Economist: Arizona's post-Covid recovery will be 'incredibly fast'
By Corina Vanek – Reporter, Phoenix Business Journal
Feb 23, 2021, 5:15pm EST
“There’s going to be a hell of a party in the next couple of years,” and Arizona might be having the best celebration of all when it comes to the economy following the Covid-19 pandemic, economist Christopher Thornberg said during his keynote address at the Alliance Bank of Arizona economic forum on Tuesday.
Despite the tragic circumstances of the coronavirus, the virus-induced recession has ended, and “V” shaped recovery is already taking place, he said. Even the surge of cases over the winter only slowed the national economy slightly.
“The post-Covid recovery is going to be incredibly fast,” contends Thornberg, who is the founding partner of Beacon Economics and director for the Center for Economic Forecasting and Development at the University of California, Riverside.
EnlargeChristopher Thornberg, founding partner of Beacon Economics in Los Angeles.
PROVIDED BY BEACON ECONOMICS
Not all industries and workers were treated the same by the pandemic-related closures. While earned income for those working actually grew during the pandemic, the people most likely to remain out of work are the people who were working low-skill, low-wage jobs.
Thornberg had criticism for government stimulus plans, including the first version of the Paycheck Protection Program, which he said was heavily skewed toward companies that received large loans that likely could have survived without the money. The top 1% of loans given out by size accounted for more than one-quarter of the money in the program, he said, and the top 5% of loans by size accounted for more than half.
Just this week, President Biden made tweaks to the PPP program to focus dollars toward small companies with less than 20 employees and those businesses that were overlooked when the program was rushed through Congress in 2020.Stimulus paymentsDirect stimulus payments also were ineffective because a large portion of the people who received the money either saved it or used it to pay off existing debt, Thornberg said. For the most part, Thornberg said the sharp decrease in spending was because of health mandates and consumers’ fear, not because they did not have the money.
Nearly 30% of businesses in Arizona that were open in January 2020 still remained closed as of December and many will never reopen, he said during his speech. Arizona was near the middle of the pack when compared to the rest of the country. In Alaska more than 39% of businesses were closed and in Utah nearly 19% were closed.
However, Thornberg said there was a 17.2% increase in business applications from 2019 to 2020 in Arizona, showing that there is a pipeline of new businesses that can replace some of those lost.
The government would be better off to let the economy recover on its own and instead focus its efforts on vaccination and controlling the virus, which has killed more than 501,000 Americans, he said.
"We need to back off," he said. "Focus on the virus and stop worrying about the economy."
In the greater Phoenix area, full job recovery is expected by the third quarter of 2021, Greater Phoenix Economic Council President and CEO Chris Camacho said.
“We entered the Covid-19 pandemic with a running start,” he said, of the growth Phoenix was experiencing before the pandemic began, both in migration of people and companies.
So far in the 2021 fiscal year, 21 new companies have located in greater Phoenix, Camacho said. There are 291 companies that GPEC calls “active prospects” considering the Phoenix area. Of those, 46 are from California and 39 are international. Those prospects represent more than 24 million square feet of commercial real estate space if they chose to buy or lease in the Valley.
By Corina Vanek – Reporter, Phoenix Business Journal
Feb 23, 2021, 5:15pm EST
“There’s going to be a hell of a party in the next couple of years,” and Arizona might be having the best celebration of all when it comes to the economy following the Covid-19 pandemic, economist Christopher Thornberg said during his keynote address at the Alliance Bank of Arizona economic forum on Tuesday.
Despite the tragic circumstances of the coronavirus, the virus-induced recession has ended, and “V” shaped recovery is already taking place, he said. Even the surge of cases over the winter only slowed the national economy slightly.
“The post-Covid recovery is going to be incredibly fast,” contends Thornberg, who is the founding partner of Beacon Economics and director for the Center for Economic Forecasting and Development at the University of California, Riverside.
EnlargeChristopher Thornberg, founding partner of Beacon Economics in Los Angeles.
PROVIDED BY BEACON ECONOMICS
Not all industries and workers were treated the same by the pandemic-related closures. While earned income for those working actually grew during the pandemic, the people most likely to remain out of work are the people who were working low-skill, low-wage jobs.
Thornberg had criticism for government stimulus plans, including the first version of the Paycheck Protection Program, which he said was heavily skewed toward companies that received large loans that likely could have survived without the money. The top 1% of loans given out by size accounted for more than one-quarter of the money in the program, he said, and the top 5% of loans by size accounted for more than half.
Just this week, President Biden made tweaks to the PPP program to focus dollars toward small companies with less than 20 employees and those businesses that were overlooked when the program was rushed through Congress in 2020.Stimulus paymentsDirect stimulus payments also were ineffective because a large portion of the people who received the money either saved it or used it to pay off existing debt, Thornberg said. For the most part, Thornberg said the sharp decrease in spending was because of health mandates and consumers’ fear, not because they did not have the money.
Nearly 30% of businesses in Arizona that were open in January 2020 still remained closed as of December and many will never reopen, he said during his speech. Arizona was near the middle of the pack when compared to the rest of the country. In Alaska more than 39% of businesses were closed and in Utah nearly 19% were closed.
However, Thornberg said there was a 17.2% increase in business applications from 2019 to 2020 in Arizona, showing that there is a pipeline of new businesses that can replace some of those lost.
The government would be better off to let the economy recover on its own and instead focus its efforts on vaccination and controlling the virus, which has killed more than 501,000 Americans, he said.
"We need to back off," he said. "Focus on the virus and stop worrying about the economy."
In the greater Phoenix area, full job recovery is expected by the third quarter of 2021, Greater Phoenix Economic Council President and CEO Chris Camacho said.
“We entered the Covid-19 pandemic with a running start,” he said, of the growth Phoenix was experiencing before the pandemic began, both in migration of people and companies.
So far in the 2021 fiscal year, 21 new companies have located in greater Phoenix, Camacho said. There are 291 companies that GPEC calls “active prospects” considering the Phoenix area. Of those, 46 are from California and 39 are international. Those prospects represent more than 24 million square feet of commercial real estate space if they chose to buy or lease in the Valley.
Technology giant Samsung Electronics Co. is considering multiple sites in the Valley, along with sites in New York and Texas, for a $17 billion semiconductor plant.
A source familiar with the site search confirmed to the Business Journal that Samsung is eyeing sites in the Valley, including a 1,100-acre site in Goodyear that the city recently designated a foreign trade zone. According to city documents, a site in the city, bounded by Indian School Road to the north, Perryville Road to the west, Citrus Road to the east and McDowell Road to the south is being considered for an economic development project. The city documents do not identify the potential user but do say it is a known user.
According to Goodyear city documents, in order to qualify as a user-driven foreign trade zone in the city, a capital expenditure of at least $25 million must be made in the development of a project, manufacturing operations must be carried out in at least 75,000 square feet of a building, the employer must agree to employ a minimum of 75 people with more than half paid at least 125% of the median annual wage and full-time employees must be offered 75% of health insurance premium paid by the employer.
According to city documents, the proposed project for that site would meet or exceed all the criteria. The foreign trade zone designation provides a property tax benefit by reducing the real and personal property tax assessment ratio 5% from 18%.
The Goodyear site proposed for the project is owned by the state of Arizona and does not generate property tax currently.
Sources with knowledge of the search also told the Business Journal a 1,000 acre site recently annexed into the town of Queen Creek is another potential landing spot for Samsung.
A spokesman for the city of Phoenix said he could not comment on active economic development projects in the city. The Greater Phoenix Economic Council declined to comment on the project. A spokeswoman for the Arizona Commerce Authority said she was unable to comment on potential economic development-related projects.
Samsung, which is headquartered in South Korea, is also considering sites near Austin, Texas and in Genesee County, New York, according to the Wall Street Journal. The proposed chipmaking plant would create 1,900 jobs and would open by October 2022, the WSJ reported.
If Samsung were to locate in the Valley, it would be the second massive technology investment from a foreign technology manufacturing company choosing Arizona in recent years. In December, Taiwan Semiconductor Manufacturing Co. Ltd. bought 1,128 acres of land in north Phoenix where it plans to build a $12 billion manufacturing plant. TSMC’s investment was the largest foreign direct investment into Arizona at the time, though Samsung’s potential $17 billion investment would take the cake if it ended up in Arizona.
