2Grow

ACA’s Strategic Framework

VISION: Arizona is the best location for high-quality business growth

MISSION: Grow & diversify Arizona’s Economy & create quality jobs for its citizens by supporting and attracting businesses in targeted, high-growth clusters, with an emphasis on the base industries.

STRATEGIES:

ACTION PLAN:

Increase Awareness of Arizona’s Attractiveness

Coordinate Arizona’s Economic Development

Make Arizona a Leading Hub in High-Quality Manufacturing and Advanced Business Services

Support Employer-focused, Demand-driven Workforce

Development

Integrate All Areas of Arizona into the State’s

Growth

1Recruit 3Create

Enhance Arizona’s Competitiveness

Develop Infrastructure to Support Economic Growth

Become a Preferred Trading Partner with

Mexico and Canada

Foster Innovation and Support Entrepreneurship

Make Arizona Preferred Location for Target Industries: A&D, Semiconductors, Optics, Biosciences, Solar Energy

ACA Results FY2013 – Q2FY2014

136 Projects; attraction and expansion

26,050 Jobs announced

$3.9B Capital Investment

$56,791 Average Wage

ACA Results FY2013 – Q2FY2014

Phoenix

Tempe

Scottsdale

Chandler

Tucson

Mesa

Peoria

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City of Project Location/ExpansionQ1-2013 thru Q2-2014

Manufacturing24%

Information Technology, 15%

Aerospace & Defense, 9%Healthcare 8%

Consumer Products & Services, 7%

Business Support Services, 6%

Bioscience, 5%

Banking, Finance & In-surance, 3%

Transportation & Warehousing,3%

Construction, 3%Other, 17%

331 Projects56,428 Jobs$28.16 B CapEx$48,430 Average Wages

All ACA Pipeline by Industry

Pipeline Projects (All ACA)Business Attraction and Expansion Pipeline by Industry Segment, YTD Q3-2014

65 to 69 years 29,925 34,903 4,978 17%60 to 64 years 36,765 40,117 3,352 9%70 to 74 years 23,005 25,798 2,793 12%25 to 29 years 29,073 30,966 1,893 7%75 to 79 years 15,881 17,744 1,863 12%55 to 59 years 37,494 38,666 1,172 3%30 to 34 years 27,167 28,336 1,169 4%20 to 24 years 39,877 40,879 1,002 3%Under 5 years 33,520 34,304 784 2%35 to 39 years 26,174 26,794 620 2%85 years and over 9,542 10,160 618 6%80 to 84 years 11,071 11,532 461 4%10 to 14 years 35,282 35,739 457 1%5 to 9 years 33,835 34,142 307 1%40 to 44 years 28,171 27,101 (1,070) (4%)50 to 54 years 36,869 35,458 (1,411) (4%)45 to 49 years 32,425 30,361 (2,064) (6%)15 to 19 years 40,115 36,784 (3,331) (8%)

Total 526,190 539,784 13,594 3%

NACOG DEMOGRAPHICS 2011 TO 2014

Demographic 2011 Population 2014 Population Change % ChangeUnder 5 years 33,520 34,304 784 2%

5 to 9 years 33,835 34,142 307 1%10 to 14 years 35,282 35,739 457 1%15 to 19 years 40,115 36,784 (3,331) (8%)20 to 24 years 39,877 40,879 1,002 3%25 to 29 years 29,073 30,966 1,893 7%30 to 34 years 27,167 28,336 1,169 4%35 to 39 years 26,174 26,794 620 2%40 to 44 years 28,171 27,101 (1,070) (4%)45 to 49 years 32,425 30,361 (2,064) (6%)50 to 54 years 36,869 35,458 (1,411) (4%)55 to 59 years 37,494 38,666 1,172 3%60 to 64 years 36,765 40,117 3,352 9%65 to 69 years 29,925 34,903 4,978 17%70 to 74 years 23,005 25,798 2,793 12%75 to 79 years 15,881 17,744 1,863 12%80 to 84 years 11,071 11,532 461 4%85 years and

over 9,542 10,160 618 6%

Demographic 2011 Population 2014 Population Change % Change

60 to 64 years 36,765 40,117 3,352 9%

65 to 69 years 29,925 34,903 4,978 17%

70 to 74 years 23,005 25,798 2,793 12%

The largest change came from people ages 60 to 74 growing by more than 11,000 people between 2011 to 2014

Only 784 babies entered this region during that time period

NACOG KEY DEMOGRAPHICS-INCREASE

65 to 69 years 29,925 34,903 4,978 17%60 to 64 years 36,765 40,117 3,352 9%70 to 74 years 23,005 25,798 2,793 12%25 to 29 years 29,073 30,966 1,893 7%75 to 79 years 15,881 17,744 1,863 12%55 to 59 years 37,494 38,666 1,172 3%30 to 34 years 27,167 28,336 1,169 4%20 to 24 years 39,877 40,879 1,002 3%Under 5 years 33,520 34,304 784 2%35 to 39 years 26,174 26,794 620 2%85 years and over 9,542 10,160 618 6%80 to 84 years 11,071 11,532 461 4%10 to 14 years 35,282 35,739 457 1%5 to 9 years 33,835 34,142 307 1%40 to 44 years 28,171 27,101 (1,070) (4%)50 to 54 years 36,869 35,458 (1,411) (4%)45 to 49 years 32,425 30,361 (2,064) (6%)15 to 19 years 40,115 36,784 (3,331) (8%)

Total 526,190 539,784 13,594 3%

NACOG KEY DEMOGRAPHICS-DECREASE

15 to 19 years 40 to 44 years 45 to 49 years 50 to 54 years0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,00040,115

