AZBusiness January/February 2020 by AZ Big Media

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JANUARY // FEBRUARY 2020

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OUTLOOK FOR 2020 ARIZONA CORPORATE COUNSEL AWARDS

ARIZONA LODGING AND TOURISM ASSOCIATION

GREATER PHOENIX ECONOMIC COUNCIL

Front row: Tiffany Pham, Scott Scharli, Lindsey Benson. Back row: Justin Bayless, Ty James Largo.

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ARIZONA BUSINESS

A W A R D S

Az Business Magazine is proud to announce the Arizona Business Innovation Awards. This program will seek, unveil and honor organizations and individuals stretching the limits of how business is done. Innovation comes in many forms – from the creation of new revolutionary ideas, to the changes used to create existing products – it’s what drives success. Arizona is home to some of the most cutting-edge innovative companies in the country. From med-tech and real estate, to engineering, education and manufacturing – Arizona continues to produce and attract some of the most talented leaders in the country.

NOW ACCEPTING ENTRIES IN THE FOLLOWING AREAS OF INNOVATION: BANKING & FINANCIAL SERVICES BUSINESS SERVICES HEALTH & SCIENCES MANUFACTURING

LOGISTICS REAL ESTATE TECHNOLOGY TOURISM & HOSPITALITY

CALL FOR ENTRIES LEADING BY DISRUPTION

For information on getting involved and corporate sponsorships, please contact AZ Big Media publisher, Josh Schimmels at josh.schimmels@azbigmedia.com

Apply: AZBIGMEDIA.COM/AWARDS-EVENTS

Deadline: February 14, 2020

Table of Contents 6

Trendsetters

Leadership Spotlight

16 Young Business Leaders to watch in 2020 26 2020 Outlook Healthcare Law • Real estate • Technology • •

Marketing

46 Dining 48 Arizona Corporate Counsel Awards

74 Arizona Lodging & Tourism Association 85 Excellence in Banking 97 Arizona Mining Association 113 Greater Phoenix Economic Council

HOW MINING IS DRIVING THE NATION’S LARGEST SMART REGION Arizona’s mining industry has come a long way since the days of the Lost Dutchman. “The industry is very focused on working collaboratively with communities to ensure there is a mutual relationship of trust and respect,” says Francis McAllister, chairman of the Arizona Mining Association. “We strive to reduce our footprint while working hard to minimize environmental impacts to air and water. Safety remains the industry’s highest priority and improvements in safety and minimizing our impact on communities is a current and future focus.” It’s also the focus of today’s high-tech and renewable energy sectors, who are demanding more from an increasingly sophisticated mining industry to produce the copper and other metals needed to manufacture their innovative technologies. Which takes us to the Greater Phoenix Economic Council, which is capitalizing on those innovative technologies and partnering with Greater Phoenix communities and industry partners to create the Connective, the nation’s largest smart region, which is rooted in connectivity, mobility, equity and sustainability. This issue of Az Business takes a look at the impact of both the Arizona Mining Association and GPEC and how both organizations are driving Arizona’s economy in major ways. Also, be sure to read through what some of Arizona’s most influential business leaders say to look for in 2020, and enjoy meeting 20 young business leaders who will keep our economy humming for years to come.

CONNECT » GUIDE » INSPIRE

JANUARY // FEBRUARY 2020

ON THE COVER: Front, from left — Tiffany

$4.95

OUTLOOK FOR 2020 ARIZONA CORPORATE COUNSEL AWARDS

ARIZONA LODGING AND TOURISM ASSOCIATION

GREATER PHOENIX ECONOMIC COUNCIL

Front row: Tiffany Pham, Scott Scharli, Lindsey Benson. Back row: Justin Bayless, Ty James Largo.

113

Pham, Alliance Bank of Arizona; Scott Scharli, SRP; Lindsey Benson, CBIZ & MHM. Back, from left — Justin Bayless, Bayless Integrated Healthcare; and Ty James Largo, AWE Collective. (Photo by Mike Mertes, AZ Big Media).

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Michael Gossie Editor in chief michael.gossie@azbigmedia.com

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SHOUT-OUTS

VALLEY RESORTS GET CREATIVE TO SUPPORT GIRL SCOUTS Girl Scouts–Arizona CactusPine Council (GSACPC) announced the return of its award-winning Girl Scout Cookie Dessert Challenge — this year with a clever addition. For the seventh year in a row, chefs from some of the state’s most popular restaurants will use their culinary prowess to re-imagine one of the beloved flavors of Girl Scout Cookies into a custom dessert menu item. Each restaurant has agreed to feature its dessert on their menu from February 1 to February 29, 2020, with a portion of the proceeds from each dessert sold directly supporting Girl Scouting in Arizona. In addition to traditional restaurants, 11 Arizona hotels and resorts also signed on this year. As such, there will be a bit of a challenge-within-thechallenge, all in good fun, and all in support of girls in this community. The 11 contenders are: • Civana Wellness Resort & Spa in Carefree, who will be using Thin Mints • Fairmont Scottsdale Princess in Scottsdale, who will be using Do-Si-Dos • FOUND:RE Phoenix Hotel in Phoenix, who will be using Samoas • Four Seasons Resort Scottsdale at Troon North in Scottsdale, who will be using Samoas • Great Wolf Lodge in Scottsdale, who will be using Thin Mints • Hilton Sedona in Sedona, who will be using Samoas • Hotel Valley Ho in Scottsdale, who will be using Tagalongs • Little America Hotel in Flagstaff, who will be using Do-Si-Dos • Omni Scottsdale Resort & Spa at Montelucia in Paradise Valley, who will be using Tagalongs • Pointe Hilton Tapatio Cliffs Resort in Phoenix, who will be using Samoas • The Scottsdale Plaza in Scottsdale, who will be using Trefoils “Many of us will also be hosting ‘Girl Scout Field Trips’ with some local troops throughout the month to really get them excited about the art, math and science behind what we do. Maybe there are even a few future chefs in our mix,” says chef Lance Whipple of the Four Seasons Scottsdale Resort Troon North. All the chefs hope not only to raise critical funds to support local Girl Scouting, but also to inspire home cooks across Arizona to buy an extra box or two this Girl Scout Cookie season to create their own desserts, too. To see them – and to best plot out your way to taste them all – visit girlscoutsaz.org/dessertchallenge. 4

