In the heart of the American Southwest, Greater Phoenix has emerged as a dynamic powerhouse for business expansion and innovation. Recognized as No. 1 in Economic Development by national site selectors, this thriving metropolis of 5.01 million residents, projected to reach 5.7 million by 2029, has transformed into a premier destination for both domestic and international companies seeking to establish or expand their U.S. presence.
Young, Dynamic, and Growing
With a median age of 37.6, Greater Phoenix ranks as the 4th youngest metropolitan area among those with 5+ million residents. This youthful demographic drives innovation and entrepreneurship across the region’s diverse economic sectors, creating a vibrant ecosystem for business growth.
The Phoenix area is a hotbed for entrepreneurship, with a strong and growing startup ecosystem.
Freight Rail System: 1,700+ miles of freight rail system connecting the Southwest and Mexico
Access to 35 million consumers: within a single day truck haul
Leading Fiber, Telecom, and Broadband Providers: over 60 providers, ensuring reliable and high-speed connectivity
Reliable Utilities and Water Supply: supporting business operations
The region’s proximity to Northern Mexico’s dynamic bi-national region adds another layer of strategic advantage for companies operating in cross-border markets.
Cost-Effective Operations and Innovation Ecosystem
Businesses in Greater Phoenix enjoy significant advantages:
Operating costs: average up to 44% less than in California
Strategic proximity to Silicon Valley: with substantially lower cost of living
Modern infrastructure: reducing logistics costs
The region’s commitment to innovation is evident in its thriving technology sector. Companies like ZorroSign chose Phoenix for their global headquarters, citing the robust tech ecosystem as a key factor.
The Phoenix area has a strong and growing tech industry, with a talented workforce and a business-friendly environment.
The region is increasingly being recognized as a potential “next Silicon Valley,” attracting significant investment and talent from traditional tech hubs.
Education and Talent Pipeline
The region’s educational ecosystem includes:
40+ universities and higher education institutions
Maricopa Community Colleges system: serving 200,000+ students annually
Specialized programs: aligned with key industries
Major employers like USAA have expanded their presence specifically citing the ability to “design, develop and deliver world-class experiences” through local talent.
The Phoenix area has a strong and talented workforce, with a wide range of skills and expertise.
Greater Phoenix excels in multiple high-growth sectors:
1. Advanced Business Services
Growth Metrics: Greater Phoenix is a business services hub, with an increasing number of headquarters, back-office operations, and call centres. The sector’s growth is backed by Arizona’s population growth and a highly skilled labour pool.
Job Growth: Business services account for about 11% of total employment in Phoenix, with annual growth in jobs like customer service and administrative support rising.
2. Aerospace & Defense
Industry Size: Arizona is home to around 1,200 aerospace and defence companies, including giants like Boeing, Honeywell Aerospace, and Raytheon.
Economic Impact: This sector contributes over $15 billion to Arizona’s GDP annually and accounts for 17% of the state’s manufacturing jobs.
Growth Drivers: Phoenix is an ideal location for the industry due to its airspace capacity, dry climate, and the proximity to defence testing grounds.
3. Autonomous & Electric Vehicles
Emerging Hub: Greater Phoenix has positioned itself as a major centre for autonomous and electric vehicle testing and production. Companies like Waymo, Nuro, and Nikola have facilities in the region.
Employment Growth: Between 2020 and 2023, jobs related to EV manufacturing and autonomous vehicle R&D grew by over 25%, supported by partnerships with institutions like Arizona State University.
4. Biosciences
Economic Impact: Biosciences contribute around $27 billion annually to Arizona’s economy. This includes pharmaceuticals, biomedical R&D, and health IT.
Growth Rate: Biosciences employment in Greater Phoenix has grown nearly 40% over the past decade. Investment has been spurred by facilities like the Mayo Clinic, TGen, and the Phoenix Biomedical Campus.
5. Climate Technology
Focus Areas: Technologies in water conservation, solar energy, and sustainable agriculture are growing within Phoenix, with a focus on tackling water scarcity.
