Arizona job seekers guide

              Arizona Overview i
TABLE OF CONTENTS
The Arizona Job Seekers Guide is one of four
publications produced by the Arizona Department
of Economic Security (DES), Research Administra-tion,
designed to assist out-of-state job seekers.
Companion publications include two Major Em-ployer
Guides, which cover the Phoenix metropoli-tan
area (RS-607), and the cities of Tucson,
Flagstaff, and Yuma (RS-608); and the Arizona La-bor
Market Information Directory (PAL-158).
One copy of each publication is available at no
cost by contacting:
Arizona Department of Economic Security,
Research Administration
Economic Analysis Section
P.O. Box 6123
Phoenix, AZ 85005-6123
Phone: (602) 542-3871 or (800) 321-0381
Internet: www.de.state.az.us./links/economic/
webpage/
Introduction ......................... 1
Arizona Overview ............... 3
Historical Perspective ................ 3
Industrial Development .............. 3
Geography, Climate, Recreation 4
Population ............................... 5
Schools ................................... 5
Job-Search Assistance ............... 6
Communities in Brief............ 7
About this Section..................... 7
Community Briefs ..................... 7
Metro Phoenix, Tucson Housing
Analysis ................................ 14
Cost-of-Living Comparison ......... 18
Economic Overview .............21
Industry Employment ................. 21
Industry Wages........................ 22
Occupational Demand, Wages.. 25
Job Developments..................... 29
Other Job-Search Sources ....35
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i
Reproduction of this publication for commercial
use is prohibited by Section 39-121, Arizona Re-vised
Statutes. Permission to reprint portions of
this for non-profit use may be granted upon writ-ten
request. Write to DES, Research Administra-tion,
in care of Brent Fine, Research Administration
Publications Editor, at the above address.
Date Published: February 2001
Cover Design: Wilbanks Design Inc.
Arizona Job Seekers Guide ii
The Arizona Job Seekers Guide provides general in-formation
on working and living conditions in the
“Grand Canyon State,” as well as references to other
sources of job-search information. Groups that should
find the publication helpful include students planning
career paths, recent high school and college gradu-ates,
those considering career changes, and
out-of-state residents pondering a move to Arizona.
By reviewing similar publications from other states,
along with other available data (see “Other Job-Search
Sources,” page 35), job seekers can make more-edu-cated
decisions about whether Arizona provides the
right employment opportunities.
For easy reference, the Arizona Job Seekers Guide
is organized into four major sections: “Arizona Over-view,”
“Communities in Brief,” “Economic Over -
view,” and “Other Job-Search Sources.”
The first section, “Arizona Overview,” gives a
glimpse of the state’s history, geography and climate,
demographic and employment characteristics, and
general working conditions. “Communities in Brief”
provides background information — population, in-dustrial
makeup — on Arizona’s two major metropol-itan
areas (Phoenix and Tucson) and larger
communities in rural parts of the state. The third sec-tion,
“Economic Overview,” examines recent trends
in Arizona’s industries and occupations. Among top-ics
covered in this section are: recent rates of industry
employment and wage growth; major job-expansion
announcements; and the state’s occupational out-look,
highlighting the many opportunities for em-ployment.
The final section, “Other Job-Search
Sources,” provides a number of additional resources
to aid in the job search, including lists of Arizona
One-Stop Career Center offices and the state’s daily
newspapers.
INTRODUCTION
1
Arizona Job Seekers Guide 2
Historical Perspective
It is thought that the first people to live in Arizona
came from Asia, reaching North America via a land
bridge over what is now the Bering Strait. The early
arrivals settled near water and many constructed ca-nals
to irrigate their crops. These people domesti-cated
animals; made pottery, baskets, and textiles;
and some even mined for precious metals. They
also built homes, some of stone in cliffs and some
made of adobe (sun-baked mud bricks). Settled in
the 12th century
on the Hopi In-dian
reservation
in the northeast
plateau, Oraibi
i s the oldest
continually in-habited
commu-nity
in North
America.
Several centu-ries
later, the
Spanish Conquistadors entered the arid Southwest
seeking missionary converts and the fabled “Seven
Cities of Cibola,” with its gold-paved streets. How-ever,
the Spanish had to first “settle” for discovering
silver, finding the less-precious metal in 1582. A cen-tury
later, these Europeans founded their first town in
Arizona, Tubac, near Tucson in southeastern Ari-zona.
According to many historians, the name “Arizona”
has its roots in a Papago Indian settlement called “Ali
Shonac,” or “place of the small spring.” The Span -
iards discovered silver and other minerals and
shipped them from a location near the Indian settle-ment
they called “Arizonac.” Over the years the “c”
was dropped and the name became Arizona — re -
flecting its Indian, Spanish, and mining heritage.
Following the Mexican Revolution in 1811, Mexico
broke away from Spain, becoming a republic and
creating the Territory of Nuevo (New) Mexico, which
included most of what is now Arizona. Then in 1848,
a treaty following the Mexican-American War estab-lished
the New Mexico Territory as part of the United
States. Two years later the Compromise Act split New
Mexico into two territories, with all land north of the
Gila River (just south of what is now Phoenix) be-coming
Arizona. In 1853, through the Gadsden Pur-chase,
land south of the Gila River became part of
Arizona. A half-century later — on February 14, 1912
(Valentine’s Day) — Arizona became the 48th state of
the union.
Industrial Development
The presence of gold, silver, and copper in Arizona
was the primary force in the industrial development
of the state in the late 19th and early 20th centuries.
Early efforts to mine gold soon gave way to the
search for silver, and Arizona’s standing as a pro-ducer
of mined products was established.
Because copper deposits were often found in
proximity to silver, some gold and silver mining firms
evolved into copper producers. Founded in 1872,
the Morenci-Clifton District was the state’s first suc-cessful
copper mining operation. Mining quickly es-tablished
itself as Arizona’s most important industry,
employing 21 percent of the state’s labor force by
1880. By 1896, total mineral output reached $14 mil-lion,
compared to total output for the state’s stock
and agriculture industries of $3 million and $2 mil-lion,
respectively.
In 1869, when the city now known as Phoenix was
about to be named Pumpkinsville, or Stonewall,
Brian Phillip Duppa declared that a new civilization
was rising — like the mythological Phoenix bird —
from the ashes of the past. For most of its existence,
Phoenix and the surrounding Salt River Valley was an
agricultural center, thanks to an elaborate system of
canals first developed by ancestors of Arizona’s cur-rent
Indian tribes, then expanded to irrigate a wide
variety of crops. Ironically, one of those crops —
long-staple (Pima) cotton — helped lead to the area’s
rapid industrialization during World War II, when a
shortage of rubber forced the need to use Pima cot-ton
for tire production. A half-century later, metro-politan
Phoenix has transformed itself, becoming a
leading center of business and cultural activities in
the Southwest.
One hundred miles to the south is Arizona’s sec-ond
largest city, located at the base of the Catalina
Mountains (hence the Indian name Tucson, “at the
foot of the dark hill”). Founded in the late 1700s,
Tucson was at one time the main hub of activity in
the state. It was originally created as a fortress against
Indian attacks and later became the state’s first terri-torial
capital and home to the state’s first university.
And while at one time the University of Arizona dom-inated
Tucson’s economic activity, today the “Old
Pueblo” is a dynamic metropolitan area with a diver-sified
economy. (For a more detailed description of
the Phoenix and Tucson metropolitan areas, see the
“Communities in Brief” and “Economic Overview,”
pp. 7 and 21, respectively.)
In its second decade of statehood, Arizona saw
tourism establish itself as a major industry. Winter re-
ARIZONA OVERVIEW
3
sorts became the foundation of the industry and grew
rapidly as technological advancements were made in
transportation. The Castle Hot Springs resort near
Wickenburg, which opened in 1896, was one of the
first Arizona hotels catering primarily to winter visi-tors.
Since then, many other resorts and winter tour-ist
facilities have sprung up around Phoenix and
Tucson and in other areas of the state. The industry
became formidable to the extent that it endured,
better than most, The Depression in 1929.
Although the Depression did severely impact Ari-zona’s
economy, many public-service jobs created to
build dams and roads for the fledgling state, to some
extent, offset the Depression’s effects. The economy
struggled, however, until World War II jolted the na-tion
and Arizona out of its economic slump.
But by far the biggest factor that fueled the state’s
rapid growth since World War II was the widespread
availability of air-conditioning in the 1950s. A rapidly
expanding population provided labor for manufac-turers
that, in ever-greater numbers, brought their
operations to the state. With the expansion of com-panies
such as Motorola and Honeywell into the state
during the 1950s, the electronics industry proved to
be a major force behind a burgeoning manufacturing
industry. Today, electronics companies — in fields
such as computer technology and aviation — are the
backbone of Arizona’s manufacturing industry.
Arapidly expanding population has contributed to
strong growth in service-producing industries, such
as health care, retail trade, restaurants, finance, real
estate, transportation, communications, public utili-ties,
and government. Today, service-producing in-dustries
(all major industries except agriculture,
mining, construction, and manufacturing) account
for more than eight of every 10 Arizona jobs.
Geography, Climate, Recreation
Arizona is a unique corner of our country and
world. Larger than 44 other states, its size alone
(113,417 square miles) sets the state apart. One of the
state’s 15 counties, Coconino, is as large as New
Hampshire, New Jersey, and Delaware combined. At
the summit of the San Francisco Peaks near Flagstaff
is Arizona’s highest point, Humphreys Peak, which
rises nearly 13,000 feet above sea level. In contrast,
the waterfront on the Colorado River near Yuma is 70
feet above sea level.
Less than one-fifth of Arizona’s land is privately
owned. One-quarter is reserved for the state’s 16 Na-tive
American tribes, with the balance held in trust or re-served
for the U.S. Forest Service, U.S. Bureau of Land
Management, the state of Arizona, and the military.
Arizona has three basic geographic regions and
each has its own climatic characteristics. There is a
region of high mountains and narrow valleys stretch-ing
from the northwest corner near the Nevada bor-der
through the center of the state to the New Mexico
border. Temperatures in this region range from be-low
zero in the winter to more than 90 degrees in the
summer. Annual precipitation averages 20 inches
and supports the region’s expansive forests and
grassy meadows. Some mountainous areas receive
more than 12
feet of snow
annually, pro-viding
excel-lent
skiing
conditions.
The plateau
region of Ari-zona
spreads
northeast from
the band of
mountains that
cuts diagonally across the state. It is an area of high
elevation mesas and plateaus and is separated dra-matically
from the mountain region by the magnifi-cent
Marble Canyon on the west and the Mogollon
Rim (pronounced Mo-gee-on) which runs through
the center of the state. It is in this area that Arizona’s
largest Indian reservations are found. Temperatures
are more moderate here because of the mile-high ele-vation.
Precipitation amounts to less than 10 inches
annually, with a small amount falling as snow.
The desert region of Arizona lies to the south of the
mountain region. It is in this area that the state’s two
largest metropolitan areas, Phoenix-Mesa (Maricopa
and Pinal counties) and Tucson (Pima County), are
found. The desert region is characterized by isolated
mountains rising abruptly out of low, broad valleys
and plains. Here, the mountain’s forest of conifers
gives way to clusters of statuesque saguaro cactus
that, in the minds of many, have come to symbolize
the American Southwest.
Temperatures in the desert region normally range
from slightly below freezing on winter nights to more
than 110 degrees during the heat of the summer days.
In Phoenix, the average high and low in July is 106 and
80 degrees, respectively, and in December, 66 and 42.
Annual precipitation in Phoenix is about 8 inches.
Tucson temperatures are slightly lower because of the
city’s higher elevation and precipitation is about 12
inches per year. (For details on geography and cli-mate
of other cities, see “Communities in Brief,” p 7.)
In addition to attracting newcomers with the pros-
Arizona Job Seekers Guide 4
pect of finding jobs, Arizona tempts many with its
warm climate and lifestyle. One in seven Phoenix
homes and one in 10 Tucson homes have a private
swimming pool. Tennis courts, racquet clubs, and
golf courses dot the landscape.
Recreational and sports activities abound in Ari-zona.
Although largely desert, Arizona has more rec-reational
boats and golf courses per capita than any
other state. Large man-made lakes, the Colorado
River, and the nearby Gulf of California offer wa-ter-
related recreation, while extensive mountain for-ests
provide camping, hiking, fishing, and hunting
opportunities, as well as three snow-skiing facilities.
Hiking, bicycling, picnicking, and fishing are but a
few of the activities that are also offered in Arizona’s
state and city parks. In fact, South Mountain Park in
Phoenix is the largest municipal park in the United
States — larger than Golden Gate Park in San Fran -
cisco and Central Park in New York City. And the
o n e - m i l e ,
1,000-foot as-cension
along
the Squaw
Peak trail in
north Phoenix
is one of the
most heavily
traveled inter-city
hiking
paths in the
country.
Arizona also
offers a variety
of participatory
and spectator
sports activi-ties.
Tennis,
racquetball,
golf, and base-ball
are popular and played year-round in the desert.
Baseball and softball leagues are offered for all ages,
as well as football and soccer leagues for children.
Lakes and public and private pools satisfy the swim-ming
enthusiast.
Population
Between 1990 and ’98, Arizona’s population in-creased
by nearly one-third — from 3.7 million to 4.8
million — an annual growth rate of 3 percent, the
second largest increase among all states. Much of
this increase was the result of in-migration, particu-larly
from California, Texas, New Mexico, Colorado,
and Illinois.
Although Arizona is well-known for its retirement
lifestyle and communities, the average age of the
state’s 3.7 million residents in 1990 was slightly less
than the country as a whole. According to the 1990
Census, the median age (half are younger, half are
older) of Arizona residents was 32.2, compared to the
U.S. median of 32.9. While Arizona is the sixth largest
state in land area, it was 24th in population in 1990,
with 32.3 people per square mile. (In ’98, Arizona’s
estimated population of 4.8 million ranked 21st in the
U.S.) Whereas population is fairly evenly distributed
in most states, more than three-quarters of Arizona’s
residents live in the two major metropolitan areas. In
fact, the Phoenix-Mesa metro area alone accounts for
nearly 62 percent of the state’s population.
Despite having more Indian reservations than any
other state, Native Americans comprised only 6 per-cent
of Arizona’s population in 1997. According to
the ’90 Census, the ethnic breakdown of Arizona’s
population was as follows: white (not Hispanic), 72
percent; Hispanic, 19 percent; American Indian, 5
percent; black, 3 percent; Asian and Pacific Islander,
1 percent; and “other,” less than 1/10th of a percent.