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President and CEO: Michael Atkinson Publisher: Josh Schimmels Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Intern: Angelica Olivas Contributing writers: Alison Bailin Batz | Eric Olsen Erin Thorburn | Steven G. Zylstra ART Design director: Bruce Andersen Art director: Mike Mertes MARKETING/EVENTS Digital strategy manager: Gloria Del Grosso Marketing designer: Michael Bodnar OFFICE Special projects manager: Sara Fregapane Executive assistant: Brianna Villa Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry Director of business development: Carol Shepard EXPERIENCE ARIZONA | PLAY BALL Director of sales: Jennifer Swanton RANKING ARIZONA Director of sales: Sheri King Az 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 2017 by AZ BIG Media. 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 AZ BIG Media.

CALL FOR NOMINATIONS! For the 12 th year, Az Business magazine will be celebrating the best of the medical industry with its Healthcare Leadership Awards. Arizona is home to many influential healthcare leaders, innovators, researchers and advocates who make an economic impact, all while protecting, enriching and saving lives. *NEW 2020 Award Categories: • HC Visionary Award • Outstanding Healthcare Practitioner • Achievement in Medical Research • Achievement in Medical Devices or Technology • Achievement in Community Outreach • Outstanding Healthcare Innovator (ind.) • Outstanding Healthcare Innovation (org.) • Outstanding Healthcare Executive • Achievement in Wellness • Achievement in Medical Real Estate • Outstanding Healthcare Deal • Outstanding Healthcare Volunteer • Innovation in Oncology For deadlines and to nominate, please visit www.azbigmedia.com/awards-events. For information on sponsorship, please email josh.schimmels@azbigmedia.com

602.277.6045

azBIGmedia.com AB | January - February 2020 5

TRENDSETTERS

TEE TIME

Here’s how golf has impacted some of Arizona’s most influential business leaders

JOHN ALAN DORAN, member, Sherman & Howard: “The scorecard from the first time I ever beat my father at golf is my most prized possession. It was awesome to beat him for the first time, yet depressing to realize that he wasn’t invincible anymore. That being said, looking back I’m pretty sure he discretely threw the round.”

AMY HILLMAN, dean, W. P. Carey School of Business at Arizona State University: “When young, I competed in rodeo barrel racing, synchronized swimming and golf. Believe it or not, what I do now is way more fun.”

RICK GOLDENSON, CEO, Integrated Healthcare Strategies: “I made a hole-inone on the wrong hole on a golf course in Ireland.”

TOP OF

THE CLASS

The University of Arizona Eller College of Management’s fulltime MBA program has been named the best MBA program for entrepreneurship in the state of Arizona in Bloomberg Businessweek’s ranking of the best U.S. business schools for the 2019-2020 school year.

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PAUL KOMADINA, senior managing director and Arizona market leader, CBRE: “My most prized possession is my grandfather’s golf bag tag with his name engraved on it. I always think back to our golf outings and playing cards with his buddies. My grandfather had a larger-than-life personality and taught me the importance of a handshake and saying ‘please’ and ‘thank you.’”

It’s January, which means the Valley is going golf crazy. Between the Waste Management Phoenix Open and the perfect playing conditions for weekend warriors, Arizona is the place to be for golfers. So it makes sense that the game has had a big impact on the lives of some of the state’s most influential business leaders.

JOE SNELL, president and CEO, Sun Corridor Inc.: “A set of 1922 golf clubs my grandfather owned is my most prized possession. The clubs remind me of his qualities immensely. He was a kind, thoughtful and smart man who influenced me greatly. He was also a pretty good golfer.”

JOHN WOLFE, senior vice president and Southwest region manager, Cox Communications Arizona: “I have what may be an unhealthy love of golf, so I’d say my decades-old Ping Anser 2 putter is my most prized possession. I might need to give up the game if I ever lost it.”

Is it OK to talk politics at work? No matter your own viewpoint, it seems impossible to avoid politically charged conversations with all the buzz out of Washington. But workers should use caution when politics come up at the office, according to a survey from global staffing firm Robert Half. • While 66% of professionals said talking politics at work is more common today than five years ago, just 22% felt these conversations are appropriate. Most respondents (61%) said it depends on the situation and people involved. • In addition, 49% of employees are interested when politics come up at work, but more than a quarter feel uncomfortable or indifferent (27% each), and 19% get irritated.

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TRENDSETTERS HERE’S HOW TO

MANAGE YOUR MONEY

What to look for in PR and marketing in 2020

IN 2020

Melissa DiGianfilippo, president of PR at Serendipit Consulting, expects we could see the following in marketing and PR in 2020:

INFLUENCERS: WILL THEY HOLD THEIR WEIGHT?

Melissa DiGianfilippo 8

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“Brands are getting smart about verifying influencers and really tracking ROI. The game is going to change for influencers who have been able to purchase likes and falsify engagement because they just aren’t showing brands a return. Consumers are getting smarter about influencers repping brands that aren’t authentic to them, and they aren’t buying it.” Interactive content “More than 90 percent of buyers are BEGGING for more interactive content. Content marketing will shift its focus to give the people what they want. This could include things like AR/VR, gamified quizzes and polls, shoppable posts, etc. If you are spending money on content, make it interactive or you won’t keep your customers engaged, but you can bet your competitor will.” ChatBots “Yes, we know that Chatbots are nothing new, but the way consumer brands will be using them in 2020 is definitely a bit new. Brands right now are typically using chatbots for lead generation, but they will also start using them to build deeper relationships with their customer base....learning about likes and dislikes, getting real quotes and inspiration for new products and services, etc.”

