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Corporate Relocation Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Job Market

2020 Regional Competitiveness Score Shows Maricopa County Leads the Nation

In the fifth annual Talent Attraction Scorecard published by Emsi, Maricopa County ranks #1 for its 2020 regional competitiveness score. This ranking is among large counties in the US, defined as having a population of over 100,000 residents. Interestingly, Maricopa County also held the top spot for large counties in 2017 and 2018, and the second spot in 2019. The metropolitan Phoenix market is attracting both businesses and talent at a healthy and self-sustaining rate of growth.

Top 10 Ranking

The top 10 large counties ranking highest for their 2020 regional competitiveness score include:

  1. Maricopa (Phoenix, AZ)
  2. Clark (Las Vegas, NV)
  3. Collin (McKinney, TX)
  4. Williamson (Georgetown, TX)
  5. Riverside (Riverside, CA)
  6. Denton (Denton, TX)
  7. Fulton (Atlanta, GA)
  8. Wake (Raleigh, NC)
  9. Montgomery (Conroe, TX)
  10. Lee (For Myers, FL)

Source: Emsi Fifth Annual Talent Attraction Scorecard.

Note that all of the top 10 large counties ranking at the top for regional competitiveness are in southern or western states. Texas in particular has four large counties that rank high for regional competitiveness.

Emsi defines regional competitiveness as the “job change that occurs due to factors within a region.” This is as opposed to impacts from trends outside the region such as national economic performance or any other influences. With its return to the top spot for 2020, it is clear that locating and growing a business in Maricopa County is a winning proposition.

Data Included in 2020 Regional Competitiveness Score

Emsi’s data analysis focuses on several important measurable factors including:

  • Educational attainment
  • Growth of jobs
  • Growth of skilled workers
  • Migration
  • Population
  • Regional competitiveness

The report highlights several positive trends for Maricopa County, including current business expansions and a tremendous 18% in the growth of skilled jobs. Expansions in semiconductor manufacturing are highlighted, including Intel Corporation’s newest investment, the Fab 42 plant. This single investment accounts for over 10,000 jobs in Arizona, including 3,000 high-tech positions at the facility. Additional jobs include support engineering, equipment technicians, facility management and maintenance, transportation, and administration.

Success in Several Industries Supports Maricopa County’s 2020 Regional Competitiveness Score

However, the 2020 regional competitiveness score recognizes much more success in businesses than just in the semiconductor industry. The report notes that Maricopa County’s success spans a wide range and depth of industries. Ultimately, the report points to a “positive feedback loop” that supports growth:

Existing talent in Maricopa County

Attracts

Company relocations and investments

Attracts

Additional talent to relocate to Maricopa County

This feedback loop results in greater growth overall for Maricopa County and its several cities. For example, the city of Scottsdale has ranked at the top of the list for the 2020 USA job market. As business and jobs grow, so does the need for housing and infrastructure. According to Sperling’s Best Places, future job growth in Scottsdale is predicted to be higher than the US average.

What Should Employers do Regarding the 2020 Regional Competitiveness Score?

Employers should look into the data prepared by Emsi and other organizations such as the Greater Phoenix Economic Council (GPEC). The data may support a strategic relocation to Maricopa County or an expansion of current facilities located in the county. Recently GPEC reported 89 different companies looking to relocate to the Phoenix metropolitan area in their October 2020 Prospect Overview.

Many of these companies are looking to benefit from a lower cost of living, less taxes, and business-friendly policies. As a result of Maricopa County’s top ranking 2020 regional competitiveness score, these companies will also benefit from the county’s job growth, a growing and highly educated workforce, and positive inbound migration of skilled talent.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to find information on highly desirable areas for business relocations and group moves. Our team can help your company understand how the 2020 regional competitiveness score can lead to a successful business relocation with many benefits for both employers and employees.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning more about the 2020 regional competitiveness score for Maricopa County, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Corporate Relocation Corporate relocation tips

2020 Phoenix Relocation: Where are the Companies Coming From?

The Greater Phoenix Economic Council reports that many companies are considering a 2020 Phoenix relocation or expansion. In their October 2020 Prospect Overview, a number of significant data trends are clearly visible. Looking at the data relating to the prospects’ region of origin, we can see the following:

California2528%
New York67%
North Carolina44%
Colorado33%
Texas33%
Florida22%
Illinois22%
Washington22%
Georgia11%
Maryland11%
Nevada11%
New Jersey11%
Ohio11%
Pennsylvania11%
Tennessee11%
Virginia11%
Unknown1416%
International2022%
GRAND TOTAL89100%

One clear data trend is that there are a significant number of companies from the next-door state of California that are considering relocating to Phoenix. The number of companies coming from California is more than four times the number of companies coming from New York. There are usually a number of reasons that a company may desire to initiate a 2020 Phoenix relocation. However, there are some factors specific to California that may be influencing company’s decisions to accelerate their relocation.