Since the ’90 Census, however, Hispanics increased
their numbers significantly, comprising an estimated
22 percent of Arizona’s population in 1997. At the
same time, the white (not Hispanic) population ex-panded
more slowly and its share of the state’s popu-lation
declined to 69 percent in ’96.
Schools
Primary and secondary school districts in Arizona
have generally met the demand of rising enrollments.
Some rapidly expanding communities, however,
challenge their district’s abilities to keep pace, while
declining enrollments in other districts are resulting
in school closures.
The state’s three major universities, which had a
combined enrollment of 101,000 in 1998, include Ar-izona
State University’s three campuses in metro
Phoenix (47,000); University of Arizona in Tucson
(34,000); and Northern Arizona University in Flagstaff
(20,000). Fifteen additional private colleges and uni-versities
are licensed to operate in Arizona.
Arizona’s Community College System, which was
established in 1960, had an enrollment of more than
150,000 students in 1998 at 19 schools (and 38 cam-puses)
throughout the state. The Maricopa Commu-nity
College School District, comprised of 10 schools
in the metropolitan Phoenix area, has the sec-ond-
largest community college enrollment in the na-tion.
The state’s Community College System offers
more than 100 two-year degrees in fields such as
Arizona Overview 5
cosmetology, aviation, health care, real estate, fine
arts, computers and related technology, and automo-bile
repair.
For a detailed list of curricula offered by Arizona
schools, contact the Arizona Commission for
Postsecondary Education (see “Other Job-Search
Sources”).
Job-Search Assistance
Some employment-related services are available
immediately upon declaring Arizona residency,
while others are not. For example, Job Service facili-ties
in Arizona are open to all residents, including
new arrivals who intend to make Arizona their home.
On the other hand, eligibility for unemployment in-surance
(UI) benefits, while trying to find work in Ar-izona,
is dependent upon UI regulations in the state
the job seeker left (see below).
Arizona’s Job Service offices, which are funded by
the U.S. Department of Labor, have detailed informa-tion
on about 15 to 20 percent of available jobs in the
state. Because of this limited information, Job Service
should be viewed as only one source of employment
information — perhaps a starting point. Also, specific
assistance from Arizona Job Service counselors is not
provided to nonresidents. Out-of-state job seekers
will usually receive general information about the
state’s job picture, but not specific job listings, and of-ten
are referred to the DES, Research Administration
for an overview of the employment situation. How-ever,
a national data base of Job Service job listings
(including Arizona’s) is available on the Internet at:
http://www.ajb.dni.us/. In addition, DES, Research
Administration annually publishes an Arizona Labor
Market Information (LMI) Directory, which provides a
wealth of job-search source material.
Job seekers who move to another state to look for
work are often eligible to continue receiving UI ben-efits.
Because benefits are paid by the originating
state, it is that state’s UI office that must determine eli-gibility.
Determination of benefit eligibility often
hinges on whether a job seeker has a reasonable
chance of finding a job in one’s present or related line
of work, or in an occupation that requires previously
acquired skills.
Other job-search resources (many of which are
free) are available to Arizona residents, including ser-vices
provided by community colleges, One-Stop Ca-reer
Centers, professional groups, and associations
and unions. Refer to the last section of this publica-tion,
“Other Job-Search Sources,” or the Arizona La-bor
Market Information Directory, for more
information.
Arizona Job Seekers Guide 6
About this Section
This section provides a thumbnail sketch —includ -
ing population and geographic data — for the largest
and fastest growing areas in the state. Particularly im-portant
to job seekers may be cost-of-living data from
the American Chamber of Commerce Research Asso-ciation
(ACCRA), which provides an affordability
comparison for Arizona cities and other cities in the
West. Also, at the end of this section there is an anal-ysis
of real estate trends in the Phoenix and Tucson
metropolitan areas — which together account for
more than 80 percent of the state’s population and
job opportunities.
Some of the information in this section was ex-cerpted
from Community Profiles, an annual publica-tion
produced by the Arizona Department of
Commerce. Community descriptions are provided in
alphabetical order, not in order of importance. Con-sult
other sources (i.e., newspapers) listed in the final
section of the Arizona Job Seekers Guide to obtain in-formation
on communities not included in this sec-tion.
Community Briefs
Bullhead City
Located in northwestern Arizona on the Colorado
River, Bullhead City has gained national prominence
in recent years
due to two phe-nomena:
its hot
temperatures,
and even hotter
job growth.
Bullhead City is
often cited as
the “hot spot”
in the country
when tempera-tures
soar to
nearly 120 de-grees
in the
summer. And
the home of a power-generating station and the third
largest dam (Davis) on the Colorado River has more
recently benefitted as an across-the-river neighbor of
gambling “boom town” Laughlin, Nev.
Most people working in Laughlin’s casinos live in
Bullhead City because much of the land on the Ne-vada
side of the river is government-owned. Be-tween
1980 and ’90, Bullhead City’s population
doubled and by 1998 reached nearly 29,000.
Bullhead City, which has a community college,
hospital (90 beds), and an airport that handles sched-uled
daily jet service, is 30 miles west of Kingman and
175 miles west of Flagstaff. Las Vegas is about 100
miles to the north.
Casa Grande
Located 45 miles south of Phoenix, this town of
about 22,000 is beginning to reap the benefits of its
location near several transportation corridors.
Named after nearby Indian ruins, Casa Grande has
been primarily an agricultural center. More recently,
however, its economy has become more diversified
and includes manufacturing, tourism, and the recent
establishment of factory-outlet centers.
At an elevation of 1,398 feet, temperatures in Janu-ary
range between 32 and 67 degrees; in July, be-tween
75 and 107. Average rainfall is 8 inches. Casa
Grande has two hospitals (244 beds), a community
college, and a municipal airport.
Douglas
Located directly across from Agua Prieta, Mexico,
the city of Douglas was founded in 1901 as the site of
a major copper smelter, which along with ranching,
dominated the town’s existence for most of its nearly
100 years. But with the smelter’s closure in the
mid-1980s, tourism and manufacturing have become
increasingly important.
Sitting 4,000 feet above sea level, Douglas has a
moderate climate, with average daily maximum and
minimum temperatures of 92 degrees and 65 de-grees,
respectively, in July; and 60 degrees and 28 de-grees,
respectively, in January. Average rainfall is
about 13 inches. Douglas has one hospital (120
beds), branches of a community college and the Uni-versity
of Arizona, and an airport that can accommo-date
small jets.
Nearby attractions include the mining and “Old
West” towns of Tombstone and Bisbee, and several
national forests, which provide hunting, fishing, and
bird-watching opportunities.
Flagstaff
The largest city in northern Arizona, the mountain
community of Flagstaff is located 140 miles due north
of Phoenix at the intersection of interstates 17 and 40.
The city, which sits nearly 7,000 feet above sea level,
received its namesake from a “flag staff” erected by
loggers who settled the area in late 1800s.
With an estimated population of 60,000 in 1998,
Flagstaff accounts for about half of the residents in
Coconino county. While not growing as fast as some
Arizona cities — due to limited private land and a
more restrictive view of growth — Flagstaff’s popula -
COMMUNITIES IN BRIEF
7
tion nevertheless increased more than 30 percent be-tween
1990 and ’98.
Average high and low temperatures in January
range from 42 degrees to 15 degrees. In July, temper-atures
range from a high of 81 degrees and low of 51
degrees. Snowfall in the city is moderate. Flagstaff
has one hospital (126 beds), a state university, a com-munity
college, and an airport that is serviced daily
by several airlines.
Kingman
Located in northwestern Arizona at the intersection
of Interstate 40 and U.S. 93, Kingman is nestled in a
valley between two rugged desert mountain ranges.
An elevation of 3,400 feet provides Kingman,
Mohave County’s seat of government, with moderate
temperatures. January highs average 54 degrees and
lows, 31 degrees. July temperatures range from an
average high of 97 degrees and low of 68 degrees.
Arizona Job Seekers Guide 8
Avg. Temperatures1
Avg. Jan. Apr. Jul. Oct.
City Altitude Rainfall H L H L H L H L
Casa Grande........... 1,405 ft. 8.2 in. 67 32 75 45 107 75 95 65
Douglas ................. 4,020 12.3 60 28 77 42 92 65 79 46
Flagstaff ................. 6,993 19.3 41 14 57 25 81 50 63 30
Globe .................... 3,540 15.8 55 32 73 46 96 70 78 51
Holbrook ................. 5,069 8.6 47 18 71 35 94 60 74 39
Kingman ................. 3,345 10.6 54 31 71 43 97 68 79 49
Lake Havasu City...... 482 2.6 67 38 86 53 109 79 91 58
Nogales .................. 3,800 15.6 64 27 77 37 92 63 81 42
Page....................... 4,380 4.8 48 27 77 47 103 72 78 49
Payson .................... 4,910 21.5 53 23 69 33 92 58 75 39
Phoenix ................... 1,117 7.1 65 39 83 53 105 79 87 59
Prescott ................... 5,410 19.3 50 22 65 33 88 57 71 38
Safford.................... 2,900 9.0 59 27 78 42 98 67 82 46
Sierra Vista.............. 4,620 14.5 57 26 72 36 88 60 76 41
Springerville ............ 6,964 12.1 47 20 69 34 92 60 72 40
Tucson .................... 1,150 11.1 67 38 82 50 101 74 87 55
Wickenburg............. 2,070 11.0 63 31 80 43 104 70 86 48
Yuma...................... 138 2.7 68 43 85 55 106 80 90 61
Note:
1 Degrees in Fahrenheit
Source: Arizona Dept. of Commerce, Tourism Division, 1993
Table 1
Altitude, Average Yearly Rainfall, and Average High and Low Temperatures
(During January, April, July, and October) of Selected Arizona Cities
The city receives 9.4 inches of rain annually.
With its proximity to gambling (Laughlin, Las Ve-gas)
and California, this high-desert community has
become a “hot spot” for RV visitors in the winter. But
its full-time residents have also been on the increase.
From 1980 to 1990, Kingman’s population grew 37
percent, and expanded 51 percent more between
1990 and 1998.
Kingman has one hospital, which was recently re-modeled
and expanded; a community college; and
an airport with twin-lighted runways.
Lake Havasu City
Best known as home to the historic London Bridge
and more recently as a “hot spot” for Spring Break,
this western Arizona city on the Colorado River
started as a planned community in 1963, before in-corporating
in 1978. Continuing to attract retirees
(for some of the same reasons as Kingman), Lake
Havasu City boasted an estimated population of
nearly 40,000 in 1998, up 63 percent from the 1990
U.S. Census
count.
Av e r a g e
temperatures
in January
range from a
high of 67
degrees to a
low of 38 de-grees.
In
July, high
temperatures
average a
toasty 110,
but “cool” to
a low of
about 80 degrees. Rainfall in this low-desert commu-nity
(elevation 600 feet) averages a meager 4 inches
per year.
Lake Havasu City has one hospital (100 beds), a
community college, and regularly scheduled airline
service.
Nogales
Bordering Mexico at the southern-most end of In-terstate
19, Nogales’ principle source of employment
— and 40 percent of its sales tax — comes from ser -
vices and trade, with an estimated 50,000 Mexican
shoppers crossing daily into Arizona. Founded in
1880 as a trading post, Nogales became the first rail
connection between the United States and Mexico
two years later. In 1990, Nogales had a population of
about 19,500 representing a 10-year growth rate of 24
percent. Its population was an estimated 21,200 in
’98, up about 9 percent over 1990.
Nogales is 3,480 feet above sea level and enjoys
moderate Arizona temperatures. January days aver-age
64 degrees and the nights average 27 degrees. In
July, the highs average 92 degrees and the lows aver-age
63.
Nogales has one hospital (80 beds), a community
college extension, and an international airport that
recently added a new terminal, with plans for addi-tional
expansion.
Payson
Home to Zane Grey and his romantic western nov-els,
Payson has gone from a quaint tourist stop to a
thriving resort community in the past decade.
Down-home restaurants, convenience stores, and
small hotels are now competing with upscale eater-ies,
shopping centers, and resorts, as throngs of tour-ists
and retirees seek the area’s clean air, open
forests, and recreational activities.
Located in the center of the state, about 100 miles
northeast of Phoenix on State Highway 87, Payson
sits beneath the majestic Mogollon Rim and the
world’s largest continuous stand of ponderosa pine
trees. At an elevation of 5,000 feet, Payson has a
moderate climate with four seasons. January high
temperatures average 53 degrees, while lows average
23 degrees. In July, the high averages 92 degrees,
while the low averages 58 degrees. Annual average
rainfall is about 20 inches, while average snowfall is
about 25 inches.
Payson has one hospital and one community col-lege.
In 1990, Payson had an official census popula-tion
of 8,377, up 65 percent from the previous
census. The Department of Economic Security esti-mated
its 1998 population at just under 13,000.
Phoenix-Mesa Metro Area
Centrally located within the state, Arizona’s largest
metropolitan area (Maricopa and Pinal counties), in-cludes
more than 40 communities (Table 3), many of
which could be metropolitan areas in their own right,
and accounts for about two-thirds of the state’s labor
force (1.51 million out of 2.27 million in 1998). As
such, job opportunities are created in many industries
throughout the vast economy that comprises this area.
(Note: The primary metro area — where most of the
jobs are located — takes in about a 50-by-50-mile area
radiating out from downtown Phoenix.)
With nearly year-round sunshine, recreational and
leisure activities abound in the metro area (also see
“Arizona Overview”). The Phoenix area boasts more
Communities in Brief 9
than 200 miles of designated bicycle trails, offers
scores of hiking and camping opportunities, zoos,
botanical gardens, countless retail shopping centers,
and four major-league sports teams. Downtown
Phoenix, which has undergone a renaissance in re-cent
years, boasts theaters, convention centers, mu-seums,
and is bordered on the south by the world’s
largest municipal park.