Vickie Larsen has been a leader in wealth management for more than 20 years. She is a senior vice president and market director of private wealth at BOK Financial. Here what she says to look for in 2020: Trend to watch: “In every business, Vickie Larsen technology has and will continue to change both for the client and the advisor. Today, firms are in the early stages of allowing clients to ‘do it yourself’ — building portfolios that are fully allocated in low/moderate-fee fund options that ‘automatically’ change as the market changes. These options come with lower fees, however, and they often stand alone without the benefit of a knowledgeable advisor to provide advice and expertise on the changes. For the advisor, technology advancements allow for more insight into client preferences, education and goal setting. This leads to better communication between clients and advisors.” Advice for 2020: “Wealth management has become far more than just portfolio management. Provide a tax efficient strategy, which includes trusts, wills and complete financial planning is key. Assist clients to articulate their real goals and intentions for their wealth, including funding children’s education, retirement income and growth, charitable goals, and wealth transfer goals. Finding a trusted advisor that can assist with fulfilling your wealth and legacy goals is important. Finding a trusted advisor that can do the above and allow you to live richly is our goal.”

BYE-BYE, 9-TO-5: HELLO, AI IN THE OFFICE? Do you lust for more time during the weekend? The five-day-work-week is on its way out, among other old and tired workplace trends, including open floor plans and pre-employment drug testing. This is 2020 after all, and it shouldn’t come as a surprise

that emotional support animals are a “thing” in the workplace now. That is one of five trends you’ll find in workplaces now, according to the editors at FitSmallBusiness.com, who analyzed data to determine that these are the most up-tothe-minute workplace trends.

OLD AND TIRED WORKPLACE TRENDS

Unlimited paid time off | Pre-employment drug testing Onsite childcare | 9-to-5 work week Open floor-plan offices

NEW HOTNESS FOR 2020

Emotional support animals in the workplace Gender-neutral bathrooms Artificial intelligence in the office Wearable fitness and safety technology Onsite electric vehicle charging stations

OWED MONEY? WE’LL COLLECT FOR YOU.

The experts in debt collection Hammerman & Hultgren, P.C. has been serving clients since 1977. Known for its excellence and integrity, the firm has emerged as Arizona’s premier creditor and collection law firm, in the eyes of both the local and national legal communities. Our focus is collecting commercial and insurance subrogation claims. We act quickly to identify a debtor’s assets, secure a judgment, and recover the outstanding amount, including the use of enforcement remedies such as bank and wage garnishments. Let us help you collect your receivables.

hammerman-hultgren.com | 602-264-2566

R e pr e se n t i ng C r e di t or s Si nc e 1 9 7 7

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TRENDSETTERS

HERE ARE ARIZONA’S

20 BIGGEST SOFTWARE COMPANIES AFS Technologies

What it does: Retail promotion management for consumer products companies CEO: Joe Bellini

Aspect Software

What it does: Contact center software for large call centers CEO and president: Patrick Dennis

Axon (formerly Taser International)

What it does: Evidence management software and devices for law enforcement CEO: Rick Smith

Axway

What it does: Enterprise integration and EDI technologies CEO: Patrick Donovan

Cerner

What it does: Software platform for the healthcare industry Chairman and CEO: Brent Shafer

Early Warning Services What it does: Payment and risk protection solutions for financial institutions CEO: Paul Finch

Enghouse Interactive (Syntellect)

What it does: Multi-channel call center and unified communciations software Chairman and CEO: Steve Sadler

GlobalTranz

What it does: Freight brokerage and trucking logistics Chairman and CEO: Renee Krug

In this issue of Az Business magazine, Greater Phoenix Economic Council CEO Chris Camacho talks about how Metro Phoenix has evolved into a “tech hub.” Nowhere is that evolution more evident than in the explosive growth of software companies in the Valley. Here are Arizona’s biggest software companies — based on employee count and in alphabetical order — according to Gregslist.

GoDaddy

What it does: Website domain registration and small business marketing tools CEO: Aman Bhutani

International Cruise & Excursion

What it does: Platform manages reward programs for the travel industry CEO and co-founder: John Rowley

Keap (Infusionsoft)

What it does: Sales and marketing automation for small businesses CEO: Clate Mask

Nextiva

What it does: Unified communications software for businesses CEO and co-founder: Tomas Gorny

OfferPad

InEight

What it does: Full-service home buyer with software platform CEO and co-founder: Brian Bair

JDA

What it does: Integrated CRM and CMS for destination marketing companies CEO: Ryan George

What it does: Project management software suite for capital-intensive industries Chief product officer: Brad Barth What it does: Supply chain logistics and retail planning software CEO: Girish Rishi

SimpleView

Truyo

What it does: SARs, consent and data privacy management CEO: Kal Somani

Verra Mobility

What it does: Traffic, fleet and vehicle management solutions CEO: David Roberts

Vixxo

What it does: Asset and facilities management software and services President and CEO: Jim Reavey

WebPT

What it does: Electronic medical records software and billing for physical therapists Co-founder and chief clinical officer: Heidi Jannenga

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LEADERSHIP SPOTLIGHT

GIVE GREEN A CHANCE

Here’s how this family-owned and operated dispensary is putting patients first through building relationships and sharing expertise

car accident can change someone’s life in an instant. For Marie Paredes Saloum, it led her to open a cannabis dispensary. After she saw cannabis’ healing properties while her husband was recovering from his car accident, Paredes Saloum became the founder and CEO of GreenPharms Dispensary. She opened her first location in Flagstaff in 2013 and then expanded into Mesa in 2016. As a female with Hispanic roots leading an industry that’s largely dominated by males and formidable investor groups, Paredes Saloum has taken an active role in advocacy, community philanthropy, cannabis education and providing medical certifications to patients across the state. Az Business sat down with the 35-year-old pioneer of Arizona’s marijuana industry to learn about her role and what she believes is at the heart of the heavily-regulated — and, at times, controversial — cannabis industry: patients. Az Business: What attracted you the cannabis industry? Marie Paredes Saloum: After my husband’s car accident, cannabis is what weaned him off pills and I saw how beneficial

