Greater Phoenix Economic Council 2019

2019

EMERGING TECHNOLOGIES DRIVE

ECONOMIC GROWTH

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GREATER PHOENIX ECONOMIC COUNCIL

LET IT

GROW More and more companies are capitalizing on the business-friendly environment in Metro Phoenix and setting up offices or coming to scale

By MICHAEL GOSSIE

A

rizona is a hot spot. And it has nothing to do with our scorching summers.

The state’s job and economic growth forecasts over the next five years are among the best in the nation.

Population growth through 2022 is expected to be the third-fastest in the country and employment growth is expected to be equally strong.

“Arizona continues to foster a welcoming pro-business environment for new and existing companies,” says Goodyear Mayor Georgia Lord. “We focus on areas that are important to businesses — such as reducing regulatory burdens, creating a competitive tax environment and growing a talented workforce, particularly in high-demand industries. The excellent connectivity to major markets along with a low cost operating environment make Arizona a competitive place to grow a business.”

And the business community has taken notice. In 2018, Greater Phoenix welcomed 42 businesses and three corporate headquarters, which represented $1.18 billion in capital investment and created 8,606 total jobs. Much of the credit for those jaw-dropping economic development numbers can be attributed to the Greater Phoenix Economic Council (GPEC).

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“If you are a company looking to move into this market, GPEC provides analysis that will help you,” says Brad Vynalek, a partner at Quarles & Brady and a board member at GPEC. “GPEC will analyze your workforce needs, space needs, specialty needs and they have experts within the organization and analytics that are deeply tuned into what is happening and are able to identify the optimal synergy so that the path to this market is one that doesn’t have any friction and is one that is lasting.”

OPEN FOR BUSINESS: “Recent headlines out of Arizona — like the ‘FinTech sandbox’ and autonomous vehicle legislation — showcase that elected officials are supportive of business initiatives,” says says Brad Vynalek, a partner at Quarles & Brady. “Those headlines tell site selection companies, CEOs and directors that Arizona is serious about innovation and growth and they want to be a part of that.” (Photo by Bruce Andersen, AZ Big Media)

ALL ABOUT THE DATA Lord says the average person needs to understand that attracting a company to an area in 2019 is a data driven process.

“The more we, as leaders, can communicate the process to the public, the more they will understand the many variables considered by companies such as the importance of a quality workforce, readily available buildings and shovel-ready sites, and market connectivity,” Lord says.

Because of those changing demands, Vynalek says GPEC has evolved from being an organization that was focused on business attraction to becoming an organization that produces data and analytics that show where the market is going, where we want the market to be going, and what we can do to keep the market going in the direction we want it to go.

“That is all built around real data” Vynalek says, “not just the visceral, ‘We want more of these kinds of companies here.’ GPEC has used analytics to create core areas where we think we can compete and then rigorously focusing on that, rather than just focusing on bringing in any business we can bring in.”

Because GPEC’s data has improved that ease to market, an increasing number of companies are moving to Metro Phoenix or setting up office here to help them grow. Experts say Metro Phoenix is fast-paced and possesses an unapologetic willingness to get things done, making it one of the top cities to do business.

The region has a pioneering spirit and welcoming attitude – toward people and business — and that spirit is becoming contagious in the business world.

“Arizona is one of the fastest growing places to cultivate a company for multiple reasons,” says Brett Johnson, a partner at Snell & Wilmer who represents businesses and individuals in government relations matters.

Here are the top three qualities that are attracting businesses to Metro Phoenix, according to Johnson: • A rizona prides itself on hard work, innovation, and AB | January - February 2019 93

GPEC

Brett Johnson

Georgia Lord

Vynalek says Phoenix’s narrative has been changed in large part through the leadership of Chris Camacho, GPEC’s president and CEO. “He is an amazing ambassador for the city,” Vynalek says.

“After business leaders from other markets meet with Chris Camacho, they walk away thinking Phoenix is the center of technology, Phoenix is the center of growth, Phoenix is the center of opportunity and Phoenix is the center of optimism.

GPEC’s ability to be an effective ambassador for Metro Phoenix is phenomenal.”