Daytime highs in January average 65 degrees,
while the nights average a low of 39 degrees. In July,
the highs average 105 degrees and the lows average
79 degrees. Average annual rainfall is 7.1 inches,
Arizona Job Seekers Guide 10
Pct. Change
Places 1998 1990 1980 ‘90-’98 ‘80-’90
Phoenix ................................ 1,220,710 983,392 789,704 24.1% 24.5%
Tucson.................................. 468,520 405,371 330,537 15.6 22.6
Mesa.................................... 328,735 361,895 152,404 25.6 89.0
Glendale .............................. 196,820 196,820 97,172 33.1 52.2
Scottsdale ............................. 195,495 130,075 88,622 50.3 46.8
Chandler ......................... 160,165 89,862 29,673 78.2 202.8
Tempe .................................. 159,220 141,993 106,920 12.1 32.8
Peoria ............................. 89,930 50,675 12,171 77.5 316.4
Gilbert............................. 91,290 29,122 5,717 213.5 409.4
Yuma ................................... 68,160 54,923 42,481 24.1 29.3
Flagstaff................................ 59,945 45,857 34,743 30.7 32.0
Sierra Vista ........................... 39,995 32,983 24,937 21.3 32.3
Lake Havasu City ................... 39,655 24,363 15,909 62.8 53.1
Prescott................................. 34,610 26,592 19,865 30.2 33.9
Avondole.............................. 28,650 16,169 8,168 77.2 98.0
Bullhead City................... 28,535 21,951 10,719 30.0 104.8
Oro Valley ...................... 25,455 6,670 1,489 281.6 348.0
Apache Junction .................... 23,005 18,092 9,935 27.2 82.1
Casa Grande ........................ 22,340 19,076 14,971 17.1 27.4
Nogales ............................... 21,235 19,489 15,683 8.8 24.3
Prescott Valley ................ 20,465 8,904 2,284 129.8 290.0
Kingmon............................... 19,225 12,722 9,257 51.1 37.4
Surprise .......................... 18,830 7,122 3,723 164.4 91.3
Fountain Hills .................. 17,280 10,030 2,771 72.3 262.0
Douglas .......................... 15,150 13,058 13,137 16.0 0.6
Table 2
Top 50 Arizona Places, Ranked in Order of Population by Census Count (1980, 1990) and
Estimates (1998)1
with 85 percent of days having some sunshine.
In the Phoenix-Mesa MA, there are 42 hospitals, a
major university (Arizona State), a dozen other
post-secondary schools, and about 80 private techni-cal
and business colleges. Property taxes vary within
each community comprising the metro area, but av-erage
about $14 per $100 of assessed value.
Communities in Brief 11
Pct. Change
Places 1998 1990 1980 ‘90-’98 ‘80-’90
Goodyear........................ 14,305 6,258 2,747 128.6% 127.8%
Florence2 ................................. 13,845 7,510 3,391 84.4 121.5
Paradise Valley............... 13,315 11,773 11,085 13.1 6.2
Payson ................................. 12,780 8,377 5,068 52.6 65.3
Winslow............................... 11,215 9,279 7,921 20.9 17.1
San Luis .......................... 11,090 4,212 1,946 163.3 116.4
Eloy ..................................... 10,240 7,211 6,240 42.0 15.6
Sedona................................. 9,940 7,720 5,319 28.8 45.1
Safford............................ 9,465 7,010 7,359 35.0 4.7
Page .................................... 9,250 6,598 4,907 40.2 34.5
Globe.............................. 8,020 6,062 6,886 32.3 -12.0
Show Low ............................. 7,875 5,020 4,298 56.9 16.8
Cottonwood .......................... 7,775 5,918 4,550 31.4 30.1
Coolidge.......................... 7,240 6,934 6,851 4.4 1.2
Chino Valley ......................... 7,215 4,837 2,858 49.2 69.2
Somerton .............................. 6,625 5,282 3,969 25.4 33.1
Bisbee ............................. 6,525 6,266 7,154 4.1 -12.4
El Mirage.............................. 5,855 5,001 4,307 17.1 16.1
South Tucson ................... 5,705 5,171 6,554 10.3 -21.1
Holbrook......................... 5,645 4,686 5,785 20.5 -19.0
Guadalupe ........................... 5,390 5,458 4,506 -1.2 21.1
Buckeye................................ 5,035 4,436 3,434 13.5 29.2
Wickenburg .......................... 4,990 4,515 3,535 10.5 27.7
Tolleson .......................... 4,675 4,434 4,433 5.4 0.0
Notes:
1 Places in bold showed strongest and weakest population trends between 1980 and 1990
2 Population affected by growth in Arizona State Prison population
Source- US. Dept. of Commerce, Bureau of the Census; and Anz. Dept. of Economic Security, Research Administration, 1991 and 1999
Table 2 (Cont.)
Top 50 Arizona Places, Ranked in Order of Population by Census Count (1980, 1990) and
Estimates (1998)1
Until the past decade, the major draw to this majes-tic
mountain community about 100 miles northeast of
Phoenix and 90 miles southwest of Flagstaff was its
cooler temperatures (elev. 5,347 feet), outdoor activi-ties,
and remnants of its days as a mining
“boom-town” and Arizona territorial capitol. But that
was then and this is now. While tourism (retail trade,
services) still produces the most employment oppor-tunities,
manufacturing, construction, and govern-ment
have expanded their roles the past decade.
With the second-coming of a boom-town, the
combined population of Prescott and Prescott Valley
has skyrocketed, rising 62 percent between 1980 and
’90, and jumping an estimated 55 percent between
1990 and 1998. The population of Prescott Valley,
alone, more than doubled between 1990 and ’98.
The Prescott area’s average high temperature in
January is 50 degrees; lows average 22 degrees. July
temperatures range between an average high of 88
degrees and an average low of 57 degrees. Annual
rainfall averages 18 inches, with a small percentage
of that falling as snow.
The area has one regional hospital (127 beds) and
a Veterans Administration Medical Center, a commu-nity
college, a four-year college, and Embry-Riddle
Aeronautical University.
Sierra Vista
Military operations have always been a part of this
southeastern Arizona community’s heritage. Sierra
Vista, which incorporated in 1956, grew up around
Fort Huachuca, which was established in 1877 as a
cavalry outpost to protect settlers. Today, the fort
protects the entire nation as the headquarters of
many of the U.S. Army’s communications operations.
Located 70 miles southeast of Tucson and 65 miles
east of Nogales, Sierra Vista is situated among some
of Arizona’s most scenic mountains (Huachuca, Dra-goon,
Mule, and Whetstone), offering many recre-ational
activities. It’s also only a stone’s throw from
the historical towns of Tombstone and Bisbee, and
shopping across the border in Mexico.
Temperatures are moderate to cool for Arizona,
with an average high temperature in January of 57
degrees and an average low of 26 degrees. July tem-peratures
range between an average high of 88 de-grees
and an average low of 60 degrees. Annual
rainfall is 15 inches.
With expansion of operations at Fort Huachuca,
Sierra Vista’s population grew 32 percent between
the 1980 and ’90 and another 21 percent between ’90
and ’98.
Sierra Vista has two hospitals, one community col-lege,
a branch campus of the University of Arizona
(see Tucson Metropolitan Area), and a municipal air-port
with three runways and scheduled air service.
Tucson Metro Area
Arizona’s second largest metropolitan area encom-passes
Tucson and the surrounding Pima County.
Located in the southeast portion of the state, Tucson
is 110 miles from Phoenix at the junction of inter-states
10 and 19.
As mentioned in “Arizona Overview,” Tucson is
the state’s oldest city — founded in 1775 — and has
retained much of its mixture of Spanish, Mexican, In-dian,
and Anglo heritage. According to the 1990 cen-sus,
21 percent of Pima County’s population was of
Hispanic origin.
The city of Tucson had an estimated population of
nearly 470,000 in 1998, an increase of 16 percent over
1990. The metropolitan area (Pima County) had an
estimated population of 824,000 in ’98.
Arizona Job Seekers Guide 12
Maricopa County
Phoenix
Tempe
Scottsdale
Mesa
Glendale
Peoria
Chandler
Gilbert
Guadalupe
Goodyear
Avondale
Litchfield Park
Fountain Hills
El Mirage
Surprise
Buckeye
Sun City (Unincorp.)
Sun City West
Pinal County
Apache Junction
Case Grande
Florence
Note:
1 Phoenix-Mesa Metro Area includes Maricopa and
Pinal counties
Table 3
Major Cities, Towns, and Places Com-prising
Phoenix-Mesa Metropolitan Area1
Prescott, Prescott Valley
At an eleva-tion
of 2,100
feet and abut-ting
a large
m o u n t a i n
r a n g e
(Catalinas),
the climate in
Tucson is
s o m e w h a t
milder than
that in Phoe-nix
(about
1,000 feet
lower in ele-vation).
The average high temperature in January is
67 degrees, with lows averaging 38 degrees. July
temperatures range between an average high of 101
degrees and an average low of 74 degrees. Tucson’s
geographic location — next to a mountain range and
closer to the southerly flow of moisture that occurs
during the summer — also helps produce 80 percent
more rainfall than falls in Phoenix to the north. And a
slightly higher elevation brings occasional traces of
snow to the city, while nearby mountains often have
amounts that beckon skiers.
The University of Arizona is Tucson’s largest em-ployer
with more than 10,000 employees, followed
by Davis Monthan Air Force Base with more than
8,000 military and civilian employees. Tourism and
manufacturing of high-technology products also are
stalwarts of the city’s economy.
The Tucson area has 11 hospitals (2,220 beds), in-cluding
a University Medical Center and College of
Medicine. In addition to the University of Arizona,
Pima County offers one community college (two
branches), a state school for the deaf and blind, one
private four-year university, and more than 10 private
technical/vocational schools.
Verde Valley
The Verde Valley consists of several small commu-nities
on the banks of the Verde River about 100 miles
north of Phoenix. At an elevation between 3,000 and
3,500 feet, the climate is more temperate than in
Phoenix and Tucson, with an average high in the
winter of 58 degrees and a low of about 28 degrees,
and average highs and lows in the summer of 95 and
65 degrees, respectively. The Verde Valley receives
about 12 inches of rain a year, about equal to Tucson,
but twice as much as the Phoenix metro area. In re-cent
years, the Verde Valley has been attracting retir-ees
because of its “four-season” climate and
recreational opportunities, which has led to higher
home prices.
At the upper end of Verde Valley is the town of
Clarkdale, which was founded in 1914 as a service
center for the mining community. Lying between
two mountain ranges at an elevation of about 3,500
feet, Clarkdale was the site of a major smelter that
processed ore from the nearby mining town of
Jerome until 1952.
Today, the community of about 2,500 is home to
several mid-size manufacturing companies, includ-ing
one of only two portland cement manufacturing
operations in the state. Tourism is another major as-pect
of Clarkdale’s economy, offering many historical
sites and a scenic 19-mile passenger tour on the Ari-zona
Central Verde River Canyon Line. In recent
years, retirees and families alike have sought out
Clarkdale’s scenery and milder climate, contributing
to the development of a 1,700-home master-planned
community in the mid-1990s.
About 20 miles east of Clarkdale is the town of Cot-tonwood,
which received its name because of its
proximity to a circle of 16 cottonwood trees near the
Verde River. At 3,300 feet, Cottonwood was first used
in 1874 as a site for housing soldiers from nearby Fort
Verde, but five years later was inhabited and founded
by migrating settlers. The town was incorporated in
1960.
Cottonwood, which is largely dependent on tour-ism,
is located near several national forests and mon-uments
and has an “Old Town” area with a number
of arts and crafts shops. The town of 6,000 also has a
large retirement community, is home to one of north-ern
Arizona’s largest hospitals, and has several small
manufacturers.
At the eastern edge of the Verde Valley is Camp
Verde, which was established in 1865 to protect set-tlers
from Indian raids. Today, the town of 7,500 is a
paradise for outdoors enthusiasts with the Verde
River offering fishing and river-rafting opportunities,
and nearby forests that are home to a variety of ani-mals.
Like Cottonwood, Camp Verde is heavily depend-ent
on tourism. One of its main attractions is nearby
Montezuma Castle National Monument, site of some
of the best preserved cliff dwellings in the country.
Camp Verde also has a number of business interests
in construction, ranching, and light manufacturing. A
casino is also operated on the nearby Camp Verde
Yavapai-Apache Indian Reservation.
Yuma
This southwestern Arizona city that borders the
Colorado River was once known for the harsh condi-
Communities in Brief 13
tions of its territorial prison, which kept convicts from
roaming the West. But in recent years Yuma has
been hard pressed to keep visitors away, particularly
during winter and spring when tourists flock to this
thriving desert community. In 1993, Yuma, com-bined
with its namesake county, became the state’s
third metropolitan area, thanks to a nearly 30 percent
jump in population between 1980 and ’90. By 1998,
the city of Yuma had an estimated population of
68,000.
Like its neighboring Arizona cities to the north
(Lake Havasu City and Bullhead City), summers are
not for the timid; Yuma’s average mercury reading in
July peaks at 106 degrees, before falling to an average
low of 80 degrees. In January, highs average 68 de-grees
and lows, 43 degrees.
In addition to tourism, economic activity in Yuma is
heavily influenced by agriculture, which is nearly a
billion-dollar industry. The Marine Corps Air Station
and Yuma Proving Grounds also contribute substan-tially
to the local economy.
Yuma has one hospital (275 beds) and a
half-dozen nursing facilities, a community college,
extension services from three 4-year universities, and
six vocational schools.
Metro Phoenix, Tucson Housing
Analysis
About this Section
Because the Phoenix and Tucson metro areas rep-resent
more than 80 percent of the population — and
more in terms of job opportunities — a review of
housing trends is limited to these areas.
Phoenix Metro Area
The following analysis of 1999 housing prices for
cities and towns in metropolitan Phoenix was ex-tracted
from an article by Jay Q. Butler, Ph.D., direc-tor
of the Arizona Real Estate Center in the College of
Business, Arizona State University. The article ap-peared
in the April 2000 issue of Arizona Business, a
monthly newsletter about the state’s economy pub-lished
by the Center for Business Research in the L.
William Seidman Research Institute in the College of
Business at Arizona State University. (For subscrip-tion
information or to obtain copies of the issue con-taining
the full text of this article, call the Center for
Business Research at (480) 965-3961.)
Phoenix. The Valley’s largest city continued to
have the lowest median resale home price ($93,300).
The median new-home price improved from
$138,270 in 1998 to $141,240 in ’99, much closer to
the metropolitan new-home median price
($146,710).
Since Phoenix is large geographically, it contains a
diversity of housing submarkets. For example. Phoe-nix
accounted for 33 percent of the 1999 metropoli-tan
resale market, with median sales prices ranging
from $77,400 in the Maryvale district to $139,500 in
the Chris-town district. With nearly 11 percent of the
new sales activity, the range of median sales prices
also reflected the market diversity, from $129,975 in
the south Phoenix area to $180,000 in the Union Hills
area. The city of Phoenix had a rate of appreciation
slightly above the metropolitan level in 1999.