MARIE PAREDES SALOUM:

“GreenPharms is driven to succeed in order to make a difference in patients’ lives,” says the founder and CEO of GreenPharms Dispensary. (Provided photo)

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it was. From there, my passion for cannabis has grown. From a business standpoint, it was a brand new market that hadn’t been really touched here in Arizona. From a personal standpoint, I actually stand by and believe in what it’s for. I believe that’s what drives me because I have perspective from both sides — I’m in the business, but I’m also a patient. AB: How big is the cannabis industry in Arizona? MPS: The first dispensary in Arizona opened in 2012 and now there are about 120. The patient count is growing by the day, so I see it expanding and growing rapidly. Hopefully, the initiative to legalize recreational cannabis will be on the ballot in 2020. If that passes, I believe the industry will reach even greater heights because more people will be able to use it. AB: What are the biggest challenges the cannabis industry faces in Arizona? MPS: I think more people need to be educated and ask questions to be more open-minded about cannabis. We don’t really talk about it, other than you believe in cannabis or you don’t, so by discussing what the issues are with cannabi, some progress can be made. AB: What qualities do you have that helped you become an effective leader of your company? MPS: It’s my passion for cannabis and its healing capabilities and building relationships with our patients. I think having my husband by my side and putting people around me that believe in the same things I do — such as cannabis industry standards — has helped me lead GreenPharms to what it is now. AB: What professional accomplishment gives you the most pride? MPS: What makes me proud is that people see that we care. We receive recognition and awards, which I appreciate because that means the patients see our vision for GreenPharms. AB: What do people in Arizona need to know about the state’s cannabis industry that might surprise them? MPS: I think it would surprise them how organized and structured the dispensaries are. We have more regulations on what we do and are forensically inspected more than probably any other industry in Arizona. We are an emerging industry that is setting standards that I hope will carry over to other industries that are not as structured as dispensaries.

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MISSING PIECE

WHAT IS MISSING IN ARIZONA’S WORKFORCE?

n Arizona, our biggest issue in workforce isn’t the tight labor market, it’s that business needs are perpetually moving faster than our ability to train talent with relevant skills. We have an abundance of stand-alone and similar efforts that are not strategically aligned in our workforce ecosystem. Career development isn’t led by industry needs and it’s not provided when students and job seekers are ready to make decisions about careers and requisite education. Building talent pipelines for the future should be our No. 1 priority as a state if we want to remain a dynamic and desired place to work and live. Our community has come together to build, launch and now adopt a statewide workforce development and talent optimization solution called Pipeline AZ. This public-private partnership approach and level of community collaboration will give us insight into the digital skill footprints of our market, allowing us to make better education and policy decisions that will improve our collective economic outcomes and future generations of prosperity. Unique efforts and industry alliances to connect to Arizona’s current and potential workforce are strong and will become stronger through a magnified focus on currently independent efforts through the unique Pipeline AZ ability to link and unify industry-led campaigns in a single digital market. Current labor market conditions and forecasts for unprecedented talent shortages mean that the ability to reach students, job seekers and all potential labor force participants

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that talent is driver that will determine Arizona’s ability to grow and thrive. We are attracting more businesses and jobs here than ever before- according to the Greater Phoenix Economic Council, more companies and emerging industries have relocated to our region than any other year in their 30-year history. This is Katherine Pappas exasperating the need for skilled people Workforce to fill the demand that is rising even with the continued migration of skilled talent to improve the skills needed to support relocating to Greater Phoenix on a daily industry will have an outsized impact on basis. There is an unprecedented amount our state’s future. Industry leaders are now of global competition, millions of baby recognizing that they need to rethink how boomers are departing from the workforce they grow, find and retain talent. and there is a disconnect between industry The ability to understand the skills and and educators looking to understand competencies employers need to hire and needed skills. the most efficient way to enter a pathway Pipeline AZ is making the process to employment, offer an immediate of exploring realistic pathways and opportunity for business and industry to developing skills to match to real-time invite all to the discussion of Arizona’s and forward-looking employer demand future. Pipeline AZ believes that potential accessible to current and potential candidates, with the ability to easily review workers alike and changing the way a match-fit career pathway, and receive job seekers and employers connect in industry support through awareness, Arizona. With industry participation — scholarships, and an increased bridge to and as a united community — we can career development will respond through expose students to career awareness workforce participation. and education about industries and Students, youth neither enrolled in career options early on so that they can school or working at a job, veterans, begin to optimistically and realistically military spouses, underserved audiences understand how to aim towards a and all of the hardworking residents of rewarding and purposeful career right the state, both employed and away from here in our beautiful state and meanwhile work, are the most important audience also contribute to the labor market and and our state’s greatest asset. The legacy the economy in a meaningful way. of Arizona’s past - copper, cattle, cotton, Katherine Pappas is director of workforce citrus and climate - have brought us to strategy at Pipeline AZ. the present, and a collective awareness

EAST 20 YOUNG VALLEY BUSINESS UPDATE LEADERS TO WATCH IN 2020

By MICHAEL GOSSIE

e have all read about — or talked about (mostly behind their backs) — the stereotypes that have been assigned to the younger members of today’s workforce — think age 40 and younger.

“Zero Mass Water, operates in a space that is just now starting to be defined: Renewables 2.0.” Sidnee Peck, Chief of staff, Zero Mass Water

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YOUNG BUSINESS LEADERS TO WATCH IN 2020 Meet the up-and-coming — or already here — innovators who are changing Arizona’s landscape and the way we approach business Too many people view them as a generation of cornhole-in-the-office-playing, craft-beerdrinking, selfie-stick wielding narcissists who are way too self-involved because they grew up in a era when everyone goes home with a trophy. Think again. “Our company, Zero Mass Water, operates in a space that is just now starting to be defined: Renewables 2.0,” says Sidnee Peck, chief of staff at Zero Mass Water and founding member of Golden Seeds Arizona. “The last 20 years have opened the minds of the mass market to the value and accessibility of renewable energy. Now thought leaders and boundary-pushing entrepreneurs are looking at any and all resources we use, including what we spend our time on at Zero Mass Water: renewable water.