READY TO WORK One criticism Arizona has historically faced has been in regards to education. What business leaders say GPEC has done very effectively is to change that narrative by stressing Arizona’s strengths. Experts say Greater Phoenix has built a skilled, entrepreneurship. Although still a competitive environment, diverse workforce that is prepared for in-demand disciplines in there is a collective desire for everyone to succeed. emerging industries. Graduates from the state’s forward-thinking • The friendly regulatory environment and cooperative universities and community colleges are being prepared to excel government agencies make it easy to grow a business. in the jobs of today and jobs that don’t even exist yet.

• Due to Arizona’s higher education capabilities and quality of “This market rises when we create high-quality jobs, more life, companies are able to attract top talent to Arizona. educational opportunities and a skilled workforce,” Vynalek says. “That’s what is happening here and that raises the tide for UNIFYING FORCE everybody.”

Tying those elements together and marketing them to The skilled workforce piece of that equation and how it fits the world has been GPEC, which works with its 22 member into Arizona’s success in attracting and growing new businesses communities, Maricopa County and more than 150 private cannot be overstated, experts say. investors to attract quality businesses and is credited with helping “If you look at the amazing research that comes out of the turn Metro Phoenix into one of the best tech relocation cities.

University of Arizona, Arizona State University and Northern “GPEC concentrates on strategic efforts to promote the region Arizona University and the kind of talent that is being produced, by leveraging public and private sector partnerships, which proves that narrative is extraordinary,” Vynalek says. “It’s a mindto be a core strength of the organization,” Lord says. “GPEC blowing change.” understands developing trends in the business community and According to GPEC: remains a resource for our rising companies. Their business From nationally-ranked schools to globally renowned connections and knowledge of trends often present opportunities universities, Greater Phoenix offers a wide array of educational and outlets for emerging companies to share technology and opportunities. applications to advance their operations.”

The region has an extremely competitive workforce while Experts say GPEC has been able to effectively market the region maintaining one of the lowest costs for labor in the nation. thanks to a favorable tax structure and legislative ease, especially Maricopa Community Colleges is the largest community college compared with markets like California, where there is a lot of system in the U.S., educating and training more than 200,000 regulation, taxes are higher and there are more challenges to individuals annually. doing business.

More than 40 universities and other institutions prepare the “Arizona offers a pipeline of opportunities,” Vynalek says. “I’ve market’s workforce across a variety of industries. observed over the past two decades that the connectivity between With a median age of 35.4, the region’s population is one of the Seattle and Phoenix, Silicon Valley and Phoenix and even New youngest in the nation.

York and Phoenix offer pipeline opportunities. People are now “There is more talent here today than there has ever been,” seeing Phoenix as a destination for opportunity and not just as a Vynalek says. “Business leaders from others markets are seeing low-cost provider. What we don’t want to be is just a place where how companies like GoDaddy and the education technology it’s cheap to live. Leaders in other markets are now seeing that companies that were founded have turned Greater Phoenix into Arizona is a great place to do business and there is real innovation an innovative growth market and they are asking themselves, happening there. That hasn’t always been the case.”

‘Why aren’t we a part of that?’”

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GPEC

2018

HIGHLIGHTS FROM

GPEC

o Airobotics, a leading Israeli automated drone startup, launched its North American headquarters in Scottsdale, Arizona, where they will run all North America, South America and Central America operations. Airobotics plans to grow the Scottsdale team to 80 employees by the end of 2019.

o Deloitte announced an expansion of its

o Andersen Corporation, a window and

o EdgeCore Internet Real Estate invested

door manufacturer, plans to build a new manufacturing and distribution campus in Goodyear. Andersen plans to invest more than $105 million and create more than 415 jobs during the first phase of this expansion.

more than $150 million in its Mesa Data Center Campus, which broke ground in March and will help EdgeCore offer cloud-connected data center solutions to the world’s most demanding customers. EdgeCore’s Mesa Data Center Campus is part of the City’s Elliot Road Technology Corridor.

o Bull Moose Pipe Company announced

plans to grow its Casa Grande manufacturing operation with a $5.3 million capital investment and plans to create 16 new jobs. o Cambridge Senior Living will construct

a new facility, creating 88 new jobs with a capital investment of $20 million. o Cives Steel, one of the largest structural steel