28,171

32,425

36,86936,784

27,10130,361

35,458

2011 Population 2014 Population

-8%

-4%

-6%-4%

65 to 69 years 29,925 34,903 4,978 17%60 to 64 years 36,765 40,117 3,352 9%70 to 74 years 23,005 25,798 2,793 12%25 to 29 years 29,073 30,966 1,893 7%75 to 79 years 15,881 17,744 1,863 12%55 to 59 years 37,494 38,666 1,172 3%30 to 34 years 27,167 28,336 1,169 4%20 to 24 years 39,877 40,879 1,002 3%Under 5 years 33,520 34,304 784 2%35 to 39 years 26,174 26,794 620 2%85 years and over 9,542 10,160 618 6%80 to 84 years 11,071 11,532 461 4%10 to 14 years 35,282 35,739 457 1%5 to 9 years 33,835 34,142 307 1%40 to 44 years 28,171 27,101 (1,070) (4%)50 to 54 years 36,869 35,458 (1,411) (4%)45 to 49 years 32,425 30,361 (2,064) (6%)15 to 19 years 40,115 36,784 (3,331) (8%)

Total 526,190 539,784 13,594 3%

NACOG REGIONAL TRENDS

Year # of NACOG Jobs # of Nation Jobs

2011 161,687 135,950,711

2012 164,240 138,278,425

2013 166,619 140,273,524

2014 169,798 142,108,288

65 to 69 years 29,925 34,903 4,978 17%60 to 64 years 36,765 40,117 3,352 9%70 to 74 years 23,005 25,798 2,793 12%25 to 29 years 29,073 30,966 1,893 7%75 to 79 years 15,881 17,744 1,863 12%55 to 59 years 37,494 38,666 1,172 3%30 to 34 years 27,167 28,336 1,169 4%20 to 24 years 39,877 40,879 1,002 3%Under 5 years 33,520 34,304 784 2%35 to 39 years 26,174 26,794 620 2%85 years and over 9,542 10,160 618 6%80 to 84 years 11,071 11,532 461 4%10 to 14 years 35,282 35,739 457 1%5 to 9 years 33,835 34,142 307 1%40 to 44 years 28,171 27,101 (1,070) (4%)50 to 54 years 36,869 35,458 (1,411) (4%)45 to 49 years 32,425 30,361 (2,064) (6%)15 to 19 years 40,115 36,784 (3,331) (8%)

Total 526,190 539,784 13,594 3%

NACOG GROSS REGIONAL PRODUCT

Earnings (2012) Property Income (2012) Taxes on Production (2012) Total GRP (2012)

$9,006,603,131 $4,398,348,720 $857,003,446 $14,261,955,298

NAICS Industry GRP (2012) % of Total

11 Agriculture, Forestry, Fishing and Hunting $479,064,628 3%

21 Mining, Quarrying, and Oil and Gas Extraction $568,887,748 4%

22 Utilities $271,064,724 2%

23 Construction $403,878,546 3%

31 Manufacturing $1,118,147,318 8%

42 Wholesale Trade $363,460,903 3%

44 Retail Trade $1,045,682,409 7%

48 Transportation and Warehousing $390,999,049 3%

51 Information $267,765,809 2%

52 Finance and Insurance $566,665,859 4%

53 Real Estate and Rental and Leasing $1,078,119,759 8%

54 Professional, Scientific, and Technical Services $349,748,452 2%

55 Management of Companies and Enterprises $27,652,366 0%

56 Administrative and Support and Waste Management and Remediation Services $240,099,822 2%

61 Educational Services (Private) $184,836,525 1%

62 Health Care and Social Assistance $1,386,310,984 10%

71 Arts, Entertainment, and Recreation $163,404,239 1%

72 Accommodation and Food Services $730,371,680 5%

81 Other Services (except Public Administration) $237,026,365 2%

90 Government $3,238,285,344 23%

Other non-industries $1,150,482,769 8%

NACOG GROSS REGIONAL PRODUCT

Manufacturing8% Real Estate and

Rental and Leas-ing, 8%

Health Care and Social Assis-tance, 10%

Government, 23%

Other51%

Retail Trade, 7%

Food Services, 5%

Mining, 4%

Construction, 3%

Ag, 2%

Utilities, 2%

65 to 69 years 29,925 34,903 4,978 17%60 to 64 years 36,765 40,117 3,352 9%70 to 74 years 23,005 25,798 2,793 12%25 to 29 years 29,073 30,966 1,893 7%75 to 79 years 15,881 17,744 1,863 12%55 to 59 years 37,494 38,666 1,172 3%30 to 34 years 27,167 28,336 1,169 4%20 to 24 years 39,877 40,879 1,002 3%Under 5 years 33,520 34,304 784 2%35 to 39 years 26,174 26,794 620 2%85 years and over 9,542 10,160 618 6%80 to 84 years 11,071 11,532 461 4%10 to 14 years 35,282 35,739 457 1%5 to 9 years 33,835 34,142 307 1%40 to 44 years 28,171 27,101 (1,070) (4%)50 to 54 years 36,869 35,458 (1,411) (4%)45 to 49 years 32,425 30,361 (2,064) (6%)15 to 19 years 40,115 36,784 (3,331) (8%)

Total 526,190 539,784 13,594 3%

Focus on Manufacturing

Bolster the manufacturing base via NAMP

Insist on education curriculum consistent with what industry needs

Support JTEDS

Leverage supply chain with industry

Focus on rural infrastructure, including broadband

Focus on Manufacturing cont.

Focus on rural infrastructure (incl. broadband)

Upgrades to existing systems Extensions to add supply of employment use property Be prepared-have all pre-work completed Get creative with construction funding