TSMC bought the land for $89 million. The company plans to break ground on the site this year and begin production by 2024.
At the time TSMC bought its land, city of Phoenix officials said the only other sites within the city of Phoenix that could accommodate a development that size are along the South Mountain extension of Loop 202.
Samsung Austin Semiconductor LLC is seeking $805 million in property tax abatements from the city of Austin and Travis County as it considers building a massive chipmaking plant at its campus in North Austin.
The company filed Jan. 11 an application for Chapter 313 property tax breaks from the Manor Independent School District, according to documents filed with the Texas comptroller. The application also outlines the incentives the Korea-based company is requesting from the city of Austin and Travis County, under the guise of a project name "Silicon Silver."
Samsung is looking to make an investment of $17 billion in its next U.S. facility, and is also considering locations in Phoenix and upstate New York, according to past Austin Business Journal reporting. The documents submitted to Manor ISD indicate Samsung is planning a 7 million-square-foot manufacturing facility that would create at least 1,800 jobs and another 1,173 indirect jobs with more than $7.3 billion in total salaries. The documents also confirm a price tag of at least $17 billion.
Sources confirmed to the Phoenix Business Journal that Samsung is eyeing three sites in the Valley, in Goodyear, Queen Creek and the city of Phoenix. The 1,100-acre site in Goodyear being looked at by Samsung is in a foreign trade zone, which would provide some property tax benefits.
It's unclear what other incentives Arizona or the municipalities may be offering the tech giant as details haven't been made public. But they are likely far from the massive property tax abatement Samsung is seeking in Texas.
Site selectors: Taiwan Semiconductor's presence could help or hurt Phoenix's chances of attracting Samsung
According to the documents filed in Texas, Samsung is requesting five years of 50% property tax abatement, totaling more than $87 million, from the city of Austin, plus 20 years of 100% property tax abatement from Travis County. Combined, these incentives agreements could save the company nearly $805.5 million over the course of two decades.
Samsung could also realize an estimated $252 million in savings over 20 years through the Chapter 313 agreement with Manor ISD, according to an economic impact study conducted by Impact DataSource LLC.
Chapter 313 incentives allow a school district to offer up to a 10-year abatement — between $10 million and $100 million — on the portion of the property taxes it would receive for maintenance and operations for manufacturing or certain environmentally friendly energy projects. Tesla Inc. (Nasdaq: TSLA) also tapped these incentives with Del Valle Independent School District for it's $1.1 billion facility rising in Travis County.
Texas generally has higher property tax rates because the state lacks an income tax, which means these incentives could be a determining factor for the company. Without the incentives, the company would likely locate the project elsewhere.
"This project is highly competitive, and the company is looking at alternative sites in the US including Arizona and New York, as well as abroad in Korea where Samsung Austin Semiconductor’s parent company is headquartered," according to the documents.
Samsung Austin Semiconductor LLC recently purchased 250 acres surrounding its current campus off East Parmer Lane, which company officials have said is for strategic planning purposes. But the application states that Samsung is planning to build the project on land it owns adjacent to its campus.
Michele Glaze, director of communications and community affairs for the company, told Austin Business Journal last month that no decisions had been made about a potential expansion and declined to comment further.
The school board is expected to ratify a final agreement in June, according to the documents, and construction would start the same month. Operations are expected to start January 2024.
Samsung has a history of working with state and local governments on incentives deals that result in tax savings. Samsung Austin Semiconductor LLC, for instance, has received at least $65 million in tax rebates from Travis County alone since 2009 in exchange for growing its massive corporate campus on the north side. Samsung has also reached two prior Chapter 313 incentive deals with the Manor Independent School District, in 2005 and 2012, respectively.
The latest Chapter 313 application confirms that Samsung is the company behind the incentive application Travis County commissioners recently accepted called Silicon Silver. Commissioners last month temporarily lifted a moratorium on accepting incentives applications — something they did briefly last year to consider the agreement with Tesla Inc., which is set to receive tens of millions of dollars in tax rebates over 10 years for the factory it's building east of Austin.
Samsung established an Austin presence in 1996 and opened its first fabrication plant in 1997. It has expanded its campus over the years, and now has roughly 2.45 million square feet on 300 acres, where about 3,000 people work. Samsung has helped make Central Texas a hub for the semiconductor supply chain, along with other big companies such as NXP and Applied Materials.
Phoenix Business Journal contributed to this report.
A source familiar with the site search confirmed to the Business Journal that Samsung is eyeing sites in the Valley, including a 1,100-acre site in Goodyear that the city recently designated a foreign trade zone. According to city documents, a site in the city, bounded by Indian School Road to the north, Perryville Road to the west, Citrus Road to the east and McDowell Road to the south is being considered for an economic development project. The city documents do not identify the potential user but do say it is a known user.
According to Goodyear city documents, in order to qualify as a user-driven foreign trade zone in the city, a capital expenditure of at least $25 million must be made in the development of a project, manufacturing operations must be carried out in at least 75,000 square feet of a building, the employer must agree to employ a minimum of 75 people with more than half paid at least 125% of the median annual wage and full-time employees must be offered 75% of health insurance premium paid by the employer.
According to city documents, the proposed project for that site would meet or exceed all the criteria. The foreign trade zone designation provides a property tax benefit by reducing the real and personal property tax assessment ratio 5% from 18%.
The Goodyear site proposed for the project is owned by the state of Arizona and does not generate property tax currently.
Sources with knowledge of the search also told the Business Journal a 1,000 acre site recently annexed into the town of Queen Creek is another potential landing spot for Samsung.
A spokesman for the city of Phoenix said he could not comment on active economic development projects in the city. The Greater Phoenix Economic Council declined to comment on the project. A spokeswoman for the Arizona Commerce Authority said she was unable to comment on potential economic development-related projects.
Samsung, which is headquartered in South Korea, is also considering sites near Austin, Texas and in Genesee County, New York, according to the Wall Street Journal. The proposed chipmaking plant would create 1,900 jobs and would open by October 2022, the WSJ reported.
If Samsung were to locate in the Valley, it would be the second massive technology investment from a foreign technology manufacturing company choosing Arizona in recent years. In December, Taiwan Semiconductor Manufacturing Co. Ltd. bought 1,128 acres of land in north Phoenix where it plans to build a $12 billion manufacturing plant. TSMC’s investment was the largest foreign direct investment into Arizona at the time, though Samsung’s potential $17 billion investment would take the cake if it ended up in Arizona.
TSMC bought the land for $89 million. The company plans to break ground on the site this year and begin production by 2024.
At the time TSMC bought its land, city of Phoenix officials said the only other sites within the city of Phoenix that could accommodate a development that size are along the South Mountain extension of Loop 202.
Samsung Austin Semiconductor LLC is seeking $805 million in property tax abatements from the city of Austin and Travis County as it considers building a massive chipmaking plant at its campus in North Austin.
The company filed Jan. 11 an application for Chapter 313 property tax breaks from the Manor Independent School District, according to documents filed with the Texas comptroller. The application also outlines the incentives the Korea-based company is requesting from the city of Austin and Travis County, under the guise of a project name "Silicon Silver."
Samsung is looking to make an investment of $17 billion in its next U.S. facility, and is also considering locations in Phoenix and upstate New York, according to past Austin Business Journal reporting. The documents submitted to Manor ISD indicate Samsung is planning a 7 million-square-foot manufacturing facility that would create at least 1,800 jobs and another 1,173 indirect jobs with more than $7.3 billion in total salaries. The documents also confirm a price tag of at least $17 billion.
Sources confirmed to the Phoenix Business Journal that Samsung is eyeing three sites in the Valley, in Goodyear, Queen Creek and the city of Phoenix. The 1,100-acre site in Goodyear being looked at by Samsung is in a foreign trade zone, which would provide some property tax benefits.
It's unclear what other incentives Arizona or the municipalities may be offering the tech giant as details haven't been made public. But they are likely far from the massive property tax abatement Samsung is seeking in Texas.