Arizona footprint with a new U.S. delivery center for technology solutions in Gilbert. The initial $34 million investment will result in the occupancy of 102,000-square-feet of space at The Commons at Rivulon. The project is expected to generate 2,500 jobs over multiple phases.

o Gorbel, a leading manufacturer of

overhead material handling cranes and fall protection products, expanded into Greater Phoenix with the addition of a manufacturing facility in Goodyear, which will add more than 20 projected jobs during the first phase in addition to a sizable capital investment.

and plate fabricators in North America, is expanding o King Koil opened a new 90,000-squareits presence in El Mirage and creating 50 new jobs foot factory in Avondale. The company plans with a capital investment of $19 million. initially to employ 50 people at the site, which will service retail partners in Arizona, Alaska, o Creighton University is constructing California, Colorado, Hawaii, Idaho, Montana, a new, nearly $100 million health sciences Nevada, Oregon, Utah, Washington and Wyoming. campus at Park Central in midtown Phoenix, which will eventually house nearly 800 o Nationwide Insurance announced it Creighton health sciences students in Arizona. will establish a regional headquarters in 98

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Scottsdale, creating more than 500 new jobs and investing $139 million. o Nikola Motor Company’s hydrogen-

electric semi-truck manufacturing headquarters facility will bring more than $1 billion in capital investment and 2,500 jobs to the region by 2024. o Oscar, one of the country’s fastest growing

health insurance startups offering consumerfocused, technology-driven healthcare, announced that it will expand its presence in Tempe, leasing an additional 46,000 square feet of space at The Circuit. This new contract will enable Oscar’s creation of 400 new jobs in Tempe by 2020. o Prenexus Health announced Gilbert

as the location for its prebiotic ingredient manufacturing and corporate headquarters. The facility will occupy 39,000-square-feet at AZ|60 in Gilbert’s Northwest Corridor and will create 45-50 new jobs created over the next two years. o SeaCa Packaging announced its

expansion to Greater Phoenix with the groundbreaking of a manufacturing plant in Surprise, creating 65 phase one jobs and bringing a $17 million capital investment. o Scheidt & Bachmann USA, Inc. picked

Phoenix as the site for its Western Region Innovation & Testing Center of Excellence,

BIG IMPACT: In June, Deloitte announced

an expansion of its Arizona footprint with a new U.S. Delivery Center for technology solutions in Gilbert. The initial $34 million investment will result in the occupancy of 102,000-squarefeet of space at The Commons at Rivulon. The project is expected to generate 2,500 jobs in the Gilbert community over multiple phases.

(Provided rendering)

Gorbel

Creighton University SeaCa Packaging

CHANGING LANDSCAPE: which will create an estimated 20 new hightech jobs. o Sendoso announced that it is expanding its company’s presence with a new office in Scottsdale. Sendoso creates the technology that leading companies use to personalize moments at scale using direct mail. o Voya Financial, Inc. announced it will

open a new office in the metro Phoenix area, creating more than 1,000 jobs and making a capital investment of $60 million.

Deloitte

In December, the City of Mesa approved a plan for a 20-acre, multi-use, campus-style community at Crismon Road and Hampton Avenue. The $200 million project, called GrandeVita, a Biocity Enterprise by Khangura Development will allow seniors to “age in place” in a high tech and innovative environment. When completed, GrandeVita will create an estimated 326 jobs with an average wage of $45.25 an hour and generate $28.6 million in wages. (Provided rendering)

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GPEC

BUILT TO Emerging technology companies are flocking to Phoenix and changing the game

By MICHAEL GOSSIE

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hen we talk Arizona business in 2019, we can forget about the five Cs of the state’s original economy — cattle, citrus, climate, copper and cotton.

Today, the talk is tech. Blockchain. FinTech.

EdTech. Autonomous vehicles.

“The excitement behind the Phoenix technology scene is contagious,” says Anthony Kennada, chief marketing officer at Gainsight.

Besides “contagious,” the most important C-word in today’s conversations about Arizona’s economy is “connectivity.”