Arizona Job Seekers Guide 14
Cities Housing Taxes2
Bullhead City................. $ 81,650 $12.02
Casa Grande ................ 88,900 16.63
Douglas ........................ 49,700 14.86
Flagstaff........................ NA 9.76
Kingman ....................... 79,900 10.22
Lake Havasu City ........... 121,200 10.45
Nogales ....................... 96,950 11.75
Payson.......................... 119,000 12.22
Metropolitan Phoenix........ 126,400 14.05
Prescott/Prescott Valley... 139,400 10.13
Sierra Vista ................... NA 12.62
Tucson .......................... 117,700 16.90
Verde Valley3 ................. NA 11.76
Yuma............................ 98,500 14.92
Notes:
1 New and used homes, excluding mobile homes
and condominiums
2 Dollars per $100 assessed value
3 Cottonwood, Clarkdale, and Camp Verde combined
NA = Not Available
Table 4
1999 Median Home Prices and 1998
Property Taxes for Selected Arizona Cities1
Ahwatukee Foothills. While most of this area
lies within the city of Phoenix, it has been a primary
area of new-home development over the last few
years and merits its own consideration. However, as
the area has built out, the resale sector has come to
dominate the market with 2,135 sales versus 690 sales
in the new-home market. The median sale price for
resale homes increased from $164,000 to $169,000
from ‘98 to ‘99. Because most of the new homes are
fairly comparable to the older/resale homes, the me-dian
new-home price is very comparable at $179,350.
Tempe. Because Tempe is landlocked, its
new-home market
represented only 9
percent of the
homes sold in 1999
versus 30 percent
in Mesa. Arizona
State University
and several other
major local em-ployers
make
Tempe a popular
place to live. Hence, the Tempe housing market sup-ports
higher home prices than the metropolitan area
(as a whole), with a median resale price of $132,000
and a new-home median price of $238,035. The me-dian
resale home price varies from $120,500 in north
Tempe to $142,375 in south Tempe.
Tempe’s popularity, combined with limited hous-ing
supply, resulted in a 1999 median rate of appreci-ation
of 4.5 percent. Even within the city, the rate of
appreciation varies from 5.7 percent in north Tempe
to 4 percent in south Tempe.
Mesa. With 12 percent of the total metro Phoe-nix-
area resale market and 14 percent of new homes,
Mesa has become an important element of the local
housing market. An important reason for Mesa’s
popularity is its relative affordability, with a median
new-home sale price of $133,730 and $112,500 for re-sale
homes. Because the city offers a wide range of
housing at affordable prices, the median rate of ap-preciation
improved from 3.4 percent in 1998 to 4
percent. Since Mesa is large, some variation in the
rate of appreciation would be expected — 4.1 per -
cent in north Mesa, 3.6 percent in south Mesa, and 4.1
percent in east Mesa.
The townhouse sector, popular with retirees and
seasonal visitors, accounted for 21 percent of Mesa’s
total resale market and 14 percent of the metropoli-tan
area’s resale townhouse market. The burgeoning
popularity is evident in rising median prices, which
increased from $64,000 in 1997 to $72,000 in ’99,
while the metropolitan-area median moved from
$77,500 to $81,900. The median rate of appreciation
improved from 3.2 percent to 4.2 percent, with the
highest rate of appreciation (4.3 percent) in east
Mesa.
Chandler/Gilbert. The rapid expansion of the
metropolitan area is especially evident in the grow-ing
communities of Chandler and Gilbert.
New-home activity represented 41 percent (the same
as in 1998) of all single-family homes sold in Chan-dler
with a median sales price of $167,765 ($153,250
in 1998), while the median resale home price was
$126,000 ($119,775 in 1998).
In 1999, nearly 64 percent of all single-family
homes sold in Gilbert were new, but with some ma-turing
of the market, the percentage has dropped to
49 percent with a median sales price of $146,410
($137,000 in 1998). Prior to the current housing
boom, most of the housing developments in Gilbert
consisted of high-priced custom or semi-custom
homes on large rural lots. Hence, the typical resale
home in Gilbert is fairly large: 1,800 square feet with
a median sales price of $142,000. As housing activity
moves more to the mass market, there will be in-creasing
conflict in both cities, especially Gilbert as
residents try to retain their rural lifestyle.
Scottsdale, Paradise Valley and Carefree/Cave
Creek. These communities contain the highest
priced homes in the Valley. Not only does Paradise
Valley have the highest median resale price at
$635,000 but also the largest median size at 3,350
square feet. The Carefree/Cave Creek area had the
second-largest homes, with a median size of 2,755
square feet and a median resale price of $368,000.
While these two areas have relatively small hous-ing
markets, Scottsdale is the third largest market in
the Valley, with a wider mix of housing styles, types,
and prices. The median resale home price was
$225,000 (2,160 square feet), in comparison to
$205,000 (2,200 square feet) in 1998. The new-home
market increased to $270,260 (2,930 square feet)
from $240,980 (2,660 square feet). Because
higher-priced homes tend to experience greater rates
of appreciation, the 5.4 percent rate of appreciation
in Scottsdale would be expected.
As in Mesa, and for the same reasons, the town-house
market is important in Scottsdale, accounting
for 32 percent of the city’s resale market (a median
sale price of $125,500) and 21 percent of the metro-politan
resale townhouse market (a median resale
price of $81,900). Scottsdale represented 43 percent
of recorded new townhouse transactions with a me-dian
sales price of $155,480, in contrast to $136,070
Communities in Brief 15
for the metropolitan area. Since this housing sector is
important in Scottsdale, the 4.9 percent rate of appre-ciation
— significantly above the metropolitan rate of
3.2 percent — is not unexpected. The rate of appre -
ciation was 4.8 percent in north Scottsdale and 5.4
percent in south Scottsdale.
Glendale/Peoria. The Valley’s westside fre-quently
is overlooked in discussions of growing
housing areas, but it does have good markets that
will become increasingly important as other areas
run out of available land and lose affordability. In
1999, more than 55 percent of single-family homes
sold in Peoria were new with a median sales price of
$132,775, in contrast to $117,610 in 1998. In the re-sale
home sector, the median sales price moved from
$106,000 to $112,000. In Glendale, new homes rep-resented
34 percent of the single-family market. The
median resale home
price was $110,005
in ’99 ($103,875 in
1998), while the me-dian
new-home
sales price was
$140,965 ($139,070
in 1998).
Because both ar-eas
have median
sales prices below
those of the metro-politan
area, their
affordability indexes
are among the highest in the Valley. The median
rates of appreciation are well below the metropolitan
levels because most of the homes are in the lower
price ranges, which tend to have lower rates of ap-preciation.
The higher level of new-home activity,
which attracts new residents, probably accounted for
the slightly higher appreciation rate in Peoria.
Sun City/Sun City West. Sun City is now more
than 40 years old, and no new homes are being
added to the community itself, but some new-home
activity is occurring on its borders. The new-home
sector in Sun City West plays a large role because it is
considerably younger. Due to differences in the age
and style of their respective housing stocks, the me-dian
sale prices for resale homes are significantly dif-ferent
between the two areas. The median sales price
in Sun City ($95,000 vs. $93,500 in 1998) is one of the
lowest in the metropolitan area, while Sun City West
has one of the highest at $137,500 ($138,850 in 1998).
The difference occurs even in the townhouse sector
with Sun City at $74,250 and Sun City West at $87,750.
Because these communities have had a leading
role in the active-adult market, strong rates of appre-ciation
would be expected. Sun City West maintains
a strong rate of appreciation of 3.3 percent, while Sun
City is at 3.6 percent. Townhouses, with their low
prices and maintenance requirements, play an im-portant
role in adult communities, so they tend to
have higher rates of appreciation. Since the active-adult
sector is expected to rapidly grow in the com-ing
years, several new westside communities have
been started. These communities, Palm Valley and
Sun City Grand, could begin to impact sales activity
and appreciation in the Sun City/Sun City West com-munities.
2000 and Beyond. Since the above information
was written, preliminary year 2000 housing data for
the Phoenix metro area were released. And from all
indications, the Valley real estate market remained
strong throughout the year, although there was a
slight drop-off in sales from 1999.
Single-family housing resales slowed slightly in
2000, falling 2 percent from 1999’s record pace of
56,365 resales. Final new-home sales were not avail-able
at the time of publication, but through Novem-ber
2000, single-family building permits were down a
mild 1 percent from 1999’s levels to around 32,500.
Overall, the Phoenix metro area remained one of the
top 10 markets in the nation in home sales.
And while the state’s home market is expected to
slow additionally in 2001 and 2002, according to the
Western Blue Chip Forecast, cuts in interest rates in
early 2001 are expected to keep the local market
fairly strong the next two years. Thirty-year fixed
mortgage rates, which averaged around 8 percent in
2000, fell below 7 percent by early 2001.
The median price of an existing home in the Phoe-nix
metro area in 2000 rose 7 percent, or about
$9,000, from 1999 to $128,900. One reason for the
significant gain in the resale price was that Valley
home buyers (particularly, first-timers) decided to
stay away from the more costly new-home market
and instead purchase existing homes that were
priced more affordably. Older neighborhoods in
south and west Phoenix and Glendale showed par-ticular
strength.
Despite the positive outlook, growth management
could affect the real estate market in the future. In
2000, citizens were faced with two approaches to
growth management: Growing Smarter Plus, a more
moderate form of growth management, was signed
into law by the governor in April 2000; taking a
tougher stand against growth, the Citizens’ Growth
Management Initiative, lost at the ballot box in No-vember
2000. Both approaches were in response to
Arizona Job Seekers Guide 16
the demonstrative concerns about the future and na-ture
of land development throughout Arizona. In ad-dition,
many communities have or are exploring the
idea of raising fees associated with new construction.
The potential for higher fees and growth limitations
can greatly influence the future direction of
new-home development, affecting prices for new
and resale homes and the role of affordability in eco-nomic
development. It is uncertain how the efforts to
manage growth will affect real estate. But there is lit-tle
doubt that changes are coming that will influence
the nature, direction, and costs of developing new
real estate projects.
Note: For information on the average cost of apart-ment
rentals in the Phoenix area, see below.
Tucson Metro Area
The Tucson-area housing market was exception-ally
strong in 1999 and through most of 2000, as sales
for new and existing homes were at or near record
levels. But whereas apartment vacany rates and rents
had remained flat prior to 1999, the opposite held
true the past two years, which was not good news for
lower wage earners unable to afford house pay-ments.
The median price for new and resale homes com-bined
rose 4½ percent to $117,700 from 1998 to ’99,
and through the first half of 2000 the combined me-dian
price was hovering in the mid-$120,000 range.
Generally, the median price for a new home in the
Tucson metro area was 15 percent higher (about
$20,000) than the price of an existing home. Data
from mid-2000 showed a median price of a new
home was $136,000, while an existing home was
$117,000, according to the Tucson Housing Market
Letter. Both showed only modest increases in prices
from mid-1999 to mid-2000.
Not surprisingly, housing became somewhat less
affordable in the Tucson MA (and nationally) during
the past few years, according to a report by the Na-tional
Association of Home Builders. While the Tuc-son
MA moved up in rankings (from 126th to 110th)
for housing affordability among 176 other metro ar-eas
in the association’s Housing Opportunity Index
(HOI) from the second quarter of 1999 to the third
quarter of 2000, housing affordability decreased. The
Housing Opportunity Index (HOI) measures the per-centage
of homes in a given area that households
earning the median family income could afford to
buy.1
A family earning the median family income in the
Tucson MA during the third quarter of 2000 ($45,100)
could afford to purchase only 61 percent of the
houses on the market. In the second quarter of ’99,
Tucson’s median family income ($43,600) could af-ford
to purchase more than 66 percent of the homes
on the market.
The Tucson MA compared less favorably to its
metro area to the north, which also saw its housing
affordablilty drop during the five-quarter period. The
median family income in the Phoenix MA during the
third quarter of 2000 ($53,100) could afford 65 per-cent
of the houses on the market, down from 73.5
percent of the homes 15 months earlier. (The na-tional
affordability rate was 58 percent in 3rd Quarter
2000, down from 67 percent in 2nd Quarter 1999.)
But the Tucson and Phoenix metro areas looked
great compared to the Flagstaff metro area, where the
median family income of $45,500 would have only
bought 41.8 percent of houses sold in the third quar-ter
of 2000, which was down from 48 percent in the
second quarter of ’99.
With housing affordability declining, it follows that
apartment vacancy rates would fall and rents increase
faster than in the recent past. And that was the case in
both the Tucson and Phoenix metro areas. Accord-ing
to Phoenix Apartment Report, metro Phoenix
apartment vacancy rates fell 1.7 percentage points to
4.5 percent in the fourth quarter of 2000, compared to
the fourth quarter of 1999. The decline in vacancy
rates occurred despite an over-the-year increase of
nearly 13,000 units. The overall average rent paid in
the Phoenix MA was $689 per month, a 3 percent in-crease
from a year earlier. However, the increase
was mild compared to the mid-1990s, when the aver-age
rental rate rose from $453 in 1993 to $619 in ’98, a
jump of more than 7 percent annually. According to
RealData Inc., a Phoenix. real estate analysis com-pany,
an unfurnished one-bedroom/one-bath apart-ment
in the Phoenix metro area rented for $582 in the
fourth quarter of 2000; a two-bedroom/two-bath cost
$754; and a three-bedroom/two-bath rented for
$1,028.
With much higher vacancy rates in recent years,
the Tucson MA had experienced much milder rent in-creases.
But vacancy rates began to fall in 1999, as
mortgage rates and prices of single-family homes in-creased,
making a home less affordable. The Tuc-son-
area apartment vacancy rate was 10.3 percent,
seasonally adjusted, in the second quarter of 1998,
according to a land-use study by the University of Ari-zona’s
College of Business and Public Administra-tion.
But the vacancy rate fell to 7.9 percent by the
fourth quarter of 2000, according to RealData.
The average rent for an unfurnished apartment in
the Tucson metro area in the fourth quarter of 2000
Communities in Brief 17
was as follows: one-bedroom/one-bath — $456;
two-bedroom/two-bath — $666; and three-bed -
room/three-bath — $799. The overall average rent in
2000 was $527, up 2.7 percent from $513 in 1999.
The average rents were based on apartment com-plexes
with 50 or more units in Phoenix and 40 or
more units in Tucson, and does not include new pro-jects
going though “lease-up phase,” nor subsidized
or student housing projects.
Cost-of-Living Comparison
A quarterly cost-of-living index produced by the
American Chamber of Commerce Research Associa-tion
(ACCRA) is, to Research Administration’s knowl-edge,
the only
cost-of-living index
which is comparable
from city to city.