This innovation — capturing water from an endless supply of water vapor in the air using only sunlight as a power source — will snowball, or hopefully avalanche, with myriad other innovations aiming to solve for truly resilient lifestyles driven by renewable resources.” Today’s young business leaders are changing the face of business and bringing new ideas and innovations to Arizona that make it a better place to live, work, and play. Over the next several pages, you’ll meet a healthcare innovator, aviation industry disruptor, the 35-year-old CEO of a major sports franchise, and young business leaders who have founded companies or brought new ideas to old ones and are changing the way their companies do business and redefining workplace culture all at the same time.

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EAST 20 YOUNG VALLEY BUSINESS UPDATE LEADERS TO WATCH IN 2020 ELIZABETH “IZZY” LAWRENCE, 27

State regulatory advisor, Arizona Public Service Source of pride: “Choosing to pursue an MBA while working full time gives me great pride. While trained as an engineer, at the time I was working as an operations shift supervisor at a natural gas power plant, which was very challenging. However, I knew I wanted to learn more about how businesses operate, and my MBA would help me gain this knowledge. I’m set to graduate in May 2020.”

SAMUEL S. CHANG, 40

Real estate partner, Lewis Roca Rothgerber Christie Source of pride: “I am very proud of the long-standing, trusting relationships I have developed with my clients, ranging from mom-andpop shops to some of the largest businesses in Arizona. I am honored to provide guidance to my clients’ real estate projects and developments, which are making Arizona and Phoenix ‘the hot place to be.’ I make a point to roll up my sleeves and be in the trenches with each of my clients.”

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SIDNEE PECK, 37

Chief of staff, Zero Mass Water; founding member, Golden Seeds Arizona Source of pride: “In my first year at Zero Mass Water I was entrusted with a project to manage and install a Hydropanel array in Puerto Rico after Hurricane Maria wiped out access to electricity and water to almost everyone on the island. I am incredibly proud to have led the project that now provides uninterrupted clean drinking water to Utuado, P.R., storm or shine.”

AMY SCOVILLEWEAVER, 31

Sustainability program manager, Arizona State University Watching in 2020: “Companies are taking center stage in solving the world’s biggest problems. Higher education institutions, such as ASU, provide crucial intellectual firepower to design innovative and informed solutions. As corporations continue to seek alliances in 2020, I envision ASU emerging as a thought partner and co-designer of solutions. The impact of this will be felt across our research, students, faculty and communities as we continue to explore how to design, create and shape a future in which Earth will thrive.”

BRIAN POE, 39

Wealth counselor, Versant Capital Management Watching in 2020: “Women will control 70 percent of the U.S. wealth by the end of the decade. The average life expectancy of women today is 81 years. The average age a woman becomes a widow is 59. And 90 percent of women will be solely responsible for their finances at some point in their lives. The need for better financial education and wealth management professionals who can relate and build ongoing relationships is crucial for this growing segment of women in money management.”

SCOTT VANDERPOOL, 37

Senior vice president and Phoenix market executive, Bank of America Source of pride: “Implementing a HispanicLatino Business Council strategy for Bank of America’s largest 20 Hispanic-Latino markets across the country, including a council in Phoenix to direct more financial, philanthropic and thought leadership capital towards helping grow Hispanic-Latino businesses, clients and households. This included a new Spanish language multimedia marketing campaign and more than $3 million in Latino economic grants to build capacity for businessrelated nonprofits serving the communities with the largest Latino populations, including Phoenix and Tucson.”

TIFFANY PHAM, 30

Assistant vice president, treasury management application support, Western Alliance Bank Watching in 2020: “Technology is changing the shape of every industry. In 2020, I feel that tech innovations currently underway in banking, especially in my area of payments, will surge. The result will mean that banking will become more convenient and accessible to a wider range of busy business professionals. In the same vein, it will help our industry enhance connections with clients by increasing accessibility and improving communications.”

TY JAMES LARGO, 38

CEO and creative director, AWE Collective Watching in 2020: “If you’re looking for big impact, I’ll always double down on invention. The element of surprise can break a competitor’s carefully crafted public relations campaign, shatter their calculated digital buy or diminish the results of any tried-and-true marketing approach. I love hearing competitors say, ‘I didn’t know our industry could do things like that.’ They can’t plan for your invention –– and that’s why it works.”

LINDSEY BENSON, 32

Audit manager, CBIZ & MHM Watching in 2020: “Many firms are testing or developing various forms of artificial intelligence to help increase the quality of their auditing procedures. Like any new technology advancement, there is a learning curve that comes with change and practitioners have to identify and develop the appropriate skills to effectively use AI. The significance of utilizing AI in the audit process will be a more data-driven risk assessment, efficiency in the audit procedures performed, and ultimately providing our clients additional value beyond the compliance process.”

JUSTIN BAYLESS, 35

President and CEO, Bayless Integrated Healthcare Watching in 2020: “Millennials will begin assuming more leadership positions over the next five years, which will bring a new perspective to issues that plague healthcare. Technology will allow providers to access more patients as well as engage patients to take a greater role in their own care. Artificial intelligence, technology-enabled activity trackers/wearables, retail and convenient care settings, and telehealth are at the infancy stage in healthcare and will be at the forefront of the disruption in the near future.”