“We’ve reinforced the brand identity of ‘The Connected Place’ most importantly,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council (GPEC). “Our business development and research teams work hand-in-hand with companies exploring Greater Phoenix to showcase the positive business environment, which has resulted in about 35 percent of GPEC’s pipeline coming from high-cost and highly regulated markets like Seattle and the Bay Area. Aggressive 102

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marketing campaigns have also played a role, but we’ve seen a transition of legacy industry, which has allowed us to attract more companies from emerging sectors.”

GPEC is on a relentless pursuit to attract innovative companies from those emerging technology sectors and attracting and growing companies that are committed to being game-changers.

“To us, connectivity is about our region’s legacy businesses joining forces with emerging disruptors,” Camacho says. “It’s about our educational institutions working together to produce talent that is job ready and entrepreneurial in spirit.”

NO LABOR PAINS One of Metro Phoenix’s strengths in becoming a hotbed for emerging technology companies is the presence of a skilled pool of talent. According to GPEC, there are 290,000 graduates from Arizona State University that reside in Arizona and 24,000 earned a degree in a technology-related field. In fact, 72 percent

of engineering undergraduates accepted job offers and stayed in Arizona.

“I see Greater Phoenix having its greatest potential for growth in technologies that come from electrical engineering and computer science,” says Brad Vynalek, a partner at Quarles & Brady and a board member at GPEC. “Software. FinTech.

Everything that takes deep-knowledge software and applies it to a very specific business purpose to drive innovation is where we are going to compete really well moving forward.”

Getting back to that important C-word, one of GPEC’s strengths in building the emerging technologies sector in Greater Phoenix is the economic development organization’s connections.

“As a small nonprofit building a scalable blockchain that becomes faster and more secure as people use our network, it’s important for Nexus to meet like-minded people in the Valley,” says Brian Vena, director of business development for Nexus.

“GPEC introduced us to like-minded business

SCALE Chris Camacho

Anthony Kennada Matthew Marquez Brian Vena

innovators who collaborated to help us identify new use cases for our technology.”

And with those connections, Nexus is looking to be the exact type of company that GPEC and Arizona covet: A game-changer.

“In 2019, Nexus will be the first blockchain to release smart contracts that can be written in any coding language,” Vena says. “This advancement — along with real-world use cases in music and supply chain — should set a new standard in blockchain technology. We are proud to call Arizona the home and future launch pad for our transformative technology.”

MAKING CONNECTIONS Those that work in the emerging technology sectors say GPEC has been an instrumental partner in helping them connect with other companies and organizations that have a similar mission, building dynamic clusters and organizations that drive innovation, even when most people don’t realize the innovation is happening in our backyards.

“I think that blockchain is one of those technologies that will fly under the public radar,” says Matthew Marquez, chief strategy officer for the Arizona Blockchain Initiative. “I believe there is great potential for various uses of blockchain. Also, the ‘FinTech sandbox’ helps show that state lawmakers are ready to see new technology and innovation come to our state. Our organization — Arizona Blockchain Initiative — hopes to help drive the growth of blockchain in Arizona by focusing on how much of a positive impact it can have on people’s lives.”

As for GPEC, Camacho says his No. 1 goal is to continue to reinforce a global brand identity and sharing The Connected Place story that embodies Greater Phoenix.

“We want to continue to attract and grow technology-centered companies, so the region is looked at as a place where organizations can scale,” Camacho says.

“Equally as important, we will continue our work with higher education and career-based institutions to ensure Greater

Brad Vynalek Phoenix produces talent unlike any other, which will help us advance our competitive market position.”

GAINING AN ADVANTAGE The incredible talent pool coming out of the state’s universities and colleges and Arizona’s “open for business” attitude is what experts say will give Greater Phoenix an advantage over the competition when it comes to growing our economy.

“We are never going to be Silicon Valley,” says Vynalek. “But what Silicon Valley doesn’t have is the ability to scale. The ideas can still incubate in Silicon Valley, but companies are going to come here to scale and focus on their growth. We are going to be a great place for those companies to come and grow for a very long time.”

So what are some of the emerging technology sectors that are building and growing in Greater Phoenix? Consider these growth industries: Autonomous vehicles, blockchain, cybersecurity, Industry 4.0 (the Internet of Things) and wearable technology.

