AzBusiness magazine Jan/Feb 2012

TOURISM .33

ACC AWARDS .49

GPEC .65

CONNECT » GUIDE » INSPIRE

JANUARY // FEBRUARY 2012

Looking Ahead to the State’s Next Century Page 26

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WOMEN’S SUPER EXPO

Phoenix Convention Center Saturday, February 25 • 10am-5pm | Sunday, February 26 • 10am-4pm

At the Phoenix Women’s Expo, pamper yourself, your girlfriends and catch up on the latest fashions. Enjoy complimentary hair and beauty makeovers, massages, manicures and facials; view the Plato’s Closet fashion show; bid on prizes from the Valley fi refighters for charity; and attend seminars featuring dynamic, speakers … and much more!

At the Health & Fitness Expo, come prepared to stretch and sweat. Fitness instructors will be holding Zumba, yoga, Pilates and other exercise classes; and don’t miss out on the athletic competitions! The expo will feature inspirational speakers who will educate attendees on ways to improve their bodies, share healthy eating tips and more.

For all you soon-to-be newlyweds and party planners out there, the Wedding & Party Expo is the place to be. Sit, relax and sip on wine in the lounge and viewing area after browsing all of vendors’ booths and learning about the hot wedding trends, party planning tips and more.

HOME & LIFE SUPER EXPO

Phoenix Convention Center Saturday, June 2 • 10am-5pm | Sunday, June 3 • 10am-4pm

C E L E B R AT I N G 2 1 Y E A R S

Offering hundreds of home products and services for homeowners and builders, the Home & Building Expo is the longestrunning expo of its kind in Arizona. Hand selecting only the top of the line exhibitors to participate, the expo features kitchen amenities, outdoor products, pools, flooring, solar and more.

The BIG Green Expo & Conference is the largest green conference in Arizona. The expo showcases sustainable products and services impacting every area of life, and targets both the commercial and residential industries.

Calling all Baby Boomers — this expo’s specifically for you! Check out the latest in fi nance, travel, fashion and beauty, business, health and fitness, food and everything in between for the largest demographic in the country, the Baby Boomers.

HOME & FAMILY SUPER EXPO

WestWorld of Scottsdale Saturday, November 3 • 10am-5pm | Sunday, November 4 • 10am-4pm

The Scottsdale Home, Art & Garden Show caters to the home renovating and remodeling customer. Offering hundreds of exhibitors from art and accessories to flooring and furniture to solar and stone, the show is a great way to spend a crisp fall day.

This family-friendly expo is the place to set your kids free! With hands-on fun and activities for kids of all ages and even adults, this is an expo you don’t want to miss. Enjoy live music, an animal show and a petting zoo, an arts and crafts section, bounce houses and so much more.

Pamper your best friend at the Pet Expo.

We’ll have competitions to award the “top dog” at the dog agility course. Your pet can sample the newest organic treats, as well as discover the latest in pet care. Don’t have a pet? Adopt one of the hundreds of pets available at the expo.

2 FOR 1 TICKETS AT ExposAZ.com or 602.277.6045

TABLE OF CONTENTS CENTENNIAL SERIES

ALPHA //

EDITOR’S LETTER // .26 WHAT’S IN STORE FOR ARIZONA’S NEXT CENTURY?

.12

SMALL BUSINESS

.14

BANKING

.18

HEALTH

.23

HEART ASSOCIATION

.33

TOURISM

.06 CEO SERIES

.08 FIRST JOB

.10 ALPHA WOMEN

.49

ACC AWARDS

.65

GPEC

.76

LOOK AHEAD AT TECH

.82

CLEAN TECH

.88

JOB FORECAST

.92

TOP EMPLOYERS

4 AB | January-February 2012

.46 DINING

Az Business on the Go: AzBusinessMagazine.com

During Arizona’s first century, every elementary school student in the state learned about the five Cs that drove Arizona’s economy — copper, cotton, cattle, citrus and climate.

There is a chance that if you ask today’s students what those C words are, they might say casinos or Cardinals, whose University of Phoenix Stadium has hosted both a Super Bowl and a BCS championship game — both bringing economic windfalls for the state.

A lot has changed since copper and cotton drove Arizona’s economy, but that doesn’t lessen the impact the state’s first 100 years had on the way we live our lives today. Arizonans have given the world everything from masterplanned neighborhoods to “Sesame Street.” You can take a look back at Arizona’s first 100 years by checking out our magazine website — AzBusinessMagazine.com.

But if you want to know what the next 100 years might hold for Arizona, this is the issue for you.

We talk to some of the state’s best and brightest minds about what they see coming in the next 100 years. Some of their answers will surprise you. You might even start looking for that next great algae company to invest in.

Michael Gossie Managing Editor michael.gossie@azbigmedia.com

PRESIDENT & CEO: MICHAEL ATKINSON PUBLISHER: CHERYL GREEN VICE PRESIDENT OF OPERATIONS: AUDREY WEBB EDITORIAL MANAGING EDITOR: MICHAEL GOSSIE EDITOR: PETER MADRID

AZBUSINESSMAGAZINE.COM ON THE WEB

ASSISTANT EDITOR: KRISTINE CANNON INTERNS: ISABELLE NOVAK | HAYDEN HARRISON KAITLYN CARL | ERICK O’DONNELL

JANUARY //

CONTRIBUTING WRITERS: GERI KOEPPEL REBECCA LARSEN ART SENIOR GRAPHIC DESIGNER: MIKE MERTES SENIOR GRAPHIC DESIGNER: BRANDON DEVINE CONTRIBUTING PHOTOGRAPHER: CORY BERGQUIST DIGITAL MEDIA DIRECTOR: KIM MILTON WEB & GRAPHIC DESIGNER: MELISSA GERKE INTERNS: ROXY BALDOVIN | CORY BERGQUIST | STERLING GREY | MICHAEL OWEN | ERIC SHEPPERD | JEFF WEBB | CLARICE WZIATEK MARKETING/EVENTS MANAGER: WHITNEY FLETCHER INTERN: MORGAN JOHNSON OFFICE SPECIAL PROJECTS MANAGER: SARA FREGAPANE EXECUTIVE ASSISTANT: KATHY MUTSCHLER DATABASE SOLUTIONS MANAGER: CINDY JOHNSON ARIZONA BUSINESS MAGAZINE

BIZ Whether you’re a C-Level executive, an entrepreneur, a small business owner, or work for a corporation, you can find information on the latest issues and trends in health care, law, small business, politics, work force, tech and finance. You also can find the latest articles from Arizona Business Magazine.

ACCOUNT MANAGERS:

ARIZONA COMMERCIAL REAL ESTATE ACCOUNT MANAGERS: KEVIN SMALL | JOHN ABBEY RANKING ARIZONA VICE PRESIDENT / SALES & MARKETING: LENORE GROBSTEIN EXPERIENCE ARIZONA/PLAY BALL ACCOUNT MANAGERS: LISA GRANT BOBBIE DARZES

BUZZ Because you’re more than your job, AzBusinessMagazine. com offers tips, resources and articles in our dining, executive lifestyle, health, product reviews, travel, events and green departments.

SCOTTSDALE LIVING

HOME & LIFE SUPER EXPO WOMEN’S SUPER EXPO HOME & FAMILY SUPER EXPO EXHIBIT DIRECTORS: KERRI BLUMSACK | TINA ROBINSON | SHERI KING HOME & DESIGN IDEA CENTER SHOWROOM MANAGER: JOANNE STANLEY ACCOUNT MANAGER: MARIANNE AVILA EVENT COORDINATOR: SARA FREGAPANE

Arizona Business Magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2011 by Arizona Business. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from Arizona Business Magazine.

THREE VALLEY SCHOOLS RECEIVE HEALTHY, SUSTAINABLE MAKEOVERS.

FEBRUARY //

FEBRUARY 14 — FRENCH FURNITURE

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JANUARY 24 — GREEN SCHOOLHOUSES

SENIOR ACCOUNT MANAGER: DAVID HARKEN

MICHELLE MCBAY | SHANNON SPIGELMAN

JANUARY 10 — MOBILE MARKETING

BEYOND Here’s your chance to have your voice heard. Our Beyond section is where you or your company can contribute whitepapers, blogs, photos and top-10 lists. You’ll also find videos, podcasts, infographics, a calendar of events and contests.

VINTAGE INDUSTRIAL CREATES UNIQUE, HAND-CRAFTED FURNITURE.

FEBRUARY 28 — RAISING (ON) THE ROOF VALLEY BUSINESSES GO GREEN WITH ROOFTOP GARDENS.

AB | January-February 2012 5

ALPHA // CEO SERIES

ELIZABETH REICH PRESIDENT & CEO MAKE-A-WISH FOUNDATION OF ARIZONA

WHAT IS SOMETHING PEOPLE DON’T KNOW ABOUT MAKE-A-WISH? Most people don’t know that it was founded here in Arizona in 1980 after some DPS officers and a customs agent learned of a boy with leukemia whose one wish was to become a police officer. They decided to help make his dream happen. He got a police uniform, was checked out on mini-motorcycle, and the experience was very meaningful to him. When he died, he was buried in the uniform that he was issued. After the officers saw the impact the wish had on the boy and his family, they said, ‘We should do this again,’ and it grew into what it is today.

We have 62 chapters in the U.S. and we are in 35 countries worldwide. Make-A-Wish is Arizona’s gift to the world.

WHAT HAS BEEN YOUR BIGGEST CHALLENGE IN THIS STRUGGLING ECONOMY? We are 100 percent dependent on dollars from people and corporations to make our wishes come true and those dollars are fewer and farther between. People know that Make-A-Wish does great things, but sometimes they don’t see them as necessary things.

HOW DO YOU SHOW THEM THAT WISHES ARE A NECESSITY? Fortunately, a 2010 study of more than 2,000 Make-AWish families and volunteers shows the impact of a wish beyond that moment — the impact on the family, the impact on the volunteers and the impact on that child through the rest of his or her life. Many of our Make-AWish children live to be adults. That wish experience has impact on their ability to recover from their illness. So as a result of the wish impact study, we can now say our wishes are not a ‘nice to have,’ they are a ‘need to have.’

WHAT IS YOUR MOST REWARDING MOMENT AS CEO OF MAKE-A-WISH? It’s always the most recent moment. There was a young lady who graduated early from high school and was No. 3 in her class. Originally, her wish was to go to Italy. But her wish changed. She said, ‘I want to focus on school. I want to focus on becoming a doctor.’ So her wish was for a laptop computer. Not only was her wish for a laptop granted, but she got an iPad, an iPod, and a desk to put the laptop on. She was so gracious and so thankful. It’s something that is going to enrich her life for years to come and it was her one true wish.

6 AB | January-February 2012

ARE THERE COMMON THREADS IN THE WISHES? Our wishes fall into four categories: I wish to be, I wish to go, I wish to have, or I wish to meet. But more and more, kids today are adding a fifth category: I wish to give. They use their wishes to give back. We are working with one girl whose wish is to have a national forum where she can talk about the importance of being a bone marrow donor. We are working with morning shows right now to arrange a platform for her so she can get her message out.

HOW DO YOU MAKE THE WISHES HAPPEN? We have wonderful staff members called wish managers. They have to be part travel agent, part logistician, be multi-skilled, and have to work in concert with our volunteers. When you’re granting 251 wishes, like we did last year, you’re dealing with a lot of logistics and a lot of juggling. I like to say that we cry here every day. We cry for good things and we cry for bad things.

But we know what we’re doing makes a difference for that child and for that family and that feels so good.

see the video on

AzBusinessMagazine.com video provided by Cory Bergquist

VITAL STATS: ELIZABETH REICH 4 Joined Make-A-Wish Foundation of Arizona in 2010 4 Graduated from Whittier College with a degree in political science 4 Previous jobs include vice president of advancement at Childhelp; CEO at VisionQuest 20/20; and vice president of development at Banner Health Foundation.

4 From 1998-2003, was executive director of what is now called The Governor’s Office for Children, Youth and Families, consisting of the Governors’ Divisions for Women, Children, Prevention of Family Violence, Drug Policy, Volunteerism, Community Outreach and Character Education 4 Raised money to support Banner Desert Medical Center and Banner Children’s Hospital in Mesa. Led the first stages of a capital campaign, successfully obtaining several seven-figure gifts

ALPHA // FIRST JOB

MATT LIKENS CEO ULTHERA, INC.

DESCRIBE YOUR VERY FIRST JOB. When I was 10 years old, my brother — who is two years younger than me — and I worked on a muck farm in Ravenna, Ohio. We would be picked up at 6 a.m., go to the farm, crawl around on our hands and knees all day, weeding crops that were grown in this very rich, black, wet soil called muck. It was mostly mustard plants and assorted other crops. Then, when the plants were ready, we would harvest them.

WHAT DID YOU LEARN FROM THAT FIRST JOB? It taught us the value of hard work.

We didn’t have a privileged childhood, so it was a way for us to become self-sufficient and do the things we wanted to do, whether it was buying baseball cards or soft drinks. I learned that earning your own way in life is the right thing to do.

DESCRIBE YOUR FIRST JOB IN YOUR INDUSTRY. My first job in the healthcare industry came in 1978 as a sales representative for Baxter Healthcare, working in their transfusion medicine business, selling blood collection containers and everything used to transfuse blood and blood components.

WHAT LESSONS DID YOU LEARN FROM YOUR EARLY INDUSTRY JOBS? Right out of college, I got a job selling industrial tape for Johnson & Johnson in Minnesota against 3M, which had an 85 percent market share. So I learned rejection very early in my career, but I also learned the value of having a good second supplier.

8 AB | January-February 2012

Companies with such a dominant market share tend to get arrogant and take their business for granted. So if you work hard and portray yourself as a credible second supplier, it’s a way to get in the door.

WHAT WERE YOUR SALARIES IN YOUR FIRST JOB AND FIRST INDUSTRY JOB? My salary at the muck farm was 35 cents an hour. My salary at Johnson & Johnson was $13,000 per year.

WHO IS YOUR BIGGEST MENTOR? Harry Cramer, who was the CEO at Baxter when I left. I have a book in my office that Harry wrote called “Values Based Leadership.” If Harry said it, he also acted that way, so his words and actions were absolutely in synch with each other. That was an excellent example and I’ve tried to emulate that as I’ve moved past Baxter and into the startup world.

FAST FACTS • Before joining Ulthera, Likens was president of GMP Wireless Medicine, where he developed, received FDA approval and marketed the first wireless system to transmit 12-lead ekgs and respiration wirelessly from a monitored patient to a bedside monitor.

• Likens spent more than 20 years in domestic and international sales, marketing and general management roles at Baxter Healthcare Corporation.

• Graduated cum laude from Kent State University with a bachelor’s degree in business administration with a major in marketing.

ALPHA // WOMEN

AHEAD OF THE GAME FEMALE-OWNED COMMOTION PROMOTIONS RANKS AS ONE OF THE FASTEST-GROWING COMPANIES IN THE U.S.

BY KRISTINE CANNON

I

t began in an apartment in 1984, with a lot of passion and dedication and little room in which to work. Twenty-plus years later, Commotion Promotions has expanded to seven locations nationwide, not only marketing and promoting its clients, but making a name as well.

Over the past year, Commotion Promotions has created quite the buzz for itself, launching projects such as the One Good Turn Project, which donates $500 of promotional products to non-profit organizations monthly, as well as receiving recognitions for its work. Highlights include earning a Best Places to Work award from Counselor Magazine and, most notably, its placement on the 2011 Inc. 500/5000 Fastest Growing Companies List.

BY THE NUMBERS 3-Year Growth: 33% 2010 Revenue: $8.9 million 2007 Revenue: $6.7 million Employees: 29 Founded: 1984 Industry: Advertising & Marketing Industry Rank: No. 348 Source: Inc. 500/5000 Fastest Growing Companies List

Headquartered in Phoenix, Commotion Promotions was not only recognized for its 33 percent growth over the past three years, but it was also one of the only promotional products companies on the list.

What does this recognition mean to Karen Kravitz, president of the female-owned business?

“It really means that we have, since 1984, been able to grow continually,” 10 AB | January-February 2012

Kravitz says. “And certainly in an economy where people are seeing a downturn, we’ve actually grown.”

Kravitz credits the company’s success to the strong relationships with its suppliers, its sales team, customer assistance as well as its niche markets.

“We meet with our suppliers on a regular basis, so they are bringing us new pieces and product lines all the time,” Kravitz says. “And the staff is always sharing ideas, even for each other’s clients. So we work with a team approach. There are a lot of sharing of communal ideas here.”