Site selectors: Taiwan Semiconductor's presence could help or hurt Phoenix's chances of attracting Samsung
According to the documents filed in Texas, Samsung is requesting five years of 50% property tax abatement, totaling more than $87 million, from the city of Austin, plus 20 years of 100% property tax abatement from Travis County. Combined, these incentives agreements could save the company nearly $805.5 million over the course of two decades.
Samsung could also realize an estimated $252 million in savings over 20 years through the Chapter 313 agreement with Manor ISD, according to an economic impact study conducted by Impact DataSource LLC.
Chapter 313 incentives allow a school district to offer up to a 10-year abatement — between $10 million and $100 million — on the portion of the property taxes it would receive for maintenance and operations for manufacturing or certain environmentally friendly energy projects. Tesla Inc. (Nasdaq: TSLA) also tapped these incentives with Del Valle Independent School District for it's $1.1 billion facility rising in Travis County.
Texas generally has higher property tax rates because the state lacks an income tax, which means these incentives could be a determining factor for the company. Without the incentives, the company would likely locate the project elsewhere.
"This project is highly competitive, and the company is looking at alternative sites in the US including Arizona and New York, as well as abroad in Korea where Samsung Austin Semiconductor’s parent company is headquartered," according to the documents.
Samsung Austin Semiconductor LLC recently purchased 250 acres surrounding its current campus off East Parmer Lane, which company officials have said is for strategic planning purposes. But the application states that Samsung is planning to build the project on land it owns adjacent to its campus.
Michele Glaze, director of communications and community affairs for the company, told Austin Business Journal last month that no decisions had been made about a potential expansion and declined to comment further.
The school board is expected to ratify a final agreement in June, according to the documents, and construction would start the same month. Operations are expected to start January 2024.
Samsung has a history of working with state and local governments on incentives deals that result in tax savings. Samsung Austin Semiconductor LLC, for instance, has received at least $65 million in tax rebates from Travis County alone since 2009 in exchange for growing its massive corporate campus on the north side. Samsung has also reached two prior Chapter 313 incentive deals with the Manor Independent School District, in 2005 and 2012, respectively.
The latest Chapter 313 application confirms that Samsung is the company behind the incentive application Travis County commissioners recently accepted called Silicon Silver. Commissioners last month temporarily lifted a moratorium on accepting incentives applications — something they did briefly last year to consider the agreement with Tesla Inc., which is set to receive tens of millions of dollars in tax rebates over 10 years for the factory it's building east of Austin.
Samsung established an Austin presence in 1996 and opened its first fabrication plant in 1997. It has expanded its campus over the years, and now has roughly 2.45 million square feet on 300 acres, where about 3,000 people work. Samsung has helped make Central Texas a hub for the semiconductor supply chain, along with other big companies such as NXP and Applied Materials.
Phoenix Business Journal contributed to this report.
Can employers require workers to get a Covid-19 vaccine? HR, law experts weigh in.
As health and political leaders craft strategies for distributing Covid-19 vaccines nationwide, questions about workforce implications of the rollout are top of mind for many employers.
The first and perhaps most obvious of these questions: Can I require my employees to get vaccinated? According to Diane Hoffmann, a professor at the University of Maryland School of Law, the answer is yes.
A vaccination is legally considered a medical procedure, which employers can require their employees to receive if deemed necessary to perform their jobs safely and successfully, said Hoffmann, who serves as director of the school's Law and Health Care Program. Given the highly infectious nature of Covid-19, a vaccine mandate may be considered particularly in workplaces where employees must work on site and in close proximity to one another, or in those where they interact extensively with the public.
But just because employers can legally mandate getting a coronavirus vaccination doesn't mean they all will.
There is some precedent for large-scale vaccine mandates, Hoffmann said. For example, most K-12 schools across the country require children to provide proof of certain immunizations before they can attend, and health care organizations such as hospitals and nursing homes often require their employees to get several vaccinations, including an annual flu shot.
However, vaccine mandates in other areas of private industry are relatively unprecedented. Hoffmann said some employers may worry about the legal repercussions of mandating a vaccination, including exposing themselves to a lawsuit if a certain employee has an adverse reaction to the vaccine. Additionally, employers who do opt to require their employees to be vaccinated will have to allow exceptions for people with a religious belief or medical condition that legally precludes them from receiving vaccines. Employers may have to make special accommodations for those who cannot be vaccinated if they establish a mandate.
However, there is also a risk that employees will sue if they are required to come back to a workplace without a vaccine mandate, and they end up contracting Covid-19, Hoffmann pointed out. "For a lot of businesses, this will be uncharted territory," Hoffmann said. "I expect lots of employers will be talking to their lawyers about the legal frameworks here."
The vaccine formulations being distributed are reported to be more than 90% effective, and are cleared for use under the U.S Food and Drug Administration's "emergency use authorization," a system that expedites the availability of certain health interventions during public health emergencies. Hoffmann said employers may want to wait until the vaccines have received full standard FDA approval before they consider making vaccination a job requirement.
That seems to be the route that regional health system MedStar Health is taking. MedStar CEO Kenneth Samet said although his was one of the first health systems in the country to mandate flu vaccinations for its workers, it is not requiring Covid vaccinations for now.
He discussed MedStar's approach to vaccine distribution during a panel event in December hosted by the Greater Baltimore Committee. At that point, MedStar leaders were strongly encouraging employees to get the vaccine if they can. Samet said he would be "first in line" if he were among the essential workers at the front of the distribution hierarchy, but he understands some people may be nervous about the vaccines and will want to wait until more data is in.
While employers mull their options with counsel, human resources expert Amy E. Polefrone said every employer should at least be developing a game plan for when vaccines are widely available. "These vaccines have big implications for everyone getting back to work," said Polefrone, who is CEO of Ellicott City's HR Strategy Group. "Employers should be preparing, and doing everything they can to encourage employees to get the vaccine."
Polefrone said for many companies, the Covid vaccines represent a path to getting truly back to business. She said business owners should be laying plans for how a phased return-to-work strategy might go, and maintaining open communication with their employees. She recommended employers share educational materials about vaccines and invite science and health experts to speak to workers about any questions or concerns they may have.
She also advised that business owners make the process of getting vaccinated as burden-free as possible for employees. Health insurers are expected to cover the costs of Covid vaccinations for their individual and group policy holders. But for those businesses that do not offer health benefits, Polefrone said employers may want to consider subsidizing or covering the costs of vaccinations.
Polefrone said it will take many more months before we have mostly vaccinated workforces, but she is excited to see the first steps in that direction happening. In the meantime, she said companies should expect to continue operating with mask and social distancing requirements, as well as increased cleaning schedules for the foreseeable future.
As health and political leaders craft strategies for distributing Covid-19 vaccines nationwide, questions about workforce implications of the rollout are top of mind for many employers.
The first and perhaps most obvious of these questions: Can I require my employees to get vaccinated? According to Diane Hoffmann, a professor at the University of Maryland School of Law, the answer is yes.
A vaccination is legally considered a medical procedure, which employers can require their employees to receive if deemed necessary to perform their jobs safely and successfully, said Hoffmann, who serves as director of the school's Law and Health Care Program. Given the highly infectious nature of Covid-19, a vaccine mandate may be considered particularly in workplaces where employees must work on site and in close proximity to one another, or in those where they interact extensively with the public.
But just because employers can legally mandate getting a coronavirus vaccination doesn't mean they all will.
There is some precedent for large-scale vaccine mandates, Hoffmann said. For example, most K-12 schools across the country require children to provide proof of certain immunizations before they can attend, and health care organizations such as hospitals and nursing homes often require their employees to get several vaccinations, including an annual flu shot.
However, vaccine mandates in other areas of private industry are relatively unprecedented. Hoffmann said some employers may worry about the legal repercussions of mandating a vaccination, including exposing themselves to a lawsuit if a certain employee has an adverse reaction to the vaccine. Additionally, employers who do opt to require their employees to be vaccinated will have to allow exceptions for people with a religious belief or medical condition that legally precludes them from receiving vaccines. Employers may have to make special accommodations for those who cannot be vaccinated if they establish a mandate.
However, there is also a risk that employees will sue if they are required to come back to a workplace without a vaccine mandate, and they end up contracting Covid-19, Hoffmann pointed out. "For a lot of businesses, this will be uncharted territory," Hoffmann said. "I expect lots of employers will be talking to their lawyers about the legal frameworks here."
