR-189, said Gail Lewis, director of the Office of P3 Initiatives and International Affairs at the Arizona Department of Transportation (ADOT).

Luis Pedroza, finance director for the city of Douglas, said his city suffers from many of the same issues as Nogales.

“The city of Douglas, we’re running out of space; we need more space,” Pedroza said. “That’s why we’re asking for a new port of entry. Those are our issues plaguing us.”

Mexico is Arizona’s largest trading partner, with two-way trade of $16.6 billion in 2018, and visitors from Mexico contribute 60 to 70 percent of sales tax revenue in Arizona border communities,  the Arizona-Mexico Commission.

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