For Commotion Promotions, it’s all about staying ahead of the game and on the cutting edge. And there are several ingredients to creating and maintaining an award-winning marketing company.

According to Kravitz, one of the main ingredients to its business success is creativity. Because Commotion Promotions has received awards for its creative pieces and campaigns, “suppliers and manufacturers will come to us before the product has hit the market, and we help guide them regarding whether it’s a valuable product to bring to market and what we think it could sell for,” she says.

The niche markets Commotion Promotions work with also sets them apart — with brands including Stop Smoking Promotions, Get Healthy Promotions, Planet Earth Promotions and Promotions for Pets, which are all found online.

“In terms of providing promotional online stores for clients, we’ve been able to implement those and that’s definitely helped our growth,” Kravitz says.

But according to Kravitz, it’s the combination of award-winning creative advice, measurable results

Photo by Duane Darling

Karen Kravitz, President of Commotion Promotions and its “unbelievable customer service team” that doesn’t usually happen when customers purchase promotional products online — a game changer in the industry — that makes Commotion unique.

“I think over time, people will realize the value of a promotional contact you work with at a local level brings to the table, as opposed to trying to buying something online,” Kravitz says.

Kravitz’s advice to other female entrepreneurs?

“It’s OK to be a woman entrepreneur, a women-owned business, run a home, have children, work out of a second bedroom or have a toddler in the background,” Kravitz says. “As long as you have a passion and the dedication, you will succeed.”

Commotion Promotions has plans to expand into southern California and Chicago, as well as launch other niche markets over the coming year.

Commotion Promotions 2999 N. 44th St., #340, Phoenix (602) 996-0006 commotionpromotions.com

CEO LECTURE SERIES Please join us for the CEO Lecture Series featuring some of the valley’s most successful CEOs. Learn more about their leadership techniques and the best practices that took them to the top of their industry!

Join us for the first CEO Lecture Series of 2012 featuring Jim Teter, President and CEO, Goodwill of Central Arizona.

Wednesday, January 18, 2012 9:00 – 10:00 a.m.

Ethington Theatre Grand Canyon University 3300 W. Camelback Rd. Phoenix, AZ 85017

Jim Teter: President and CEO, Goodwill of Central Arizona

There is no cost for this series, but space is limited.

Please RSVP to: gcu.edu/ceoseries Presented by:

COMING MAY 2012 AzBusiness Magazine is looking for Arizona's best Realtors, Real Estate Companies and Communities.

Visit AzBusinessMagazine.com or call 602.277.6045 for more information.

CALL FOR NOMINATIONS Nomination Categories will include: Residential Realtor of the Year

Broker/Broker Team of the Year

Philanthropic Realtor of the Year

Residential Community of the Year

Environmentally Responsible Community of the Year

Lifetime Achievement Award and much more!

Nominate At AZBusinessMagazine.com

SMALL BUSINESS

ECONOMIC ENGINES CLASSIC CAR AUCTIONS DRAW VISITORS, PUMP MONEY INTO VALLEY ECONOMY

BY MICHAEL GOSSIE

I

f Steppenwolf was performing in the Valley this month, the band might want to tinker with the lyrics to “Born to be Wild.”

“Get your motor runnin,’ head out into Scottsdale, lookin’ for some auctions, and there are plenty coming our way.”

Two of the premiere classic car auctions in the United States call Scottsdale home in January.

The Barrett-Jackson Classic Car Auction takes place from January 15-22 at WestWorld of Scottsdale; and car enthusiasts can also hit the Russo and Steele Collector Automobile Auction from January 18-22 at its location near Scottsdale Road and Loop 101.

“The highlights to this year’s auction event would have to be the event site,” says Russo and Steele spokeswoman Stephanie Quinn.

“The main structure will have all the auction elements that people have come to know and love, such as staging lanes of up to six lanes of automobiles awaiting their turn on the block, vendors with everything from automobile memorabilia to high fashion, and of course the auction in the round auction block.”

But the auctions aren’t just about showing off cool cars. It’s big business.

Despite the sluggish economy in the 2011, Barrett-Jackson beat its 2010 sales figures, generating almost $70 million from the sales of about 1,200 vehicles. Russo and Steele had 2011 sales of more than $21 million.

The auctions are also a boost to the local economy and neighboring businesses as more than 300,000 people are expected to pour into 12 AB | January-February 2012

Russo and Steele Collector Automobile Auction When: January 18-22 Where: 18601 N. Scottsdale Rd., Scottsdale Tickets: russoandsteele.com Barrett-Jackson Classic Car Auction When: January 15-22 Where: WestWorld of Scottsdale, 16601 N. Pima Rd., Scottsdale Tickets: barrett-jackson.com

Scottsdale to attend the two events.

Barrett-Jackson will feature 27 vehicles from the Jimmy Richardson Collection, representing a variety of automobile categories from the past nine decades, but all have one common characteristic: they are all fast.

“Jimmy Richardson, one of the leading classic automotive collectors in the world, is providing an opportunity to own a unique offering of vehicles from his personal collection,” says Craig Jackson, chairman and CEO, Barrett-Jackson. “Jimmy will consign all of these vehicles at no reserve which will be a major component that adds excitement.”

Russo and Steele will have some

showcase cars as well.

“People can expect some of the finest European sports, American muscle, hot rods and custom automobiles at Russo and Steele,” Quinn says. “We are featuring more that 700 automobiles and have some spectacular automobiles such as the 1965 Shelby Cobra 427 CSX3127 Prototype that changed automotive history by paving the way for the production of all 427 street Cobras; and the ‘Noland Adams’ 1953 Chevrolet Corvette NCRS Duntov Award 99.8 (United States Postal Service) Stamp Car, making its debut on the auction floor for the first time ever.”

AB | January-February 2012 13

BANKING

MORE BANKING CONSUMERS

GO MOBILE

USE OF PHONE APPS SKYROCKETS 45 PERCENT IN 6-MONTH SPAN, BUT HOW SAFE ARE THEY?

BY MICHAEL GOSSIE

T

he smart phone is becoming to banking what the knife has become to bread: It’s changing the way we consume.

“Mobile banking has had the biggest impact on financial institutions since the introduction of ATMs,” says Paul Stull, senior vice president of strategy and brand at Arizona State Credit Union, the first credit union to introduce mobile banking in Arizona.

“The convenience of being able to use a mobile device to manage funds, track balances and pay bills is a huge advancement in convenience and time savings for consumers.”

According to comScore, a leader in 14 AB | January-February 2012

measuring the impact of the digital world, the number of people using mobile banking applications on their smart phones jumped an astounding 45 percent from December 2010 to June 2011. Nearly 14 percent of the total U.S. mobile audience accessed mobile banking services in June 2011, an increase of 21 percent from the fourth quarter of 2010.

“New functionality, such as personto-person payments and mobile check deposits, continue to gain traction, accelerating user adoption,” says Dan Stewart, president for Mutual of Omaha Bank in Arizona. “Banks that ignore the trend will find themselves missing what is fast becoming a

standard bank offering.”

Not many banks are ignoring the trend. In a recent survey of the top 25 financial institutions in the United States, Javelin Strategy & Research found that 23 of those 25 institutions offer some sort of mobile-banking service — SMS/text, downloadable applications, WAP/browser, or a combination of all three, known as a “triple play.” That’s an improvement from 2009, says Mary Monahan, research director at Javelin, when less than 50 percent of the same banking institutions played active roles in mobile space.

“Mobile banking is a must-have now,” says Monahan.

Wells Fargo is one of the institutions that blazed the mobile-banking trail and offers the triple play.

“Wells Fargo launched its mobile channel in 2007 by listening to our customers,” says Brian Pearce, senior vice president and head of the Retail Mobile Channel at Wells Fargo’s Internet Services Group. “They told us that they wanted easy and convenient access to their balances, transfer capabilities and the ability to pay a bill while on the go. They also told us that they wanted to be able to access

Paul Stull Arizona State Credit Union

their information regardless of their phone model and carrier plan. To meet these needs, we offer a triple play — mobile web, Apps for Android, iPhone, Blackberry and Palm, and text banking.”

And Wells Fargo continues to improve the ease of use and is adding new bells and whistles to make banking easier.

“We’ve just recently enhanced the design of our mobile experience with a simplified navigation and streamlined screen designs,” Pearce says. “We also added a GPS feature for our wf.com ATM locator and new commands and enrollment options for our text banking application.”

Banks are finding that mobile banking is good for the bottom line.

“Mobile banking adds to customer

Dan Stewart Mutual of Omaha Bank

Craig Doyle Comerica Bank

While smart phone users are the biggest users of mobile banking, the exploding popularity of mobile tablets like the iPad is expected to alter the mobile banking landscape even further, experts say.

“The tablet is going to be a game changer,” Monahan says. “Banks have to be ready.”

Apps for tablets will require some thought, since consumers spend more time browsing on mobile tablets than they do on mobile phones, Monahan says. “Banks will have to have deeper dives, and it’s going to be key for banks to have a tablet-specific app.”

Even as the use of mobile banking skyrockets, there is one issue that is keeping it from reaching a fever pitch.

“The main reason consumers don’t move to mobile banking is because of

Brian Pearce Wells Fargo

its mobile banking channel.

“Comerica always has security in mind and is constantly evaluating better ways to protect our customers,” Doyle says. “We encourage our customers to take the proper precautions to protect themselves.

We feature information about good security practices on our Comerica. com website (comerica.com/security) and our mobile banking microsite (campaign.comerica.com/personalbanking/education/mobile/security) so our customers can be properly educated and protect themselves.”

To help ease its customers’ security concerns, Monahan says banks should at least do these three things: • Post mobile banking security guarantees on their websites.

Guarantees should be prominent, on

“Mobile banking has had the biggest impact on financial institutions since the introduction of ATMs”.

- Paul Stull, senior vice president of strategy and brand at Arizona State Credit Union acquisition and retention, reduces call volume to the call center, and takes the convenience of Web banking one step further,” says Craig Doyle, Arizona market president of Comerica Bank, which has launched mobile banking apps for the iPhone, BlackBerry and Android. “This technology also forces the industry to focus more on the customer and carefully evaluate what products and services we can offer to better serve them.”

security concerns,” Monahan says.

“Consumers want to know that their mobile interactions and transactions are encrypted, and they want some assurance that they will be reimbursed for losses associated with a mobilebanking breach. Banks need to educate consumers about what they offer and how they are protecting the mobile channel.”

Educating consumers is something that Comerica said is vital to growing

the home page, so consumers can quickly find them.

• Banking institutions offering mobile banking through downloadable apps should have the ability to remotely deactivate apps that could be infected or contain malicious code.

• Every institution should spearhead a strong consumer education campaign that educates consumers about safe mobile-banking practices, AB | January-February 2012 15

Business Luncheon Curtis R. Frasier General Counsel, Upstream Americas Head of Legal in USA

Shell Oil Company 5 WAYS TO PROTECT YOURSELF A Set the phone to require a password to power on the handset or awake it from sleep mode.

Thursday, February 2, 2012 11: 30 a.m. – 1: 30 p.m.

Sheraton Phoenix Downtown 340 N. 3rd Street Phoenix, AZ 85004 Curtis Frasier is the executive vice president and general counsel of Royal Dutch Shell’s Upstream Americas business and Shell’s Head of Legal in the USA. Since joining Shell Oil Company in 1982, Curtis has held a number of positions within Shell’s Legal Organization in Houston, London and The Hague, including serving as secretary to the Royal Dutch Shell Committee of Managing Directors.

Mr. Frasier is currently a member of the law committee of the American Petroleum Institute, an advisory board member of the Institute for Energy Law, a director of the Global Institute of Sustainability and an advisory director of Houston Achievement Place. He received his BA from Arizona State University and his Juris Doctor from the University of Tulsa. He currently resides in The Woodlands, Texas.

R.S.V.P. today econclubphx.org

16 AB | January-February 2012

B Whether you’re using the mobile Web or a mobile client, don’t let it automatically log you in to your bank account. Otherwise, if your phone is lost or stolen, someone will have free access to your money.

C Avoid sharing your password, account number, PIN, answers to secret questions or other such information. Don’t save this information anywhere on your handset.

D Immediately tell your bank or mobile operator if you lose your phone.

E Review account statements. If you do notice any unusual transactions, call your bank immediately and dispute the transactions.

while also informing them about mobile offers and services provided by their banks or credit unions.

Arizona’s banking leaders say those security concerns are not going unnoticed.

“All mobile technology used by Arizona State Credit Union complies with federal financial institution regulations requiring the use of multi-factor authentication technology,” Stull says. “In addition, the Credit Union will be adding new security improvements during 2012 that will use virtual intelligence to learn user behavior and detect variances in usage that may indicate unauthorized activity.”

Bankers point out that mobile banking can actually be a great tool to use to keep your money secure because you have 24-hour access to your financial information.

“We feel that the ‘anytime, anywhere’ nature of mobile banking gives customers a great tool to monitor their accounts and stay in control of their money,” Pearce says.

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Arizona Business Magazine is proud to host the 5th Annual Health Care Leadership Awards on March 8, 2012. We’ll honor the individuals and organizations that have made strides in helping Arizonans receive better health care. All of the Finalists will be published within the March/April issue of Arizona Business.

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HEALTH

ARE WE LIVING TOO LONG? ADVANCES IN TECHNOLOGY ARE GREAT, EXPERTS AGREE, BUT COSTS NEED TO MIMIC THE REST OF THE ECONOMY

BY REBECCA LARSEN

As Arizona enters its second century and healthcare costs soar, we can’t help but ask: Has the technology that helps us live longer become too costly? Are we living too long?

And who will pay for the high-tech advances that keep us going?

Leading healthcare experts in the Valley say our lifespan has increased, but not as much as most people think. Though they agree that residents may have to work longer, most believe that is because of problems with the economy overall, not from the increasing cost of healthcare.

Technology has improved, they say, but the changes will soon get more amazing. Some of this will be costly, but improved technology can also make healthcare more efficient and less expensive in the long run.

And none of these experts believe Arizona residents live too long.

“I suspect that people used to say that humans were living too long back when people lived 50 years or 60 years,” says Dr. Vishu Jhaveri, chief medical officer and senior vice president at Blue Cross Blue Shield of 18 AB | January-February 2012

Arizona. “People may have the instinct to want to live longer, but what they really want is to live longer and healthier.”

Dr. Ed Staren, president and chief executive officer at Cancer Treatment Centers of America’s Western Regional Medical Center in Goodyear, agrees.

“I certainly don’t think people live too long,” says Dr. Staren. “I greatly value the chance to learn from those more experienced than we are. The purpose of medicine runs parallel to the right of an individual to a healthy life, to empower them to pursue life to the best of their abilities.”

The mission statement for Blue Cross Blue Shield, Jhaveri notes, “is to improve the quality of life for all Arizonans, not just our customers.”

Healthcare and its new technology are not the major factors in a long life, says Dr. John Hensing, executive vice

Here are the five things that Valley experts say will shape healthcare in Arizona as the state enters its second century: Technology – More improvements, including less invasive surgery, targeted drugs and therapies.

Cost containment – More use of nurses and trained technicians to give care.

Medical education – Training for technicians and nurses so they can administer more care.

Lifestyle education – Promotion of better nutrition and more exercise.

Growth of facilities – New clinics and hospitals in Arizona attracting patients from around the world.

president and chief medical officer of Banner Health. Genetics, diet and nutrition and exercise are what count the most, he says.

“Do you smoke? Do you get regular exercise? What do you eat? Do you take care of yourself?” Dr. Hensing asks. “Those factors contribute much more to longevity. That being said, of course, there are certain people alive today because of improvements made in medical technology.

These are people

Dr. Vishu Jhaveri, chief medical officer and senior VP of BCBS of AZ

who 100 years ago would not have survived. But technology is only a modest factor in longevity.”

We do, of course, live longer and longer, but in general our lifespan has increased fairly slowly. According to the U.S. Census, the average life expectancy for men and women combined in the United States was 78.3 years in 2010; it was 76.8 years in 2000.

So how will we pay for the healthcare that gives us extra years and stronger bodies?

“The new technology allows us to be more efficient in the cost of delivering care,” says Dr. Greg Mayer, senior vice president of the Hospice of the Valley.

Those cost-saving methods can include electronic transmission of medical records, video visits to the doctor for routine illnesses, or even robotic surgery with the robot controlled by a doctor who is hundreds or thousands of miles away from the operating room.

“Many areas of technology are very

Dr. Rafael Fonseca, deputy director of the Mayo Clinic Cancer Center

high in cost, and we’re all aware that the increases in these costs cannot be sustained in future,” Dr. Mayer says. “If we aren’t smarter and more efficient in our use of healthcare, it won’t be helpful. It will just be fancier care.”