The vaccine formulations being distributed are reported to be more than 90% effective, and are cleared for use under the U.S Food and Drug Administration's "emergency use authorization," a system that expedites the availability of certain health interventions during public health emergencies. Hoffmann said employers may want to wait until the vaccines have received full standard FDA approval before they consider making vaccination a job requirement.
That seems to be the route that regional health system MedStar Health is taking. MedStar CEO Kenneth Samet said although his was one of the first health systems in the country to mandate flu vaccinations for its workers, it is not requiring Covid vaccinations for now.
He discussed MedStar's approach to vaccine distribution during a panel event in December hosted by the Greater Baltimore Committee. At that point, MedStar leaders were strongly encouraging employees to get the vaccine if they can. Samet said he would be "first in line" if he were among the essential workers at the front of the distribution hierarchy, but he understands some people may be nervous about the vaccines and will want to wait until more data is in.
While employers mull their options with counsel, human resources expert Amy E. Polefrone said every employer should at least be developing a game plan for when vaccines are widely available. "These vaccines have big implications for everyone getting back to work," said Polefrone, who is CEO of Ellicott City's HR Strategy Group. "Employers should be preparing, and doing everything they can to encourage employees to get the vaccine."
Polefrone said for many companies, the Covid vaccines represent a path to getting truly back to business. She said business owners should be laying plans for how a phased return-to-work strategy might go, and maintaining open communication with their employees. She recommended employers share educational materials about vaccines and invite science and health experts to speak to workers about any questions or concerns they may have.
She also advised that business owners make the process of getting vaccinated as burden-free as possible for employees. Health insurers are expected to cover the costs of Covid vaccinations for their individual and group policy holders. But for those businesses that do not offer health benefits, Polefrone said employers may want to consider subsidizing or covering the costs of vaccinations.
Polefrone said it will take many more months before we have mostly vaccinated workforces, but she is excited to see the first steps in that direction happening. In the meantime, she said companies should expect to continue operating with mask and social distancing requirements, as well as increased cleaning schedules for the foreseeable future.
Maricopa tops list for talent attraction among nation's largest counties, report shows
Continued growth in skilled jobs has propelled Maricopa County to first place among large U.S. counties for talent attraction, according to a new report by labor analytics firm Emsi.
Maricopa County topped the 2020 list, with data collected right before the start of the Covid-19 pandemic, rising from second place in 2019, according to Emsi's Talent Attraction Scorecard. The county, which recorded an 18% increase in skilled jobs from 2015-19, also took the top spot in 2018 and 2017. Clark County, which is home to Las Vegas, ranked second in 2020 and Collin County, home to McKinney, Texas, ranked third.
Caifornia-based Intel Corp. is a major skilled job creator mentioned in the Emsi report. The semiconductor maker continues to grow in Chandler with a $7 billion expansion opening earlier this year and a workforce of more than 12,000.
According to the report, Phoenix is one of only a few of the largest cities in the country that is not seeing an exodus of residents. Manhattan, Brooklyn, Chicago, San Francisco and Los Angeles ranked highest for population losses from February to July 2020, with Manhattan losing 110,978 people due to moving.
Los Angeles County, the most populous county in the nation, ranked last among large counties, those with 1 million or more people, for talent attraction. Cook County, which is home to Chicago and is second largest in terms of population, placed second-to-last among large counties. Maricopa County is the country’s fourth-most populous county.
“Greater Phoenix has always been about bucking the trend,” Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said. “It comes down to job creation and opportunities, plus decades of pro-business or anti-business policy.”
Continued growth in skilled jobs has propelled Maricopa County to first place among large U.S. counties for talent attraction, according to a new report by labor analytics firm Emsi.
Maricopa County topped the 2020 list, with data collected right before the start of the Covid-19 pandemic, rising from second place in 2019, according to Emsi's Talent Attraction Scorecard. The county, which recorded an 18% increase in skilled jobs from 2015-19, also took the top spot in 2018 and 2017. Clark County, which is home to Las Vegas, ranked second in 2020 and Collin County, home to McKinney, Texas, ranked third.
Caifornia-based Intel Corp. is a major skilled job creator mentioned in the Emsi report. The semiconductor maker continues to grow in Chandler with a $7 billion expansion opening earlier this year and a workforce of more than 12,000.
According to the report, Phoenix is one of only a few of the largest cities in the country that is not seeing an exodus of residents. Manhattan, Brooklyn, Chicago, San Francisco and Los Angeles ranked highest for population losses from February to July 2020, with Manhattan losing 110,978 people due to moving.
Los Angeles County, the most populous county in the nation, ranked last among large counties, those with 1 million or more people, for talent attraction. Cook County, which is home to Chicago and is second largest in terms of population, placed second-to-last among large counties. Maricopa County is the country’s fourth-most populous county.
“Greater Phoenix has always been about bucking the trend,” Chris Camacho, president and CEO of the Greater Phoenix Economic Council, said. “It comes down to job creation and opportunities, plus decades of pro-business or anti-business policy.”
New Report Shows Dramatic Floor Traffic Drops
The data is provided Gravy Analytics a market research used by leading brands to measure foot traffic and other market intelligence.
According to the Business Journal, while most businesses saw foot traffic drop dramatically in April, the fitness, hospitality and entertainment sectors are still hurting due to restrictions put on them by state governments, but with the November surge in Covid-19 cases, health officials have warned that in-person shopping could exacerbate the spread of the virus.
Gravy Analytics' latest data was compiled from February, before shutdowns were put in place, through mid-November by aggregating billions of location records collected through mobile phone applications for national brands. In fact, Gravy Analytics tracks consumer foot traffic changes for 200 leading brands across 50 major cities, including Phoenix.
According to its latest data, Hyatt Regency in downtown Phoenix saw the biggest decrease in foot traffic — a whopping 93% drop — since February. This makes sense as the Hyatt Regency is convention hotel and with no major events happening, the number of hotel guests has dwindled.
Movie theater chain AMC Theaters has seen foot traffic decrease 92% since February, and boutique fitness studio Orangetheory Fitness is down 90%, according to Gravy.
The data is provided Gravy Analytics a market research used by leading brands to measure foot traffic and other market intelligence.
According to the Business Journal, while most businesses saw foot traffic drop dramatically in April, the fitness, hospitality and entertainment sectors are still hurting due to restrictions put on them by state governments, but with the November surge in Covid-19 cases, health officials have warned that in-person shopping could exacerbate the spread of the virus.
Gravy Analytics' latest data was compiled from February, before shutdowns were put in place, through mid-November by aggregating billions of location records collected through mobile phone applications for national brands. In fact, Gravy Analytics tracks consumer foot traffic changes for 200 leading brands across 50 major cities, including Phoenix.
According to its latest data, Hyatt Regency in downtown Phoenix saw the biggest decrease in foot traffic — a whopping 93% drop — since February. This makes sense as the Hyatt Regency is convention hotel and with no major events happening, the number of hotel guests has dwindled.
Movie theater chain AMC Theaters has seen foot traffic decrease 92% since February, and boutique fitness studio Orangetheory Fitness is down 90%, according to Gravy.
Restaurants
Hotels
Retailers
Phoenix Business Journals Releases a Special Report
Undersupply drives demand for logistics space in the entire metro area
The industrial logistics space in the Loop 303 corridor in Glendale and Goodyear is expected to grow by more than 200%, from 15 million square feet to 50 million square feet in the next five to six years.
“The Loop 303 corridor is the place that offers development and employment land site solutions,” said Tony Lydon, managing director of Jones Lang LaSalle Inc. in Phoenix.
Land that is zoned or can be rezoned for industrial uses is limited in the metro, so readily available spaces in the West Valley are highly desirable, he said. Plus, companies already in that part of the region need to scale, and the need for additional industrial space already exists.
While demand for industrial space was growing prior to the Covid-19 pandemic, the explosive rise of e-commerce and the strain on the supply chain over the past eight months has put fuel to the fire.
Due to increased e-commerce demand, by 2025 the U.S. will need more than 1 billion square feet of industrial space, which would mean the top submarkets, Phoenix included, would need 6.5 to 7 million square feet of new space per year for the next five years to keep up with the demand, Lydon said.