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EAST 20 YOUNG VALLEY BUSINESS UPDATE LEADERS TO WATCH IN 2020 SONNY PATEL, 25

Founder and CEO, Insurmi Source of pride: “Successfully launching my company. I was 21 when I started Insurmi, maxing out credit cards and taking out loans just to get to the company off the ground. Looking back on it all — especially now having raised a $1 million investment — I’m immensely proud.” Watching in 2020: “ The biggest innovation for insurance will be AIpowered technology. AI can be applied in a number of ways — chatbots being the most well-known — and its benefits include increasing customer engagement, capturing business leads, and analyzing data.”

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ALISSA BRICE CASTAÑEDA, 39

Partner, Restructuring, Bankruptcy & Creditors’ Rights Practice Group, Quarles & Brady Source of pride: “In its ninth year, I am honored to serve as President of the Arizona Bankruptcy American Inn of Court, an association of judges, lawyers, and other legal professionals who are committed to fostering excellence in professionalism, ethics, civility, mentorship, and legal skills within the Arizona bankruptcy community.” Watching in 2020: “There are no crystal balls to peg exact timing of course, but historic economic cycles portend a coming correction or recession.”

ADAM SHIPLEY, 24

Planning and zoning analyst, City of Maricopa Source of pride: “My proudest accomplishment is every time I help a new entrepreneur transform their dream into a reality, bringing a positive force into the community.” Watching in 2020: “Climate change will have the biggest impact on development going forward. We need to think globally and act locally, mitigating climate change with net-zero waste buildings and adapt to drought, extreme heat, and climate refugees. The need for urban resiliency will redefine the way we plan, build and live.”

ALEXIS KRISAY, 37

Partner and president of marketing, Serendipit Consulting Watching in 2020: “Personalization. Consumers expect personalization and marketers are going to have to adapt. This is going to challenge us as marketers to dig deeper to understand all the needs, wants and preferences of consumers. As marketers, we are going to need to deliver spot-on personalization that captures consumers at their first engagement with our brand. For marketers, this expands our campaign creation and segmentation efforts and will require us to develop creative intelligence in our delivery and conversion processes.”

HANNAH PORTER, 31

Shareholder, Gallagher & Kennedy Source of pride: “In 2018, I was the second chair in a month-long jury trial in which my client was accused of bribery. The government ultimately ended up dropping all charges. It was a hardfought case that garnered a lot of publicity, so it was gratifying to get such a great result for my client.” Watching in 2020: “As the amount of electronically stored information continues to grow, so, too, do the costs of pre-trial e-discovery … (which is) forcing clients to reevaluate whether mediation makes more sense than litigation.”

MATT SKELLY, 29

Associate attorney, Burch & Cracchiolo Source of pride: “Nothing makes me prouder than standing up for people who are being taken advantage of, and in this job I’m lucky enough to get to do that on a regular basis. Most recently, a truck driver facing multiple personal challenges called me because the company he used to drive for sued him for something he didn’t do. He was in a difficult place, … so I took his case to trial and now, instead of having to pay them, they owe him a significant amount.”

LINDSI M. WEBER, 40

Shareholder, Polsinelli Source of pride: “In September I had the honor of being sworn in and admitted to practice before the United States Supreme Court in a private ceremony at the Court, which is a moment I will always remember. As for my daily practice, one major accomplishment was moving into the role as lead trial counsel with responsibility for developing case strategy and leading the trial team.” Watching in 2020: “A trend I would like to see continue in 2020 is an increased awareness of the importance of being kind.”

MIKE BIANCO, 38

CEO, AvAir Source of pride: “AvAir’s culture and reputation as a global leader in the aviation aftermarket with small company values is what makes me proud to be its newly appointed CEO.” Watching in 2020: “Sustainability is one of the most important global issues, and companies in the aviation industry have been finding ways to reduce their carbon footprints for years. Those initiatives include finding partners whose operations are environmentally conscious. AvAir’s headquarters runs entirely on solar energy, and I expect to see more companies following suit.”

AHRON COHEN, 35

President and CEO, Arizona Coyotes Source of pride: “Growing up in Minnesota, I always dreamed of a career in sports. Still, I never imagined I would become the youngest CEO of a major pro sports franchise. Being named CEO of the Coyotes stands out because it means all those years of school and law school, late nights at the office and hard work have paid off.” Watching in 2020: “To me, it’s the way technology continues to impact fans’ experience both at games and at home.”

SCOTT SCHARLI, 37

Customer billing manager, SRP Source of pride: “I helped lead a team that created a critically important customer-facing program in less than 45 days … This experience taught me to never underestimate the power of teamwork.” Watching in 2020: “Batteries. Large-scale batteries can fundamentally shift how power companies generate and distribute electricity, while residentialscale batteries will provide customers with greater control over their energy use. And batteries that power electric vehicles can lead to homes and businesses becoming the gas stations of the future.”

AB | January - February 2020 23

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AB | January - February 2020 25

2020 OUTLOOK

2020 VISION Here’s how the business landscape looks as we embark on the new year

By MICHAEL GOSSIE

hen it comes to the economy in 2020, things look good in Arizona. But how long can it last? “The economy looks really promising right now,” said Elliott D. Pollack, CEO of Elliott D. Pollack & Company. “It’s late in the game, though. That’s good for economic consulting and it’s good for real estate.” Consumer spending is up and economic growth in Arizona and the rest of the U.S. is on the rise, but investor caution is one sign pointing to a potential recession in 2020, global economist Bernard Baumohl told Valley business leaders at the annual SRP Economic Forecast. “There is an undercurrent of alarm in this country that a recession is not only possible, but probable in the next year,” Baumohl said, adding that business-capital

AB | January - February 2020

investors are not buying at their normal rates and are being more cautious. “We have the trade war, which has fluctuated between escalation and rising tensions, and some moments of cautious optimism.” Baumohl said the uncertainty about Brexit and other economic factors could push Europe toward recession. Also, it’s unclear if the U.S. will ratify NAFTA 2.0 – the United States-Mexico–Canada Agreement, “which is very important for the state of Arizona.” While presidential election years generally bring a lot of questions to the business world, Arizona business leaders carry an air of confidence as we embark on the new year. “2020 will be a renaissance year in Arizona real estate,” said Brian North,

