Arizona ripe for rebound

Arizona could rebound well economically from the coronavirus-induced recession, say some of the state’s business and education leaders who were part of a webinar by East Valley Partnership.

Arizona could rebound well economically from the coronavirus-induced recession, say some of the state’s business and education leaders.

States like Arizona with modern infrastructure, a well-educated and growing labor force, technological prowess and a pro-business political outlook will be able to react better than others, said speakers at a webinar hosted by East Valley Partnership that had a pep-talk tone.

“The opportunities for Arizona are unbelievable” with Arizona having “maybe the greatest potential of any state,” said Michael Crow, president of Arizona State University and one of the webinar participants.

The coronavirus pandemic, he said, will hasten adoption of artificial intelligence, augmented reality, health care provided remotely and other innovations where Arizona is competitive.

“We have to realize the old economy is gone,” Crow said.

A well-trained labor force and strong infrastructure will be the “two key differentiators” helping Arizona, said Chris Camacho, president and CEO of the Greater Phoenix Economic Council.

As the pandemic and trade tensions with China result in more manufacturing returning to North America, Camacho said he sees Arizona partnering even more with northern Mexico and Southern California on economic-development initiatives.

Favorable Arizona factors

Factors that could encourage more businesses to set up or expand operations here, he said, include available labor, good telecommunications and other infrastructure, affordable housing and access to large markets such as California.

With the coronavirus shifting millions of workers across the nation to athome jobs, speakers said the signals remain mixed as to whether demand for office space near downtown Phoenix and other U.S. urban centers will recover.

But that still could make suburban areas of metro Phoenix, with relatively

modest housing prices, attractive for many.

If you’re a relatively young, well-educated employee, “Why not live in the East Valley and work for a Silicon Valley firm?” said Dennis Hoffman, an ASU economics professor.

Building on prior momentum

But until consumer spending picks up, unemployment drops, businesses open more fully and other signs emerge of an enduring economic recovery, many of these forecasts for Arizona and other states remain conjecture.

Still, Arizona had been on a roll prior to the pandemic, logging some of the nation’s largest population and employment gains. Major expansion announcements from Zoom, Taiwan Semiconductor Manufacturing, Lucid Motors, Nikola and Northrop Grumman were among recent examples that the state’s economy has diversified away from real estate and construction.

“Greater Phoenix and the East Valley will fare well in the next decade,” Camacho predicted, citing in particular the area’s “depth in engineering and technical talent.”