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GPEC Driverless vehicles: A thriving ecosystem PROVING GROUNDS ∙ Chrysler ∙ Ford ∙ General Motors ∙ Komatsu ∙ Nissan ∙ Toyota

BREAKING GROUND:

The Downtown Chandler Community Partnership and Waymo helped Chandler become the first city to offer subsidized rides to thousands of eligible Waymo passengers when their destination of choice is Downtown Chandler. (Provided photo)

AUTONOMOUS VEHICLES

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rom driverless cars and aircraft, innovation is happening in Greater Phoenix faster than you can imagine, according to GPEC. Companies in Metro Phoenix include those in manufacturing as well as the components, software, and communications systems that power and operate them.

“I was with Steve Wozniak five years ago,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council. “I asked him what he was spending his time on. He said, ‘By 2018 you’ll see autonomous vehicles on the road.’ And at the time, we didn’t know what that term was. But here we are today, seeing very wide-scale deployment right here in Arizona.”

Since 2015, when Gov. Doug Ducey signed an executive order to reduce barriers to testing driverless vehicles in Arizona, autonomous vehicles have been a hot topic in Metro Phoenix.

Driverless vehicles are changing the world we live in, and Greater Phoenix is leading the way in supporting the development and testing of this transformative technology. Enabling programs and policy have made Arizona a top destination for driverless vehicle testing — including Waymo, which was founded by Google — and a supportive

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supply chain and electronics cluster make it ideal for new software and hardware system development and innovation.

Consider this: • More than 4,000 local graduates fueled the driverless vehicle talent pipeline in 2015-2016.

• There are six automotive proving grounds in Greater Phoenix.

• Metro Phoenix is the second-fastest growing market for electric vehicles in the United States.

• The Valley boasts an excellent infrastructure and weather for testing vehicles.

Metro Phoenix has utilized its advantageous weather to help drive Waymo, which has driven 10 million miles on public roads — many of them in Arizona — since it began testing in 2009 “While we’ve made great strides thanks to these 10 million miles, the next 10 million will focus on turning our advanced technology into a service that people will use and love,” says Waymo CEO John Krafcik.

The company’s engineers and scientists are applying advanced artificial intelligence and new in-house designed sensing systems to help the vehicles navigate complex weather conditions, which are difficult even for human drivers.

AUTOMAKERS ∙ Local Motors ∙ Lucid Motors INNOVATION ∙ GM AZ IT Innovation Center ∙ Intertek Phoenix Auto Lab AUTONOMOUS ∙ Cruise Automation ∙ Ford ∙ General Motors ∙ Intel ∙ Uber ∙ Waymo SUPPLY CHAIN ∙ Amsafe Aviation ∙ Atsco Remanufacturing ∙ Special Devices ∙ TRW Vehicle Safety Systems TALENT DISPOSITION ∙ Density of workers ∙ Ease of hiring FUTURE PIPELINE ∙ Arizona Advanced Manufacturing Institute ∙ Arizona State University ∙ East Valley Institute of Technology ∙ Embry-Riddle ∙ Grand Canyon University ∙ Maricopa Community College ∙ University of Advancing Technology ∙ University of Arizona ∙ University of Phoenix ∙ West-MEC OPERATING ENVIRONMENT ∙ Economic development programs ∙ Fiber capacity ∙ Low disaster risk ∙ Low taxes/open regulatory environment ∙ Robust electrical redundancy rates Source: GPEC

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CYBERSECURITY

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reater Phoenix is the hub for software and services used to protect and secure information.

Growth in the Internet of Things (IoT) sector places an increased emphasis on cybersecurity due to the growth in data collected from devices equipped with sensor capabilities.

“Cybersecurity has become the sixth ‘C’ of Arizona beyond the traditional five Cs of industry: copper, cattle, cotton, citrus and climate,” says Rachel Harpley, founder of Recruit Bit Security and chair of the Cybersecurity Council of Arizona. “There are many spokes in the wheel of cybersecurity in Arizona. It is a natural choice as a global hub for data centers and technology innovation with nearly no natural disasters. We host seven military bases, including the Army Intelligence Center and the Network Enterprise Technology Command Rachel Harpley at Fort Huachuca, the United States Army hub for communications technology and training. All of our major universities and colleges have cybersecurity programs. We have a large, active cybersecurity community sharing skills and

NEXT GENERATION: “We produce a wide variety of technical talent,

and with this ecosystem we build a unique InfoSec talent base,” says Rachel Harpley, chair of the Cybersecurity Council of Arizona.