Tony Lydon, managing director of JLL in Phoenix, said the average market has 88 square feet of industrial space per capita, but Phoenix only has 58 square feet per capita, meaning that even during record-high industrial construction, there is still a need for more space.
“Phoenix has historically been underserved,” Lydon said. “But, with re-shoring, I think Phoenix will be a winner.”
Amazon leads the way
E-commerce giant Amazon Inc. announced massive expansion plans in Phoenix this year, and by 2021 will be the largest employers with with nearly 3,000 employees in Goodyear alone and 20,500 in total across the Valley.
Matthew High, regional director of fulfillment for Amazon, said the talent and workforce in the Phoenix area has been consistently strong. “The workforce, community partners, an abundance of talent and being close to our customers are some of the contributing factors to site selection,” he said.
Undersupply drives demand for logistics space in the entire metro area
The industrial logistics space in the Loop 303 corridor in Glendale and Goodyear is expected to grow by more than 200%, from 15 million square feet to 50 million square feet in the next five to six years.
“The Loop 303 corridor is the place that offers development and employment land site solutions,” said Tony Lydon, managing director of Jones Lang LaSalle Inc. in Phoenix.
Land that is zoned or can be rezoned for industrial uses is limited in the metro, so readily available spaces in the West Valley are highly desirable, he said. Plus, companies already in that part of the region need to scale, and the need for additional industrial space already exists.
While demand for industrial space was growing prior to the Covid-19 pandemic, the explosive rise of e-commerce and the strain on the supply chain over the past eight months has put fuel to the fire.
Due to increased e-commerce demand, by 2025 the U.S. will need more than 1 billion square feet of industrial space, which would mean the top submarkets, Phoenix included, would need 6.5 to 7 million square feet of new space per year for the next five years to keep up with the demand, Lydon said.
Tony Lydon, managing director of JLL in Phoenix, said the average market has 88 square feet of industrial space per capita, but Phoenix only has 58 square feet per capita, meaning that even during record-high industrial construction, there is still a need for more space.
“Phoenix has historically been underserved,” Lydon said. “But, with re-shoring, I think Phoenix will be a winner.”
Amazon leads the way
E-commerce giant Amazon Inc. announced massive expansion plans in Phoenix this year, and by 2021 will be the largest employers with with nearly 3,000 employees in Goodyear alone and 20,500 in total across the Valley.
Matthew High, regional director of fulfillment for Amazon, said the talent and workforce in the Phoenix area has been consistently strong. “The workforce, community partners, an abundance of talent and being close to our customers are some of the contributing factors to site selection,” he said.
SBA Ordered to Release PPP Loan Details
The Small Business Administration is being ordered to release more detailed Paycheck Protection Program loan information — and experts say that could deter fraud and abuse in a future round of PPP loans approved by Congress.
That transparency, which comes in the form of a federal judge ordering the agency to release more details by Nov. 19 absent an appeal, might have a chilling effect on small businesses applying to any future programs, but would help deter future fraud in any new round, said Tenley Carp, a partner at law firm Arnall Golden Gregory.
“The publication of names and PPP loan amounts might very well have a chilling effect on PPP applications during a second round, but I don’t think that is necessarily a bad thing,” Carp said in an email, adding private businesses might not want anyone to know they needed help. “I think the obvious good that public disclosure would do to prevent fraud and abuse in the PPP outweighs even that very legitimate concern.”
And that fraud in the $525 billion that went out in more than 5.2 million loans appears to be widespread, according to a recent Wall Street Journal report. The Government Accountability Office also weighed in with an Oct. 1 report that the program was ripe for abuse, and Thompson Reuters said that recent reporting showed that $4 billion in PPP loans had already been flagged for such abuse.
“If people know up front their names and PPP loan amounts will be 'public knowledge,' that might very well reduce the number of individuals and/or companies committing some form of fraud to obtain PPP funds,” Carp said.
In July, the SBA released data on PPP loans above $150,000, as well as information about the lenders who made them. But it argued in legal filings that detailed information about loans should not be made public, citing federal laws that exempt some government records from disclosure, such as trade secrets and personnel and medical files. The ordered disclosure would include names of businesses that received smaller loans, and exact amounts for larger loans, which had been disclosed as ranges of dollar amounts.
The Small Business Administration is being ordered to release more detailed Paycheck Protection Program loan information — and experts say that could deter fraud and abuse in a future round of PPP loans approved by Congress.
That transparency, which comes in the form of a federal judge ordering the agency to release more details by Nov. 19 absent an appeal, might have a chilling effect on small businesses applying to any future programs, but would help deter future fraud in any new round, said Tenley Carp, a partner at law firm Arnall Golden Gregory.
“The publication of names and PPP loan amounts might very well have a chilling effect on PPP applications during a second round, but I don’t think that is necessarily a bad thing,” Carp said in an email, adding private businesses might not want anyone to know they needed help. “I think the obvious good that public disclosure would do to prevent fraud and abuse in the PPP outweighs even that very legitimate concern.”
And that fraud in the $525 billion that went out in more than 5.2 million loans appears to be widespread, according to a recent Wall Street Journal report. The Government Accountability Office also weighed in with an Oct. 1 report that the program was ripe for abuse, and Thompson Reuters said that recent reporting showed that $4 billion in PPP loans had already been flagged for such abuse.
“If people know up front their names and PPP loan amounts will be 'public knowledge,' that might very well reduce the number of individuals and/or companies committing some form of fraud to obtain PPP funds,” Carp said.
In July, the SBA released data on PPP loans above $150,000, as well as information about the lenders who made them. But it argued in legal filings that detailed information about loans should not be made public, citing federal laws that exempt some government records from disclosure, such as trade secrets and personnel and medical files. The ordered disclosure would include names of businesses that received smaller loans, and exact amounts for larger loans, which had been disclosed as ranges of dollar amounts.
New Fintech Platform For Companies Seeking Investors
A new financial technology company currently in its beta phase is positioning itself as the Match.com for private companies looking to raise capital, according to its founder.
WealthVP, founded by entrepreneur Leif Hartwig, raised over $500,000 from private investors in a seed funding round that closed at the end of September to build the software as a service platform that matches qualified companies — software and sustainability companies to start — with family office investors from all over the world. Hartwig declined to comment about a second funding round.
Accepting applicants
WealthVP is currently accepting applications from 100 qualified companies and at least 25 purpose-driven family offices that are a good match for those companies during the beta phase through the end of 2020, Hartwig said. The official launch date is Jan. 2.
The said he hopes most of the first 100 companies will be based in Arizona.
Qualified companies are required to be generating revenue, have a total addressable market in the world of $100 million, have already received some funding and are seeking at least $1 million in new funding. The companies must submit an executive summary of the business, a pitch book, pro forma and a video to be posted on WealthVP.
Because of the disparity in funding, WealthVP is guaranteeing 25% to 30% of the companies selected to be on WealthVP will be women, veteran and minority founded.
Hartwig, who also serves as WealthVP’s CEO, said he came up with the concept for his new company after realizing that the $2 trillion spent by investors each year in funding businesses is all done through word of mouth and pitch contests.
“In the U.S. alone, hundreds of thousands of cutting-edge companies need capital investment to fully realize market potential,” he said. “Less than 10% will be fully funded, and most will fail due to lack of capital. Through WealthVP, we’re making it easy for world-bettering companies and family office investors to find one another.”
The need is especially critical in Arizona.
“I believe we are one of the top three states in the country for startups, however, we have almost no venture capital money in town,” Hartwig said.
This means many startups won’t get the investor funding they need, or they will get funding from an out-of-state investor and may get asked to relocate the company, he said.
“We truly need this national and international investor community that can see these companies that we have in Arizona,” he said.
The CEO of Phoenix business accelerator Coplex agreed.
"One of the biggest barriers to growth for promising early-stage companies is raising capital,” Brenda Schmidt, CEO of Coplex, said in a statement. “WealthVP reduces the time and complexity of raising funds for founders and reduces the risk of finding qualified startups of investors. This is a game-changer."
WealthVP’s internal advisory board vets any company looking to be on the platform to make sure they meet the minimum qualifications. An analytics firm will then verify the information provided by the applicants.