In the drive to cut expenses, he says, patients will probably find that less complicated medical care will be delivered by highly qualified middle level personnel like nurse practitioners, rather than doctors.

“There have to be changes because we can’t sustain the current system financially,” Dr. Mayer says. “There aren’t even enough physicians to meet all the needs.”

Of course, technology has brought on major changes in how serious diseases are treated, the doctors say.

Cancer is a prime example.

When Dr. Staren of the Cancer Treatment Centers of America started practicing in the 1980s, the bulk of cancer diagnoses were based on just looking at the size and shape of a tumor or on what could be seen by AB | January-February 2012 19

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“...We need a better way to deliver services, and they will be delivered in a more economical way. It will take the better part of a decade to do it.”

– Dr. John Hensing, executive vice president and chief medical officer of Banner Health.

analyzing cells under a microscope. Treatment was limited to drugs and chemotherapy that had not changed much in 25 years.

Now, doctors have electronic equipment to look at cancers on the molecular level and differentiate among individual tumors and types of cancer. Targeted therapies can use drugs to block the growth and spread of cancer by interfering with specific molecules involved in tumor growth. These targeted therapies may be more potent than chemotherapy and radiotherapy and less harmful to normal cells.

“Now, cancer is being treated as a chronic disease, much like diabetes,” Dr. Staren says. “There have been true paradigm shifts in treatment.”

It’s possible to treat tumors with minimal access to the body by delivering drugs through small pinholes in the abdomen, chest or brain. “This is process innovation that can result in lower costs and reimbursement,” Dr. Staren says.

“Right now, we’re going through transformation of our healthcare and how it’s paid for,” Dr. Hensing says. “We’re in a period of non-sustainable growth of costs. That has to change. The growth of costs must flatten out to a cost trend that looks like the rest of the U.S. economy – whether healthcare is paid for by employers or the government or both. We need a better way to deliver services, and they will be delivered in a more economical way. It will take the better part of a decade to do it.”

“There is unquestionably a much better prospect for better quality and quantity of life due to technology,” says Dr. Rafael Fonseca, deputy director of the Mayo Clinic Cancer Center. “But escalating costs remain a challenge.”

Costs are higher in the United States than around the world, he says, but that’s partly because the U.S. carries most of the cost of research and development. He sees room for containment of costs. “The notion that everything has to be managed by doctors must change,” Dr. Fonseca says. “Nurses can get a history and do a medical exam. There can be electronic consultation.

Nurses can deal with day-to-day problems with specialists handling individual cases.”

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AMERICAN HEART ASSOCIATION

ACHIEVING CORPORATE HEALTH AMERICAN HEART ASSOCIATION PROGRAM ENCOURAGES BUSINESSES, INDIVIDUALS TO CHANGE THE WAY THEY THINK ABOUT THEIR HEALTH

BY TOM GIBBONS

R

ichard Schulz, CEO of HealthSouth in Scottsdale and chairman of the American Heart Association’s Arizona Heart Walk, knows a healthy lifestyle doesn’t happen by accident.

It takes work.

And something else.

“You have to make it fun,” Schulz says.

In his chairman duties, Schulz meets with representatives from companies to participate and to secure sponsorships for the Heart Walk.

The Heart Walk is a noncompetitive 5K walk/run and 1-mile walk at Tempe Town Lake. The event, in its 20th year, celebrates those who have made lifestyle changes and encourages others to make changes to feel better and to live longer.

It also serves as the Phoenix

chapter’s of the American Heart Association’s major fundraiser, says spokeswoman Jessica Brown. The goal this year is to raise $900,000 for research, outreach and education, Brown says.

About 15,000 people are expected to take part in the walk.

Large health-related employers tend to big players in the event, Brown says. For example, Banner Health, which runs 14 hospitals, three research centers and other properties in Arizona, had nearly 1,000 registered Heart Walk participants in 2011.

Catholic Healthcare West, which operates three hospitals in the area, had 1,023.

Besides the walk, Schulz encourages companies to make a commitment to become fit companies.

As part of that commitment, HealthSouth, Banner and Catholic

Healthcare West have engaged in a program with the American Heart Association and American Stroke Association called “My Heart. My Life.”

The program is designed to change the way Americans think about their health. It’s about embracing an overall healthier lifestyle to improve cardiovascular health.

This movement is a national rallying cry for change, Brown says, through simple behavior adjustments that help people feel better and live longer. The American Heart Association and American Stroke Association have developed a number of activities under the umbrella of “My Heart. My Life” — among them: increased health education; advocacy for better public policy in important health areas, such as anti-smoking laws; and helping communities find ways to eat healthier and stay physically active.

“We see examples every day at work,” Schulz says. But other kinds of companies are also climbing on the AB | January-February 2012 23

wellness bandwagon, he adds.

One such company is Scottsdale Insurance. A subsidiary of Nationwide Insurance, Scottsdale Insurance specializes in excess and surplus policies as well as specialty insurance.

If you run a fund-raising golf tournament with a car as a prize for hitting a hole-in-one, Scottsdale Insurance will write a policy so that one lucky shot doesn’t submarine your charitable intentions.

Scottsdale Insurance employs about 1,400; most are in the Valley, but the company has agents across the country.

The parent company encourages community involvement. Pete Harper, vice president of finance and CFO, was drawn to the American Heart Association because some relatives had suffered from cardiovascular problems. The Heart Walk promoted awareness of the need for fitness at the company, which has increased.

“Now, you’ll see groups of walkers at lunchtime,” he says.

Harper says that as the company became more health conscious, he did, too.

“Before, about the only thing I did was play racquetball,” he says.

A healthier workforce is more productive and experiences lower absenteeism, Harper says. Although some of the benefits are difficult to quantify, others are not.

“We’ve seen slower growth in our healthcare-related costs than other companies,” he says.

And heart health is at the heart of the matter. Heart disease was the No. 1 killer in the U.S. in 2009 (the most recent year that figures are available), the Centers for Disease Control reported. Stroke was No. 4.

“Heart disease is an area we have some control over,” Schulz says.

“There are some hereditary factors, but there’s a great deal of literature that shows we can reduce risk with lifestyle changes.”

The good news is mortality rates from heart disease started declining around 1950 and have continued to decline, CDC figures show.

24 AB | January-February 2012

20th

HEART WALK When: Feb. 25 at 9 a.m. At 10 a.m., the Heart Healthy Festival begins, featuring live music, interactive booths and giveaways.

Where: Tempe Beach Park Cost: Free, though participants qualify for a T-shirt by raising $100.

Purpose: Supports the American Heart Association’s research programs and initiatives that promote the prevention, treatment and better patient care in the areas of cardiovascular disease, the leading killer in the United States.

Website: phoenixheartwalk.org Participants: About 15,000 people participate each year Fundraising goal for 2012: $900,000 Where does the money go: To fund research, educational programs and community outreach.

Who are some of the biggest corporate participants: Banner Health, Catholic Healthcare West, Scottsdale Insurance, HealthSouth The bad news is there are some alarming developments that if they go unchecked would reverse that trend.

The American Heart Association reports that about one-third of children in the United States are overweight or obese. Most experts believe childhood obesity increases the risk of heart disease and stroke in adulthood.

The American Heart Association has established a standard of ideal cardiovascular health. Right now, 1 percent of U.S. population meets that standard. Among children ages 12-19, the percentage is zero.

And many people are kidding themselves about the healthy lifestyle they lead, Brown says. In an American Heart Association survey, 39 percent of Americans questioned thought they were in ideal cardiovascular health.

The American Heart Association set a goal to improve cardiovascular health of all Americans by 20 percent by 2020 and came up with “My Heart.

My Life.”

The idea is to make simple changes that can make a big difference, such

as eating healthier, exercising 30 minutes a day, controlling cholesterol and blood pressure. The organization offers online trackers for walkers and, of course, an application for smart phone users to create walking paths.

Education and awareness are important, but for a company to encourage its employees to pay more attention to cardiovascular fitness, a dose of healthy competition can boost motivation, Schulz says.

“You can have different groups compete and see who can lose the most weight,” Schulz says.

Making wellness enjoyable is key.

Sharon Opitz, wellness director at St. Joseph’s Hospital and Medical Center in Phoenix, says the wellness program at the Catholic Healthcare West facility includes zumba and yoga sessions, a farmer’s market and cooking demonstration classes.

Catholic Healthcare West tries to incorporate spirituality and stress reduction in its wellness programs, says Robert Lichvar, wellness director at Chandler Regional Medical Center and Mercy Gilbert Medical.

FORWARD THINKING Algae, solar, personalized medicine or none of the above? Some of Arizona’s greatest minds look ahead at the state’s next century | By Michael Gossie A century ago, Arizonans with an entrepreneurial spirit ventured deep into the deserts and mountains in search of gold and copper. Today, as Arizona celebrates its 100th birthday, their counterparts are exploring the unknown frontiers of biotechnology and renewable energy.

“Imagine the technologies of 100 years ago,” says Steven Zylstra, president and CEO of the Arizona Technology Council. “Now, think about how far we have come. Only a very few science fiction writers even envisioned the technologies that are now a part of our everyday lives. It is very likely that (100 years from now), the mix of industries and companies will be very different. There will be subsectors that don’t even exist yet. One thing is sure, there will be more technology than ever to drive our economy and improve our quality of life.”

So with 100 years in the history books, what’s in store for Arizona’s next century? One expert says algae will be Arizona’s 21st-century gold rush. Will Arizona’s yet-to-be-written history prove him to be right?

Arizona Business Magazine asks some of the state’s greatest minds how they see Arizona taking shape over the next decade and beyond.

26 AB | January-February 2012

CENTENNIAL

ECONOMY

Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business at Arizona State University The next 25 years has the potential to be a period of strong growth ... Arizona’s population will almost double within 25 years, as the state grows to more than 10 million residents. Phoenix will have a population between 7 and 8 million. Over the next 25 years, to accommodate growth, more than 1 million single-family homes will be needed, a seemingly impossible pace of building compared to conditions today.

Lee Vikre, senior vice president, organizational development and consulting, BestCompaniesAZ, LLC In the next 10 years ... white males may become the minority. Entrepreneurship will be ingrained in workers of all ages who were affected by the recession. Th is entrepreneurial, independent atmosphere will continue to define Arizona. Homegrown, innovative businesses in the fields of technology, manufacturing, healthcare, and sustainable energy will prosper.

Patricia Ternes, financial advisor, RBC Wealth Management, Scottsdale Right now, we have multiple currencies and multiple stock markets. The financial services industry needs to better integrate the products and services we offer our clients worldwide. In 100 years, there will probably be huge, world-wide investment markets that are available to everyone 24/7. Th is will increase the complexity of planning one’s financial future.

TECHNOLOGY

Steven Zylstra, president and CEO, Arizona Technology Council In the next 10 years, the biosciences and renewable energy sectors will become significant components of our economy.

Aerospace and defense, semiconductor and electronics, ITC, and optics will continue to grow. The technology sector will be an everincreasing component of our economic landscape, leading to more diversity.

Mark Edwards, PhD., vice president of corporate development and marketing, Algae Biosciences, Inc., Scottsdale Arizona will go from two firms producing algae in 2011 to 200 algae firms in 2020.

Arizona producers will cultivate algae for food, feed, fertilizers, pharmaceuticals, cosmeceuticals, nutraceuticals, functional foods, medicines and advance compounds. In the next 100 years, algae will become the leading industry in Arizona, eclipsing tourism; more than 80 percent of all medicines, vaccines and pharmaceuticals will be made predominately

SERIES

from advanced compounds derived from algae; our fossil-based transportation system will transform to a sustainable algaebased transportation system.

Steve Sanghi, president and CEO, Microchip Technology Inc., Chandler The semiconductor industry is likely to have a significant impact in this state over the next 10 years. Th is expansion will lead to a sharp increase in the growth of well-paying, high-tech jobs in our state ... Over the next 10 years, we will see a significant expansion in the use of semiconductors for surgical and analysis equipment; in portable, wearable and implantable medical devices; and in the cost-cutting use of remote medicine, where patients will be monitored by medical professionals in lower-cost regions. I will add one cautionary note to the optimistic picture ... The formation of new start-up companies is driven by the availability of venture-capital funding. Arizona continues to be plagued by a scarcity of risk capital ... While Arizona has been a technology hotbed in recent years, we must fi x this problem if we are to remain the “Silicon Desert.”

ENVIRONMENT

Diane Brossart, president, Valley Forward Association In the next 100 years, we will become the solar capitol of the world. Light rail connects Valley cities. Commuter rail takes us across the nation. Arizona is a burgeoning hub of economic activity. Parks and open space dot the landscape. Innovation and technology abound. Our legislature is enlightened and the green revolution leads to new water sources in our vibrant desert oasis, now free of particulate pollution.

Kelly Mott Lacroix, graduate research associate, Water Resources Research Center, Tucson Over the next 100 years, our water management will need to be flexible and progressive enough to allow us to prosper in the face of supply uncertainty from changes in climate and the continuing growth of our economy. Arizonans will have to make decisions about what we value most about this state and those decisions will dictate how the water issue changes Arizona.

HEALTH

Dr. Grace Caputo, director, Phoenix Children’s Hospital/Maricopa Medical Center Pediatric Residency I see medical education as a dominant force in Arizona, especially with the growth of the University of Arizona campus downtown. Innovative pediatric care will continue to be a highlight at Phoenix Children’s Hospital, but healthcare overall will continue to improve our community as birth to age 5 is the fastest growing population in Arizona.

AB | January-February 2012 27

Catherine Niemiec, president, Phoenix Institute of Herbal Medicine & Acupuncture, College & Clinic Acupuncture and oriental medicine (AOM) will fi ll the gaps created by high insurance rates, fewer primary care physicians, and seemingly incurable or chronic conditions. Acupuncture can be available for the same cost as a co-payment, supporting the need of those who have no insurance or who need to seek different care beyond what their insurance will cover.

Kenneth J. Biehl, M.D., radiation oncologist, Arizona Oncology Long-term changes for the use of radiation in cancer care will involve a combination of treatments directed at the molecular level and immense precision with external radiation. Targeting cancer with radiation at the molecular level has been developed for only a handful of cancers to date. The struggle to find and develop cures at the molecular level will be one of the determining factors in how the people of Arizona will receive cancer treatment for the next hundred years.

Mahesh Seetharam, M.D., medical oncologist and hematologist, Arizona Oncology In the next decade, electronic medical records will continue to evolve to help coordinate care between the various providers to optimize outcomes. It is very difficult to predict given the current labile healthcare environment. The concept of universal healthcare is very possible, but with that comes the need for additional providers and resources to provide the necessary care.

Personalized medicine could be a reality in the next decade or two, and this will certainly improve outcomes.

BANKING

Lynn Crane, executive vice president, bank operations and services, Mutual of Omaha Bank in Arizona Mobile devices will replace plastic cards. This will completely change the “check out” experience at retailers.

Arizona shoppers will be able to scan merchandise as they pick it up off the shelf and make payment without stopping at a checkout counter when they leave the store.

Craig Doyle, Arizona market president, Comerica Bank Some of the industry segments critical to our future are aerospace and defense, semiconductor manufacturing, business services technology, health care and renewable energy. Effectively supporting their growth requires a deep understanding of supply chains and related capital markets. It will take time, but the Arizona banking industry should help facilitate the appropriate 28 AB | January-February 2012

capital markets so that Arizona is competitive with other major economic regions in helping companies, form, grow and mature.

EDUCATION

Michael M. Crow, president, Arizona State University ASU will be a critical asset for Arizona going forward over the next 100 years as the knowledge based economy or at least knowledge driven adaptation and innovation to the uncertainties and the complexities that lie ahead in the areas of global finance, economic competitiveness, environmental sustainability and so forth will be such that what universities like ASU do will be more important than ever.

Bill Hubert, president and founder of Scottsdale-based Cology, Inc., which helps lenders enter the student loan market At some point, the cost of education is going to have to “normalize” within the overall economy ... Providing financial services that connect students and families with a broad spectrum of relationship based funding sources will certainly help increase access and drive down overall costs – of program administration, funding sources, and even institutional administrative costs.

Deanna Salazar, senior vice president and general counsel of Blue Cross Blue Shield of Arizona The Green Schoolhouse Series, which makes schools healthy and green “inside and out” through the development of an integrated health and wellness curriculum and green gardens to promote nutrition and wellness in disadvantaged schools, BCBSAZ will continue to be positioned as a leader who is genuinely taking care of the health of Arizonans, in both traditional and non-traditional ways that create a better future for all.