The ACCRA index
uses a mid-point of
100.0 to substitute for
the average costs of all
cities. The amount by
which any city’s index
is above or below a
value of 100 is that city’s percentage difference from
the average. For example, a city with a composite in-dex
of 132.5 is 32.5 percent more costly than the “av-erage
city” studied; while a city with an index of 97 is
3 percent less costly than the average city. This differ-encing
rule applies to the component indices as well
(housing or groceries, for example).
In Table 5 on the following page, the cost of living
in six Arizona cities or metro areas is compared with
selected cities in the West and around the country for
the third quarter of 2000. Readers should be cau-tioned,
however, that this is only a general measure
of costs, and data shown was for only one quarter of
the year. Finally, it should be noted that these figures
are not related to city data gathered by the U.S. De-partment
of Labor for its monthly Consumer Price In-dex.
Note:
1 Median family income is the median income of households
with two or more persons.
Arizona Job Seekers Guide 18
Communities in Brief 19
Composite Grocery Trans- Health Misc. Goods/
Index Items Housing Utilities portation Care Services
Arizona Cities
Phoenix Metro Area ... 99.0 102.8 100.9 94.9 102.8 117.8 92.4
Flagstaff .................... 102.5 102.1 113.5 96.3 107.8 116.8 91.1
Lake Havasu City ....... 97.7 108.3 98.5 99.5 92.6 96.1 93.2
Prescott/Prescott Valley 113.9 110.1 137.3 96.5 108.9 115.0 101.4
Tucson Metro Area..... 98.8 108.1 93.2 109.7 103.6 116.8 92.1
Sierra Vista ............... 97.4 104.7 90.8 120.5 105.0 102.2 90.9
Yuma ....................... 96.6 98.0 87.8 140.0 105.9 98.5 89.9
Western U.S. Cities
Sacramento, CA ........ 117.7 119.3 130.9 111.0 115.9 137.8 104.8
Los Angeles, CA ........ 147.7 111.4 241.5 114.7 109.1 120.8 109.4
San Diego, CA .......... 120.8 119.9 142.6 122.0 117.5 123.6 103.0
Colorado Springs, CO 97.3 101.2 103.3 74.4 99.1 115.7 92.4
Denver, CO............... 110.0 113.1 123.4 82.9 107.0 128.5 101.7
Albuquerque, NM ...... 99.9 109.1 99.7 91.7 98.1 100.8 97.9
Las Cruces, NM ......... 93.1 103.1 89.2 90.1 90.5 94.7 92.7
Santa Fe, NM............ 113.7 101.1 146.8 85.6 106.5 110.3 101.3
Dallas, TX.................. 99.9 97.0 98.8 95.0 105.6 101.4 101.4
El Paso, TX ................ 92.3 103.1 85.3 90.6 104.3 94.4 89.4
Houston, TX............... 94.3 93.5 84.0 95.9 108.8 109.1 96.4
San Antonio, TX ......... 89.9 92.5 83.0 71.9 91.7 94.3 97.5
Boise, ID ................... 99.9 99.3 98.5 82.6 97.3 112.9 104.3
Portland, OR ............. 107.0 102.7 115.3 84.8 109.1 122.1 104.6
Las Vegas, NV........... 105.6 113.7 102.0 88.2 114.2 124.7 103.5
Salt Lake City, UT....... 103.1 114.0 102.9 76.0 101.3 98.7 105.9
Spokane, WA............ 102.7 106.2 106.8 67.7 98.1 117.0 105.2
Tacoma, WA............. 103.3 113.4 106.8 70.4 103.2 116.2 101.4
Cheyenne, WY .......... 96.6 109.2 87.6 92.9 101.5 101.8 96.7
Other U.S. Cities
Washington, DC ........ 114.7 112.6 129.0 97.1 109.3 114.7 109.4
Tampa-St. Petersburg, FL 99.4 104.1 95.4 102.9 99.8 98.6 99.6
Atlanta, GA............... 102.0 102.2 103.8 90.4 108.3 104.0 101.0
Boston, MA ............... 132.5 116.6 171.2 134.0 111.6 130.0 113.8
New York (Manhattan), NY 241.0 143.9 485.3 199.3 121.2 176.3 137.0
Source: American Chamber of Commerce Research Association, provided through Phoenix Chamber of Commerce, February 2001
Table 5
Cost of Living Data for Selected Arizona, Western, and Other U.S. Cities, 3rd Qtr., 2000
Arizona Job Seekers Guide 20
Industry Employment
Arizona’s Department of Economic Security, Re-search
Administration (RA) expects the state’s econ-omy
to grow by 166,400 jobs over the 2000-2001
period. RA forecasts a rate of growth of 3.9 percent
for 2000 and 3.5 percent for 2001. And while just
about everyone agrees the economy is showing
some signs of a slowing, the signs are modest given
the inertia supporting the current expansion.
RA’s forecast shows Arizona’s construction jobs
growing throughout the next two years, but slowing
from the 7.5 percent in 1999 to 2.4 percent in 2000
and to 1.5 percent in 2001. Much of the slowdown is
expected in the general construction and heavy con-struction
sectors, while job increases are expected in
special trades.
Arizona’s manufacturing industry is forecast to grow
by 4,000 jobs in 2000 and by nearly 3,500 in 2001. Re-spective
growth rates range from near 2 percent in
2000 to roughly 1.6 percent in 2001. Meanwhile, a na-tional
forecasting group expects U.S. manufacturing
jobs will experience slight declines in each of those
years.
It’s also not surprising to point out that Arizona’s
services industry is expected to continue growing.
After growing more than 8 percent in 1999, projected
growth rates for 2000 and 2001 are, respectively, a
slower 6.6 percent and 5.2 percent. While slowing,
the industry is still expected to add more than 82,000
jobs during the two-year period.
Arizona’s trade industry is expected to grow at
rates in the low 3 percent range. Wholesale trade is
expected to experience a decline in employment.
Retail trade sectors are expected to show mixed re-sults,
with department and apparel stores posting
modest increases and most other trade sectors show-ing
a slowing trend.
At this point, it’s important to point out that RA is
convinced that the earlier interest rate hikes brought
about by the Federal Reserve are bearing downward
pressure on consumer and business sectors. Debt is
now costing a great deal more than last year.
Arizona’s finance, insurance, and real estate (FIRE)
group has experienced a very strong near decade of
growth. RA’s forecast suggests the growth period isn’t
yet over and is expected to continue. More than 10,000
jobs are expected to be created over the two-year fore-cast
period, as growth rates basically hover between
the 3 percent and 4 percent range. This industry is,
nevertheless, expected to show mixed results, as
mergers and consolidations result in layoffs for some,
while others seek market expansion.
The transportation, communications, and public
utilities (TCPU) group is one to watch, particularly in
light of continuing deregulation. RA expects a net in-crease
of 11,000 jobs over the two-year period, with
growth rates in the 5 percent range.
Although perhaps not a surprise, given weakness
in copper prices, mining is forecast to be the only ma-jor
industry losing jobs. RA expects industry employ-
ECONOMIC OVERVIEW
21
0%
2%
4%
6%
8%
10%
Annual Percentage Chg.
-2%
’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98
Actual Forecast
’99
* Forecast
’00* ’01*
Figure 1
Arizona Nonfarm Payroll Employment
Growth Rates, Actual (1991-1999) and
Projected (2000-2001)
Source: Arizona Dept. of Economic Security, Research Administration,
August 2000
0%
2%
4%
6%
8%
10%
-2%
* Forecast
** Includes Pinal County
Annual Percentage Chg.
’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98
Actual Forecast
’99 ’00* ’01*
Figure 2
Phoenix-Mesa Metro Area Nonfarm
Payroll Employment Growth Rates,
(1991-1999) and Projected (2000-2001)
Source: Arizona Dept. of Economic Security, Research Administration,
August 2000
ment levels will shrink further over the two-year pe-riod,
from 11,500 in 1999 to 9,800 in 2001.
RA’s forecast shows government employment
growing 4.9 percent over the two-year period, add-ing
nearly 17,000 jobs. Not surprisingly, the educa-tion
sector is expected to show the greatest increases,
because of strong population gains.
Industry Wages
Statewide
Between 1994 and ’99, overall wage growth in Ari-zona
outpaced the nation as a whole by more than
two percentage points — 25.7 percent vs. 23.6 per -
cent. Overall in 1999, the average wage in Arizona
was $30,523, 4.1 percent (or $1,200) higher than in
’98, compared to a national average of $33,313. The
state ranked 24th among all states and Washington
D.C. in average annual pay in ’99, improving five
places since ’94.
Recent better-than-average wage gains, however,
only partially offset a sluggish period of wage growth
during the latter part of the 1980s and the early ’90s.
Due to weak finance and construction sectors, in
only one year between 1985 and ’93 did Arizona have
wage gains larger than the rest of the country. During
that time, the nation’s average annual wage grew
about 25 percent faster than in Arizona, widening a
deficit of about $1,000 in the annual average wage to
nearly a $3,000 shortfall. And as would be expected,
Arizona’s ranking among all states and Washington
D.C. fell from about 20th to nearly 30th during that
period.
What turned the state around the past few years? A
number of factors contributed, not the least of which
was state legislation in the early ’90s that provided
economic incentives to a variety of manufacturers
(e.g., semiconductors, defense-related) to relocate or
expand their operations in the state. The result was
that employment and wages surged in manufactur-ing,
helping lift the state’s overall wage growth. Ad-ditionally,
the finance and construction sectors that
had been decimated by problems in the savings and
loan industry in the late 1980s and early ’90s (all but
one of Arizona’s S&Ls went belly-up) began to turn
around when the oversupply of commercial, indus-trial,
and residential real estate (particularly in the
Phoenix metro area) was sold off. And a national
economy that took off helped spur growth in a wide
range of sectors — from high-tech manufacturing, to
business and health services, to retail and wholesale
trade.
Industry Trends
During the past several years, several of Arizona’s
major industry groups had exceptional wage growth;
several had solid wage gains; and one major industry
(mining) had up and down growth, but more impor-tantly,
declines in employment and in its importance
to the state.
Arizona Job Seekers Guide 22
0%
2%
4%
6%
8%
10%
-2%
* Forecast
’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00* ’01*
Annual Percentage Chg.
Actual Forecast
Figure 3
Tucson Metropolitan Area Nonfarm Payroll
Employment Growth Rates, Actual
(1991-1999) and Projected (2000-2001)
Source: Arizona Dept. of Economic Security, Research Administration,
August 2000
0%
2%
4%
6%
8%
10%
-2%
* Forecast
** Excludes Maricopa, Pima
and Pinal counties
’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00* ’01*
Annual Percentage Chg.
Actual Forecast
Figure 4
Nonmetropolitan Counties’ Nonfarm
Payroll Employment Growth Rates,
Actual (1991-1999) and Projected
(2000-2001)
Source: Arizona Dept. of Economic Security, Research Administration,
August 2000
By far, the stellar performers have been manufac-turing,
led by the high-tech sectors, and wholesale
trade. Between 1994 and ’99, manufacturing wages
increased 28.6 percent, or slightly under 6 percent a
year. The average wage in manufacturing in ’99 was
$44,198, ranking Arizona 10th among all states and
Washington D.C. The force behind manufacturing’s
strong growth has been the high-tech sectors, such as
semiconductors. Between 1994 and ’99, the average
wage in the semiconductor sector grew by 28.6 per-cent
to $70,700 (see Figure 5). That means that when
all 33,500 workers — including clerical, assembly, and
even janitors — in the state’s semiconductor sector are
included, the average wage per worker was $70,700.
Even stronger (hard to believe), in percentage
terms, was the growth of wages in Arizona’s whole-sale
trade sector. Between ’94 and ’99, the average
wage in wholesale trade grew a staggering 36 per-cent,
or 7.2 percent a year, to slightly over $42,600 a
year. In that time, Arizona’s average wholesale trade
wage erased more than half of a $4,100 deficit to the
1994 U.S. average wholesale trade wage. Behind the
strong growth in wholesale trade wages was the
growth of warehouse operations in the Phoenix
metro area. National companies such as Wal-Mart,
Fry’s (a division of Kroger), and Avnet have devel-oped
significant distribution centers in Arizona for
transportation of goods throughout the state, the
West, and Mexico. Available industrial space and
lower cost of operation than surrounding states (such
as California) were two of the prime reasons for
growth of wholesale trade.
Although not flying quite as high, but certainly no
slouch in terms of wage growth, were Arizona’s retail
trade; construction; and finance, insurance, and real
estate (FIRE) industries.
Arizona’s retail trade sector, which has been
hard-pressed to find workers for an explosion of na-tional
retail stores and shopping centers, had consis-tently
faster wage growth than the nation between
1994 and ’99. Arizona retail trade wages grew 25.5
percent, compared to U.S. growth of 22.3 percent.
The average retail trade worker in Arizona earned
$900 more than the average worker nationally in ’99,
with the state’s average wage ($18,414) ranking 11th
among all states and D.C. (It should be noted that the
average wage for retail trade is significantly lower
than other industries because a large percentage of
people in this industry work part-time.)
With one of the strongest real estate markets
across the board — single-family, commercial, and
industrial — wages in Arizona’s construction and
FIRE industries have posted solid gains the past sev-eral
years. Although significantly below the national
average wage in ’99 ($30,859 vs. $34,798), construc-tion
wages grew faster than nationally in recent
years. Between 1994 and ’99, construction wages
Economic Overview 23
Annual Pay Pct.
1999(2) 1998 Chg.(3)
United States
Private Industry(4) $33,220 $31,762 4.6%
Mining 54,653 52,066 5.0
Construction 34,798 33,386 4.2
Manufacturing 41,918 40,092 4.6
TCPU(5) 41,729 39,345 6.1
Wholesale Trade 44,144 41,831 5.5
Retail Trade 17,592 16,810 4.7
FIRE(6) 50,865 48,641 4.6
Services 31,491 30,053 4.8
Government $33,830 $32,953 2.7%
Arizona
Private Industry(4) $30,133 $28,856 4.4%
Mining 51,452 45,851 12.2
Construction 30,859 29,378 5.0
Manufacturing 44,198 42,770 3.3
TCPU(5) 37,831 35,805 5.7
Wholesale Trade 42,664 39,899 6.9
Retail Trade 18,418 17,637 4.4
FIRE(6) 38,597 37,449 3.1
Services 28,135 26,725 5.3
Government $32,871 $32,099 2.4%
Notes:
1 Includes workers covered by Unemployment Insurance (UI) and
Unemployment Compensation for Federal Employees (UCFE)
programs
2 Data are preliminary
3 Percent changes were computed from unrounded average
annual pay data and may differ from those computed using
data rounded to the nearest dollar
4 Includes data for industries in addition to those shown separately
5 Transportation, Communications, and Public Utilities
6 Finance, Insurance, and Real Estate
Source: U S. Dept. of Labor, Bureau of Labor Statistics, November
2000
Table 1
Arizona and U.S. Average Annual Wage,
1999(1)
grew about 10 percent faster (25.1 percent vs. 22.9
percent) in Arizona than the nation as a whole. And
for the entire decade of the ’90s, construction wages
grew 17 percent faster in Arizona than the nation.