Once accepted onto WealthVP, companies and investors are matched through the platform’s proprietary algorithm, Hartwig said. Either side can also search for entities by location, financial needs or investment goals, type of company and more. Once a match is made, investors control the conversation and can reach out directly to the companies they are interested in via a secure messaging tool, according to WealthVP.
'The industry needs us'Hartwig said WealthVP doesn't ask for a percentage of the companies seeking investors. Companies will pay to be on the WealthVP platform on a monthly basis.
Next year, he said he expects WealthVP will open the platform to more accredited investors and private companies in varying sectors.
“We want to grow the company to significant value, but we are grounded in values," Hartwig said. "The industry needs us, needs companies like us."
A new financial technology company currently in its beta phase is positioning itself as the Match.com for private companies looking to raise capital, according to its founder.
WealthVP, founded by entrepreneur Leif Hartwig, raised over $500,000 from private investors in a seed funding round that closed at the end of September to build the software as a service platform that matches qualified companies — software and sustainability companies to start — with family office investors from all over the world. Hartwig declined to comment about a second funding round.
Accepting applicants
WealthVP is currently accepting applications from 100 qualified companies and at least 25 purpose-driven family offices that are a good match for those companies during the beta phase through the end of 2020, Hartwig said. The official launch date is Jan. 2.
The said he hopes most of the first 100 companies will be based in Arizona.
Qualified companies are required to be generating revenue, have a total addressable market in the world of $100 million, have already received some funding and are seeking at least $1 million in new funding. The companies must submit an executive summary of the business, a pitch book, pro forma and a video to be posted on WealthVP.
Because of the disparity in funding, WealthVP is guaranteeing 25% to 30% of the companies selected to be on WealthVP will be women, veteran and minority founded.
Hartwig, who also serves as WealthVP’s CEO, said he came up with the concept for his new company after realizing that the $2 trillion spent by investors each year in funding businesses is all done through word of mouth and pitch contests.
“In the U.S. alone, hundreds of thousands of cutting-edge companies need capital investment to fully realize market potential,” he said. “Less than 10% will be fully funded, and most will fail due to lack of capital. Through WealthVP, we’re making it easy for world-bettering companies and family office investors to find one another.”
The need is especially critical in Arizona.
“I believe we are one of the top three states in the country for startups, however, we have almost no venture capital money in town,” Hartwig said.
This means many startups won’t get the investor funding they need, or they will get funding from an out-of-state investor and may get asked to relocate the company, he said.
“We truly need this national and international investor community that can see these companies that we have in Arizona,” he said.
The CEO of Phoenix business accelerator Coplex agreed.
"One of the biggest barriers to growth for promising early-stage companies is raising capital,” Brenda Schmidt, CEO of Coplex, said in a statement. “WealthVP reduces the time and complexity of raising funds for founders and reduces the risk of finding qualified startups of investors. This is a game-changer."
WealthVP’s internal advisory board vets any company looking to be on the platform to make sure they meet the minimum qualifications. An analytics firm will then verify the information provided by the applicants.
Once accepted onto WealthVP, companies and investors are matched through the platform’s proprietary algorithm, Hartwig said. Either side can also search for entities by location, financial needs or investment goals, type of company and more. Once a match is made, investors control the conversation and can reach out directly to the companies they are interested in via a secure messaging tool, according to WealthVP.
'The industry needs us'Hartwig said WealthVP doesn't ask for a percentage of the companies seeking investors. Companies will pay to be on the WealthVP platform on a monthly basis.
Next year, he said he expects WealthVP will open the platform to more accredited investors and private companies in varying sectors.
“We want to grow the company to significant value, but we are grounded in values," Hartwig said. "The industry needs us, needs companies like us."
El Mirage to Get First New Home Development in Years
Two land deals recently closed in El Mirage!
Scottsdale-based Meritage Homes Corp. (NYSE: MTH) paid $5.45 million for a 24-acre parcel, while Phoenix-based NexMetro Communities paid $5.9 million for a 32-acre parcel, according to Vizzda LLC, a Tempe-based real estate database.
Meritage purchased its parcel at the northeast corner of Williams Drive and El Mirage Road from Kimco Realty Corp. and De Rito Partners, while NexMetro bought its parcel from an entity tracing to Herb Dreiseszun, according to Vizzda.
Meritage's parcel is called Camino Crossing, which has 123 lots sized 45 feet by 115 feet. Brian Rosella, broker with Kidder Matthews, represented Meritage.
Plans call for building single-story homes starting at 1,500 square feet, with prices starting under $300,000, said Fred Hermann, Phoenix division president for Meritage. A variety of home designs will range up to 2,500 square feet for two-story homes.
"The West Valley is an exciting market for Meritage to open a new community," Hermann said. "With recent price appreciation it is difficult to find a new home at entry-level pricing."
Camino Crossing will be the first new home development in El Mirage in years, said Jim Belfiore, founder of Belfiore Real Estate Consulting in Phoenix. "With no new supply and little resale supply to be had in the immediate area, Meritage Homes is likely to wish it had more than the 123 homes the builder has to offer," Belfiore said. "Meritage has become a go-to metro Phoenix area turnkey homebuilder offering home shoppers a one-stop shop for their piece of the American dream."
Belfiore said he expects Meritage to find instant success at Camino Crossing, similar to its success at Ellison Trails in Laveen, where Meritage sold 30 homes in the first 30 days of offering them.
At the same time, NexMetro's move into supply-constrained, affordable El Mirage just makes sense, Belfiore said.
"The area has had no new rental product, and as such, lease-up is likely to be rapid," he said.
By Angela Gonzales – Senior Reporter, Phoenix Business Journal
Oct 7, 2020, 1:00pm EDT
Two land deals recently closed in El Mirage!
Scottsdale-based Meritage Homes Corp. (NYSE: MTH) paid $5.45 million for a 24-acre parcel, while Phoenix-based NexMetro Communities paid $5.9 million for a 32-acre parcel, according to Vizzda LLC, a Tempe-based real estate database.
Meritage purchased its parcel at the northeast corner of Williams Drive and El Mirage Road from Kimco Realty Corp. and De Rito Partners, while NexMetro bought its parcel from an entity tracing to Herb Dreiseszun, according to Vizzda.
Meritage's parcel is called Camino Crossing, which has 123 lots sized 45 feet by 115 feet. Brian Rosella, broker with Kidder Matthews, represented Meritage.
Plans call for building single-story homes starting at 1,500 square feet, with prices starting under $300,000, said Fred Hermann, Phoenix division president for Meritage. A variety of home designs will range up to 2,500 square feet for two-story homes.
"The West Valley is an exciting market for Meritage to open a new community," Hermann said. "With recent price appreciation it is difficult to find a new home at entry-level pricing."
Camino Crossing will be the first new home development in El Mirage in years, said Jim Belfiore, founder of Belfiore Real Estate Consulting in Phoenix. "With no new supply and little resale supply to be had in the immediate area, Meritage Homes is likely to wish it had more than the 123 homes the builder has to offer," Belfiore said. "Meritage has become a go-to metro Phoenix area turnkey homebuilder offering home shoppers a one-stop shop for their piece of the American dream."
Belfiore said he expects Meritage to find instant success at Camino Crossing, similar to its success at Ellison Trails in Laveen, where Meritage sold 30 homes in the first 30 days of offering them.
At the same time, NexMetro's move into supply-constrained, affordable El Mirage just makes sense, Belfiore said.
"The area has had no new rental product, and as such, lease-up is likely to be rapid," he said.
By Angela Gonzales – Senior Reporter, Phoenix Business Journal
Oct 7, 2020, 1:00pm EDT
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Eight of America’s 400 Richest Live in Arizona!
It still takes at least $2.1 billion, unchanged for the past three years, to make the Forbes cut! Even in these trying times mega-fortunes are still being minted. This year there are 18 new members to the ranks, and eight of the richest people who made their piles in everything from electric trucks to the now-ubiquitous Zoom.
According to the Phoenix Business Journal here are the Eight for Arizona:
Carvana founder Ernest Garcia II and his son, Carvana CEO and co-founder Earnest Garcia III were the wealthiest, with net worths of $9.6 billion and $4.2 billion, respectively. That’s a jump from $5.7 billion and $2.3 billion, respectively, in 2019.