MARKETING

Kristin Bloomquist, executive vice president, general manager, CramerKrasselt Brands will not go away. In fact, they will be even more valuable both in the next decade and in the next century if they can evolve as we evolve, as our technology evolves. Those brands that increase in value over time will have very different ways of communicating with consumers. Everything will be personalized. Everything will happen in real time. There’s a good chance that 100 years from now, as far as commercial messaging and targeting goes, “Minority Report” will be seen as an amazingly accurate forward-looking documentary rather than a work of fiction.

AB | January-February 2012 29

Rob Davidson, co-owner of Phoenixbased Advertising firm Davidson & Belluso Marketing and advertising will keep changing at an even faster rate as new technology becomes available. Smart phones and tablets have already become standard channels of any marketing plan. Companies who stay on top of the latest marketing tools and learn about their customers changing behaviors are the ones who will be successful in reaching their target markets.

CR Herro, vice president, environmental affairs, Meritage Homes Homes will be built to work better, use fewer resources, be healthier, and adjust to the needs of owners. On the fringe of the market today are homes that can adjust the transparency of windows, extend and retract solar shades, turn on lights, change thermostat settings over a smart phone, and achieve net-zero energy demand. These changes allow homes to adapt to the unique needs of its occupants, offer more control, and waste less energy and resources (money) in their operation.

ENERGY

TRANSPORTATION Danny Murphy, airport director, Sky Harbor International Airport The biggest evolution our industry will experience is a transformation of the entire national air transportation system to avoid gridlock in air travel, called “NextGen.” Th is means moving from ground-based technologies to a new and more dynamic satellite-based technology. While airport delays are minimal in Arizona, our passengers are impacted most when traveling to and from other locations and this technology will greatly improve that.

John Lefebvre, president, Suntech America As solar becomes a market-driven industry, Arizona is poised to be a major global solar industry hub, particularly with the continued development of largescale solar projects. Ultimately, I hope to see energy generated from solar grow to a significant percent of the U.S. energy supply portfolio and eliminate our dependence on foreign oil, providing a low-cost solution to power our homes and cars. With solar, the sky’s the limit.

ENTERTAINMENT Brad Casper, president, Phoenix Suns The Suns will offer fans the most technologically advanced atmosphere in professional sports, while emerging as the most winning franchise in NBA history.

Through strategic partnerships, the Suns will act as a catalyst towards creating a sustainable entertainment and business environment, unmatched by any NBA/WNBA organization.

Mark Bonsall, general manager and CEO, SRP New drilling and recovery technology is providing access to vast quantities of natural gas within the U.S. at relatively low costs, at least so far. Th is provides a good bridge to develop systems that can improve the efficiency of solar systems, address the intermittent nature of most renewable resources, find safe and more cost-effective ways to deploy nuclear power, and provide the time for innovative new ideas we aren’t even aware of now.

HOUSING

Rachel Lang and Marcy Briggs, loan officers for the Briggs-Lang team of Cobalt Mortgage The rental market will continue to strengthen with long-term renters. We also see a stabilization within the Arizona real estate market due to the mortgage underwriting guidelines remaining more conservative than they were five years ago, and slightly less conservative five years from now.

Alan Boughton, director of commercial operations, W.J. Maloney Plumbing As the population in the West increases and the demand for water intensifies by a seemingly unpredictable water supply and snow pack, innovation in low-flow plumbing fi xtures could be our industry’s greatest impact on Arizona as more people are forced to live with less water.

To learn about the people, places and things that shaped Arizona’s first 100 years, visit AzBusinessMagazine.com 30 AB | January-February 2012

Catherine Anaya, chief journalist, KPHO CBS 5 News I think in the next 100 years ... there will still be a place for television news. However, I don’t think we’ll see it in the studio format we’ve been accustomed to seeing. I think we’ll end up shooting and broadcasting our news via our smart phones or whatever those evolve into in time. As a result, I think it will create more intimacy and interaction among Arizonans.

Teri Agosta, general manager, Pointe Hilton Squaw Peak Resort Business travel will continue to grow as corporations realize people need direct contact with team members and clients to build a successful business, and webinars and teleconferencing do not meet these needs. Also, our consistent weather will become more valuable to travelers, who will scrutinize their travel spending even more.

Carey Pena, co-anchor, 3TV News at 10 p.m.

There is a generally accepted theory of human knowledge that says: today, we know 5 percent of what we will know in 50 years. In other words, in 50 years, 95 percent of what we will know will have been discovered in the past 50 years. That makes it hard to imagine what 100 years will look like.

From this dam flows 100 years of progress.

Happy centennial, Arizona.

Together, we’ve accomplished a lot in a very short time. In 1903, nine years before Arizona became a state, SRP spearheaded the building of Theodore Roosevelt Dam to bring water to the Valley. Soon the water also became a source of energy. SRP’s stewardship of these precious resources continues today. We look forward to working together to make Arizona a great place to live and work for another 100 years. Please visit togetherweconserve.com to learn more.

TOGETHER WE CELEBRATE | Arizona Centennial 1912-2012 AB | January-February 2012 31

TECHNO PARTY SCITECH FESTIVAL WILL PUT SPOTLIGHT ON ARIZONA AS A GROWING POWER IN SCIENCE AND TECHNOLOGY

BY MICHAEL GOSSIE

G

ov. Jan Brewer says there is no better way to launch the state’s second century than by creating leaders in industries that she sees as crucial for the state’s economic vitality.

“Arizona is an emerging world leader for advances in aerospace, aviation and defense, semiconductor and electronics information technology, optics, life science, health science, renewable energy and telecommunications,” Brewer says. “Now, we must focus on ushering in the next generation of great scientific and technological leaders and must cultivate the scientific talents of all its students.”

To cultivate and inspire that talent, the Arizona Technology Council Foundation, Arizona State University and the Arizona Science Center have teamed up to create the First Annual Arizona SciTech Festival, a grassroots collaboration of more than 200 organizations in industry, education and community designed to showcase how science, technology, engineering, and math (STEM) could drive the state’s economy over the next 100 years.

“The SciTech Festival will be the perfect way for Arizona to start rebranding itself around science and technology,” says Chuck Vermillion, chief executive officer and founder of Scottsdale-based OneNeck IT Services.

32 AB | January-February 2012

According to Jeremy Babendure, a biomedical scientist and director of the festival, officials expect more than 100,000 people to attend more than 300 activities that will take place throughout the state over a six-week period.

“I went through the Arizona school system and then went to ASU,” Babendure says. “But when it came time for me to engage in scientific research, I went out of state. This festival will show the next generation of Arizona scientists what is going on in their backyard and show them that it is possible to stay in Arizona and engage in meaningful scientific work.”

Festival organizers hope to showcase the state as a leader in science, technology and innovation.

Activities will include workshops, conversations, debates, exhibitions, concerts and guided tours for young people and adults.

In addition to the three founding partners, sponsors of the SciTech Festival include Cox, Avnet, SRP, Boeing, the Arizona Commerce Authority, the Flinn Foundation, US Airways, DPR Construction, Maricopa Community Colleges, Creative Engine and the Helios Education Foundation, which committed $50,000 to the festival.

“By supporting the (festival), Helios believes more Arizonans will become aware of the role STEM plays in our economy,” said Dr. Jo Anne Vasquez,

vice president and program director, Arizona Transition Years: Teacher and Curriculum Initiatives. “In order for Arizona to be a player in the new global economy, Helios supports educational initiatives that create a college-going culture with an emphasis on academic preparation in STEM education.”

For companies such as Microchip Technology Inc. in Chandler, a leading provider of microcontroller and analog semiconductors, the idea of inspiring students that could become part of a home-grown workforce is one of the benefits that will be derived from the festival.

“This is the kind of thing that can start to change the culture and get young people excited about science and engineering,” says Michelle Ragsdale, senior public relations specialist for Microchip, which is participating in three SciTech Festival events. “They will get an opportunity to see how math, science and technology shape our lives.”

“The festival is designed to help the public better understand the relationship between the state’s current, outstanding research and technology and the immense potential it offers for Arizona’s future,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council.

More information on the festival and a complete schedule of events is available at azscitechfest.org.

ARIZONA TOURISM ALLIANCE 2012

36.....ARIZONA TOURISM PACKS AN ECONOMIC PUNCH 40.....VISITORS BUREAUS SEE DIVIDENDS FROM MARKETING

The Arizona Tourism Alliance (ATA) is an independent, nonprofit organization based on unifying Arizona’s many travel-related businesses. Its mission is to ensure the future growth and success of tourism through our collective efforts. ATA and its partners work throughout the year to advocate, educate and unite the tourism industry.

AB | January-February 2012 33

Close to it all...

Centrally located in the Heart of Arizona’s Wine Country, Cliff Castle Casino Hotel is the ideal location for your next corporate event. Come see why our conference and banquet facilities have been voted the best in the Sedona Verde Valley two years in a row.

• 80 comfortably-appointed guest rooms and suites • Meeting and Event Center with complimentary state-of-the-art AV equipment and services with built-in sound system • Unique catering options featuring an exquisite menu and comprehensive wine selection • Friendly, attentive service

For more information or to book an event, call 928.567.6611 or 800.524.6343 or email us at sales@cliffcastlecasino.net.

cliffcastlecasinohotel.com 34 AB | January-February 2012

800.381.SLOT | I-17, Exit 289 • Camp Verde

Please play responsibly. Must be 21 to play. ©2011 Cliff Castle Casino Hotel

DO BUSINESS IN StylE

The Hotel Valley Ho serves up the perfect mix of business and pleasure. Located in the heart of historic Downtown Scottsdale, we’ve been the hub of hip for all travelers and locals for the past 55 years. Come visit, and you’ll see why we’re here to stay.

68 5 0 E . Ma in St . Sc ot t sdal e , AZ 8 5 2 51 | h o t e l v a l l e y h o . c o m | 4 8 0 . 2 4 8 . 2 0 0 0 AB | January-February 2012 35

TOURISM

36 AB | January-February 2012

DESTINATION

DOLLAR$ ARIZONA TOURISM PACKS AN ECONOMIC PUNCH OF $17.7 BILLION YEARLY

BY GERI KOEPPEL

T

ourism is one of the largest industries in Arizona, but it isn’t just about hotels and golf courses.

Its direct economic impact of $17.7 billion has helped keep the state afloat during some of its darkest economic days, and the ripple effect is even greater. Those dollars spill over to a host of businesses, from the farmers who supply produce to the hotel restaurants to the car dealers who sell vehicles to the banquet servers. They also help keep our police officers and firefighters on the streets, thanks to tax revenues.

“That trickle-down money does affect everyone who is a citizen of Arizona, to some degree,” said Sherry Henry, director of the Arizona Office of Tourism.

And the money keeps coming, thanks to nearly 37 million overnight visitors annually.

“It’s so important to recognize the tourism industry is always here,” Henry said. “Even in recessionary times, people are still traveling.”

Tourism spending was up 7.9 percent in Arizona from 2009 to 2010 and has increased 25 percent since 2000. Overall, it’s still down 7 percent from its heyday of 2007, but most other indicators are moving in the right direction: Tax revenues, occupancy rates and demand are all up from 2009.

“It’s not that we don’t feel the effects of the recession,” Henry said, “but we’re still in the game.”

While the state has lost 11 percent of its tourism jobs since its high of about 173,400 in 2007, the industry still brings in $48 million a day.

Tourism is the number one export industry in Arizona.

One way that benefits every resident directly is when the tax bills come. Taxes from tourism generate $1.3 billion in local and state revenue, which pays for everything from public safety to parks to libraries.

“When you look at the taxes generated, (tourism) saves every Arizona resident $1,000,” Henry said.

Her agency, which was created in 1975, is responsible for marketing the state as a whole with multiple programs: advertising, public relations, community outreach, trade and media, and digital and social media, to all domestic and international visitors. “(Travelers) have a lot of choices, so it’s important your destination stays in top of mind,” Henry said.

Part of the money for tourism outreach comes from tribal gaming. In the fiscal year ending June 30, 2011, tribal gaming revenues contributed $5.5 million to the state’s Tourism Fund. That comes from the $79 million total they deposited to the state, with another 12 percent of their annual revenue of almost $1.7 billion going to cities, towns and counties.

In addition, said Melody Hudson, public relations manager for Gila River Gaming Enterprises, “We have a deep and wide reach as far as our AB | January-February 2012 37

“People who visit Arizona often fall in love with Arizona and plot ways they can come to work here or bring their businesses.”

– Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry philanthropic activities, too.”

Tourism weaves through the fabric of our economy in ways that aren’t always obvious. Jesse Thompson, director of sales and marketing for the Hotel Valley Ho in Scottsdale, gave a list of local businesses that the hotel supports. Zuzu, its on-site restaurant, gets a good deal of its ingredients from local purveyors such as Red Bird Farms, McClendon Farms, Duncan Farms, Crave Artisan Ice Cream and Hickman Family Farms. Audio-visual contractors, limo and taxi drivers, independent conference planners, beverage distributors, decorators, and even the company that launders their linens – sheets, towels, tablecloths, spa robes – would all be affected if business dropped.

However, Thompson is proud that revenues at the 230-room Hotel Valley Ho increased 21 percent in 2011 over 2010, and he expects an 8 percent bump from 2011 to 2012. None of the 240 to 250 employees has been laid off in six years, despite the downturn.

He attributes the increase in going after more group bookings.

Another way tourism boosts Arizona’s entire economy is by making the state not only an appealing place to visit, but to live.

People might come to see auto shows, sporting events or festivals and decide to make a permanent move.

“People who visit Arizona often fall in love with Arizona and plot ways they can come to work here or bring their businesses,” said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry.

38 AB | January-February 2012

ECONOMIC IMPACT OF MAJOR WINTER VALLEY EVENTS College football bowl games (Fiesta Bowl, BCS national title game and Insight Bowl)

Economic impact: $354.6 million in 2010-11 2010-11 attendance: nearly 200,000 at all three games

P.F. Chang’s Rock ‘n’ Roll Marathon Economic impact: $59 million 2011 attendance: about 30,000 runners

Scottsdale Arabian Horse Show Economic impact: $52-$58 million 2011 attendance: about 250,000

Cactus League baseball

Economic impact: $360 million 2011 attendance: More than 1.47 million

Waste Management Phoenix Open

Economic impact: $180 million (estimated from 2008, when attendance was 538,356) 2011 attendance: 365,062 (event impacted due to weather)

YO U R M E E T I N G B U D G E T HAS ROOM FOR A FEW

Direct Travel Spending - 1998-2010 20.0 18.0

17.6

16.0

Billions

10.0

13.1

14.2

17.7

PLEASANT SURPRISES.

16.4

15.9

14.0 12.0

18.7 19.1 18.5

14.7 13.4 13.3

11.8

8.0 6.0 4.0 2.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010p

Source: Arizona Travel Impacts, Dean Runyan Associates

192-seat Lecture Hall

2010 Arizona Overnight Visitation

Domestic Non-Resident, 61%

Domestic Resident, 26% International, 13%

Executive Board Room Source: Tourism Economics; U.S. Dept. of Commerce; Stats Canada; U of Arizona

If one-stop planning service, an all-inclusive meeting package and high-end amenities sound pretty good on your budget,

“It’s a gateway sell the state of Arizona.”

2010 Arizonaopportunity OvernighttoInternational Visitation Because the business community recognizes the importance of both visitors and tourists who become Mexico, permanent residents, 70% they work to bring major events such as the Super Bowl to the state. Hamer calls it a “showcase for our state.” In addition, the Super Bowl Overseas, 16% in 2008. He generated $500 million inCanada, economic impact 14% expects the number to be at least that much when the Super Bowl returns to the University of Phoenix Stadium in Glendale in 2015.

The business community also supports sports tourism Source: US Department of Commerce; Stats Canada; U of Arizona in general, including spring training baseball, college football bowl games, the baseball All-Star game in July 2011, the NBA All-Star Game in 2009, and amateur events such as marathons, triathlons, bicycle -tours and student Travel Employment 2010 sports meets. And it pushed for the 2008 expansion of the Phoenix Convention Center, now one of the top 20 such EMPLOYMENT venues inDirect the nation.

152,200 “Our convention part of our Secondary business is an important 131,000 tourism economic engine,” Hamer said.

283,200 TOTAL Unlike other industries such as manufacturing and technology, Hamer said, much of the tourism industry EMPLOYMENT

BY SECTOR can’tDIRECT be automated or outsourced.

And thanks to the 81,000to be 1. natural Accommodation & Food Services it appears state’s and man-made attractions, 39,000 an industry that’s sustainable.