Nearly a 90 percent increase in construction employ-ment
(82,600 in ’90 vs. 154,500 in ’99), along with a
shortage of workers, contributed to the state’s im-provement.
But although the state has made up
some ground in the past decade, Arizona’s
right-to-work status (i.e., low unionization rate), will
likely keep the state’s average construction wage sig-nificantly
below the national average for the foresee-able
future.
With the exception of an extremely weak commer-cial
banking sector in ’97 — due to consolidations
and layoffs of higher-paid workers — the state’s FIRE
industry posted strong wage growth in recent years.
Between 1994 and ’99, FIRE wages grew 28.7 percent
(second highest among the state’s major industry
groups), or about 5½ percent a year. Excluding com-mercial
banks, which employ about 20 percent of
FIRE’s more than 100,000 workers, wage growth
would have been significantly higher during that
five-year period. But it’s unlikely it would have made
a difference in comparison to the national FIRE wage,
which jumped an amazing 41.1 percent (highest of
any major industry group). At the end of ’99, Ari-zona’s
FIRE wage trailed the national average by
more than $12,000 — $38,597 vs. $50,865.
One industry that has fallen on hard times has
been mining, particularly copper mining, which has
consistently lost employment over the last 15 years
due to technological improvements and competition
from lower-paid foreign markets (see “Industry Em-ployment,”
at beginning of section). With the excep-tion
of strong wage gains in ’96 and ’99, wage growth
was flat or negative between 1994 and ’99. And the
prognosis is not good for the copper mining industry,
which has seen several major operations close in the
past few years.
Metro-Area Pay
Wages in the state’s four metropolitan areas (MAs)
had strong spikes — up and down — between 1994
and ’99. But it was Arizona’s two largest metro re-gions
that proved to have the most consistent and
strongest overall growth, which also topped the na-tional
average for metro areas during that five-year
period.
The Tucson and Phoenix MAs grew at nearly an
identical rate, 26.5 and 26 percent, respectively, be-tween
’94 and ’99, outdistancing the national average
(23.9 percent) by a healthy two percentage points. In
that time, the state’s two largest MAs also moved up
sharply in the rankings among 316 metro areas in the
nation (including Puerto Rico) tracked by the U.S.
Department of Labor’s Bureau of Labor Statistics.
Strong high-tech manufacturing job growth ac-counted
for much of the gains in the two largest
metro areas, with the Phoenix MA’s concentrated in
semiconductor-related industries and the Tucson
MA’s in aerospace- and defense-related sectors. The
Flagstaff MA had moderately strong wage gains be-tween
’94 and ’99, ending the period with nearly 22
percent growth, while the agriculture-dominated
Yuma MA had weak growth (13.2 percent) during the
period, except for 1997. A rise in the minimum wage
likely accounted for more than half of the Yuma MA’s
gains for the five-year period in that single year,
when wages spiked 6.9 percent.
The wholesale and retail trade and FIRE industries
also contributed to the Phoenix MA’s wage strength
(see “Statewide), while a rebound in government
wages also gave a boost to the Tucson and Flagstaff
MA’s overall gains.
Looking at 1999 numbers, despite wage growth
slightly below the national metro average of 4.4 per-cent,
the Phoenix-Mesa MA moved up in the national
rankings seven spots to 57th, its highest ranking in
more than a decade. In the early 1990s, the metro
area had fallen to as low as 104th place due to faster
growth than the nation in lower-paying service-sec-
Arizona Job Seekers Guide 24
0%
5%
10%
15%
20%
1994 1995 1996 1997 1998 1999
MeMet
Overall Manufacturing Semiconductor Sector
Annual Pct. Chg.
Figure 5
Annual Percentage Change in Arizona
Overall Manufacturing and Semiconduc-tor
Sector Wages, 1994-’99
Source: Arizona Dept. of Economic Security, Research
Administration, November 2000
tor jobs and the fallout from the S&L crisis. The av-erage
wage for the Phoenix-Mesa MA in ’99 was
$32,430, about 7 percent (nearly $2,500) below the
national metro average of $34,868. In ’94, the MA
was about 10 percent below the U.S. average.
The Tucson MA (Pima County) has also improved
its standing among metro areas in recent years, in-cluding
’99, when its 5.3 percent wage growth
brought its annual pay to $28,194. The Tucson MA
ranked 151st in ’99, up 27 places from ’98 and almost
100 spots better than in 1992, when the MA was 244th
among metro areas. And with the continued ex-pected
growth of the aerospace and defense indus-tries
— particularly in light of President Bush’s
emphasis on a missile-defense system — the outlook
for Tucson’s wage growth appears solid.
Although the Flagstaff metro area (which includes
Coconino, Arizona, and Kane County, Utah) has
shown improved wage growth during the past five
years, the MA still ranks 282nd among all metro areas.
A miserly 1.7 percent growth rate in ’99 didn’t help
the MA’s cause, pushing the metro area’s ranking
down two places. And with an economy still domi-nated
by service industries, it isn’t likely that annual
wage growth will be able to exceed the 4-plus per-cent
of the ’94-’99 period. However, Flagstaff is in the
process of studying ways to increase economic de-velopment,
particularly in industries such as whole-sale
trade and manufacturing, which could help raise
its average annual pay. Flagstaff’s locations along a
major interstate highway (I-40) and railway line
could act as an incentive to lure higher-paying indus-tries.
Also, a rumored removal of Kane County from
the metro area — its more than 200 miles and a Grand
Canyon away from Flagstaff — after 2000 census data
are released would boost the area’s wage. Excluding
Kane County would have boosted the MA’s wage
$400 in ’97 alone.
With nearly 30 percent of the Yuma MA’s
workforce employed in agriculture, it isn’t likely that
annual wage growth will exceed the 3 percent aver-age
of the ’94-’99 period. Without two mini-mum-
wage increases in ’96-’97, wage growth would
have been less than 2 percent annually. In ’99, the
average wage in the Yuma MA (Yuma County) was
$20,363, ranking the metro area ahead of only 10
other MAs (including three in Puerto Rico). How-ever,
“hope springs eternal,” and continued eco-nomic
activity along the Mexican border (about 50
miles to the south) due to NAFTA may lead to higher
wages as the area broadens its industry base.
Occupational Demand, Wages
Determining Demand
The current occupational profile of workers em-ployed
in Arizona has been impacted by strong ex-pansion
over the last two decades in professional,
technical, and service occupations, combined with
slower-than-average growth in production and main-tenance
occupations.
Consistent with this trend is the observation that
occupations requiring more education are generally
growing faster than those with lower educational re-quirements.
However, when the number of job
openings is considered, rather than the rate of em-ployment
growth, occupations requiring less educa-tion
continue to dominate.
Our economic system creates a great number of
jobs and, even in the worst economic times, creates
employment opportunities. The success of a job
search, however, depends on the interplay of many
forces, not the least of which is the balance between
the supply of job seekers and the demand for work-ers.
On the supply side, the labor pool is constantly
changing as prospective employees graduate from
training, leave other occupations and geographic ar-eas,
and enter the labor force for the first time. Job
openings, on the other hand, occur for two reasons:
industry growth and replacement needs.
Industry growth is the most obvious source of job
openings. A new manufacturing plant opens in Tuc-
Economic Overview 25
Phoenix-Mesa MA Tucson MA Flagstaff MA Yuma MA
Average Annual Pay
$15,000
$20,000
$25,000
$30,000
$35,000
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99
U.S. Metro Average.
Figure 6
Average Annual Wage for Overall U.S. and
Arizona Metro Areas, 1990-’99(a, b, c)
Notes:
a) Phoenix Metro Area included Pinal County starting in 1990
b) Yuma County became a metro area in 1990
c) Flagstaff MA includes Coconino County in Arizona
and Kane County in Utah
Source: Arizona Dept. of Economic Security, Research
Administration, November 2000
son and hires 300 new people. A grocery store in
Yuma opens a second store and hires additional peo-ple.
Employment growth occurs when new plants,
businesses, or agencies are established and existing
firms expand.
Job openings resulting from replacement needs oc-cur
primarily as a result of turnover (i.e., workers
change jobs, leaving the position to be filled by some-one
else). People seek higher salaries, more interest-ing
work, a better place to live, or merely change.
Occupations that are characterized by high turnover
rates generally require less education and training (
i.e., the greater the investment in securing and holding
a job, the less likely a person will leave that job). Re-placement
needs are also created when someone dies,
retires, or otherwise leaves the workforce. In addition,
employers continually look for better employees and
contribute to the cycle of turnover, which creates vast
numbers of job openings.
When reviewing data to determine prospects for
employment, remember that occupational demand is
largely determined by economic activity. For exam-ple,
a bright outlook for the construction industry will
strengthen the demand for occupations that are con-centrated
in construction. Also, consider that occu-pations
with high employment are likely to have
frequent job openings due to growth and turnover.
For this reason, estimates of occupational employ-ment
are often used to predict occupational demand.
Arizona Trends
In coming years, occupations will continue to
evolve as they adjust to changing technology, con-sumer
demands, economics, political and environ-mental
issues, and other forces. Professional and
technical workers, for example, will continue to in-crease
their share of the workforce, boosted by de-mand
in the health services industry, computer
technologies, and legal services. Few job seekers
will find more opportunities than those aspiring to be
registered nurses as our population ages and em-ployment
expands in skilled-nursing and home
health-care facilities. And the demand for teachers
will be substantial in response to an expanding
school-age population and the need to replace teach-ers
who change occupations or leave the labor force.
In manufacturing, too, professional and technical
workers will be in demand, as research and develop-ment,
in particular, boosts demand for engineers, sci-entists,
and technicians. Professional and technical
workers are also heavily represented in such rapidly
growing business services as engineering, legal, and
management consulting. Paralegals, in particular,
are expected to increase their numbers significantly
as law firms and other firms restructure tasks.
Clerical occupations, which are common to all in-dustries
and account for one of every five workers in
Arizona, will account for many job opportunities in
the coming years. Although the number of clerical
workers is growing more slowly than the average for
all occupations, strong demand results from the need
to replace workers who leave their jobs. And despite
lower demand for many clerical workers (primarily
the result of automation), job seekers with basic com-puter
skills and familiarity with office machines will
be especially attractive to employers. In particular,
secretaries with strong skills are highly valued, as
women continue to move out of clerical occupations
and into positions traditionally held by men. In
schools, teacher aides will find more opportunities as
administrations continue to target students with spe-cial
needs and augment professional staff.
Service occupations will also generate many op-portunities,
both as a result of expansion in industries
such as food services, health care, and business ser-vices,
as well as the need to replace workers who
leave their current positions. Food-service occupa-tions
will provide the largest share of opportunities as
a growing number of Arizonans choose to not cook
for themselves and, in a vibrant economy, are more
inclined to buy lunches and entertain clients. In the
expanding health services industry, nursing aides
and orderlies will be in demand in response to an
emphasis on rehabilitation and the needs of an aging
population. Also increasing the demand for nursing
aides is modern technology that, while saving lives,
increases the need for extended care. Homemaker
and home-health aides, as well as psychiatric aides,
will also find many job prospects.
Although marketing and sales occupations account
for only 12 percent of Arizona’s employment, more
people are employed as retail salespersons than any
other occupation. Retail trade is, by nature, labor in-tensive
and greatly dependent upon retail salesper-sons
and others to deliver goods and incidental
services to customers. Although recent developments
have lessened the reliance upon workers for certain
tasks, such as the use of computerized gasoline
pumps to serve customers, many services in the trade
industry will be difficult to automate. Personal service
will continue to be a primary goal in the marketing
strategy of many retailers. Because turnover is high in
many sales occupations, replacement needs will cre-ate
a significant number of job openings.
Despite actual numerical growth, the number of
operators, fabricators, and laborers, will continue to
Arizona Job Seekers Guide 26
account for a smaller share of Arizona’s employment.
Particularly vulnerable to pressures of mechanization
is employment of laborers, freight and stock movers,
and other unskilled workers. Automation, coupled
with the relatively large labor force in these occupa-tions
will make job-hunting increasingly competitive.
Truck drivers, on the other hand, will likely continue
to benefit from increased trade between Mexico and
United States.
The precision-production and craft workers cate-gory
employed one of every 10 Arizonans in 1996.
Led by general maintenance repairers and construc-tion
trades workers, such as carpenters and electri-cians,
employment in this category is heavily depend-
Economic Overview 27
Hourly Total Pct. of
Occupation Wage1 Emp. Total2
Cashiers $7.82 52,547 2.41%
Retail Salespersons $9.99 52,102 2.39%
Office Clerks, General $9.49 44,989 2.06%
General managers and
Top Executives $31.19 41,811 1.91%
Secretaries, exc. Legal
and Medical $11.30 37,098 1.70%
Waiters, Waitresses $5.78 36,080 1.65%
Marketing and Sales
Worker Supervisors $17.11 34,954 1.60%
Janitors and Cleaners $7.60 30,837 1.41%
Registered Nurses $19.84 28,392 1.30%
Office, Admin. Support
Supervisors, Managers $15.86 27,810 1.27%
Bookkeeping, Accounting,
and Auditing Clerks $11.23 27,747 1.27%
Food Preparation and
Service Workers, Fast Food $6.21 27,189 1.24%
Receptionists, Information
Clerks $8.81 26,507 1.21%
Laborers, Landscaping
and Groundskeeping $7.75 25,444 1.16%
Teachers, Elementary3 $33,790 24,347 1.11%
Hourly Total Pct. of
Occupation Wage1 Employment Total2
Carpenters $13.24 24,272 1.11%
All Other Helpers, Laborers,
and Material Movers, Hand $8.57 22,612 1.04%
Truck Drivers, Heavy $13.77 22,035 1.01%
Telemarketers, Door-to-Door
Sales Workers $8.93 21,879 1.00%
Truck Drivers, Light $10.39 21,586 0.99%
Maintenance Repairers,
General Utility $11.72 20,117 0.92%
Food Preparation Workers $6.48 19,364 0.89%
All Other Clerical, Admin.