What are the Major Factors Driving California Companies to a 2020 Phoenix Relocation?

In looking at the major factors that are driving companies to leave California, three of the most significant factors are:

  1. Cost of Living
  2. Taxes
  3. Business Regulations

Reviewing these major factors in California versus Arizona may show why many companies have a 2020 Phoenix relocation on their agenda.

Factor 1: Cost of Living

On average, the cost of living in Los Angeles versus Phoenix is 67% more expensive. This is a significant different between these two major cities. Nearly every category by comparison costs higher in Los Angeles. Housing costs are 188% more in Los Angeles than in Phoenix. Transportation costs are also significantly higher in Los Angeles, over 40% higher than in Phoenix. From a cost of living standpoint, both employers and employees can benefit with a 2020 Phoenix relocation.

Factor 2: Taxes Drive Many Companies to Plan for a 2020 Phoenix Relocation

Comparing the tax situation in California versus Arizona shows taxes are much higher in California. A comparison of the differences shows the following:

 CaliforniaArizona
Average State Income Tax Rate9.3%4.54%
State Sales Tax7.25%6.60%
Property Tax Per Capita$1,449$1,043

The top state income tax rate in California is an astonishing 13.3%, currently the highest in the nation.

24/7 Wall Street reports that of the states with the highest and lowest taxes, California ranks near the top at #14 on the list for highest taxes, while Arizona ranks near the bottom at #46.

The Tax Foundation noted in a previous study that the five highest state-local tax states (the combined effect of all state and local taxes) were:

  1. New York 12.7%
  2. Connecticut 12.6%
  3. New Jersey 12.2%
  4. Illinois 11.0%
  5. California and Wisconsin 11.0% (tie)

Certainly taxes are a major factor for any company considering a relocation. The significantly different tax rates between California and Arizona provide a strong incentive for a 2020 Phoenix relocation.

Factor 3: Business Regulations

Business regulations can cover a variety of issues, from the necessary permits required to construct office buildings to the number of parking spaces required in a shopping center. It could also include topics such as how workers are classified. For example, California recently passed the AB5 Law requiring many companies to classify “gig” workers as statutory employees, not independent contractors.

Recently Uber and Lyft were successful in their efforts to stop AB5 from impacting their businesses. However, some other businesses impacted by AB5 are not covered in this initiative. Also, there is the specter of continued and increasing regulations relating to how companies actually conduct their business. Locations, employees, products and more are all impacted by California’s extensive regulatory environment.

By comparison, Arizona has been successful in creating a welcoming business climate. The state’s economy continues to grow along with the national economy, and consistently exceeds 2% over time. This stable growth rate is appealing to many businesses. It is also very easy and inexpensive to establish a business in Arizona. The Arizona Commerce Authority notes several ways that the state has reduced regulations:

  1. Streamlining Tax Collections
  2. Eliminating the Need for Multiple (State & Local) Tax Licenses, Returns, and Audits
  3. Reducing Red Tape and Paperwork
  4. Right-to-Work State Ensuring Labor Peace and Business Stability

What Does This Mean for Companies Looking at a 2020 Phoenix Relocation?

As can be seen by the data from the Greater Phoenix Economic Council, the benefits of relocating from California to Arizona are driving many companies to consider a 2020 Phoenix relocation. Employers in California should look at the three major factors of cost of living, taxes, and business regulations to determine if their company, employees, and customers might benefit in multiple ways with a relocation to Phoenix.

Companies should work with a Relocation Management Company (RMC) that has direct experience with state-to-state relocations. RMCs will have knowledge and experience to help companies determine the best plan for a 2020 Phoenix relocation.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to approach a corporate relocation from one state to another state. Our team can help your company determine if a 2020 Phoenix relocation should be part of your future plans.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn if your company should consider a 2020 Phoenix relocation as part of your corporate plans, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Domestic Relocation Trends Job Market Job Seekers Labor Force Talent Mobility

Why is Maricopa County the Fastest Growing County in the US for the 2nd Year in a Row?

For the 2nd year in a row, Maricopa County is the fastest growing county in the US. Located in Arizona, Maricopa County includes the city of Phoenix and its surrounding metropolitan area. The county has a large number of thriving cities and towns, including:

Select Cities in Maricopa County

  • Chandler
  • Glendale
  • Mesa
  • Paradise Valley
  • Phoenix
  • Scottsdale
  • Tempe

Select Towns and Communities in Maricopa County

  • Anthem
  • New River
  • Rio Verde
  • Sun City
  • Sun Lakes
  • Tonopah
  • Wittman

The population of Maricopa County is currently estimated in 2018 to be 4,410,824 residents. After rising to become the fastest growing county in the US in 2017, the county added another 81,244 residents during the next year, for a growth rate of 1.9%.