Anaheim Angels owner Arturo Moreno rounded out the top three in Arizona, coming in at No. 238 in the nation with a net worth of $3.4 billion, up from $3.3 billion in 2019, an amount that was enough to make him the richest Arizonan on Forbes’ April list of the richest people in the world, where he ranked No. 590.
The Arizona cohort included one newcomer: Trevor Milton, the founder and former executive chairman of zero-emissions vehicle maker Nikola Corp. which went public at the beginning of June as part of a reverse-merger with
The net worth of Bennett Dorrance, who owns a 15% stake in Campbell Soup, went from $2.8 billion in 2019 to $3 billion this year, landing at No. 278 on Forbes’ list. Dorrance is the grandson of John T. Dorrance, who invented condensed soup.
The three other Arizonans on Forbes’ list saw their wealth decline since 2019.
Mark Shoen, who owns about a fifth of U-Haul parent company Amerco, had a drop from $3.3 billion in 2019 to $2.7 billion in 2020.
Joe Shoen, the president and chairman and 21% stakeholder of Amerco, had a net worth drop from $2.7 billion in 2019 to $2.3 billion in 2020. Mark Shoen ranked 319th on Forbes’ list and E. Joe Shoen ranked 359th.
Bob Parsons, the founder of web hosting firm GoDaddy who has since sold his stake in the company and retired from the board, saw a net worth drop from $2.7 billion in 2019 to $2.2 billion in 2020, ranking him No. 378 among the nation’s wealthiest.
Jerry Moyes, the founder of Swift Transportation, now part of Knight-Swift Transportation Holdings Inc., had made the grade when Forbes released its annual list of the world's wealthiest people in March of this year when he had a net worth of $1.2 billion, but fell off the latest ranking
Forbes used stock prices from July 24 in its calculations of wealth.
It still takes at least $2.1 billion, unchanged for the past three years, to make the Forbes cut! Even in these trying times mega-fortunes are still being minted. This year there are 18 new members to the ranks, and eight of the richest people who made their piles in everything from electric trucks to the now-ubiquitous Zoom.
According to the Phoenix Business Journal here are the Eight for Arizona:
Carvana founder Ernest Garcia II and his son, Carvana CEO and co-founder Earnest Garcia III were the wealthiest, with net worths of $9.6 billion and $4.2 billion, respectively. That’s a jump from $5.7 billion and $2.3 billion, respectively, in 2019.
Anaheim Angels owner Arturo Moreno rounded out the top three in Arizona, coming in at No. 238 in the nation with a net worth of $3.4 billion, up from $3.3 billion in 2019, an amount that was enough to make him the richest Arizonan on Forbes’ April list of the richest people in the world, where he ranked No. 590.
The Arizona cohort included one newcomer: Trevor Milton, the founder and former executive chairman of zero-emissions vehicle maker Nikola Corp. which went public at the beginning of June as part of a reverse-merger with
The net worth of Bennett Dorrance, who owns a 15% stake in Campbell Soup, went from $2.8 billion in 2019 to $3 billion this year, landing at No. 278 on Forbes’ list. Dorrance is the grandson of John T. Dorrance, who invented condensed soup.
The three other Arizonans on Forbes’ list saw their wealth decline since 2019.
Mark Shoen, who owns about a fifth of U-Haul parent company Amerco, had a drop from $3.3 billion in 2019 to $2.7 billion in 2020.
Joe Shoen, the president and chairman and 21% stakeholder of Amerco, had a net worth drop from $2.7 billion in 2019 to $2.3 billion in 2020. Mark Shoen ranked 319th on Forbes’ list and E. Joe Shoen ranked 359th.
Bob Parsons, the founder of web hosting firm GoDaddy who has since sold his stake in the company and retired from the board, saw a net worth drop from $2.7 billion in 2019 to $2.2 billion in 2020, ranking him No. 378 among the nation’s wealthiest.
Jerry Moyes, the founder of Swift Transportation, now part of Knight-Swift Transportation Holdings Inc., had made the grade when Forbes released its annual list of the world's wealthiest people in March of this year when he had a net worth of $1.2 billion, but fell off the latest ranking
Forbes used stock prices from July 24 in its calculations of wealth.
Lagoon Water Park, Entertainment Venue Headed to West Valley.... A new regional tourism asset for the NW Valley!
A beach party in Arizona might not be such a wacky idea in a couple of years because the West Valley will soon be home to an 11-acre beach lagoon, planned to include scuba diving, windsurfing and water jet packs as part of a 48-acre entertainment destination. TV News Story The planned project be near the Westgate Entertainment, near E 95th Avenue and Cardinals Way, near the State Farm Stadium. The developer of the project is ECL Glendale LLC. Crystal Lagoons Island Resort, will have a similar feeling to Downtown Disney, with experiential retail, amusement park rides, a 4D theater, a themed hotel and other hotel uses on the site. The project will also include an “aero bar,” a bar in the middle of the lagoon on a vertical structure that becomes elevated 135 feet in the air so patrons can get a 360-degree view. It also will include the world’s largest helium balloon. The balloon will be on a tether with a gondola that raises riders 400 feet in the air. The 4D theater will incorporate sensory elements like smell, temperature or moisture into the viewers’ experience. The theater will be in conjunction with SimEx-Iwerks Entertainment, which has access to Disney proprietary character and products. |
Industrial Construction Report
Phoenix is on track for a record level of new industrial supply to be completed in 2020, but so far new supply has outpaced demand, according to CoStar research. According to data compiled by Jessica Morin, director of market analytics for CoStar “Phoenix ranks ninth for U.S. markets with the most industrial space under construction. When the space under construction is completed, it will expand the market’s existing stock by 3.1%. That being said, Glendale and Goodyear have the most space under construction as compared to their existing space. Glendale will add about 40% to its inventory and Goodyear will add about 20% when the space under construction is completed. Nationwide, industrial net absorption was forecast to remain negative through the remainder of 2020 and into the beginning of 2021, according to a study done by NAIOP. However, Arizona has not seen the steep decline some other markets have suffered, Suzanne Kinney, president and CEO of the Arizona chapter of NAIOP said. “There have been a handful of large deals that have gone our way,” Kinney said, adding that several manufacturers have recently moved or expanded in Phoenix recently, and users like food and beverage makers are also growing in the area. Some of the growth, such as the pivot by Honeywell in Phoenix to make personal protective equipment, were directly related to the Covid-19 pandemic, Kinney said, but other moves were “a continuation of the positive trends we’ve seen over the past few years.” |
Arizona Supreme Court refuses to take up lawsuit from bar
According to the Phoenix Business Journal
08-26-2020
The Arizona Supreme Court has denied hearing a lawsuit filed by more than 100 bar owners against Gov. Doug Ducey over the manner in which he closed bars down this summer.
The growing group of bar owners took the matter straight to the state’s highest court, but Supreme Court Chief Justice Robert Brutinel wrote in the Aug. 25 order that the issue should first be reviewed by a lower court.
The ruling seems to be based more on procedure than the content of the lawsuit.
Ilan Wurman, the attorney representing the bar owners and a law professor at Arizona State University, has already filed another suit in Arizona Superior Court.
In the lawsuit, Wurman and the bar owners argued that Ducey’s order to close down bars to slow the spread of Covid-19 did not actually close down all bars in the state, but targeted just the owners with series 6 or 7 liquor licenses.
Under Ducey’s executive order hotel bars, casino bars, microbreweries, wineries, private clubs, distilleries and restaurants with bars were allowed to stay open because they operate with a different series of liquor licenses.
Wurman argues that the distinction between liquor license series has nothing to do with public health.
Besides asking for the court to deem Ducey’s executive order unlawful, the lawsuit is seeking damages for bar owners including for revenue that was lost when these businesses were forced to close but competitors could stay open.
According to the Phoenix Business Journal
08-26-2020
The Arizona Supreme Court has denied hearing a lawsuit filed by more than 100 bar owners against Gov. Doug Ducey over the manner in which he closed bars down this summer.
The growing group of bar owners took the matter straight to the state’s highest court, but Supreme Court Chief Justice Robert Brutinel wrote in the Aug. 25 order that the issue should first be reviewed by a lower court.
The ruling seems to be based more on procedure than the content of the lawsuit.