“Companies offering access to innovative technologies and a securityfocused culture will enjoy competitive access to our cybersecurity talent landscape.” (Provided photo)

threat intelligence. Once a year we host Cactus Con, the largest annual hacker and security conference in Arizona.”

Cybersecurity is recognized by state and local government leaders and industry pioneers as an important cornerstone for the Arizona economy. Recently ranked in the Top 10 by Forbes for information jobs, Greater Phoenix is well-positioned to support both legacy companies and the expansion of emerging disruptors. This is just part of the reason why so many businesses here are at the cutting edge of cybersecurity innovation and why our educational institutions are committed to preparing cyber warriors of tomorrow.

CYBERSECURITY: A thriving ecosystem LEGACY COMPANIES • Bechtel • Charles Schwab • Chase • Wells Fargo CRITICAL INFRASTRUCTURE • Cyber Warfare Range • ASU Cyber Security Institute • AZLabs EMERGING DISRUPTORS • Emailage • Intellispyre • Kudelski • Trusona

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FUTURE PIPELINE • Arizona State University • Embry-Riddle • Grand Canyon University • Maricopa County Community College • University of Advancing Technology • University of Arizona • University of Phoenix INDUSTRY RESOURCES • ACA Arizona Innovation Challenge • AZ Start up Foundation • AZ Tech Council Cyber Subcommittee • Cyber Security Canyon • #yesphx

Consider the numbers supporting cybersecurity growth in Metro Phoenix: • More than 4,000 local graduates fueled the cybersecurity talent pipeline in 2015-2016.

• There has been a 17 percent growth of the cybersecurity cluster in Greater Phoenix.

• There are more than 25 security operations centers and global security operations centers in Arizona.

“Given the various cross-sector efforts, Arizona’s cybersecurity outlook is booming,” Harpley says. “We have in place the community infrastructure, both public and private industry combined with educational resources, to serve our growing business community. The cybersecurity eco-system in Arizona is an advantage to any business, regardless of industry, doing business in Arizona.”

OPERATING ENVIRONMENT • Economic development programs • Fiber capacity • Low disaster risk • Low taxes/open regulatory environment • Robust electrical redundancy rates TALENT DISPOSITION • Density of workers • Ease of hiring Source: GPEC

I MEDTECH

HEALTHY BOOST: Programming stemming from a $750,000

grant to accelerate wearable and medical technology entrepreneurship in Greater Phoenix will be anchored around the 30-acre Phoenix Biomedical Campus. (Provided photo)

GPEC

n late 2018, GPEC was awarded a $750,000 grant from the U.S. Department of Commerce under the Economic Development Administration’s 2018 Regional Innovation Strategies program competition to accelerate wearable and medical technology entrepreneurship in Greater Phoenix. The grant is expected to help 45 ventures and create more than 220 jobs throughout the threeyear program.

The grant deliverables will be led by GPEC, the Center for Entrepreneurial Innovation (CEI) at Maricopa County Community College District, Arizona State University (ASU), the Partnership for Economic Innovation (PEI) and StartupAZ Foundation. The partners will promote and assist the translation of research for commercial applications, formation of new ventures and acceleration of startup growth by providing market validation services and mentor networks in the wearable and medical technology cluster.

“We’re here to help entrepreneurs develop better products, faster,” says Chris Camacho, president and CEO of GPEC. “We have an emerging technology ecosystem here that is increasingly recognized for introducing exciting new solutions to the market and this funding will allow us to better leverage our regional assets to help companies validate their products and position our region as a center of innovation excellence.”

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BLOCKCHAIN B

lockchain technology is software that relies on multiple computers to create a tamper-proof ledger of transactions.

But it’s also attracting enormous interest from major industries like shipping and finance, which see its record-keeping system as a means of creating more secure and efficient supply chains.

“In 2018, Arizona passed legislation that allowed the creation of a FinTech, blockchain, and cryptocurrencies sandbox,” says Melissa P. Armas, co-founder of the Arizona Blockchain Initiative.