CEO and founder of North&Co. “With the strong growth of the housing market for nearly 10 years, low interest rates, and a strong economy, the conversations of pessimism will continue to transition to optimism. Most of us will have all but forgotten the pain of the mega recession of 2008 and 2009, and we will likely lead the country in growth.” Thankfully, it’s not just the real estate sector that is driving Arizona’s economy into 2020. “This is the best job market we’ve seen in over 20 years and Arizona is leading the way,” said Travis Laird, regional vice president for Robert Half. “During this cycle, it has been tremendous to see many organizations relocating to Arizona and the talented professionals who

TRENDS TO WATCH IN HEALTHCARE: “In healthcare, cosmetics, and MedTech we are seeing a huge reliance on independent startups as the new research and development labs of the giants,” said Ben Smith, CEO of Xcellerate Biomedical Technologies. “Gone are the days of mass funding big corporate R&D. Instead they are shifting dollars to fund managers to seek out new and innovative platforms, treatments and research. You can see more conferences and trade shows geared to highlight startups and share their data, as well as private equity and venture capital firms looking farther down the revenue stream to even now consider prerevenue companies for potential minor stakes. 2020 will be an exciting time to be in the research phase for many startups.” IN LAW: “Exceeding client expectations while assisting clients with managing their legal spend will continue to be critical,” said Coree Neumeyer, partner at Quarles & Brady. “As such, smart firms — including ours — will be continuously researching, investing in and leveraging emerging technologies to increase efficiency, improve client communication, and provide a more client-personalized service. Firms like these will be well-positioned for significant growth in 2020 and beyond.” IN TECHNOLOGY: “One trend that will have the biggest impact in intellectual property protection in 2020 and beyond is the boom in artificial intelligence (AI),” said Cindy Villanueva, intellectual property partner at Lewis Roca Rothgerber Christie. “With AI becoming ever more widespread, it is revolutionizing every aspect of life and work, including how AI is protected under intellectual property law. AI has widespread repercussions in regards to how innovations created by AI will be, or can be, protected, including issues related to authorship and ethical concerns.”

have followed. We’re also seeing worker confidence at its peak.” Laird said the historically low unemployment rate is giving local workers increased confidence to explore career moves and managers are taking notice, moving faster than ever to attract and retain top talent. “Compared with other markets, we still have room to see unemployment decline and wage growth accelerate,” Laird said. “Look for both to continue to happen through 2020.” In terms of the hottest sectors for growth in 2020, Laird said to watch healthcare, financial services, manufacturing, technology and bioscience industries. “These industries are fueling job growth and pulling in a talented, innovative

Bernard Baumohl

Travis Laird

Coree Neumeyer

Brian North

Ben Smith

Cindy Villanueva

workforce,” Laird said. “To land this top talent, companies will need to present more attractive offers in the way of compensation, and attractive perks and incentives such as remote possibilities and benefits in order to compete in this competitive market.” Baumohl cautioned that some signs of optimism can be misread – including rapid growth, low unemployment, consumer spending. He said it’s better to pay attention to businesses’ reluctance to invest as a symptom of an economy that appears about to peak and then plunge. “We are really at a pivotal moment in U.S. economic history,” Baumohl said. “We’re now well into our 11th year of uninterrupted economic growth, and we have never seen that before. It’s absolutely unprecedented. The average number of years an economy usually experiences uninterrupted growth is less than five before it gets in trouble again.” Cronkite news service information was used in this report. AB | January - February 2020 27

2020 OUTLOOK HEALTHCARE

2020

DIAGNOSIS Here’s what Arizona’s healthcare leaders say we can expect to see this year

By MICHAEL GOSSIE

he one thing that never changes about healthcare is that there are constant changes. “This is the most exciting and challenging time in healthcare, perhaps ever,” says David A. Dexter, president and CEO of Sonora Quest Laboratories. “Leaders have the power to reshape and significantly improve the industry.” There are new innovations to care and new treatments being developed that change patients’ outcomes. But one thing that healthcare leaders have not been able to reshape is the upward trajectory of healthcare costs, which experts say will continue throughout 2020. PwC’s Health Research Institute (HRI), which projects the growth of medical costs in the employer insurance market each year, says medical costs are expected to increase six percent in 2020, which is a slight increase

AB | January - February 2020

from 2018 and 2019, when costs rose 5.7 percent. To drive medical cost trend down, experts say employers are taking a more active role in managing healthcare costs. For example, they’re negotiating contract prices themselves, setting up provider networks and even building a parallel health system to take care of employees at more manageable costs. “The healthcare industry is in the throes of a disruptive reinvention,” says Peter S. Fine, president and CEO of Banner Health, the state’s largest employer. “I fully expect that disruption and its demands for lower cost, better access, higher quality and enhanced customer responsiveness will aggressively continue into 2020.” So what else can we expect in 2020? Here’s what other healthcare experts say to look for this year.

ANDREW S. KRAFT, MD, director; The University of Arizona Cancer Center: “For cancer research, I think we are going to find new cures and make an impact for patients as we head into 2020. These impacts will be gradual, but progressive.”

DAVID J. JACOFSKY, MD, chairman and CEO, The CORE Institute: “We’re seeing a fundamental transformation in how care is delivered and how stakeholders are incentivized to deliver care. This shift away from volume-based reimbursement to value-based reimbursement will require scale and investment that will drive continued consolidation and will shift care to lower cost, integrated, outpatient care networks.”