Support Workers $11.35 18,660 0.85%
Stock Clerks, Sales Floor $7.97 18,261 0.84%
All Other Professional,
Paraprofessional,
and Technical Workers $18.46 18,237 0.83%
All Other Managers and
Administrators $26.69 18,178 0.83%
Adjustment Clerks $9.63 17,533 0.80%
Teachers, Secondary3 $36,170 16,517 0.76%
Other Sales Reps,
Exc. Retail $17.26 16,505 0.76%
Guards $8.10 16,234 0.74%
Notes:
1 Wage data taken from 1998 Employer Wage Survey, produced by the U.S. Department of Labor, Occupational Employment Statistics
Division, in cooperation with Arizona Dept. of Economic Security, Research Administration
2 Percentage of all Arizona occupational employment
3 Teacher pay is based on annual, not hourly wages
Source: Arizona Dept. of Economic Security, Research Administration, June 2000
Table 2
Arizona’s Largest Occupations and Respective Hourly Wage, 19981
ent on cyclical construction activity. In this, the latest
cycle, employment in construction has ranged from a
low of 73,000 in 1992 to more than 154,000 in 1998.
Executives and other managerial workers, who
numbered 155,000 in 1996, are found in virtually all
businesses and it is therefore not surprising that the
greatest numbers are found in industries that are
comprised of small firms. For example, general
managers and top executives are most numerous in
business services, special trades construction, and
wholesale trade — industries typified by small com -
panies. Also employing many general managers are
state and local governments. Industries in which
general managers account for the largest share of em-ployment,
however, include “holding and other in-
Arizona Job Seekers Guide 28
Annual
Hourly Total Growth
Occupation Wage2 Emp. Rate
Engineering, Nat. Science,
and Computer and Info.
Systems Mgrs. $34.01 7,902 5.3%
General Managers and
Top Executives $31.19 41,811 4.0%
Loan Counselors, Officers $23.70 6,114 8.7%
Accountants, Auditors $19.98 14,778 4.3%
Human Resources, Training,
Labor Relations Spec. $15.77 10,523 4.7%
All Other Mgmt--Support
Workers $19.15 11,691 4.3%
Computer Engineers $30.75 5,178 11.8%
Systems Analysts $24.70 9,281 11.5%
Computer-Support Spec. $18.62 8,092 12.1%
Computer Programmers $26.17 10,477 6.2%
All Other Professional,
Paraprof., Tech. Workers $18.46 18,237 3.7%
Sales Agents, Selected
Business Services $15.50 7,216 6.0%
Counter, Rental Clerks $7.86 11,448 4.9%
Annual
Hourly Total Growth
Occupation Wage2 Emp. Rate
Cashiers $7.82 52,547 3.7%
Telemarketers, Door-to-Door
Sales Workers $8.93 21,879 8.8%
Office, Admin. Support
Supervisors, Managers $15.86 27,810 4.6%
Adjustment Clerks $9.63 17,533 8.2%
Bill, Account Collectors $10.90 7,662 9.5%
Laborers, Landscaping and
Groundskeeping $7.75 25,444 4.8%
Farm Workers, Food
and Fiber Crops $6.07 10,918 6.1%
Maintenance Repairers,
General Utility $11.72 20,117 3.7%
Electricians $14.59 13,209 3.75
All Other Assemblers
and Fabricators $8.76 15,526 3.7%
Mechanic, Repairer
Helpers $10.04 10,059 6.4%
Hand Packers, Packagers $6.78 15,994 4.9%
All Other Helpers, Laborers,
Material Movers, Hand $8.57 22,612 3.7%
Table 3
Occupations with Best Employment Potential1
Notes:
1 Occupations listed have the highest measures of a composite index based on total employment, estimated new jobs , and the unemployment
rate of workers in those occupations who are covered by unemployment insurance
2 Wage data taken from 1998 Employer Wage Survey, by the U.S. Department of Labor, Occupational Employment Statistics
Division, in cooperation with Arizona Dept. of Economic, Research Administration
Source: Arizona Dept. of Economic Security, Research Administration, June 2000
vestment offices;” “offices of insurance agents and
brokers,” and “commodity brokers and dealers.” In
the coming years, the number of executive and man-agerial
workers is expected to increase at a rate more
moderate than was demonstrated in the ’80s. Work-place
restructuring will continue to redefine worker
roles and few occupations will be impacted as much
as middle managers.
About Occupational Tables
The tables on pages 27 and 28 report average
hourly wage data as determined by the 1998 Occupa-tional
Employment Statistics (OES) survey. The OES
survey is an annual mail survey measuring occupa-tional
employment and occupational wage rates for
wage and salary workers in nonfarm establishments
by industry. In Arizona, the survey samples approxi-mately
5,500 establishments per year, taking three
years to fully sample the universe of 110,000 estab-lishments.
The U.S. Department of Labor’s Bureau of
Labor Statistics (BLS) and Employment and Training
Administration (ETA) provide the funding for the sur-vey.
BLS provides the procedures and technical sup-port,
while the State Employment Security Agencies
(SESAs) collect the data. The SESAs produce occupa-tional
estimates by detailed industries for local areas
and the states. BLS produces similar estimates for the
nation, as well as employment and wage estimates
for 750 occupations across all industries for the na-tion
and each of the 50 states plus the District of Co-lumbia.
More information on the survey and a complete list-ing
of Arizona occupational wages is published annu-ally
by DES, Research Administration, in its Employer
Wage Survey. For a free copy of the publication, con-tact
Research Administration at the address or phone
number listed on page i.
Job Developments
Phoenix Metro Area
Manufacturing
A developer of airbags for commercial air-planes
expects to hire 250 to 300 employees over
the next five years for a manufacturing operation
east of Williams Gateway Airport in Mesa. Based
in Phoenix, AMSAFE Inc. will initially build a
30,000-square-foot manufacturing building and a
10,000-square-foot testing facility on 36 acres at Wil-liams
Field and Mountain roads to house its Inflat-able
Restraints Division.
Work is “taking off,” literally, at Gilbert-based
Spectrum Astro Inc. The satellite manufacturer ex-pects
to add 500 to 700 engineers and techni-cians
to its current workforce of 300 over the next
five years if it secures a multi-billion dollar contract
to build a U.S. missile defense system. Spectrum
Astro is in good position to win the contract, which
will be awarded in 2002, since it has a three-year,
$275 million contract to prepare a study for building
the system. The company’s 232,000-square-foot cam-pus
at Elliot and McQueen roads has sufficient space
to build 20 satellites at one time.
The city of Chandler,
already home to
chipmakers Intel,
Motorola, and Micro-chip,
will soon have
another chip manufac-turer.
AmaTech USA
Inc., a subsidiary of
AmaTech AG of Ger-many,
will open a
12,000-square- foot
operation at the Frye Road Industrial Park to build
memory chips for credit, debit, and smart cards. The
$5 million facility is expected to employ about 40
workers by the end of 2000 with an average salary
of $37,000.
A Tacoma, Wash.-based maker of window panes
could “open up” employment opportunities for
several hundred people in Tempe over the next
several years. Milgard Manufacturing, Inc., a
40-year-old private company, opened a sales and dis-tribution
office in May 2000 and a manufacturing op-eration
in late 2000.
Although it’s still in its infancy, Micro
Photonix Integration Corp. in north Phoenix has
the potential to become a major player in the lucra-tive
fiber-optic business. With 50 patents pending,
including an automated process to build modulators
— the most important component of fiber-optic net -
works — Micro Photonix is close to completing its
first plant and expanding its workforce. Full pro-duction
of the modulators is expected to begin in
the first quarter of 2001. The company will need
workers with skills in fiber optics, microwave tech-nology,
high-precision manufacturing, and semicon-ductor
fabrication.
Needing space to expand its horizons, the world’s
largest guitar maker will move its corporate head-quarters,
literally across the street, to a
70,000-square-foot building on the Salt River
Pima-Maricopa Indian Community.
Scottsdale-based Fender Musical Instruments Corp.
currently has between 250 and 300 administrative, mar-keting,
and accounting employees at its offices on Pima
Economic Overview 29
Road. The 54-year-old company will move into a
one-story office building, near Loop 101 and Chaparral
Road, in fall 2001.
Construction
Plans for construction of two natural gas-fired
power plants near Gila Bend is spurring develop-ment
in the sleepy hamlet 50 miles southwest of
downtown Phoenix. The prime target for develop-ment
are 35,000 acres of the 68,000-acre Paloma
Ranch. Already investors have bought 320 acres for
a water-ski park 17 miles north of Gila Bend; 209
acres for Diamond Lake Ranch, a mixed-use develop-ment
featuring 200 homes, retail shops, an RV park
with 800 spaces, and 35 acres of lakes; and a 500-acre
tree and plant nursery and a new hotel.
Marriott Corp. is building Arizona’s largest re-sort
and conference center as part of the 5,723-acre
Desert Ridge multi-use project in northeast Phoenix.
The high-end facility, which will include a 950-room
hotel, 200,000 square feet of meeting space, two
18-hole golf courses, 10 restaurants, three swimming
pools and spa, will cost between an estimated $250
million and $500 million. Upon scheduled com-pletion
in November 2002, Marriott says the resort,
located between Tatum Boulevard and 56th Street
north of Deer Valley Road, will employ 1,700 peo-ple.
Work on two office projects valued at nearly $40
million will begin in late 2000 or early 2001. The
two office projects consist of a $25 million, 120,000-
to 150,000-square-foot complex of buildings at Base-line
and Cooper roads in Gilbert, and a $13 mil-lion,
10-building complex at the 280-acre Cotton
Center at Broadway Road and 48th Street in east
Phoenix. The 26-acre Gilbert project will include
high-tech and professional businesses, while it is an-ticipated
that 400 to 500 employees of financial
services, engineering and architectural compa-nies
will occupy the 8.6-acre, 130,000-square-foot
Phoenix development, called Cotton Center Com-mons,
when it’s complete by the end of 2001.
The $35 million Chandler Freeways Business
Park, which will sit on the southeast corner of Loop
202 (San Tan Freeway) and 56th Street, is expected
to be home to between 2,000 and 3,000 high-tech
and industrial workers. Developer Ryan Cos. ex-pects
to begin work on the first phase of the 56-acre,
1 million-square-foot project by early 2001.
Tempe-based Fulton Homes Corp. expects to
start 10 new housing developments in the metro
area in 2001 as part of plans to build 5,500 to 6,000
homes over the next 12 months. The east Valley will
be home to eight of
the subdivisions, in-cluding
five in Chan-dler.
Fulton Homes
expects sales to ex-ceed
1,600 next year,
60 percent above its
current annual level.
The city of Foun-tain
Hills has ap-proved
two major construction projects. The
Four Peaks Plaza shopping center, which will be
anchored by a Target, is expected to open in March
2002. And work is expected to begin in 2001 on a
250-room Fountain Hills Hilton Resort. The
shopping center will be located at Shea and Saguaro
boulevards, while the hotel will be at Shea and Pali-sades
boulevards.
Passage of Proposition 302 — which will finance
an Arizona Cardinals football stadium and base-ball
spring training facilities in the Valley — has a
number of local construction companies salivating at
the chance to get a “piece of the action.”
Scottsdale-based Hunt Construction Group has
been chosen as the designer and builder of the
$331 million football edifice scheduled to open in
2004, but there will be an opportunity for a number
of construction companies to be chosen for lucrative
subcontracting work. CMX Sports of Phoenix is
considered one of the leading contenders to build a
spring training facility in Surprise, about 25 miles
northwest of Phoenix, that will be shared by the
Texas Rangers and Kansas City Royals.
Transportation, Communications, and
Public Utilities
Due to the rapid growth of cable TV, telephone,
and Internet services, USWest and Cox Communi-cations
will be filling at least 1,000 new positions
over the next couple of years in sales, installa-tion,
customer service, marketing, and com-puter
operations. And with turnover factored in,
the companies will actually need about 2,000 work-ers.
Cox is opening a new 26-acre campus at Deer
Valley Road and 19th Avenue in north Phoenix in
January 2001, where it will be home to 1,500 em-ployees.
The exploding demand for communication ser-vices
is fueling a similar demand for software and
hardware engineers, network specialists, and
technicians to build the infrastructure to support
these products. One part of that infrastructure is
“telco hotels,” which are usually former office
buildings that have been converted to hold the
Arizona Job Seekers Guide 30
equipment (e.g., computer servers, fiber-optic net-works)
used for these services. In the Valley, four
new telco hotels are planned, on top of three existing
ones. One facility would be built in the basement of
the former Galleria mall in downtown Scottsdale.
Along with office space on the first through third
floors and retail shops on the south side of the build-ing,
the newly named Technology Center of
Scottsdale is expected to be home to 1,500 em-ployees.
DHL Airways Inc. has opened an expanded na-tional
customer service center and a global data
center at the Papago Park Center in Tempe. The $26
million facilities are expected to employ more than
500 people by 2010. DHL Airways is the U.S. sub-sidiary
of DHL Worldwide Express, a global pack-age-
delivery service.
Southwestern Power Group II has proposed
building a $1 billion natural gas-fired power
plant 10 miles south of Eloy, which is located
about 50 miles south of Phoenix off of Interstate 10.
The first phase of the 2,000-megawatt facility, which
would generate enough power for 500,000 homes, is
expected to be completed in 2003. Construction of
the facility — the 18th such plant under construction
or proposed for Arizona — would create between
300 and 400 jobs. About 60 permanent jobs would
be needed when the plant is fully operational.
Qwest Communications announced it will build
a 100,000-square-foot Web-hosting operation in
Phoenix as part of a $5 billion deal with IBM to build
28 CyberCenters throughout the country. The centers
will contain servers and other computer equipment to
access Qwest’s 25,000-mile fiber-optic network. The
Phoenix-area center will open around 2003.
Finance, Insurance, and Real Estate
St. Louis-based Edward Jones plans to open its
first significant operation outside of Missouri at Ari-zona
State University’s Research Park in Tempe.
The three-building, 330,000-square-foot campus will
employ up to 1,000 people in managerial, account-ing,
and information-technology jobs when it’s
completed in 2005. The first building will open
in the third quarter of 2001.
Boston-based MFS Investment Management,
the nation’s oldest mutual fund company, will open
its first regional headquarters outside of Boston at
24th and Peoria avenues in Phoenix in 2001, creat-ing
about 1,000 jobs. Customer-service workers will
take calls from clients seeking account-related infor-mation.
