2. Arizona - The NEW West  The Old West was built on true grit and resourcefulness  As the exemplar for the New West, these traits have helped to establish Arizona as a significant center of know how and innovation  Over the past decade, Arizona experienced one of the largest increases in entrepreneurial activity (Kauffman Index of Entrepreneurial Activity) Skilled Workforce; CNBC’s Top States for Business Best State for Doing Business; Chief Executive Survey Top Performer in Recovery; Enterprising States Arizona is recognized as a Top Ten State in the nation, for:

3. Arizona- The NEW West Arizona’s focus on high-quality industry translates into higher paying wages –Aerospace & Defense #4 in space systems and defense manufacturing employment (TechAmerica Cyberstates 2013) –Semiconductors #4 in semiconductor manufacturing (TechAmerica Cyberstates 2013) –Optics/Photonics University of Arizona and Arizona State University are both recognized as leaders in nano-biotechnology, photonics, and nano-imaging research. –Bioscience & Healthcare 100,000 jobs spread over 850 firms –Renewable Energy #2 state in total solar employment at 9,800 (The Solar Foundation, 2012)

4. Arizona - Today Population (2013): 6,553,255 Population Growth since 2000: 25% Population Growth since 1950: 874% –2 nd largest growth rate in the nation 2000- 2010 GDP, 2012 (millions): $266,891 GDP growth since 2000: 65% Civilian Labor Force (July, 2013): 3,006,600 Civilian Labor Force Growth since 2000: 18.5% 484,000+ businesses in Arizona Home to over 30 “Fortune 100” Companies 11 Inc. 500 companies, 100 Inc. 5,000

5. HB 2001 Arizona Competiveness Package Title text 30% state corporate income tax reduction (phased from 6.9% to 4.9%) beginning in January 2014. 100% electable sales factor (up from 80%) for multi-state corporations by 2017. Reduces commercial property assessment ratio by 10% (from 20% to 18%) by 2016. Enhanced R&D Tax Credit Program –income tax credit up to 34% for R&D made in conjunction with an Arizona public university. Accelerated Additional Depreciation schedules to help companies recover their investments even faster. Increased the personal property exemption by 2013 Creation of the Quality Jobs Tax Credit Program that allows for up $9,000 tax credit per qualified employee ($3,000 per year for three years) Extension of the Job Training and Angel Credit Programs. Creation of the Arizona Competes Fund, which has helped Arizona build leverage over other competing states.

6. 2 Grow ACA’s Strategic Framework VISION: Arizona is the best location for high-quality business growth MISSION: Grow & diversify Arizona’s Economy & create quality jobs for its citizens by supporting and attracting businesses in targeted, high-growth clusters, with an emphasis on the base industries. STRATEGIES: ACTION PLAN: Increase Awareness of Arizona’s Attractiveness Coordinate Arizona’s Economic Development Make Arizona a Leading Hub in High-Quality Manufacturing and Advanced Business Services Support Employer- focused, Demand-driven Workforce Development Integrate All Areas of Arizona into the State’s Growth 1 Recruit 3 Create Enhance Arizona’s Competitiveness Develop Infrastructure to Support Economic Growth Become a Preferred Trading Partner with Mexico and Canada Foster Innovation and Support Entrepreneurship Make Arizona Preferred Location for Target Industries: A&D, Semiconductors, Optics, Biosciences, Solar Energy

7. Arizona is easily accessible to a variety of markets, providing convenient access to a large customer base 10.97 million people within 4 hours 29.39 million people within 8 hours 65.78 million people within 16 hours Arizona’s Strategic Location Access to 65 Million Consumers

8. Arizona’s Strategic Location Title text

9. Arizona’s Global Location Map taken from FDI Markets, 2013 Mexico Canada NAFTA Countries Arizona Arizona: Shares a border with California (worlds 9 th largest economy and Mexico (world’s 14 th largest economy) Has over 180 weekly direct flights to destinations in Canada, Arizona’s 3 rd largest trading partner Has direct access to Mexico, Asia, and South America through major ports within a 4 hour drive California Map is not to scale Asia

10. Arizona imported $6.7B from Mexico in 2012 Arizona exported $6.3B to Mexico in 2012 There are 6 ports of entry along the Arizona- Mexico border. In 2012: 377,903 trucks crossed 7,472,683 personal vehicles crossed Mexico has many emerging industries that are the same as or compatible with major Arizona industries, such as: aerospace, medical devices, automotive, and renewable energy. The Arizona-Mexico Trade Relationship Source: U.S. Census, Arizona Department of Transportation, U.S. Bureau of Transportation; 2012

11. Arizona’s Export Destinations Title text 1.Mexico: $6.3 Billion (4.26% increase from 2011) Electrical Machinery (25.35% of total), Ores/Slag, Ash (15.84%), Machinery (11.84%) 2.Canada: $2.2 Billion (2.77% increase from 2011) Electrical Machinery (25.86% of total), Aircraft/Spacecraft (14.86%), Machinery (11.52%) 3.China: $1.25 Billion (24.98% increase from 2011) Electrical Machinery (45.1% of total), Cotton/Yarn/ Fabric (15.42%), Machinery (9.94%) 4.Japan: $920 Million (9.88% increase from 2011) Optics/Precision/ Medical Instruments (25.5% of total), Aircraft/Spacecraft (16.83%), Electrical Machinery (13.71%) 5.United Kingdom: $914 Million (15.33% increase from 2011) Aircraft/ Spacecraft (40.74% of total), Machinery (12.67%), Electrical Machinery (11.62%) Source: U.S. Trade Statistics Online, a GTIS Database; accessed September 2013

12. Arizona Top Trade Partners in 2012 Title text 1.Mexico $13.02 Billion 2.China $3.99 Billion 3.Canada $3.66 Billion 4.Japan $2.14 Billion 5.Malaysia $1.69 Billion 6.Germany $1.36 Billion 7.United Kingdom $1.36 Billion 8.Singapore $914 Million 9.Taiwan $852 Million 10.France $796 Million Source: U.S. Trade Statistics Online and International Trade Administration; accessed March 2013

13. Notable Projects General Motors - –Innovation Center; 700+ jobs, $21 million Capex Autonomous car systems development State Farm - –8,000 jobs, 2 million sq. ft. building Bilingual customer service center Intel - –Fab 42; $5 billion Capex, 1,000+ jobs Developing microprocessors sized at 14 nanometers Amazon - –3,000 jobs, 4 million sq. ft. Significant fulfillment centers in Arizona

14. Innovation from Arizona Bridgestone - –Developing sustainable methods of transforming Guayule, a southwestern- desert shrub that produces natural rubber in its roots and bark, into tire- grade rubber Heliae - –Integrating futuristic algae technology into bio-products HJ3 Composites - –Developing carbon fiber reinforced polymers to repair existing concrete, steel and masonry structures at a fraction of the price Solid Concepts - –One of the largest dedicated service providers of rapid prototyping and additive manufacturing

15. Smart for business: Top Companies Located in Arizona