A diversified economy should be encouraged by the Phoenix economic development plan. By 2012, the metro area population had surged to above 4.3 million. The Valley has now grown to become the 13th largest metropolitan area in the country. The number has grown from 4.19 million in 2010, when it was ranked 14th according to U. S. Census Bureau.
The housing crisis and its repercussions have reduced the quality of life measures. The area needs to be weaned from the boom and bust real estate cycle. A reliance on housing and construction has also weakened the financial position of the local government, although it is at the moment as noticeable as it will be. This is because the yield from the suburban style development pattern is not in its favor. The amount of revenue gained from the infrastructure liability assumed is grossly insufficient. The pattern prevails within the city as much as it does in the suburbs beyond its territorial limits.
In an economy dependent on real estate, new growth brings near term revenue growth, while the maintenance obligations are due later. However, with the bust of the housing bubble, an increasing number of business leaders, development experts, and lawmakers are realizing the need to diversify the economy. The problem is that the area had a burgeoning industrial base that it did not build on in the past. The city has a history of hits and misses.
At this time, experts have suggested luring solar and advanced manufacturing employers. Critics point out that the ambitious goals set after the Savings and Loan crisis era recession were not continued. The plans encompassed setting up the Greater Phoenix Economic Council and developing clusters. The dot com crash in 2001 killed off young tech firms and this was not followed by resurgence of new firms in this sector thereafter. What is started must be pursued consistently to avoid a repeat situation.
It must be kept in minded that knowledge companies need a well educated labor force. Automation and the increasing use of technological advances such as robots are displacing low skilled workers. Meanwhile the city has an abundant supply of this type of labor. Business leaders should look to absorb what is available in the tourism and retirement service industries.
Experts understand that any rebound of the housing market will not be anything like what transpired before the bust. Lenders will be more careful. There is a budding bioscience sector that is a promising start in a different direction. An indication of this is the willingness of Luxembourg to invest in a 200 million dollar research partnership. This partnership includes connections with Arizona State University and the Translational Genomics Research Institute.
Translational Genomics Research Institute is an example of the kind of anchor that is needed to build a diversified economic base. This was indicated by the economic impact study by Tripp Umbach released in November 2011. It revealed that in 2010 for every 1 dollar that was invested by the state, there was a positive impact of over 14 dollars. By 2015 this return from TGen is expected to increase by 11 dollars.
With TGen, the city is becoming a name in the biomedical industry. Knowledgeable people think this anchor will help lay the foundation for the emergence of the metro as a national leader in the bioscience sector. But, to reinvent itself for the long term, Phoenix economic development needs to also grow new clusters in other industrial sectors.
The housing crisis and its repercussions have reduced the quality of life measures. The area needs to be weaned from the boom and bust real estate cycle. A reliance on housing and construction has also weakened the financial position of the local government, although it is at the moment as noticeable as it will be. This is because the yield from the suburban style development pattern is not in its favor. The amount of revenue gained from the infrastructure liability assumed is grossly insufficient. The pattern prevails within the city as much as it does in the suburbs beyond its territorial limits.
In an economy dependent on real estate, new growth brings near term revenue growth, while the maintenance obligations are due later. However, with the bust of the housing bubble, an increasing number of business leaders, development experts, and lawmakers are realizing the need to diversify the economy. The problem is that the area had a burgeoning industrial base that it did not build on in the past. The city has a history of hits and misses.
At this time, experts have suggested luring solar and advanced manufacturing employers. Critics point out that the ambitious goals set after the Savings and Loan crisis era recession were not continued. The plans encompassed setting up the Greater Phoenix Economic Council and developing clusters. The dot com crash in 2001 killed off young tech firms and this was not followed by resurgence of new firms in this sector thereafter. What is started must be pursued consistently to avoid a repeat situation.
It must be kept in minded that knowledge companies need a well educated labor force. Automation and the increasing use of technological advances such as robots are displacing low skilled workers. Meanwhile the city has an abundant supply of this type of labor. Business leaders should look to absorb what is available in the tourism and retirement service industries.
Experts understand that any rebound of the housing market will not be anything like what transpired before the bust. Lenders will be more careful. There is a budding bioscience sector that is a promising start in a different direction. An indication of this is the willingness of Luxembourg to invest in a 200 million dollar research partnership. This partnership includes connections with Arizona State University and the Translational Genomics Research Institute.
Translational Genomics Research Institute is an example of the kind of anchor that is needed to build a diversified economic base. This was indicated by the economic impact study by Tripp Umbach released in November 2011. It revealed that in 2010 for every 1 dollar that was invested by the state, there was a positive impact of over 14 dollars. By 2015 this return from TGen is expected to increase by 11 dollars.
With TGen, the city is becoming a name in the biomedical industry. Knowledgeable people think this anchor will help lay the foundation for the emergence of the metro as a national leader in the bioscience sector. But, to reinvent itself for the long term, Phoenix economic development needs to also grow new clusters in other industrial sectors.
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For information about Phoenix economic development plans and projects, you should visit the web pages at www.phoenixchamber.com today. You can see details here at http://www.phoenixchamber.com now.
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