Funding Growth: Startups and initiatives have been seeing increased venture capital funding. For example, in 2022, climate-focused companies in Arizona received over $1 billion in funding.
6. Finance & Insurance
Industry Size: Financial services contribute roughly $30 billion to the Arizona economy. Major employers include State Farm, Wells Fargo, and Nationwide.
Job Growth: Phoenix saw a 10% increase in finance-related jobs from 2018 to 2022, with a rise in fintech developments due to low corporate taxes and minimal regulatory barriers.
7. Healthcare Innovation
Investment: Phoenix’s healthcare innovation sector attracts significant investment. Over the past few years, venture capital funding has grown, particularly in digital health and medical devices.
Job Creation: Healthcare roles, including telehealth and personalized medicine, are among the fastest-growing in the region, with job growth exceeding 20% from 2019-2023.
8. Semiconductors
Industry Size: The semiconductor industry is one of Arizona’s strongest sectors, bolstered by investments from TSMC, Intel, and other companies.
Economic Impact: Arizona’s semiconductor industry is a $12 billion sector, with over 25,000 jobs and growing. TSMC’s $40 billion facility in Phoenix has been a pivotal development.
Talent Pipeline: ASU’s engineering programs support a growing talent base for this sector.
Tech Hub: Phoenix is emerging as a software development hub, with tech job growth projected to exceed national averages.
Job Growth: Software development and IT roles grew by approximately 20% from 2019 to 2023, with demand in fields like cloud computing, cybersecurity, and SaaS.
Success Stories and Corporate Testimonials
The region’s success in attracting major corporations is evident through numerous testimonials. Mayo Clinic, IRIS USA, and multiple tech companies have praised the region’s strategic growth, incentives, talent pipeline, and local collaborations.
The Phoenix area has a strong and supportive business community, with a wide range of resources and incentives available to companies looking to relocate or expand.
Greater Phoenix offers an exceptional lifestyle combining affordability with amenities:
Average temperature: 77 degrees with 300+ days of sunshine annually
Average commute time: under 26 minutes
Six professional sports teams: NFL, MLB, NBA, WNBA, USL
77+ craft breweries
Year-round outdoor recreation
Rich cultural experiences and local art
Strong educational systems
Diverse, welcoming communities
Comprehensive Business Support
The Greater Phoenix Economic Council (GPEC) acts as a one-stop resource for businesses expanding to the region, providing data-driven research, site selection assistance, and connections to key local resources.
For international companies, GPEC offers specialized support to navigate U.S. market entry, while fostering strategic partnerships between new arrivals and established local businesses, helping ensure their successful integration into the Greater Phoenix business community.
Greater Phoenix has become a magnet for companies looking to relocate or expand, thanks to its business-friendly environment and talented workforce.
Looking ahead, Greater Phoenix continues to strengthen its position as a leading business destination. The region’s focus on emerging industries like climate technology, healthcare innovation, and advanced manufacturing ensures sustained growth and opportunity.
The combination of young talent, robust infrastructure, cost advantages, and exceptional lifestyle makes Greater Phoenix not just a business location, but a strategic advantage for companies looking to thrive in the American Southwest.
For businesses ready to expand or establish their presence in the American Southwest, Greater Phoenix stands as a testament to what’s possible when innovation, opportunity, and community converge. The question isn’t whether to expand to Greater Phoenix – it’s how soon can you join this thriving ecosystem of success?
Ian Collins, with an extensive background spanning over 30 years in business development and general management, co-founded GTM Global in 2015. His experience encompasses hi-tech industries such as security, artificial intelligence, business intelligence, and enterprise software solutions. In his career, Ian has started several tech companies, overseen two corporate ventures, executed a management buy-in, and led two business turnarounds. He has also been involved in buying, selling, and merging various of his companies, and has achieved two successful business exits. Ian's expertise is particularly focused on business growth strategies and leading-edge proposition development.
