Phoenix, Arizona, has emerged as a surprising manufacturing hotspot recently. The city is now becoming a significant player in the manufacturing sector. This transformation has opened up a wealth of opportunities for job seekers and businesses, reshaping the economic landscape of the region.
Phoenix’s manufacturing sector has experienced impressive growth. From 2013 to 2023, the city saw a 14.9% increase in manufacturing jobs, far outpacing the national average of 6.7% during the same period, according to the U.S. Bureau of Labor Statistics. As stated by Jevan Capital, in 2023 alone, the city added nearly 15,000 new manufacturing jobs, pushing the total number of manufacturing positions to approximately 180,000.
For job seekers, Jevan Capital said that the expansion of Phoenix’s manufacturing sector has translated into a flourishing job market. Manufacturing now accounts for 8.3% of the total employment in the Phoenix metropolitan area, compared to the national average of 6.1%, highlighting the city’s strong focus on this sector.
The demand for skilled labor is particularly high. According to the Arizona Commerce Authority, there has been a 37% increase in job openings for professional positions in advanced manufacturing, robotics, and automation over the past five years. This demand is expected to continue growing, with forecasts predicting that Phoenix will add another 30,000 manufacturing jobs by 2030.
Moreover, these jobs offer competitive salaries. According to the Phoenix Open Data, the average annual wage for manufacturing jobs in Phoenix is approximately $72,000, compared to the city's overall average salary of $57,000. Some specialized roles, particularly in high-tech manufacturing and aerospace, can command salaries well above this average, making the sector an attractive option for those seeking stable, well-paying careers.
The rise of Phoenix as a manufacturing hub also presents significant advantages for businesses. The city’s operational costs are significantly lower than in coastal cities like Los Angeles and San Francisco, with real estate prices being particularly favorable. For example, CBRE stats that industrial space in Phoenix costs around 40% less than in Los Angeles, according to a report by CBRE, making it an appealing option for manufacturers looking to expand or relocate.
In addition to cost savings, Arizona offers a range of tax incentives designed to support manufacturers. The Qualified Facility Tax Credit, for instance, allows businesses to receive tax credits for job creation and capital investment in the state. This incentive has been a key factor in attracting companies such as Intel, which announced a $20 billion investment in two new semiconductor factories in Chandler, a suburb of Phoenix.
Looking forward, the adoption of Industry 4.0 technologies—such as automation, IoT, and AI—will likely propel Phoenix to the forefront of the next wave of manufacturing innovation. The city’s commitment to fostering a business-friendly environment and its investment in infrastructure and education will be crucial in attracting further investment and maintaining its competitive edge.
Phoenix’s rise as a manufacturing powerhouse is a significant development for both job seekers and businesses. With robust job growth, competitive wages, and a supportive business environment, the city is emerging as a key player in the national manufacturing landscape. As this trend continues, Phoenix is poised to become an even more attractive destination for those looking to build a career or expand a business in the manufacturing sector.
RSVP for the Integro Bank CEO Club
Get the support you need from other business and financial leaders. We invite you to the next CEO Club. This monthly event will provide you with an opportunity to engage in insightful discussions and connect with a community of like-minded business owners and financial leaders. Don't miss out on this excellent opportunity! Click the link below to RSVP and secure your spot today.
RSVP For the Event:
https://www.integro.bank/CEO-Club-Event-RSVP