2. Arts, Entertainment & Recreation “Arizona as a whole relied so much on construction,” 17,000 3. Retail Trade said Heather Ainardi, director of the Flagstaff Convention 15,000 4. Transportation and Visitors Bureau, “and in the next 10 years, tourism is goingDIRECT to be one of the drivers of Arizona’s economy.” $4.7 B PAYROLL

TOTAL PAYROLL

$9.6 B

then the Executive Conference Center – Downtown Phoenix is the perfect choice. The ECC offers more than 21,000 square feet of IACC-certified meeting space, featuring a 192-seat lecture hall, sophisticated furnishings and leadingedge technology for groups as large as 300 attendees.

So start looking beyond the same old meeting experience — and enjoy a few pleasant surprises with your next event.

FOR MORE INFORMATION OR A TOUR, CONTACT KEVIN HILL. 602-262-6225 | PHXECC.COM

FA M I LY O F V E N U E S Phoenix Convention Center | Executive Conference Center Symphony Hall | Orpheum Theatre

AB | January-February 2012 39

TOURISM

Photo courtesy Valley Ho

SOLID RETURNS ON INVESTMENT The old saying, “You have to spend money to make money” is especially true in the case of Arizona tourism.

Two cases in point are the Flagstaff and Scottsdale convention and visitors bureaus (CVBs). They can quantifiably demonstrate that investing in tourism creates a return.

40 AB | January-February 2012

FLAGSTAFF AND SCOTTSDALE CONVENTION AND VISITORS BUREAUS SEE DIVIDENDS FROM MARKETING DOLLARS SPENT

BY GERI KOEPPEL “We’ve always done a good job of marketing Scottsdale,” said Rachel Sacco, president and CEO of the Scottsdale CVB. “We know it’s the right message because visitors are responding.”

The Scottsdale CVB’s 2010-11 annual budget is $9.7 million and generates $31 in economic impact for every $1 invested in the organization.

The Flagstaff CVB has a budget of $1.5 million and helps spur an economic impact of $501 million for the region.

Much of the funding for tourism marketing comes from visitors themselves.

In March 2010, Scottsdale voters passed a 2 percent increase in the

The perfect meeting needs the perfect touch.

Work in style at Sco sdale’s most accommodating event destination with Four Diamond rooms and plenty of indoor/outdoor meeting space for groups up to 2,000.

Then play in style with our world-class dining options, luxury spa, thrilling casino and championship golf.

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C

M

Y

CM

MY

CY

CMY

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Come see over 2,400 of the world’s most beautiful Arabian horses compete for the coveted title of Scottsdale Champion. Browse through the two big-top tents which host 300+ Commercial Exhibitors from around the world. View their showcase of art, jewelry, clothing, every equine related item imaginable and take time to enjoy a wide variety of food!

Tickets to the Scottsdale Show can be purchased through TicketMaster 800.745.3000 or www.ticketmaster.com If you are interested in visiting a local Arabian farm, visit our website for listings.

1

9/19/2011

2:50:22 PM 11/16/11 3:42 PM

Business Luncheon Doug Parker

Chairman and Chief Executive Officer

US Airways

Tuesday, March 13, 2012 11: 30 a.m. – 1: 30 p.m.

The Westin Kierland Resort 6902 East Greenway Parkway Scottsdale, AZ 85254 Doug Parker is chairman and chief executive officer of US Airways Group, Inc. and US Airways, its principal subsidiary company.

He is based at the airline’s headquarters in Tempe, Arizona.

Mr. Parker became chairman and CEO following the merger of US Airways and America West Airlines in September 2005. Prior to joining America West, Parker spent four years with Northwest Airlines and held a number of financial management positions with American Airlines.

Mr. Parker received a B.A. in economics from Albion College and an MBA from Vanderbilt University. He serves as chairman of the board of directors for Valley of the Sun United Way and is also on the board of directors for Pinnacle West Corporation.

city’s bed tax, bringing it to 5 percent. This, combined with an increase in occupancy, led to a 79 percent jump in bed-tax collections from 2009-10 to 2010-11. Half of the new monies support capital projects and special events; the other half supports marketing efforts.

In Flagstaff, the CVB is a division of the city and is fully funded by a portion of the 2 percent “BBB” tax, which stands for “bed, board and booze,” or hotels, restaurants and bars. It generates roughly $5.2 million, and the CVB gets 30 percent of that. The city council allocated an additional $250,000 in marketing dollars to the CVB from March to June 2009 from the city’s Economic Incentive Fund. Ainardi said that investment helped Flagstaff see a slight bump in April and May of 2009 and prevent big tourism losses in the long run.

“When the rest of the state had double digit declines (in tourism indicators),” said Flagstaff CVB director Heather Ainardi, “we were only having minor 2 to 3 percent drops.”

Average daily rates from hotel bookings and revenues per available room were up in 2011 in both Flagstaff and Scottsdale. Occupancy also was up in Scottsdale.

Arizona Domestic Overnight - Non-Resident vs. Residents Overnight Resident

28.6

27.7

27.7

28.9

Overnight Non-Resident

32.1

33.5

33.8

32.4

30.5

32.2

35.0

5.6%

30.0 25.0 20.0

19.7

19.0

19.0

20.0

8.9

8.7

8.7

8.9

2000

2001

2002

2003

22.5

23.5

23.7

9.3

9.7

10

10.1

2004

2005

2006

2007

21.3

22.6

21.2

22.5 6.2%

9.8

9.3

9.7

2008

2009

2010

15.0 10.0 5.0

Source: Tourism Economics

Arizona Domestic Overnight - Business vs. Leisure Overnight Business

28.6

27.7

27.7

28.9

30.6

Overnight Leisure

32.1

33.5

33.8

32.4

30.5

32.2

35.0

5.6%

30.0 25.0

15.0

23.5

24.7

25.8

26.7

27.0

26.1

24.9

23.5

22.7

22.7

5.1

5.0

5.0

5.4

5.9

6.4

6.8

6.8

6.3

5.6

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

25.9 4.3%

10.0 5.0

6.3 10.9%

0.0

Source: Tourism Economics

42 AB | January-February 2012

4.0%

0.0

20.0

R.S.V.P. today econclubphx.org

30.6

2010

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Call 623-930-4500 and find out how being a member really does have its benefits. Join today!

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Page 1

Fresh Seafood...

Featuring the Valley’s largest selection of fresh fish and seafood • Live Maine lobster, Alaskan King Crab and Yakimono Hawaiian Ahi are just some of the delicacies that make the Salt Cellar Restaurant so popular • Maryland crab cakes, shrimp San Remo on artichoke pasta as well as charcoal broiled fish and Cajun-style blackened seafood are additional

And independent studies showed 91 percent of all people who received a Scottsdale visitors guide either made a booking or visited Scottsdale within the next year. Sacco attributes the high number to target marketing.

First, they pinpoint areas that have always had a high interest in Scottsdale: chilly places such as Canada, Minnesota, San Francisco, Chicago, Denver and parts of the East Coast.

menu items you’ll want to try • Quiet, cozy and intimate, the Salt Cellar is a favorite for those who appreciate fine seafood • Don’t miss our popular twin happy hours daily from 4:00pm to 7:00pm and again from 10:00pm to 1:00am.

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Second, they invest in knowing their customers: What do they read? Which activities do they like?

“We won’t send someone who’s interested in art a message about sports” and vice-versa, Sacco said. “We know what messages resonate with them.”

As one result of this targeting, sports bookings have increased 160 percent, she added. Groups and meetings contribute $64.8 million in economic impact.

The Scottsdale CVB should see their budget increase further this coming year to $10.5 million, which hopefully will mean even more of an uptick in tourists.

“The less ability we have to communicate to visitors why they should come here, the less revenue that is brought in,” Sacco said.

AB | January-February 2012 45

TOURISM

MIXING BUSINESS AND PLEASURE CASINO DEL SOL’S NEW P.Y. STEAKHOUSE SERVES UP EUROPEAN-MEETS-SOUTHWEST CUISINE IN A CHIC ENVIRONMENT

BY KRISTINE CANNON

T

ucked within the newly expanded Casino Del Sol Resort in Tucson, P.Y. Steakhouse serves both a chic environment and exquisite cuisine for the guests of the well-known oasis of Southern Arizona.

The expanded Casino Del Sol boasts a Tuscan look with a rustic, yet modern design and décor. It relaxes and warms its guests with roaring fireplaces and glasses of bourbon, its lights dimmed just right. P.Y. Steakhouse provides a modern, chic escape, while maintaining that comfortable Tuscan feel.

This intimate setting’s main source of lighting came from the open kitchen located next to the dining room and separated by a four- or PY Wedge with iceberg lettuce, avocado puree, crumbled blue cheese, bacon, scallion, egg and grape tomatoes.

Photo courtesy of Casino Del Sol

46 AB | January-February 2012

five-foot partition. Large porcelain chandeliers hover over the snowwhite furniture, and the walls are lined with a wine bottle display.

Specks of purple from the dining tables’ floral centerpieces give the restaurant that needed pop of color.

My companions and I started off the night with glasses of red and white wine while engaging in businessladen conversation. Our waiter and waitress were patient, attentive and incredibly helpful.

Jumping from topics ranging from construction to architecture to dining favorites, the conversation quickly turned to how P.Y. Steakhouse had possibly made our respective favorite dining lists as soon as we had our first taste of the Southwest cuisine.

I began the night with the Sonoran Caesar Salad, tossed with simple, minimal ingredients, including grilled tomatoes, corn bread croutons and roasted garlic mustard chile dressing.

This salad presented clean flavors that left me wanting more.

I — along with the rest of my dinner mates — continued to nibble on the warm, uniquely flavored biscuits with the Arizona mesquite honey butter thinly spread and melted on top. They quickly disappeared, and we would soon realize the side dishes would surprisingly “take the cake,” as one of my dinner patrons raved to our waitress.

After concluding the business half of our evening, it was now time to put the pad and pencil away and enjoy the lively ambiance and environment. It was perfect timing when our dinner entrees were delivered at that exact moment.

My entree was the Free Range Red Bird Farms Chicken, perfectly peppered; the bird was served atop creamy Yukon gold potato bacon

10-oz. Certified Angus Beef Filet Mignon Photo courtesy of Casino Del Sol smash with mushrooms drenched in rich velouté. The moist chicken — local and sustainable — peeled off the bone cleanly and with very little effort, with just the right amount of fat.

Three of my dinner companions tried the meat entrees, each served with Truffled Chimichurri Sauce. First up, the 6-ounce CAB Filet Mignon with a roasted garlic demi-glace, described as perfect and juicy. The Grilled Buffalo Sirloin was chosen by the waiter and didn’t disappoint. Farm to table inspired, the sirloin was served with sweet potato hash and prickly pear guajillo demi.

Lastly was the Arizona pecan crusted Colorado Saddle Chop of Lamb, with a carrot puree, a purple fingerling potato and a peppercorn port sauce.

But as I said, the side dishes were the stars of the evening — dishes included the blue-cheesed-topped, rich-in-flavor gorgonzola mashed potatoes; the creamy parmesan English pea risotto; and the Yukon gold potato bacon smash with a hint of garlic.

P.Y. Steakhouse proved to be the perfect restaurant to mix business and pleasure. For your next trip to Tucson, consider dining at this Europeanmeets-Southwest culinary treat, headed by chef Jason Jonilonis.

P.Y. Steakhouse 5655 W. Valencia Rd. Tucson, AZ 85757 (855) 765-7829 casinodelsol.com FB: casinodelsol Twitter: @CDSResort

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Who knew having so much fun could do so much good

$48 Million Raised For Local Charities in the Last Decade $75 Million Raised For Local Charities in the Tournament’s 76 Year History It’s amazing how so much good can come out of something so much fun. The Waste Management Phoenix Open is one of the largest contributors to charities in Arizona. The tournament host Thunderbirds, Marcus from United Cerebral Palsy and Arizona’s charities thank you for your unwavering support of The Greenest Show on Grass.

Join us for the 2012 Waste Management Phoenix Open at the TPC Scottsdale January 30 – February 5 For tickets, visit wmphoenixopen.com

AB | January-February 2012 47

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Excellence In Corporate Counsel Effective corporate counsel has never been more important than it is today. Arizona Business Magazine is recognizing the vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel Awards. The 27 finalists and winners will be honored Thursday, January 12 during a ceremony and dinner at the Ritz-Carlton Phoenix.

Jane D. Alfano Corporate Counsel SRP

Alfano joined SRP in 1979 and became the first female to hold the position of corporate counsel.

Her strategic vision and application of the law, coupled with her ethical values and professionalism, epitomize the best of the legal profession, colleagues say.

Alfano manages a law services team that includes 12 attorneys and 20 law firms that augment SRP’s legal team.

Alfano’s leadership philosophy of delivering value to the SRP executive team by providing legal remedies to meet their business strategy and goals through partnering with SRP attorneys has resulted in strong alliances with executives, SRP communities and SRP customers.

Andrejs K. Bunkse General Counsel Redflex Traffic Systems, Inc.

Bunkse joined Redflex in 2009 to create a legal department for the company, which has customers in 22 states and Canada, representing more than 250 cities — each operating under its own unique set of laws.

Redflex’s products have been scrutinized and have been subjected to a heavy defense litigation practice.

Under Bunkse’s management of a staff of six and a wide network of lobbyists, lawyers and consultants, his department furthers Redflex’s efforts in setting positive legal precedent, improving legislative positioning, as well as defending a diverse set of external and internal legal challenges.

50 AB | January-February 2012

2012 Finalists

Clarissa Cerda

Laurence De Respino

Cerda manages LifeLock’s legal, compliance, government affairs, and human resources functions.

She brings more than 19 years of experience in lawyering and negotiation, effective management, and strategic advising in fast-paced, technology corporations, leading law firms and even the White House. She currently sits on the board of directors of the Minority Corporate Counsel Association. Previously, Cerda held national positions on the American Bar Association (ABA), including the co-chair of the ABA’s Science and Technology Law Section’s Privacy Committee. Cerda graduated from Harvard College with an B.A. in government. She earned her J.D. from the University of Michigan Law School.

In the 11 years De Respino has worked in the legal department of AMERCO, he has been responsible for sweeping changes in every facet of the legal department’s operations. Some highlights: • He has grown the department from five to 17 attorneys.

• He values diversity, providing opportunities for women and minorities and a staff that is split equally between genders.

• He has created specialties within the legal department, adding attorneys with expertise in product litigation, class actions, insurance, business, labor, employment, and intellectual property.

• He created a discovery unit to draft requests and responses, cutting discovery costs by 50 percent in the last three years.

Rebecca Collins

Brad Gazaway

Collins was responsible for all employment law aspects in establishing General Dynamics C4 Systems — which has its roots in Motorola’s military business — as a separate legal entity. Through the last decade, Collins has handled the employment law aspects of approximately eight acquisitions, along with major internal reorganizations.

Combined with organic growth, this resulted in the workforce increasing to almost 11,000 employees. Collins has managed the significant employment law challenges associated with rapid growth, and is now managing the issues associated with workforce reductions necessitated by economic conditions and reductions by the Department of Defense.

Gazaway is a former corporate and securities attorney for Snell & Wilmer (19982003) and a 1992 graduate of the U.S. Naval Academy. He graduated in 1998 from the University of Iowa law school. While working with Gazaway, other attorneys are impressed not only with his professional demeanor and practical approach, but with his passion for the company and the pride he takes in the company’s accomplishments.

Both Gazaway and Dial value community involvement, opening their headquarters for a United Way tour, with Gazaway sharing his personal interest in helping those less fortunate with those who toured.

Senior Vice President, General Counsel and Secretary LifeLock

Associate General Counsel General Dynamics C4 Systems

General Counsel AMERCO (part of U-Haul International)

Vice President and Corporate Counsel The Dial Corporation

YOUR MARKETS MAY BE GLOBAL BUT YOUR LEGAL ISSUES ARE LOCAL

At Squire Sanders, we combine the vast reach of a worldwide legal practice with detailed knowledge of the laws and languages we encounter in each market. We are as global – or as local – as you need. Squire Sanders supports the dedication of the ACC in promoting the professional and business interests of corporate in-house counsel around the world.

squiresanders.com AB | January-February 2012 51

2012 Finalists

David Glynn

Lukas Grabiec

Christine Jones

Glynn has built the legal department at OneNeck from scratch into a small, efficient, well-rounded department that assists and ensures the success of the company. Among his accomplishments: • He was the leader in the buyout of OneNeck from the publicly held parent company in 2001, including capitalization.