Ilan Wurman, the attorney representing the bar owners and a law professor at Arizona State University, has already filed another suit in Arizona Superior Court.
In the lawsuit, Wurman and the bar owners argued that Ducey’s order to close down bars to slow the spread of Covid-19 did not actually close down all bars in the state, but targeted just the owners with series 6 or 7 liquor licenses.
Under Ducey’s executive order hotel bars, casino bars, microbreweries, wineries, private clubs, distilleries and restaurants with bars were allowed to stay open because they operate with a different series of liquor licenses.
Wurman argues that the distinction between liquor license series has nothing to do with public health.
Besides asking for the court to deem Ducey’s executive order unlawful, the lawsuit is seeking damages for bar owners including for revenue that was lost when these businesses were forced to close but competitors could stay open.
According the the Phoenix Business Journal
Nine Arizona companies, all of them based in the Valley, made the cut for Inc. magazine’s list of the top 500 fastest-growing firms in the nation for 2020.
Topping the state list was last year’s national leader and Inc.’s 2019 cover story, Freestar LLC, a company that helps publishers boost revenue by optimizing their online advertising. This year, Freestar dropped to No. 36 overall on a still-staggering growth rate of 7,239%.
The Inc. 500 is the top tier of the larger Inc. 5000 list, which ranks the 5,000 fastest-growing, privately held U.S. companies.
Counting the nine Arizona companies on the Inc. 500, the state had 107 companies on the full Inc. 5000 list. This is up from the 104 that made the list last year.
Here are the nine companies that made the upper tier of the Inc. 5000 to land a ranking in the 2020 Inc. 500:
- No. 36, Freestar, Phoenix, 7,239% growth
- No. 148, Handwrytten, Phoenix, 2,572%
- No. 196, CellTrust Corp., Scottsdale, 2,145%
- No. 210, Attribytes, Chandler, 2,062%
- No. 258, Maverick Performance Products, Chandler, 1,724%
- No. 319, Simple Living Solutions, Scottsdale, 1,421%
- No. 337, Titan Solar Power, Mesa, 1,348%
- No. 432, Exerscribe, Scottsdale, 1,064%
- No. 448, Centauri Health Solutions, Scottsdale, 1,019%
Landlords sue, say Ducey lacks authority to stop evictions
According to the Arizona Capitol Times Landlords and mobile home park owners from around the state are asking the Arizona Supreme Court to void an executive order by Gov. Doug Ducey blocking evictions of tenants who do not pay their rent.
The lawsuit claims the governor lacks the constitutional authority to tell constables around the state not to process eviction orders, even those issued legally by judges. It also contends that the gubernatorial directive is violating both the property rights of landowners as well as their right to enter into contracts.
In seeking review, the lawsuit acknowledges that the governor can exercise certain powers in a public health emergency. But attorney Kory Langhofer, who prepared the legal filing, said that Ducey, in unilaterally barring landlords from enforcing the terms of lawful lease agreements, created “an indefinite economic welfare and redistribution program, rather than a public health measure to contain the COVID-19 contagion.”
According to the Arizona Capitol Times Landlords and mobile home park owners from around the state are asking the Arizona Supreme Court to void an executive order by Gov. Doug Ducey blocking evictions of tenants who do not pay their rent.
The lawsuit claims the governor lacks the constitutional authority to tell constables around the state not to process eviction orders, even those issued legally by judges. It also contends that the gubernatorial directive is violating both the property rights of landowners as well as their right to enter into contracts.
In seeking review, the lawsuit acknowledges that the governor can exercise certain powers in a public health emergency. But attorney Kory Langhofer, who prepared the legal filing, said that Ducey, in unilaterally barring landlords from enforcing the terms of lawful lease agreements, created “an indefinite economic welfare and redistribution program, rather than a public health measure to contain the COVID-19 contagion.”
PPP Loans helped nearly 1,500 local businesses
A new Surprise Regional Chamber of Commerce report showed almost 1,500 small businesses in the Northwest Valley have received $155 million in PPP loan assistance.
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Surprise Independent News Coverage
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See What Businesses are Open and Their COVID-19 Safeguards Based on a self -reported survey, as on 05/11/2020. Information is subject to change without notice. The collection and dissemination of the data was a combined effort between the City of Surprise and the Surprise Regional Chamber of Commerce. ShopSurprise Receive Special Deals, Promotions and Community Messages from Local Merchants, and your Chamber of Commerce. All messages are sent Directly to Your Phone! Get advance notice of new restaurants, grand openings, community events and more. It's FREE! Enroll Now |
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Chamber’s NW Valley COVID-19 Consumer Survey Results Are In
Survey Results Make the Paper-Click Here to Read the Article Consumers, not the government, will ultimately decide when the economy will open—that is why it is important for citizens and businesses to know what people are thinking. Please share your comments on our Facebook page! Government leaders and public health officials will make decisions, and issue guidance on when we return to work, but truly regaining some semblance of normalcy will be determined by how people feel and what motivates them to act or not act. The Chambers recent survey sheds more light about what consumers are thinking in the NW Valley . Share your comments on our Facebook page Take Our 1-Minute Survey |
Business COVID-19 Survey Results
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
- Focus on the facts
- Communicate regularly with employees and stakeholders/customers
- Stabilize supply chains
- Make short-term and long-term plans
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
USMCA AGREEMENT IS A WIN FOR THE NORTH WEST VALLEY
By any measure, the push to get the U.S.-Mexico-Canada Agreement (USMCA) passed — which preserves and strengthens our economic ties with our neighbors and top two export markets — was a three-year-long process. And it did not happen by accident.
The U.S. Chamber, the Surprise Regional Chamber as well thousands of chambers from around the country put the full weight of our alliances behind this historic effort. A special thank you to all local businesses in our region who contacted their elected officials and encouraged them to support the agreement. The new U.S.-Mexico-Canada Agreement is expected to usher tangible benefits for the NW Valley including agriculture, technology, manufacturing, and other business sectors, industry analysts say.
Here’s a brief overview of what’s in it:
- Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
- Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico agreed to pass new labor laws to give greater protection to workers, including migrants and women. Most notably, these laws are supposed to make it easier for Mexican workers to unionize.
- US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump.
- Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and ebooks, and protections for internet companies, so they’re not liable for content their users produce.
- Sunset clause: The agreement adds a 16-year sunset clause — meaning the terms of the agreement expire, or “sunset,” after 16 years. The deal is also subject to review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.
First-Ever Scorecard Released
Who Made the List? Our first-ever scorecard evaluates the votes of each state senator and representative and represents the positions of the West Valley Chamber Alliance that were communicated to our state lawmakers throughout the 2019 Regular Session. The scorecard helps the business community know where their elected officials stand on issues that affect us all. Click Here for Full Report
The Surprise Regional Chamber of Commerce (Districts 13, 21 and 22) would like to recognize Rick Gray, Frank Carroll, Tim Dunn and Joanne Osborne for having 100% scores in support of pro-business policies.
As a Chamber, we commend those elected leaders with scores above 80% and recognize them as Free Enterprise Champions for recognizing the vital role businesses play and supporting those businesses through common sense, pro-business, and growth-oriented public policy. All elected officials in Districts 13, 21 and 22 earned the Free Enterprise Champion designation which included Rick Gray, Ben Toma, Frank Carroll, Kevin Payne, Tony Rivera, David Livingston, Tim Dunn, Joanne Osborne and Sine Kerr.
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TAKE THE SURVEY NOW
2020 Business Climate Census Survey
Many in our business community are experiencing both challenges and successes as our economy grows. As we work to secure the NW Valley's future, it is crucial that the Surprise Regional Chamber of Commerce understand what issues are most important to businesses. The purpose of the Business Climate Survey is to track trends and issues affecting businesses and to inform elected officials about the issues and concerns of the local business community.
Click Here Now, To Take Our Annual Business Climate Survey
2020 Business Climate Census Survey
Many in our business community are experiencing both challenges and successes as our economy grows. As we work to secure the NW Valley's future, it is crucial that the Surprise Regional Chamber of Commerce understand what issues are most important to businesses. The purpose of the Business Climate Survey is to track trends and issues affecting businesses and to inform elected officials about the issues and concerns of the local business community.
Click Here Now, To Take Our Annual Business Climate Survey
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