These 81,244 new residents of Maricopa County represent:

  • 21,644 growth in births over deaths
  • 49,423 growth in US migration
  • 9,902 growth in international migration
  • 275 growth in other categories

Putting Maricopa County Growth into Perspective

To put things into perspective, Maricopa County’s population growth in one year is larger than the entire current population (72,710 residents) of the city of New Britain, Connecticut. New Britain has seen swings in population from growth to loss over the past several years. Starting in 1980 when the city noted a loss of 9,601 residents from 1970, the next decades saw minimal years of population growth and several years of population loss. New Britain’s economy has focused on hardware manufacturing, and the city is the corporate home of Stanley Black & Decker. The city is also home to Central Connecticut State University, Charter Oak College, Creed Monarch, Guida’s Dairy, and Polamer Precision.

The state of Connecticut has lost population for five years in a row. In 2018, Connecticut was the only state in the New England region of the US to record a lower population than the year before. As recently as March 2019, the state of Connecticut continues to experience job losses.

Why Maricopa County Continues to Grow

There are many reasons why Maricopa County continues to grow. The former mayor of Phoenix, Greg Stanton, noted that the city and region has worked to build a sustainable economy focused on areas such as education and export promotion. Also, population has increased as Phoenix has made investments in infrastructure and transportation.

Businesses and residents are prospering due to Maricopa County’s focus on developing amenities and resources, including:

District 1: Ahwatukee, Chandler, Gilbert, Mesa, Queen Creek, Tempe

Development of two key parks to provide multi-use recreational areas. The two parks are currently flood control basins that will be transformed to be functional during storms, and useful to the community year-round with the addition of baseball fields, playgrounds, and tennis courts.

District 2: Apache Junction, Carefree, Cave Creek, Fort McDowell Yavapai Nation, Fountain Hills, Gilbert, Mesa, Paradise Valley, Phoenix, Scottsdale, Salt River Pima-Maricopa Indian Community Scottsdale

Development of a new East Valley animal shelter to increase the quality of care the County provides to rescue animals, reduce the length of stays, and improve the customer adoption experience.

District 3: Anthem, Desert Hills, New River, Paradise Valley, Phoenix

Expanding access to health care, with HonorHealth opening a sixth hospital in North Phoenix, just south of Anthem. The hospital will provide more than 40 beds and a 24-hour emergency room.

District 4: Avondale, Buckeye, El Mirage, Glendale, Goodyear, Litchfield Park, Peoria, Sun City, Sun City West, Surprise, Wickenburg, Youngtown

Creating a pilot program at Luke Air Force Base for a Military Veteran Success Center – West Valley. The Center will provide case management, education and career information, job placement services, and other helpful resources for transitioning military, veterans, and their spouses.

District 5: Avondale, Buckeye, Gila Bend, the Gila River Indian Community, Glendale, Goodyear, Guadalupe, Phoenix, Tolleson, and many smaller communities

Approval for a 950-acre site for the newest utility-scale solar electric generating station in Maricopa County. The Sun Streams Solar 150-megawatt facility will include large-scale battery technology for energy storage, and is the most recent in a long list of solar generating facilities in west-central Maricopa County. This facility reinforces Maricopa County as an economic and technological leader for solar energy development.

What Does This Mean for Maricopa County Employers and Job Seekers?

Employers in Maricopa County may benefit from an influx of job seekers moving to the region. Employers may be able to use Pre-Hire Assessments to identify qualified candidates.

Job seekers may have a number of opportunities to find employment in Maricopa County as population growth continues to increase demand for housing and services. Job Seekers should utilize career resources and a number of job and employment networking sites.

What Should Employers and Job Seekers in Maricopa County do?

Employers in Maricopa County should examine their corporate initiatives to ensure they can leverage the county’s population growth. They should work with a qualified Relocation Management Company (RMC) that can provide a full range of pre-decision services.

Employers may consider relocating new hires or transferees to fill positions in these cities as growth continues. They should provide transferees and their family members with as many valuable resources as possible to help increase relocation success.

Job seekers looking for opportunities should consider cities that rank high as a best place to find a job, such as Scottsdale. Other cities in Maricopa County also rank high as good places to find a job, including Gilbert, Chandler, and Tempe.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to fill positions in their local markets, including Maricopa County. Our team can help your company understand how to use pre-hire assessments to identify qualified candidates. Also, we can help your company design a relocation program following industry best practices that results in higher relocation success rates and greater transferee satisfaction.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s need to find qualified candidates for positions in Maricopa County, or give us a call at 800.617.1904 or 480.922.0700 today.

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