“In January of 2018, the State House of Representatives’ Commerce Committee held a special session, discussing how blockchain technology intersects with government, business and citizen interests. There are several organizations in the tech space looking to combine efforts, educate individuals and explore the benefits that decentralized technologies can bring to Arizona.”

Because of the legislate support of innovation, companies in Greater Phoenix have found success and security while innovating in this emerging technology sector and Arizona’s educational institutions are taking a proactive approach to blockchain and training the workforce of tomorrow.

“2019 will be a bright year for technology in Arizona,” Armas says. “As big companies and new start-ups continue to explore the uses of blockchain, Arizona will only benefit from the development of new projects, and the need for creating a workforce that will empower all Arizonans into creating a diverse and sustainable future.”

NEW KID ON THE BLOCKCHAIN: “We

have a great opportunity to create the right environment so everyone in Arizona can adopt, understand, and benefit from new technologies,” says Melissa P. Armas, co-founder of the Arizona Blockchain Initiative. “The current atmosphere in the state is promoting the raise of tech startups, and we are also seeing interest of local officials starting to embrace decentralized technologies.”

(Provided photo)

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BLOCKCHAIN COMPANIES CURRENTLY GROWING IN METRO PHOENIX DASH: Phoenix-based cryptocurrency that is a fully-

incentivized peer-to-peer network. Miners are rewarded for securing the blockchain and masternodes are rewarded for validating storing and serving the blockchain to users.

SWEETBRIDGE: Local blockchain startup looking to use

cryptocurrency to reduce supply chain costs. They do this by allowing for easy tokenization of assets, allowing companies to be more liquid.

ARENA: Music platform that is free, claims to pay artists the highest royalties in the industry, and does it using cryptocurrency. Its on-demand merchandise storefront is designed to encourage musicians to promote merchandise sales while listeners stream exclusive content.

NEXUS: A decentralized and worldwide network that utilizes three channels of security — prime mining, hash mining, and nexus Proof of Stake (nPOS). Consensus in Nexus combines votes across three channels, which discourages one network from becoming too powerful.

COLDTI: Coldti is a titanium wallet-like storage device for cryptocurrency seeds. Users of the device engrave their seeds onto ColdTi using a hammer and an included punch tool.

ColdTi contains 24 fields to enter seeds into, and is contained in an aluminum fire-resistant enclosure. ColdTi is currently a kickstarter campaign.

CAMP BX: Atlanta-based bitcoin trading platform with data centers in Arizona and Georgia. Buy or sell orders are matched against a parameterized database of other orders. If a perfect match is found, a Bitcoin-to-U.S. dollars trade is instantly executed.

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INDUSTRY 4.0

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TECH TRAILBLAZER: In June, PADT announced its new

on-demand manufacturing service, creating a “3-D printing factory” here in the Valley. (Provided photo)

Industry 4.0 companies in Phoenix Intel JDA Software Microchip shelvspace SAP PADT ON Semiconductor

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Titan Industries Boeing Orbital ATK NXP Semiconductors Industrial Knowledge

ndustry 4.0, otherwise known as the Internet of Things, or IoT, brings it all back to that C word: Connectivity. With Intel investing $7 billion to make its semiconductor plant in Chandler the epicenter of a world of connected devices, Greater Phoenix is breaking ground every day as an IoT leader.

The Internet of Things is the concept of connecting normal devices to each other, cloud platforms and the Internet itself.

Internet of Things is a broad concept that spans from sensor technology to the cloud. We’re familiar with many of these IoT devices — cellphones, televisions, wrist watches and thermostats.

There are projected to be almost 30 billion Internet-connected devices by 2030. The business application of the IoT is this: The IoT will offer sensors and data that businesses can use to create new experiences, or even create new businesses.

“That data is valuable and it gives you different insights you didn’t have before,” says David Formisano, the strategic business director for Intel. “Across a variety of use cases — from retail to industrial to healthcare to transportation — we’re going to see the Internet of Things transform how those businesses operate today.”

The other piece of Industry 4.0 that will impact Arizona’s economy comes in manufacturing. Industrial activities have been a cornerstone of the Arizona economy for decades, with a number of advanced manufacturing facilities in the state. New technologies representing industry 4.0 are allowing manufacturers to produce with lower costs and increased efficiency making Arizona one of the fastest growing manufacturing states in the country. Greater Phoenix is leading the way in adoption and advancement of these innovations that represent the fourth industrial revolution.