• He has led the acquisition of three private companies in 2003, 2007 and 2008.

• He led the $95 million sale of OneNeck to a publicly held telecom provider in 2011.

• He has converted all legal files electronically, allowing the department to have quick and easy access to all records.

Despite being a junior-level attorney, Grabiec has taken on significant responsibilities and acts as a counselor for high-level Intel executives. In the past year, Grabiec has earned multiple Division Recognition Awards from Intel for his work on important and groundbreaking projects. Some examples: • Grabiec seized an opportunity and drove Intel’s participation in the first Poland-Silicon Valley Technology Symposium at Stanford, marshaling Intel resources and laying groundwork for future collaboration with the Polish government and university officials.

• Grabiec completed negotiations for the funding of a major highperformance computing program with a large research-based U.S. government agency.

Jones is the leader for all legal affairs at Go Daddy. Go Daddy’s legal department is unique in that it encompasses functions that are not traditionally seen in corporate legal departments. Jones supervises more than 100 people in the legal, domain services, network abuse, and government relations departments.

Jones has become an industry leader and activist in addressing Internet abuse, and she created the government relations department at Go Daddy to establish a respected presence and voice in Washington. To keep up to date, Jones enables legal professionals to present in-house continuing legal education programs on a monthly basis.

Chief Administration Officer and General Counsel OneNeck IT Services Corporation

Go Daddy Group

In-house legal department

In the past 10 years, the Go Daddy legal department has grown from a one-woman show to a staff of nearly 100, with 55 percent of them women. This unique department, which encompasses legal, network abuse, domain services, compliance, privacy, and government relations departments, extends its reach far beyond traditional legal issues.

With guiding mantras of “do the right thing” and “know your client,” the legal department is intimately involved with its clients’ operational aspects. The department serves as an industry leader, drives public policy in the Internet realm, and still finds time to vigorously promote interdepartmental interactions.

52 AB | January-February 2012

Corporate Counsel Intel Corporation

George Hittner

Corporate Secretary, General Counsel, Vice President of Governmental Relations American Traffic Solutions Hittner has overseen more than 150 lawsuits for ATS throughout the country, ranging from minor cases to multi-million-dollar class actions, with a 98 percent win rate since October 2008. Some highlights: • Under Hittner’s leadership, ATS has never lost a constitutional challenge to one of its programs.

• Hittner led the successful legal strategy which resulted in a decision by the 6th Circuit U.S. Court of Appeals that found the Akron, Ohio, intersection and speed camera safety ordinance legal and constitutional.

• Hittner’s focus on election law has protected the photo enforcement industry from illegal elections, including having three illegal elections declared invalid.

Executive Vice President General Counsel and Corporate Secretary Go Daddy Group

Sara Lee Keller

Executive Vice President and General Counsel Clear Channel Outdoor, Inc. — Americas Since Keller was hired on Jan. 4, 2011, she has grown the legal department from four attorneys to seven. Issues that were traditionally handled by outside counsel are now handled in-house, resulting in cost savings and better management of external spending. Some opinions of her work: • “Our legal team at Clear Channel Outdoor is becoming a full-service firm right inside the four walls of the company,” said Joe Bagan, Clear Channel’s COO. • “This collaboration has improved our overall effectiveness as measured by successful outcomes, more closely managed costs ... greater business impact, and improved client satisfaction,” said Ron Cooper, CEO of Clear Channel.

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Mark N. Rogers, Associate General Counsel, on being named a finalist for an Arizona Corporate Counsel Award.

Thank you for your outstanding leadership and extraordinary drive.

From Your Colleagues at Insight Enterprises, Inc.

Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd.

Congratulations, Matthew Mitchell, on your deserving nomination for 2012 Up and Coming Attorney of the Year.

Your colleagues at Apollo Group and University of Phoenix are proud of your dedication, leadership and service.

Š 2012 Apollo Group, Inc. All rights reserved.

AB | January-February 2012 55

2012 Finalists

Christopher Kevane

Ryan Liebengood

Matthew D. Mitchell

Kevane has been advising and managing the legal affairs for Rural/ Metro for more than seven years, the past two as senior vice president and general counsel. His recent accomplishments include managing all legal matters related to: • The successful close of Rural/Metro’s acquisition by affiliates of the global private equity firm Warburg Pincus LLC. • The successful acquisition of multiple competitor companies throughout the nation.

• Regulatory matters related to SEC reporting mandates.

• Legal issues and settlement negotiations related to federal and state Medicare and Medicaid audits and compliance matters.

• Contract matters and negotiations surrounding executive departures and hiring.

Colleagues admire Liebengood for his unselfish community service.

“I have been in the legal field for more than 40 years and as an in-house attorney for more than 15 years,” said Gary A. Smith, general counsel for Phoenix Engineering Services in Mesa. “Rarely have I seen a relative newcomer to the law become so enthusiastically involved in the community.” Liebengood became a member of the Mesa Family YMCA, offering his assistance as the organization transitioned from a fitness facility to a service organization supporting a low-income population. He also volunteers with the Mesa United Way Volunteer Income Tax Preparation Program.

Mitchell’s original responsibilities for Apollo — one of the largest employers in Arizona — were limited to the employment area, but he has since taken on litigation and regulatory responsibilities. Some highlights: • He has been instrumental in implementing standard processes for the engagement of outside counsel (including outside counsel guidelines and electronic billing), e-discovery and litigation holds, Apollo board litigation updates specific to both the company and the for-profit education industry, and litigation tracking.

• Has assumed responsibility for securities litigation, derivative actions, wage hour class actions, qui tam litigation, and consumer litigation.

Senior Vice President and General Counsel Rural/Metro Corporation

Mark Larson

Vice President and Chief Litigation Counsel — Aerospace and Transportation Systems Honeywell International Given Honeywell Aerospace’s content on global aircraft, chances are that if an aircraft accident occurs, Honeywell will be involved in litigation and Larson will ultimately become involved.

Larson oversees a large, complex and diversified docket, encompassing litigation and arbitration matters throughout the world. Through skillful negotiation, Larson managed to settle a number of significant claims last year alone, saving Honeywell hundreds of millions of dollars, as well as protecting Honeywell’s product reputation and brand. In his 11 years at Honeywell, Larson has had just one trial loss. He accomplished all that while reducing outside counsel spending by almost 50 percent since 2007.

56 AB | January-February 2012

Intellectual Property Attorney ASM America INC

Virginia Llewellyn

General Counsel and Corporate Secretary Barrett Jackson Auction Co., LLC Llewellyn has been general counsel at Barrett-Jackson since 2005. In this role, she is responsible for managing all the company’s legal affairs and overseeing outside counsel relationships. She serves as corporate secretary and works closely with other members of the senior management team on establishing and implementing company policies and procedures as they apply to employees, customers, and external business partners. She also serves as the primary liaison to the company’s media partners, including Fox’s SPEED Channel, which broadcasts more than 100 live hours of BarrettJackson events each year to more than 80 million homes.

Vice President Legal, Associate General Counsel Apollo Group

Harriet Mountcastle-Walsh Vice President and General Counsel Honeywell International

Since assuming the role of aerospace general counsel in 2005, MountcastleWalsh has forged a successful vision for the Honeywell Aerospace, Law, Contracts and Export (LC&E) function. Some highlights: • Developed policies, procedures and best practices to streamline functionalization and reduce total expenses by more than 35 percent.

• Consistently strives to upgrade talent in her 400-person department through hiring efforts, and through a training, mentoring and a development process.

• Enabled growth at Honeywell through the development of its patent portfolio and IP licensing.

• Proactive litigation management has helped reduce spending on outside counsel by more than 50 percent.

2012 Finalists

Dennis Naughton

Karen Paul

Amy Rasor

Naughton accepted the position of general counsel with Danny’s Family Companies just as the nation was beginning to understand the extent of the economic destruction resulting from the great recession.

It soon became apparent that the company would need to restructure if it was to survive.

Naughton masterfully navigated the company through the perilous and complex legal waters of a Chapter 11 corporate restructuring. The company’s continued success and emergence from Chapter 11 is due in part to Naughton’s insight and legal leadership. He is a native of Arizona and graduate of Brophy College Preparatory in Phoenix.

According to David Kash, a partner at Ryley Carlock & Applewhite in Phoenix, Paul did a “great job for a company in an economy under very trying times.” Paul’s great work paid off in 2011 as MD Helicopters was awarded a $186 million contract by the Army to build rotorcraft for training exercises in Afghanistan.

Among her duties: • Contract negotiation and drafting — national, international, sales, distribution, procurement, U.S. government, complex commercial and intellectual property licensing, ownership, transfers and development.

• Regulatory compliance.

• Intellectual property and contracts portfolio and systems development and management.

Colleagues say Rasor has what it takes to create and maintain a well-oiled legal team as an in-house counsel.

Some of her accomplishments include: • Leading the legal aspects of two company acquisitions and countless lawsuits.

• After joining the legal team at ATS as the first associate general counsel, she was promoted to deputy general counsel the following year. She works with two other attorneys and two paralegals.

• Colleagues say Rasor is unequalled in her ability to foresee potential legal issues and head them off before they become a real problem for the company.

Jessica M. Pena

Executive Vice President and General Counsel Kahala Corp

General Counsel Danny’s Family Companies

ON Semiconductor In-house legal department

On Jan. 1, 2011, the acquisition of SANYO Semiconductor increased the ON law department from 29 to 47 legal professionals. Still, the law department remains the smallest department in the company and consistently benchmarks favorably for cost expenditures for similarly situated in-house law departments. In recognition of the law department’s significant role in closing the SANYO deal, the M&A Advisor awarded the deal with the Major Transaction of the Year award for mergers and acquisitions from $500 million to $1 billion. On a personal note, department members participate in a wide variety of community service projects — from youth programs to animal rescue.

58 AB | January-February 2012

General Counsel MD Helicopters

General Counsel Tekco Management Group, LLC In three years at Tekco, Pena has fundamentally reinvented the company’s approach to enforcing its intellectual property rights. Pena’s innovative use of unfair competition claims in conjunction with copyright enforcement is just one example of her ability to find new ways to tackle old, entrenched problems.

Additionally, Pena’s innovative approach to intellectual property rights enforcement ignited a renewed effort against online copyright infringement in the adult entertainment industry.

Due to her innovative and successful approach to stopping online copyright infringement in her industry, Pena was invited to organize and moderate a panel at the 23rd North American Entertainment, Sports & Intellectual Property Law Conference.

Deputy General Counsel American Traffic Solutions

Michael Reagan

Reagan has been Kahala’s general counsel since January 2000. From 1993 to 1995, he served as a senior accountant with Deloitte & Touche in Phoenix in its audit division. He is currently a licensed attorney, as well as a licensed Certified Public Accountant (CPA), in the state of Arizona. Reagan holds a B.S. in accounting from the University of Arizona and a J.D. from Arizona State University. In Reagan’s 12 years at Kahala, the company has grown from a handful of employees to more than 250, from one brand to 14 brands, and the legal department has grown from one lawyer to six lawyers and 10 paralegals.

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Congratulations on being selected as a finalist for an Arizona Corporate Counsel Award.

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2012 Finalists

Mark Rogers

Cindy Sehr

Rogers’ responsibilities include corporate governance work, SEC reporting, mergers and acquisitions, financing, design and implementation of compliance programs, internal investigations, negotiation of contracts and litigation and labor and employment management. He sits on Insight’s Disclosure Committee and currently chairs the Investment Committees for the company’s 401(k) and Non-Qualified Deferred Compensation plans. Rogers was named a “Super Lawyer” in the 2007 Southwest Edition of Law & Politics Magazine. He is admired by colleagues for his great judgment, a key asset to outside counsel when analyzing facts and the law to develop strategies.

Sehr has 25 years of experience as an attorney and 20 of those years have been devoted to healthcare law.

Working in the healthcare field, there are many components that a legal department has to take into consideration to abide by regulations set by the state and federal governments. Sehr has made those regulations easier for everyone on the CHW staff to understand. Through Sehr’s leadership and expertise, the medical centers have been able to navigate and overcome hurdles with a strong sense of support, guidance and leadership toward the correct and proactive steps that need to be made.

Senior Counsel Catholic Healthcare West (Chandler Regional Medical Center)

LAB

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Associate General Counsel Insight Enterprises, Inc.

FRO

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62 AB | January-February 2012

Thomas F. Tollison

Senior Assistant General Counsel — Marketing Group U-Haul International, Inc. Colleagues say Tollison is an inspiration to those around him. “He inspires us to work hard and improve our craft,” said Isaac P. Hernandez, an associate at Ballard Spahr. “He inspires us to be leaders and to be involved with our communities.

He reminds us to take a moment to smell the roses and enjoy life.”

Among Tollison’s professional accomplishments is the negotiation of a multi-million-dollar asset/stock purchase of a telecommunications company, as well as providing lead counsel to the largest division on U-Haul — its marketing group.

SRP CongRatulateS the nomineeS foR the aRizona CoRPoRate CounSel of the YeaR awaRd.

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We at Clear Channel are proud of your accomplishments and commitment to excellent legal service.

Chris Kevane Litigator of the Year Finalist For being nominated for the 2012 Arizona Corporate Counsel Awards Thank you for your outstanding leadership and commitment to the customers, patients and employees of Rural/Metro Corporation

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AB | January-February 2012 65

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GPEC

ROADMAP FOR THE FUTURE GPEC CHIEF OUTLINES PLAN TO ATTRACT MORE HIGH-PAYING JOBS, KEEP THE ONES WE HAVE

BY MELISSA BORDOW

The Greater Phoenix Economic Council is beginning 2012 with an updated roadmap, the first leg of a five-year strategic plan, says its CEO and President Barry Broome.

Along with its historical mission to attract high-quality, high-paying jobs to the Valley, Broome says 2012 will also see GPEC bolstering its retention and expansion efforts, particularly in the aerospace industry.

Broome took time recently to list four of this year’s goals in the strategic plan. Look for GPEC to:

68 AB | January-February 2012

q Help the Arizona Commerce Authority get off the ground. The public-private entity was established last year to create jobs and investment in Arizona. Broome says GPEC is working to coordinate efforts, leverage each other’s strengths and avoid duplicating efforts.

B Work more diligently on retention and expansion, particularly in the aerospace industry, which is facing potential cuts by Congress’ Joint Select Committee on Debt Reduction, otherwise known as the Supercommittee.

“We’re analyzing 800 aerospace companies as we speak,” Broome says. “We want to make sure we really understand the aerospace sector.”

Information gleaned from analyses will be used to help cities identify companies under threat of budget cuts and find ways to support them.

Using the analytical skills of GPEC’s research team and internalizing it to Arizona is a new undertaking, he says, one that will help everyone better understand the sectors that drive the Valley’s economy.

Historically, researchers have —

among other things — focused on understanding the California market and which companies there may be candidates for relocation.

C Support with data and information solid economic development tools. GPEC will be “meticulously” going over Gov. Jan Brewer’s veto letter for Senate Bill 1041, which would have cut the rate at which a business’ property is assessed if it committed to constructing or expanding in Arizona.

The bill was meant to complement the larger, business-friendly tax package passed earlier by the Legislature. Broome says if a policy effort emerges to resurrect some of those ideas, GPEC will support it with data and technical expertise.

D Focus on science and technology. GPEC established an Innovation Council last summer whose mission is to better understand and cultivate opportunities in the high-tech sector, says GPEC board member Steve Shope, president of Sandia Research Corporation and a member of the council.

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GPEC

THE SHAPE OF AN ECONOMY TO COME

GPEC TRIES TO BE UNIFYING FORCE TO CREATE A REGIONAL ECONOMIC POWERHOUSE IN THE VALLEY

BY MELISSA BORDOW

Look past the Valley’s long, slow climb out of a difficult recession to the next 10, 20, even 100 years and you see a potential hotbed of wealth and productivity: a regional economy that has diversified from its traditional reliance on growth and housing.

That’s the vision painted by board members and financial supporters of the Greater Phoenix Economic Council, which has been working since 1989 to leverage the many strengths of the entire metro area.

In the 22 years since its inception, GPEC already has assisted 488 companies in their moves to the Valley, which by its own count translates into 88,610 jobs, $9.96 billion in capital investment and $3.1 billion in payroll.

In the next century, look for GPEC to shape the following sectors and services:

70 AB | January-February 2012

into one integrated metro area. “We see it growing every day.”

“GPEC plays a central role in that,” he says. “We are learning how to work better together.”

TECHNOLOGY The Arizona of the future will do a better job developing a culture of innovation for small, high-tech companies, says Steve Shope, president

and defense industry, is a sector that “is in the Model T stage, but has potential for gigantic growth,” Shope says.