VenServe, a California company that sets up fi-nancing
for businesses’ large purchases, will locate
several of its operations in Tempe. Based in the
L.A. suburb of Agoura Hills, VenServe will operate its
data storage, human resources, customer ser-vice,
and direct sales units in a 20,000-square-foot
building at 2626 S. Roosevelt St. The company ex-pects
to employ between 140 and 160 people —
primarily in clerical, customer service, and sales posi-tions
— by 2003.
Up to 300 cus-tomer-
service jobs will
be created by the open-ing
of 40 full-service
branch offices of
Washington Mutual, a
Seattle-based bank that
specializes in home
loans. The east Valley
cities of Chandler,
Tempe, Mesa, and
Scottsdale are expected
to be the greatest benefi-ciaries
of the expansion, which will feature offices
that resemble the inside of retailers like The Gap or
Nordstrom, with kiosks spread throughout the
branch. The first branches are expected to open in
the first quarter of 2001.
American Express Corp. announced it will build
a $170 million technology center in the northeast
Valley that will be home to 2,000 workers, most of
whom will come from several other Valley sites. The
financial-services company, which has about 9,000
Valley employees, plans to lease state land at 56th
Street and Mayo Boulevard in Phoenix where it plans
to build two 180,000-square-foot office buildings and
a 100,000-square-foot building to be used primarily
for training and conferences. American Express says
the new facilities, which will open in 2003, will al-low
for some new hires.
Charles Schwab & Co. expects to increase its
Valley workforce by 1,000 by the end of 2001,
bringing its total Arizona employment to 4,400. Most
of the new jobs will involve administrative, techni-cal,
and operational functions, while a majority of
the 3,400 workers as of November 2000 are in cus-tomer-
service positions. The San Francisco-based fi-nancial
services business has four offices in the
Phoenix metro area, with most of its employment
concentrated in the 24th Street and Camelback Road
corridor. A computer-operations center will
open in Chandler in 2001.
Economic Overview 31
Trade
Westcor Shopping Centers of Phoenix has three
major Valley shopping projects it expects to open
within the next two years. Westcor began construc-tion
on the Valley’s
second-largest en-closed
shopping cen-ter,
Chandler
Fashion Center, in
April 2000, with an ex-pected
completion
date of October
2001. The 1.3 mil-lion-
square-foot shop-ping
center on the
southwest corner of
Chandler Boulevard
and Loop 101 will in-clude
anchor tenants
N o r d s t r o m ,
Robinsons-May, and
Dillard’s. Scheduled to open in fall 2001 will be
Scottsdale 101, a 30-store and restaurant shop-ping
center at Mayo Boulevard and the Loop 101
freeway that will also include a multiplex movie the-ater.
But dwarfing that project will be the 1.4-mil-lion-
square-foot Gilbert Power Center at Williams
Field Road and the alignment of the San Tan Freeway.
Expected to open in fall 2002, the open-air shopping
center will feature 50 stores and restaurants, along
with a multiplex theater.
The name of the game for successful national re-tailers
these days is expand, expand, expand. A
number of chains across a broad spectrum of in-dustries
have announced plans to do just that in the
Phoenix metro area. Among these, Lowe’s Home
Improvement Warehouse will give Home Depot
and other home-improvement stores stiff competi-tion
in the Valley by opening 20 stores and em-ploying
4,000 by 2004. Atlanta-based Home
Depot will open two more Valley locations in
2001, giving it a total of 18 stores in the metro area.
And Chandler-based Nationwide Vision will add
four more optical-care stores to its current 25 in
the Valley by the end of 2001. Also, nine shops are
currently being built or planned in Tucson.
Services
Three new hospitals are on the horizon in the
east Valley, the first new major health-care facilities
in nearly 20 years. San Francisco-based Catholic
Healthcare West plans to build a 50-bed, $30 mil-lion
facility in 2002 or 2003. No site has been cho-sen,
but the project will start with an urgent and
outpatient care center, then expand to a full-fledged
hospital with emergency care. Catholic Healthcare
West owns Chandler Regional Hospital and St. Jo-seph’s
Hospital and Medical Center in Phoenix. Also,
Mesa-based Lutheran Healthcare Network, which
operates two other Valley hospitals, is planning a
four-story, $40 million hospital in Gilbert. The
50- to 75-bed hospital will be located at the corner of
Ray and Greenfield roads, along with three medical
office buildings. A 250-bed, seven-story tower is
planned in the future as Gilbert expands in size.
Finally, a $50 million hospital is planned for
Apache Junction in the far east Valley. SFII Corp.,
which owns land at U.S. 60 and Goldfield Road, has
submitted plans for a three-story hospital with an
emergency room, helipad, and medical office build-ing.
Completion of the health-care facility, which is
expected to create 200 jobs, is planned for De-cember
2001.
Toyota Financial Services USA plans to open a
Western Region customer-service center in the
Phoenix metro area by the end of 2001. The facility,
which will deal with collections, leasing agreements,
and other administrative and customer-service func-tions,
will employ up to 400 people. Most of the
management positions will be filled within the com-pany,
which currently operates one service center in
Cedar Rapids, Iowa.
St. Louis-based Express Scripts, which handles
pharmacy claims and mail-order prescriptions, ex-pects
to open a customer-service operation in
Tempe in 2002 employing up to 700. Jobs will be
offered to both transferees from Express Scripts’ seven
other customer-service operations and new hires.
Government
The booming economy is making it extremely dif-ficult
for Valley law-enforcement agencies to fill posi-tions.
The Phoenix Police Department and the
Maricopa County Sheriff’s Office are both facing
severe shortages of qualified candidates. The
Maricopa County Sheriff’s Office will need an addi-tional
1,600 deputies and jail guards by 2004 to
fill new positions and vacancies caused by retire-ments
and resignations.
The Federal Reserve is building a $13 million cur-rency
operations center at McDowell Road and
47th Avenue in Phoenix. The cash facility, which will
store and distribute cash to Arizona banks, will be a
first for the 87-year-old Federal Reserve. When com-pleted
in September 2001, the facility is expected
to employ around 50 people.
Arizona Job Seekers Guide 32
Tucson Metro Area
Manufacturing
Aristocrat Technologies Inc., a maker of slot
machines and video-gam-ing
devices, expects to tri-ple
its workforce of 30
by 2002. The Australian
company also designs and
develops gaming soft-ware.
Salaries range from
$35,000 for entry-level
graphics workers to
$75,000 for experienced
engineers.
Cybernetic Research
Laboratories expects to add 100 skilled workers
by 2001 to make several products — cable, relay and
ladder racks, and computer cabinets — for a New
York manufacturer that specializes in producing
computer hardware equipment. Tucson-based Cy-bernetic,
which will immediately begin producing
equipment for AFCO Systems, plans to have a new
manufacturing facility by the end of 2000 or
early 2001.
As part of a $28 million expansion and upgrade of
the former Burr-Brown Corp. wafer semiconductor
facilities, Texas Instruments plans to hire at least
150 employees (50 electrical engineers and 100
manufacturing technicians) by the middle of 2001.
Dallas-based Texas Instruments acquired
Burr-Brown in August 2000 for $7.6 billion in stock.
The 20 percent expansion of Burr-Brown’s
155,000-square-foot operation at 6730 S. Tucson
Blvd. is expected to yield a 60 percent increase in ca-pacity
by the first quarter of 2001.
Plastic Moldings Corp. of Cincinnati is expected to
open in February 2001 a $15 million state-of-the-art
plant at the Century Park Research Center in southeast
Tucson that will employ 230 people. The facility will
make plastic moldings for high-tech hand-held devices
for clients such as Motorola and Sony.
A Taiwan-based company that makes the metal
chassis for digital cable converter boxes expects its
employment to triple to around 100 by October
2001. Named after its founder, Chenga Fwa Indus-trial
Co. opened a 70,000-square-foot plant in Tuc-son
in October 2000 so that it could be closer to its
primary client, Motorola, which has a manufacturing
operation in Nogales, Mexico.
Construction
Three open-air retail centers, each around
400,000 square feet, are in the works for the Tucson
metro area. Diamond Ventures Inc. of Tucson
plans to build two of the outdoor malls — Steam
Pump Village in Oro Valley (Oracle and First Ave-nue)
and River Crossing at River Road and La
Cholla Boulevard. Westcor Partners of Scottsdale
has proposed to build an as yet unnamed retail
complex at Campbell and Skyline. Work on both of
the Diamond projects — which will include
Harkins multiplex theaters, restaurants, retail shops,
offices, and other entertainment features in a pedes-trian-
friendly setting (e.g., 12-foot-wide sidewalks)
— is scheduled to begin early in 2001 and be com-pleted
by the end of the year. Steam Pump Village,
which will also include a 250-room hotel, will use a
“Main Street” theme throughout the shopping plaza.
River Crossing, which will be built in three phases,
will have a modernistic look. Westcor will have a
tougher road to gain approval for its retail center that
would include specialty stores, upscale restau-rants,
and a high-end grocery store in a setting
that resembles St. Phillip’s Plaza in Tucson.
The University of Arizona has started work on
a 23-building, $402 million capital-improvement
project. Among the projects planned or already un-der
way are: a new Student Union and an Inte-grated
Learning Center, a $60 million biomedical
and biotechnology building, a $27 million renovation
of the Arizona State Museum, a $60 million expan-sion
of the Environmental and Natural Resources
Building and the Chemistry Building, and several
housing projects costing $89 million.
Transportation, Communications, and
Public Utilities
Denver-based WideOpenWest LLC signed a
15-year franchise agreement in 2000 with the city
of Tucson to provide fiber-optic cable TV, Internet,
and telephone services for the city’s residents.
WideOpenWest plans to spend $150 million over the
next five years to build the high-speed network, as
well as eventually employ up to 150 people in the
Tucson area.
Tucson-based Opto Power Corp., which supplies
several types of high-power semiconductor lasers to
the telecommunications and semiconductor manu-facturing
industries, is in a major growth mode.
Opto Power, which has 200 employees, added 50 po-sitions
in 2000 and expects to continue that type
of growth. A recent corporate realignment by Opto
Power’s parent company, Spectra Physics of
Economic Overview 33
Mountainview, Calif., could also provide additional
opportunities.
Trade
One of Tucson’s oldest malls is undergoing a mas-sive
transformation that will turn it into eight to 10
Spanish-style, mini-shopping plazas, with ame-nities
such as restaurants, outdoor space for perform-ing
arts and exhibits, an outdoor market, artists’
studios, and possibly a public library or government
offices. Because of the overhaul, El Con Mall, on
East Broadway between Jones and Dodge boule-vards,
will be appropriately renamed The Plazas at
El Con. The three-year, $50 million project will
also include construction of a new 123,000-
square-foot Home Depot, remodeling of a
140,000-square-foot building formerly occupied by
Dillard’s as space for a food court and other enter-tainment
facilities, and a gourmet grocery store.
Services
First Health Group Corp. is building an $8 mil-lion,
100,000-square-foot high-tech imaging facil-ity
near East Valencia and South Palo Verde roads
that could eventually house up to 1,000 workers.
The Downers Grove, Ill., company, which has 4,000
employees, plans to initially hire 400 people to
help convert medical claim forms into digitized com-puter
files. The company, which processes health
and workers’ compensation forms for some of the na-tion’s
largest employers, expects the facility to open
in March 2001.
Balance of State
Manufacturing
One of the nation’s largest producers of ice cream
cones opened a 63,000-square-foot manufacturing
plant near Flagstaff’s Pulliam Airport in 2000 to ser-vice
its West Coast customers. Joy Cone Co. of Her-mitage,
Pa., initially employed about 20 workers, but
expects to hire three times as many people by
the middle of 2001.
A concrete manufacturing plant and about 100
permanent jobs will be coming to the Interstate
40 Industrial Corridor, 20 miles southwest of
Kingman, thanks to a vote by Mohave County su-pervisors.
The Board of Supervisors approved a reso-lution
allowing the county’s Industrial Development
Authority to issue $20 million in bonds to build the
75,000-square-foot Enviroc Inc. plant. In addition
to the permanent jobs, 400 construction jobs will
be needed for about a year when work begins in
November 2000.
Mining
An international oil and gas exploration company
wants to move its corporate headquarters from
Texas to Prescott. Based
in Houston and Dallas,
Matco Inc. wants to build
a 300,000- square-foot
office, plus a helipad and
several homes. Matco,
which currently has a field
office with 16 employees
in Prescott, expects the
headquarters would em-ploy
up to 375 people.
The 23-year-old company, which has operations
throughout the Middle East, had tried to move to
Prescott in 1999, but was unable to secure the land.
Construction
By a 55-45 margin, Prescott Valley voters ap-proved
a referendum that will allow rezoning of
1,243 acres for a 3,400-home subdivision and
190-acre golf course. The Glassford Hill project is
expected to take 12 to 17 years to complete. Uni-versal
Homes is the developer.
Approval of a half-cent sales tax increase by Yuma
County voters in September 2000 provided $57.6
million for court-related construction over the
next eight years. Among the projects planned are a
72-bed Juvenile Detention facility, a Juvenile Court
and administration building, a court annex for Yuma
County Superior and Yuma Justice courts, and a
300-space parking garage.
Trade
Home Depot will build a 105,000-square-foot
store in Lake Havasu City as part of a planned retail
power center at Airport Centre west of State Route 95.
The home-improvement store, which will create 200
jobs, could open as early fall 2001.
Services
Aegis Communications Group Inc. is expand-ing
its Sierra Vista call center, adding 200 em-ployees.
The expansion, which will bring Aegis’
total employment to around 800, is due primarily to
its financial services customers, propelled by work
from American Express.
Work is under way on a 1,100-bed medium-se-curity
private prison about 20 miles southwest of
Kingman on Interstate 40 near the Griffith Energy
Project. The $35 million Black Mountain Correc-tional
Facility is expected to open in early 2002,
creating about 400 jobs paying a minimum of $10
an hour. Hiring could begin as early as spring 2001.
Arizona Job Seekers Guide 34
One-Stop Career Centers
Far and away the single best source for job-search
assistance will be your local One-Stop Career Center.
Available in all
states, these facil-ities
provide a
complete range
of services and
access to the pri-mary
information
needed by job
seekers. Via the
Internet, your lo-cal
One-Stop Ca-reer
Center can
provide access to
job banks,
Sunday newspa-per
want-ads,
names and addresses of potential employers, and oc-cupational
wage information. Career-planning assis-tance,
resume-writing services and, for those who
qualify, job-training opportunities are also available.
To locate the nearest One-Stop facility, contact a Job
Service office for directions. Job Service offices are