Consider this data from GPEC: • 72 percent of manufacturing enterprises predict their use of data will improve customer relations.

• 35 percent of manufacturing companies adopting new technology expect revenue gains of more than 20 percent.

• 86 percent of manufacturers surveyed expect to secure simultaneous gains — lower costs and added revenue.

Tempe-based Phoenix Analysis and Design Technologies (PADT) became an Rey Chu Industry 4.0 innovator by opening the Southwest’s first true 3-D printing factory in 2018. This on-demand manufacturing can allow companies to design and receive parts that require no tooling. The need to create molds is also eliminated and parts can be created in shapes that other methods could not replicate. PADT can also deliver 3-D printed parts within a week, instead of the three week to three month timeline injection molding may take.

“Since we started in 3-D Printing almost 25 years ago, we have dreamed of the day that we could use additive manufacturing to move beyond prototyping and deliver production parts to our customers when they need them, the way they need them,” said Rey Chu, co-founder and principal of PADT.

GPEC GAME-CHANGER: Tom Sugar, a professor in the Ira A. Fulton Schools of Engineering at ASU’s Polytechnic Campus, demonstrates his exoskeleton device in the lab. (Provided photo)

WEARABLES

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reater Phoenix has a long history of developing advanced sensors and electronics, these technologies have recently found their way into medical device applications. Over the past 50 years, Greater Phoenix has become one of the top wearables cities to do business for developing and manufacturing microelectronics and semiconductor devices, with a high concentration of firms in the semiconductor supply chain and integrated circuit design and manufacturing.

And Arizona innovators are thinking beyond the Fitbit. Tom Sugar, a professor in the Ira A. Fulton Schools of Engineering at ASU’s Polytechnic Campus, and ASU researchers are undertaking the task of developing wearable robotic devices in hopes of assisting humans recreationally, professionally and medically. Wearable robotics are devices that are created specifically to augment the wearers motion and psychical capabilities, and they can also be used to restore a person’s loss of motion.

“I see wearable robotics growing exponentially in the next 3-4 years,” says Sugar. “We see Phoenix being a leader in this area by hosting Wearable Robotics Association, and also hosting companies that can build and make devices to improve quality of life and quality of work.”

Because of its robust supply chain and workforce, Greater Phoenix is well positioned to support both new-to-market wearable companies and the expansion of its existing cluster.

“Greater Phoenix offers opportunities to partner with industry, government and consumers,” says Stephane Frijia, GPEC’s senior vice president of strategy and research, “which means your company can go to scale and be successful, efficient and competitive. This is what our region is all about.”

Frijia also cites the Phoenix Biomedical Campus expansion and a go-to place where those looking to expand and develop can find a mix of talented doctors, researchers, innovators, educators and health professionals all under one roof. This campus has become a premier and dynamic location for biomedical activities.

“We started developing exoskeletons for the military, more specifically for ankle and hip movement to help with lifting heavy objects or overall movement,” Sugar says. “Lately, we started to move more towards designing exoskeletons for industry, for helping people perform tasks in logistics such as construction or automobile companies.”

Wearable companies in Greater Phoenix Benchmark Electronics DataSoft Garmin Life365 LivaNova Medi Clinic Medtron Technology Mediserve Information Systems Neolight Orion Health SpringActive Sxc Health Solutions Theraspecs UnisLink Virmedice MEDICAL COMPANIES Abrazo Healthcare Banner Health Cancer Treatment Centers of America Dignity Health Equality Health HealthTell HonorHealth

Maricopa Integrated Health System Mayo Clinic Tgen TriWest Healthcare Alliance MANUFACTURING OPERATIONS Ability Dynamics Avnet Benchmark Bioconcepts Inc Biomet Southwest Cayenne Medical Cranial Technologies Cymedica Orthopedics Dexcom GE healthcare Intel Luther Medapps Medtronic Neural Micro Devices Neuromechanical Innovations NXP On Semiconductor Regenesis Biomedical Rightbio Metrics Rogers Corporation St. Jude Medical Sumco Source: GPEC

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