HOUSING Looking back, one can see how homebuilding and construction became primary drivers of the state’s economy, says Andy Warren, president of Maracay Homes and a GPEC board member.

Already, about 85 percent of the nation’s gross domestic product is generated in cities and it is estimated that 90 percent of the new jobs created will be in metro areas.

MUNICIPALITIES The greatest influence GPEC will have on Valley cities will be to help leaders think of themselves as a unified economy, says Mayor Scott Smith of Mesa, which is one of the 19 cities and towns that contribute financially to GPEC. “That sounds like a simple thing, but it’s actually been a very challenging task,” Smith says, with the East Valley vying against the West Valley, city fighting city, and “Phoenix fighting everyone else” for economic development opportunities.

In the coming decades, economic activity will continue to consolidate in cities, Smith says. Already, about 85 percent of the nation’s gross domestic product is generated in cities and it is estimated that 90 percent of the new jobs created will be in metro areas.

GPEC will continue to play a major role in helping cities get beyond parochialism and work together to create a regional economic powerhouse.

“The Sun Corridor is not some figment of someone’s imagination,” says Smith, referring to the corridor stretching from the middle of Yavapai County south to Tucson that is expected in the next century to merge

of Sandia Research Corporation and a GPEC board member.

A short-term goal that may reap long-term benefits would be to help companies attain funding through the U.S. government’s Small Business Innovation Research program, which awards funds for research and development that has the potential to be commercialized.

“In Arizona, we’re not doing a very good job of bringing that money into the state,” says Shope, who would like to see the figure double to $50 million.

The state needs a better representation of venture capital in general, he says, and thus needs to nurture venturecapital-ready companies.

Shope is a member of GPEC’s new Innovation Council, which he says is developing a framework for how it will operate and hopes to have a master plan this year.

Another way GPEC will shape the future of the technology industry is by continuing to focus on clean tech companies, particularly renewable energy companies and those involved in residential construction and high-efficiency housing.

Unmanned aerial vehicles, a subset of Arizona’s already mature aerospace

Looking forward to the next century, GPEC will play a major role in helping to diversify the Valley’s economy so housing plays a less dominant role in it. If GPEC can do that, Arizonans won’t be held hostage to vicious boom-and-bust cycles inherent in the real estate industry.

“If GPEC is successful, the housing industry will be a less significant player in our economy over the next century and that will be a wonderful thing,” Warren says. “The amplitude of those cycles can be pretty extreme.”

It has been estimated that Arizona has lost 300,000 jobs in the recession, with the bulk of those coming from the construction and retail sectors.

GPEC’s efforts to lure high-wage, high-quality jobs in the clean technology, healthcare and aerospace sectors and its efforts to strengthen manufacturing will be instrumental in diversifying the economy of the future, he says.

A key to that strategy is GPEC’s commitment to supporting competitive tax incentives and policies that promote growth, and its work bringing together officials and policy makers throughout the region. “It’s a great collaborative effort,” he says.

AB | January-February 2012 71

LAW When GPEC reaches out to businesses considering a site in the Valley, one of the first things business leaders ask is, “‘Do you have the legal talent in Arizona and in Phoenix to do the things we want done?’” says Barry Halpern, a GPEC board member and partner at Snell & Wilmer.

In that respect, GPEC and the legal community have a symbiotic relationship that will only deepen in the next century as GPEC brings more sophisticated and diverse industries to the Valley, Halpern says.

The legal profession in the Valley — already a diverse community — will have to rise to the needs of emergent industries.

Almost all aspects of economic development require legal

representation, including the demand for capital financing or the need for representation in emerging niches like the solar industry, agrees Scott Henderson, a shareholder at Polsinelli Shughart and a GPEC board member.

“GPEC will shape the legal practice as it attracts more businesses and more industry and those businesses will require a greater depth of legal talent,” Henderson says. “To that extent, local law firms will want to play a greater role in the growth of the state. The growth of the economy helps everybody—lawyers are no exception.”

BANKING The near future for banking in Arizona is brightening as lending activity has increased and most banks’ biggest problems are behind them,

says Jim Lundy, GPEC vice chairman and president and CEO of Alliance Bank of Arizona.

“The recovery is slow, it’s bumping along the bottom, but it is there,” says Lundy, who also serves as chairman of the Arizona Bankers Association.

The long-term prognosis for banks is a bit harder to predict, but Lundy says he is sure of one thing: it is inextricably linked with a diversified Arizona economy that is not dependent on population growth.

In that sense, GPEC’s goal of fostering cooperation between cities and creating a diversified economy will directly shape the industry.

“Our success and our growth depends on companies that actually produce something,” Lundy says. All the important emerging industries

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“At the end of the day, if the banking sector is going to grow successfully it needs GPEC and its role in helping get Arizona’s economy growing again.”

– Jim Lundy, GPEC vice chairman and president and CEO of Alliance Bank of Arizona — like healthcare, clean tech and aerospace — create spin-offs in the economy that are good business for the banking sector.

“We need successful enterprises to make those loans to,” he says. “At the end of the day, if the banking sector is going to grow successfully it needs GPEC and its role in helping get Arizona’s economy growing again.”

EDUCATION It’s not hard to figure out why leaders in the field of education sit on GPEC’s board of directors: education is essential to economic development, and vice versa.

“As we look to the future, we see that growing the right talent for the new markets that will be out there is imperative,” says GPEC chairman Bill Pepicello, president of the University of Phoenix.

That may require more coordination between Arizona’s “robust” array of

Fortitude-HalfPg_Layout 1 12/13/11 7:40 AM Page 1

higher education institutions—statefunded universities, community colleges and private institutions. “I envision campuses as multi-functional areas that are working cooperatively on the ground and online to serve Arizona,” he says.

Arizona’s education of the future will also need to be “efficient and effective,” says Rufus Glasper, chancellor of the Maricopa County Community College District.

In the next 30 years, he says more than 1.8 million new jobs will be created in Arizona and these jobs will require students who are competent in what is know as the STEM fields: science, technology, engineering and math.

Educational delivery systems will include more online, hybrid and fast-track training, he says, and will

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Employment by Industry

CelebratingTechnology in our Community

Leisure and Hospitality 7.9% Educational and Health Services 10.1%

Other 2.9%

Government 13.6% Mining & Construction 5.0% Manufacturing 5.1%

Professional and Business Services 10.7% Trade, Transportation and Utilities 14.8% Financial Activities 5.2%

Information 1.2%

Source: Arizona’s Workforce Informer, 2009

use mobile devices and social media to create more access to new ideas, networks and educational exchanges.

Like Pepicello, Glasper envisions closer relationships between secondary schools, post-secondary colleges and universities.

www.avnet.com 74 AB | January-February 2012

MANUFACTURING The Midwest has always been known as the heavy industry manufacturing hub of the United States. But Arizona in the next century could attract more technology manufacturing, says Steven Zylstra, president and CEO of the Arizona Technology Council, which has worked alongside GPEC in the past to nurture the tech industry here.

“To the surprise of a lot of people, manufacturing is actually coming back to the United States,” he says. Wages and manufacturing costs in China are rising, so companies that sent manufacturing overseas are finding that once they pay for shipping, it’s cheaper at home.

Areas of promise include the manufacturing of medical devices, bioscience-related products, renewable-energy equipment and the semiconductor industry.

When it comes to the semiconductor industry, that optimism is warranted, agrees Jason Bagley, a government affairs manager at Intel in Arizona.

Intel has always manufactured most of its leading-edge products in the United States, he says, and plans to continue doing so. Since 1996, it has invested $12 billion in manufacturing in Arizona, not including two projects currently under construction in Chandler.

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TECHNOLOGY

THE FUTURE OF TECHNOLOGY SCIENCE AND ENGINEERING TURNED ARIZONA’S FIRST 100 YEARS UPSIDE DOWN, SO WHERE DO WE GO FROM HERE?

BY MICHAEL GOSSIE Think about the achievements in technology that came during Arizona’s first 100 years.

The first transcontinental telephone service between New York and San Francisco (1915).

The world’s first radio broadcasting station goes on the air (1920).

Television has its first successful demonstration in the United States (1927).

James Watson and Francis Crick at Cambridge University describe the structure of the DNA molecule (1953).

The microchip is invented (1959).

The first test-tube baby is born (1978).

IBM introduces its first personal computer (1981).

Cellular telephones are introduced to consumers (1982).

Development of the World Wide Web begins (1989).

Dolly the sheep becomes the first mammal cloned from an adult cell (1996).

Apple introduces the iPod (2001).

Facebook is launched (2004).

Scientists discover how to use human skin cells to create embryonic stem cells (2007).

» » » » » » » » » » » » »

76 AB | January-February 2012

THEY ARE ALL INNOVATIONS THAT HAVE CHANGED THE WAY WE LIVE OUR LIVES AND DO BUSINESS. WHERE WILL TECHNOLOGY TAKE US AS ARIZONA ENTERS ITS SECOND CENTURY? HOW WILL IT AFFECT OUR LIVES? HERE ARE TECHNOLOGIES AND SCENARIOS THAT SOME OF ARIZONA’S BEST AND BRIGHTEST MINDS SEE PLAYING OUT IN THE STATE’S NEXT 100 YEARS. MARK BONSALL, GENERAL MANAGER AND CEO, SRP, If I had to pick one technology with the potential to truly revolutionize the industry it would be finding affordable ways to store energy on a very large scale. This would increase the value of intermittent renewable resources like wind and solar and could transform electricity into a more common commodity. It isn’t clear that this is possible, but with the growing focus on electric vehicles and other storage technologies, it is certain there will be significant gains over the next century.

conserve their energy usage. For example, Arizona has the potential to play a key role in developing the technologies that will be employed at the home, industrial and utility levels to make the burgeoning “smart grid” work.

JOHN LEFEBVRE, PRESIDENT, SUNTECH AMERICA, The amount of energy generated through renewable sources like solar power has the potential to surpass that derived from fossil fuels in the next 50 years. We’ve already seen remarkable technological innovations in the solar field to increase efficiency, develop solutions for energy MARK EDWARDS, VICE PRESIDENT OF CORPORATE DEVELOPMENT storage and further reduce costs, with AND MARKETING, ALGAE BIOSCIENCES, INC., which is focused on further improvements on the horizon. With more than 300 discovering and unlocking the powers of days of sunshine, Arizona is naturally poised to take algae to resolve critical human issues advantage of these advancements and its abundant – nutrition, health, energy and resource by generating clean electricity without carbon environment and greenhouse gas emissions.

Algae-based food, fiber, feed, fertilizer, fuels and advanced medicines DIANE BROSSART, PRESIDENT, VALLEY FORWARD ASSOCIATION, will transform those industries as we which promotes cooperative efforts to know them today. The current serious improve the environment and livability problems of waste and pollution will be solved with of Valley communities sustainable algae-based production that recycles and The biggest issues facing Arizona over reuses nutrients, water and energy while regenerating air, the next 100 years are managing a finite water and soils. Our children’s children will have sufficient water supply and transitioning to a natural resources to produce the food, energy and clean energy economy. Green transportation they will need. technology and innovation will create economic and environmentally sound solutions, making STEVE SANGHI, PRESIDENT AND CEO, MICROCHIP TECHNOLOGY INC., Arizona the leading destination for living wisely and If I had to pick one (technology that will sustainably in a desert. have biggest impact on Arizona’s next 100 years) it would be the renewableKELLY MOTT LACROIX, GRADUATE RESEARCH ASSOCIATE, WATER energy complex of technologies. For RESOURCES RESEARCH CENTER IN TUCSON, We Arizona, the primary renewable-energy do not have a silver bullet to solve our opportunities can be broken into three water supply and demand challenges. categories — measurement, conservation The state and its water issues are too and harvesting. The world’s oil supply diverse. Rather, there are many smaller will eventually run out, and Arizona has more days of sun pieces from the simple and small scale, than most areas. We must continue working to tap into such as rainwater harvesting, to the large this ever-present energy source. At the same time, we and complex, such as increased must focus on developing the technologies that will reclaimed water use, that when taken together will enable individuals and companies to both measure and constitute a solution.

AB | January-February 2012 77

BILL HUBERT, PRESIDENT AND FOUNDER OF SCOTTSDALE-BASED COLOGY, INC., a leading provider of end-toend private student loan origination and repayment servicing solutions for lenders Universal, personal-application-based technology in general, and highlysophisticated, profile-driven applications that help consumers (students and parents in our industry) not only gain access to a broader spectrum of programs and services available — but an interactive relationship with providers that will help both sides of the “economic equation” benefit from the transaction.

CR HERRO, VICE PRESIDENT OF ENVIRONMENTAL AFFAIRS, MERITAGE HOMES, In the next century, climate will take the lead role in transforming Arizona and its buildings into energy-producing solar collectors. Arizona has the ability to become the largest producer of renewable, clean energy nationwide. In residential construction, that has already started. The first cost-effective solar communities debuted in Arizona.

Meritage Homes introduced the nation’s first net-zero homes in Arizona, saving owners both energy and money. And Arizona utilities lead the country in sponsoring energy efficiency and renewable energy programs. Arizona is shaping up to be a state powered by the sun in every way imaginable.

CATHERINE NIEMIEC, PRESIDENT, PHOENIX INSTITUTE OF HERBAL MEDICINE & ACUPUNCTURE, COLLEGE & CLINIC, Technology will be used to not only focus on the tiny gene, but to also see the bigger picture of the bio-energetic field of the body. Not unlike what you would see in a Star Trek movie, technology would be used to assess and heal both the body and mind, taking into account the bio-electric system. Acupuncture and oriental medicine has been focused on individualized medicine for thousands of years, with each treatment and formula specifically adapted to an individual, changing as the person changes and moves toward health. Thus, this dynamic medicine is the forefather of modern “individualized medicine” and can work well to make modern biotechnology more effective.

Intel is Committed to Investing in the Future of Arizona Intel is investing more than $5 billion in the most advanced, high-volume semiconductor manufacturing facility in the world, creating thousands of construction and permanent jobs.

©2011 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks of Intel Corporation in the United States and other countries.

78 AB | January-February 2012

DANNY MURPHY, AIRPORT DIRECTOR, SKY HARBOR INTERNATIONAL AIRPORT, With the explosion of mobile devices, coupled with high-speed, wireless networks, there is a new generation that will live their lives on mobile technology, using smartphones, touchpads and other mobile devices.

In the past we used to print so many information pieces about the airport.

And while we still provide printed materials to an extent, our focus is on providing information via the Web and for mobile units.

CATHERINE ANAYA, ANCHOR, CBS 5 NEWS, I think the Internet technology we currently use to help in our news gathering will become a bigger factor in how we do things.

Smart phones (or whatever replaces them in the next 100 years) will replace cameras and studios creating more intimacy and accessibility. That accessibility will make it much easier to hold those in power more accountable for their actions, which I hope will have a positive impact on how the state’s laws are created, shaped and enforced.

DR. GRACE CAPUTO, DIRECTOR, PHOENIX CHILDREN’S HOSPITAL / MARICOPA MEDICAL CENTER PEDIATRIC RESIDENCY, Moving to a system where we utilize electronic medical records will really give us the ability to shape and improve healthcare across the board. Pediatric healthcare will be heavily impacted as we have just started to unravel genetic-based diseases.

In the future, we hope to understand the genetic process of diseases so we can treat them and ultimately prevent diseases with wellness and lifestyle changes.

MAHESH SEETHARAM, M.D., MEDICAL ONCOLOGIST AND HEMATOLOGIST, ARIZONA ONCOLOGY, Personalized medicine through whole genome sequencing (genomics), proteomics and noninvasive imaging will pave the way for the future. Current research to evaluate for circulating cancer cells, and evaluation for cancer in urine samples are already being studied and holds promise for the future.

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11-351-051 AB | January-February 2012 81

CLEAN TECHNOLOGY

INSIGHT INTO INNOVATION GPEC LEADS COOPERATIVE EFFORT TO DRAW MORE ‘CLEAN TECH’ INDUSTRY TO ARIZONA

BY MELISSA BORDOW

82 AB | January-February 2012

Green technology is still a relatively small part of Arizona’s economy, but its potential for growth is a bright spot on the state’s horizon.

“At a time when other economic engines have been sputtering, anticipated green job growth among Arizona’s green economy firms is quite promising,” say authors of a report prepared for state economic development officials by The Council for Community and Economic Research. It is one of two recent reports that assesses the industry and its growth potential.

While there is no standard definition of “green tech” or “clean tech,” it has been described by Clean Edge, a clean-tech research firm, as “a diverse range of products, services, and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes.” So even defining “green tech” or “clean tech” can be difficult, The Council for Community and Economic Research acknowledges.

