Phoenix is on the rise, outpacing competitors as the No. 1 city for manufacturing growth, citing 14 major announcements since 2020, the Valley has promised nearly 15,500 new jobs in the sector. The city leads with manufacturing announcements exceeding $100 million, said the author of the Newmark report, Elizabeth Berthelette, as reported by the Phoenix Business Journal.
In parallel growth vectors, The Milken Institute's index has placed Phoenix among the top 10 large cities nationally for economic vitality. This surge is thanks to a combination of factors including job creation, output growth, and especially wage gains in high-technology industries. "Having that basis of skill level, other facilities, other types of companies doing similar things — R&D, highly-skilled manufacturing and production — has really continued to attract new announcements," Berthelette told the Phoenix Business Journal. Advancements in high-tech and digitalization, primarily in sectors like semiconductors and biomanufacturing, are fueling much of Phoenix's growth.
The Valley's ability to draw top-tier companies and robust workforce development has played a critical role. Bob Hess from Newmark remarked on the city's transformation, saying, "Because of that passion, that synergy, your public-private partnership situation out there is stronger than most of these metro areas," as he informed the Phoenix Business Journal. Notably, the Phoenix metro is also attracting a solid influx of talent and families alike, eager to partake in its robust job market and captivating lifestyle. Meanwhile, the rising population and its demands continue to inflate the housing market, with the Milken Institute noting a significant hike in housing permits and consumption.
Nevertheless, the rapid growth isn't without its set of challenges. Finding labor to fill new jobs, particularly in advanced manufacturing, stands as an uphill battle, a challenge that Phoenix is not immune to. Furthermore, the Milken Institute warns that Phoenix's growing pains might manifest in rent and housing price increases if not managed with strategic investments in affordable housing. Such concerns are picked up by the Milken Institute's study, emphasizing proactive steps to maintain the city's allure as a cost-effective destination.
Despite the potential obstacles, industry experts remain optimistic about Phoenix's trajectory. "There some challenges out there but I think Phoenix is always going to be a top 10 metro in the United States in the years to come," Hess projected in discussions with the Phoenix Business Journal. With its strategic approach to growth and increasing economic diversity, Phoenix stands as a beacon for manufacturing and high-tech industries, a testament to the city's resilient and forward-thinking infrastructure.