That is why The Greater Phoenix Economic Council is embarking on a 12- to 18-month study to better define Arizona’s clean tech sector, says its president and CEO Barry Broome.

It’s a big undertaking, Broome says, but an important one given the impact that clean tech, particularly renewable energy, will likely play in driving the state’s future economy.

In fact, Broome predicts that renewable energy — particularly solar energy companies and the extensive supply chains that grow up around them, as well as companies that produce energy-efficient technologies — will become major players in Arizona in the future.

“It’s going to be our biggest industry outside of healthcare,” he says. “In 10 years, 100 percent (of homes built in Arizona) will be solarized at some level.”

That economy includes not just traditional solar manufacturers, but also materials producers — companies that make smart meters, water-use monitors and biodegradable drywall, for example.

THE NUMBERS Overall, Arizona was home to 30,716 green jobs in 2010, about 1.3 percent of total statewide employment, according to the research report, titled “Green Jobs in Arizona 2010.”

But it says green jobs were expected to grow at a healthy 8.6 percent clip in 2011, outpacing the projected rate of 0.7 percent for all other jobs.

A second report by Battelle, a non-profit research organization, parallels the assessment that the green economy in Arizona is still emerging, AB | January-February 2012 83

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86 AB | January-February 2012

but can expect strong future growth, particularly in renewable energy, greenhouse gas reduction and energyefficiency sectors.

One key factor in this growth is a state leadership that creates a business climate that promotes innovation, the report says.

FACES BEHIND THE NUMBERS If you want to put a name to those numbers, turn to Greg Armstrong, chief operation officer for Rioglass Solar, a Spanish company that makes tempered glass reflectors and is the primary manufacturer for Abengoa Solar, which is building a 280-megawat solar power plant near Gila Bend.

Rioglass placed its U.S. headquarters and manufacturing operation in Surprise and plans another $45 million in capital investments.

The company was considering sites in Denver, Albuquerque and even Mexico when it visited the Surprise location, Armstrong says. The method GPEC used to draw Rioglass Solar to Arizona is a good example of what the state needs to continue to do to lure renewable energy companies, he says.

GPEC organized a meeting on site, in a tent, that brought together all the principal players in the effort: state officials, Surprise representatives, utility employees and economic development officials.

That was a first for Rioglass, Armstrong says, and an indication of what came next: Surprise waived some fees involved in the expensive process of siting the plant, invested in infrastructure upgrades and created an expedited permit package that enabled Rioglass to break ground in January and take occupancy by July.

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BlackBerry®, RIM®, Research In Motion®, and related trademarks, names, and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Used under license from Research In Motion Limited. Screen images simulated. ©2012 AT&T Intellectual Property. Service provided by AT&T Mobility. All rights reserved. AT&T & the AT&T logo are trademarks of AT&T Intellectual Property.

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EMPLOYMENT

JOBS FORECAST:

SUNNY OUR RECOVERY MAY BE SLOW, BUT IT WILL BE FASTER THAN MOST OF THE COUNTRY

BY MICHAEL GOSSIE

The recession hit Arizona hard.

We lost jobs. We lost savings. We lost homes. We lost our sense of economic security.

“Arizona felt the effects of the tumbling economy a few months earlier than the rest of the country, thanks to its heavy reliance on the real estate industry,” said Mary Anne Thompson, founder and president of Going Global, Inc., a database service that tracks career and employment statistics. “The housing debacle had a rippling effect on Arizona’s other industries, and has eventually affected Phoenix’s overall economy.”

But all is not lost. Even though Arizona’s economic recovery is expected to be painfully slow, net job growth is expected to climb by 2 percent this year, Thompson said.

And believe it or not, the economy is going to get a boost from the very industry that killed it — the number 88 AB | January-February 2012

of construction jobs in Arizona has increased for three months in a row for a gain of 7,000 jobs, according to the latest Arizona Workforce Employment Report.

“Surprisingly, an increase in construction jobs have helped make

Solar jobs nationwide had increased at 10 times the job growth rate of the rest of the economy in 2011 Phoenix one of the five fastestgrowing metropolitan areas in the country in terms of expected job growth,” Thompson said.

The Mountain Monitor, a

publication of the Brookings Metropolitan Policy Program that tracks indicators of economic recovery in the country’s western states, found Phoenix showed the most progress in terms of job recovery.

Among the hot growth areas: Solar.

The Solar Foundation’s “National Solar Jobs Census 2011” found that Arizona ranked third in the United States — up from 8th in 2010 — for the number of solar jobs with 4,786. The study found that solar jobs nationwide had increased at 10 times the job growth rate of the rest of the economy in 2011, and also found that employers expected a 24 percent increase in the number of solar workers by August 2012.

So where are the other new jobs coming from?

“Healthcare, financial services, sustainable energy and technology sectors,” said Denise Gredler, founder and CEO of BestCompaniesAZ. “With the aging population, the healthcare

WHERE THE JOBS WILL BE What sectors will see the biggest job growth in Arizona’s next 100 years? Some obvious ones leap to the fore, others, well…they may not even have been invented yet.

Rapidly changing technology will create and eliminate occupations more quickly than we can imagine, says Barry Halpern, a partner at Snell & Wilmer and a board member of the Greater Phoenix Economic Council. Otherwise, experts says, look for growth in these sectors: • Healthcare • Aerospace and military technology • Clean and energy-efficient technologies • Construction • Retail, convention business and tourism and medical field is expected to double over the next decade with nurses in great demand, as well as medical technical jobs that will require certifications such as physical therapist and physician assistants. As technology continues to develop and mature, more jobs will be created in this sector. There is already a shortage of developers and other high-tech workers, and the demand for those skills will continue to increase.”

According to Michael Paddock, executive vice president for DPR International, a Phoenix executive search firm, the job market is particularly strong for those with college degrees and advanced degrees.

“The current unemployment rate for people with college degrees is about 4.2 percent, less than half of the national average of 9 percent,” Paddock said, “so the ‘war for talent’ continues to heat up.”

Nearly six in 10 companies said they had difficulties in attracting criticalskill employees, according to a recent Towers Watson survey. And companies that are hiring are being very selective, Paddock said. “They are looking for people with the exact background and skills that they’re looking for, and they aren’t compromising much.”

Medical science continues to become an important Phoenix industry, Thompson said. Cuttingedge medical research centers like the Translational Genomics Research Institute (TGen) and the Biodesign Institute at Arizona State University are drawing more healthcare

technology companies to Phoenix.

Occupations predicted to have the most job openings in the state between now and 2016 include physicians and surgeons, medical and health services managers, and medical laboratory technologists, according to the Arizona Department of Economic Security Research Administration.

“Renewable energy will continue to be a strong growth area,” Paddock said. “Power-One recently announced an expansion, as have other solar industry companies here in the Valley.”

Some experts also predict the ending of NASA’s space shuttle AB | January-February 2012 89

STABLE OUTLOOK Employers in Arizona expect to hire at a solid pace during the first quarter of 2012, according to the Manpower Employment Outlook Survey. Some of the findings: We’re No. 3: Among survey participants, the Arizona employment outlook is the third best in the nation.

More hiring: From January to March, 17% of the companies interviewed plan to hire more employees, that is a slight decrease from the 19% that planned to hire in the fourth quarter of 2011. But some of that hiring could be attributed to seasonal hiring for the retail holiday season.

Fewer cutbacks: Among survey participants, 5% expect to reduce their payrolls. That is a significant improvement from the fourth quarter of 2011, when 9% planned to decrease staff levels.

Maintaining staff: Another 71% expect to maintain their current staff levels and 7% are not certain of their hiring plans.

Overall outlook: The survey findings yield a Net Employment Outlook — derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity — of 12% for Arizona. “The Quarter 1 2012 survey results show slightly more optimistic hiring plans compared to Quarter 4 2011 when the Net Employment Outlook was 10%,” said Manpower spokesperson Sunny Ackerman. “Compared to one year ago when the Net Employment Outlook was 11%, employers are similarly confident about their staffing plans.” program may benefit the Valley’s aerospace manufacturing industry. Virginia-based Orbital Science Corp., a maker of satellites and space launch vehicles, is expanding its facility in Chandler. Last year it received a $70 million contract from NASA to create an observatory that will measure carbon dioxide levels in the atmosphere. And, C4 Systems, a Scottsdale-based company owned by General Dynamics that employs 7,000 locals, received a $642 million contract to modernize NASA’s ground network for tracking satellites.

Arizona Business Magazine’s list of Arizona’s 50 largest employers backs up the experts’ analysis. Earning Top 10 rankings are Banner Health (healthcare), Apollo Group (education), Raytheon (missile manufacturing), Honeywell International (aerospace manufacturing), and financial services companies Wells Fargo, Bank of America and JP Morgan Chase.

“Leaders have to take care of the employees so employees can take care of the business,” Gredler said.

“It’s all about relationships, trust and respect. Being a great place to work is not about the highest paying jobs or status. Competitive pay and strong benefits are not enough to distinguish one organization from another.”

90 AB | January-February 2012

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AB | January-February 2012 91

EMPLOYMENT

50

LARGEST EMPLOYERS IN ARIZONA

Company Name

Arizona employees in 2011

Employment change since 2010

Revenue 2010

Company’s focus

Year founded

Headquarters

Website

Walmart Stores Inc.

30,634

Added 300 jobs

$421.8 billion

Discount retailer

1962

Bentonville, Ark.

walmart.com

Banner Health

28,353

Added 600 jobs

$4.9 billion

Healthcare

1911

Phoenix

bannerhealth.com

Wells Fargo & Co.

14,000

Stayed even

$93.2 billion

Financial services

1852

San Francisco

wellsfargo.com

Bank of America Corp.

13,300

Added 2,000 jobs

$150.5 billion

Financial services

1904

Charlotte, N.C.

bankofamerica.com

McDonald’s Corp.

12,770

Added 955 jobs

$22.7 billion

Food service

1955

Oakbrook, Ill.

mcdonalds.com

Apollo Group Inc.

12,000

Lost 460 jobs

$4.9 billion

Educational services

1973

Phoenix

apollogrp.edu

The Kroger Co.

12,000

Added 400 jobs

$76.7 billion

Grocery stores

1883

Cincinnati

kroger.com

Raytheon Co.

11,500

Lost 600 jobs

$25.2 billion

Missile manufacturing

1922

Waltham, Mass.

raytheon.com

JPMorgan Chase & Co.

10,500

Added 600 jobs

$102.9 billion

Financial services

1799

New York

jpmorganchase.com

Honeywell International Inc.

9,716

Lost 700 jobs

$33.4 billion

Aerospace manufacturing

1906

Morristown, N.J.

honeywell.com

Intel Corp.

9,700

Stayed even

$43.6 billion

Semiconductor manufacturing

1968

Santa Clara, Calif.

intel.com

Target Corp.

9,300

Added 500 jobs

$65.4 billion

Discount retailer

1902

Minneapolis

target.com

US Airways

8,926

Added 150 jobs

$11.9 billion

Airline

1939

Tempe

usairways.com

Catholic Healthcare West

8,291

Added 500 jobs

$9.9 billion

Healthcare

1986

San Francisco

chwhealth.org

Home Depot Inc.

8,000

Added 350 jobs

$66.2 billion

Home improvement

1978

Atlanta

homedepot.com

Walgreen Co.

7,750

Stayed even

$63.3 billion

Retail drugstores

1901

Deerfield, Ill.

walgreens.com

Safeway Stores Inc.

7,500

Stayed even

$41.1 billion

Grocery stores

1926

Pleasanton, Calif.

safeway.com

American Express Co.

7,465

Added 200 jobs

$30.2 billion

Financial services

1850

New York

americanexpress.com

Freeport-McMoRan Copper & Gold Inc.

7,000

Added 935 jobs

$19 billion

Mining

1834

Phoenix

fcx.com

Pinnacle West Capital Corp.

6,900

Stayed even

$330.4 million

Electric utility

1985

Phoenix

pinnaclewest.com

Bashas’ Supermarkets

6,641

Lost 1,800 jobs

Unavailable

Grocery stores

1932

Chandler

bashas.com

Scottsdale Healthcare

6,556

Added 55 jobs

Unavailable

Healthcare

1962

Scottsdale

shc.org

UA Healthcare

6,000

Added 2,050 jobs

Unavailable

Healthcare

1971

Tucson

medicine.arizona.edu

Circle K Corp.

5,690

Added 590 jobs

$16.4 billion

Convenience stores

1951

Laval, QC, Canada

circlek.com

General Dynamics

5,026

Added 1,810 jobs

$32.5 billion

Defense, communications

1952

Falls Church, Va.

generaldynamics.com

92 AB | January-February 2012

These are the state’s 50 largest public and privately held companies and not-for-profit corporations, ranked by the number of employees based on full-time equivalents of 40 hours per week and based on industry research.

Arizona employees in 2011

Employment change since 2010

Revenue 2010

Company’s focus

Year founded

Headquarters

Website

Boeing Co.

4,800

Added 100 jobs

$64.3 billion

Aircraft manufacturing

1916

Chicago

boeing.com

Carondelet Health Network

4,690

Added 124 jobs

$601 million

Healthcare

1880

Tucson

carondelet.org

Mayo Foundation

4,522

Added 138 jobs

$7.9 billion

Healthcare

1864

Rochester, Minn.

mayo.edu

CVS Caremark Corp.

4,500

Added 50 jobs

$96.4 billion

Pharmaceutical services

1993

Nashville

caremark.com

Salt River Project

4,346

Lost 392 jobs

$2.7 billion

Utility supplier

1903

Phoenix

srpnet.com

Costco Wholesale Corp.

4,151

Added 951 jobs

$76.2 billion

Membership discount stores

1976

Issaquah, Wash.

costco.com

Abrazo Health Care

4,089

Added 951 jobs

$1.5 billion

Healthcare

1997

Nashville

abrazohealth.com

Albertsons Inc.

4,000

Lost 450 jobs

$5.9 billion

Grocery and drug stores

1939

Boise, ID

albertsons.com

FedEx Corp.

3,918

Added 330 jobs

$34.7 billion

Delivery, copy centers

1971

Memphis, Tenn.

fedex.com

Southwest Airlines Co.

3,857

Added 259 jobs

$12.1 billion

Airline

1971

Dallas

southwest.com

Marriott International, Inc.

3,522

Added 722 jobs

$11.7 billion

Resorts and hotels

1927

Bethesda, Md.

marriott.com

CenturyLink (Qwest)

3,200

Lost 190 jobs

$12.3 billion

Telecommunications

1896

Denver

centurylink.com

United Parcel Service of America, Inc.

3,170

Lost 48 jobs

$49.5 billion

Package delivery

1907

Atlanta

ups.com

John C. Lincoln Health Network

3,166

Added 539 jobs

$551 million

Healthcare

1927

Phoenix

jcl.com

USAA

3,045

Added 74 jobs

$17.9 billion

Financial services

1922

San Antonio

usaa.com

Charles Schwab & Co. Inc.

3,001

Stayed even

$4.2 billion

Financial services

1974

San Francisco

schwab.com

Freescale Semiconductor, Inc.

3,000

Stayed even

$4.5 billion

Microchip manufacturing

1953

Austin

freescale.com

IBM Corp.

3,000

Stayed even

$95.8 billion

Technology services

1924

Armonk, N.Y.

ibm.com

Cox Communications, Inc.

2,997

Lost 67 jobs

$9.1 billion

Telecommunications

1962

Atlanta

cox.com

TMC HealthCare

2,966

Lost 84 jobs

Unavailable

Healthcare

1943

Tucson

tmcaz.com

Verizon Wireless

2,901

Added 201 jobs

$63.4 billion

Wireless provider

1984

Basking Ridge, N.J.

verizonwireless.com

Cigna HealthCare of AZ

2,865

Added 401 jobs

$21.3 billion

Healthcare

1792

Philadelphia

cigna.com

Grand Canyon University

2,818

Added 537 jobs

$385.8 million

Educational services

1949

Phoenix

gcu.edu

Starbucks Coffee Co.

2,783

Added 1,003 jobs

$10.7 billion

Food service

1971

Seattle

starbucks.com

Go Daddy Group Inc.

2,754

Added 441 jobs

$741.2 million

Internet services/technology

1997

Scottsdale

godaddy.com

Company Name

AB | January-February 2012 93

Market Street at DC Ranch

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For more information: (480) 367-7000 94 AB | January-February 2012

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All credit decisions are subject to approval. © 2011 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (659905_03435)

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96 AB | January-February 2012