TODD LAPORTE, CEO, HonorHealth:

CHRISTINA OH, CEO, Abrazo West Campus: “I look for technology to redefine the way patients interact with healthcare providers in much same way that it has changed our approach to other areas of our lives like transportation and takeout. I also believe that health systems will be challenged to find more ways to deliver care in the outpatient setting.” KATHLEEN H. GOEPPINGER, PhD, president and CEO, Midwestern University: “Because of the dynamic nature of today’s higher education landscape, the financial stability of colleges and universities will be a deciding factor as to where students choose to invest in their education. Accordingly, higher education institutions have a responsibility to work with their students as they navigate financial aid options available to them. Midwestern University has programs in financial literacy in place that work with its students so they understand the importance of being fiscally responsible and can make sound decisions when determining the amount of loans needed to conservatively finance their chosen degrees. Because of our proactive efforts, our Federal Cohort Default rates have consistently been under one percent.”

“HonorHealth is pivoting from being just a hospital system that treats patients when they are very sick, to being a healthcare system that promotes the health and well-being of its community: before, during and after hospital visits … I believe the healthcare forecast for individual patients and our general community will improve as we move into the next decade, specifically with high quality demonstrated through effective outcomes directed by evidence-based practices, satisfying ‘consumer experience’ journeys facilitated by a more coordinated hub of healthcare providers, and effective use of continuously advancing automation and technology that allows care to be more accessible and affordable.”

STEVE PURVES, president and CEO, Valleywise Health (formerly Maricopa Integrated Health System): “I see great opportunities to reinvent our healthcare industry. Technology and innovation is creating possibilities to deliver better healthcare, at less cost and to better address the social determinants of health.”

ROBERT L. MEYER, president and CEO, Phoenix Children’s Hospital: “The demand for comprehensive pediatric services continues to grow. Much of our industry’s efforts center on developing exceptional pediatric talent to meet these needs. We will continue to offer new and improved training programs that expose physician and nursing students to more clinical time at the patient bedside, and give them ability to conduct critical research to improve processes across the system. Our aim is to educate the next generation of pediatric experts and create a pipeline of talent to our organization.”

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2020 OUTLOOK HEALTHCARE DEVINDER SINGH, MD, founder, Arizona Center for Cancer Care: “In 2020 and beyond, there will be a shortage of oncologists because of the aging Baby Boomer population and the fact that cancer patients are living longer with the advent of newer targeted therapies and immunotherapies.”

MARYANN GUERRA, CEO, Aesthetics Biomedical: “Our product line focuses on noninvasive RF Microneedling, a segment of noninvasive fractional resurfacing. This category grew 99.5 percent from 2016 to 2017, with annual expenditures exceeding $73 million. Growth since 2012 was a whopping 420 percent. Nonsurgical procedures were up 4 percent. Injectables were up 5.1 percent, with a massive 40.6 percent increase in the past five years. Business is booming.”

LAURA ROBERTSON, CEO, Banner Desert Medical Center and Cardon Children’s Medical Center: “We’ll continue to see the added

pressures and high expectations to deliver an improved and easier healthcare delivery system that produces strong, consistent clinical outcomes and experiences in a consumer-centric (versus providercentric) model. We’ll continue seeing a focus on making healthcare easier, better and less expensive for our consumers. There will also be an increased use of technology to supporting consumer access and creating new methods for care.” JEFFREY M. TRENT, PhD, president and research director, Translational Genomics Research Institute (TGen): “In the coming year, there will be two key drivers in the practice of genomicbased precision medicine — immunotherapies and Big Data. Immunotherapies are those that re-engage the body’s own immune system to fight cancer. At TGen, and our affiliate City of Hope, we are developing immunotherapies that essentially retrain the immune system and uncloak the tumors so that the body’s own protective systems can come to bear, in concert with chemotherapies and other medical interventions, to defeat cancer.”

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FRANK MOLINARO, market CEO, Abrazo Community Health Network: “The industry continues to see drastic changes but I’m an optimist and think hospitals as a whole have reacted very well to the challenges. I believe our hospitals are safer, more efficient and more patientcentered than ever before and I’m grateful to be a part of that.”

LAMONT YODER, CEO, Banner MD Anderson Cancer Center: “Our industry has never been more exciting as consumers demand greater affordability and value. Although disrupters joining our industry and artificial intelligence will create new discoveries, our people will remain our key differentiators as human caring, touch, and compassion cannot be replaced or underestimated. People and purpose are our future.”

JOAN M. KOERBER-WALKER, president and CEO, Arizona BioIndustry: “2020 will bring new cures and new discoveries. As researchers, innovators, healthcare providers and payors, we need to work together to find new ways and new models that will drive health innovation forward faster and ensure that the people who need these innovations can get them. Patients and their families are depending on us.”

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2020 OUTLOOK LAW

VERDICT: CHANGE

Here’s what Arizona’s legal industry leaders say we can expect to see in 2020

he legal industry is in the midst of a makeover. “Technology and the Internet are certainly catalysts, but the legal services industry itself is transforming as lawyers and third-party service providers, such as CPAs, appraiser, brokers, and engineers, are able to better coordinate their respective tasks and responsibilities and communicate with clients on a coordinated basis,” says Sonia M. Phanse, partner at Shein Phanse Adkins. “The client and professional synergies these new capabilities create improves quality and lowers cost — with no real end or limitation in sight … The opportunities are transformative.” While the legal industry is filled with opportunities heading into 2020, those who follow the industry closely see that aging and retiring Baby Boomers, global expansion, and the adoption of artificial intelligence and new technologies will

AB | January - February 2020

continue to play an important role in the lives of lawyers and their clients. Change will undoubtedly the only constant in this industry. “The legal industry needs to more aggressively embrace change — in technology, in practice management, and in meeting the demands of our clients,” says Kenneth Van Winkle Jr., managing partner at Lewis Roca Rothgerber Christie. “To be truly successful, we must also embrace and understand the changes our clients are facing, so we can more thoughtfully help them address their legal needs.” With those law industry opportunities come some obstacles to overcome in 2020. “I see several persistent challenges,” says Judith K. Weiss, partner at Perkins Coie. “How are firms able to satisfy clients’ demands for more inclusive and diverse teams? What value-adds will firms provide to inspire and reward client loyalty?

Will firms develop more innovative, less complex pricing models so clients can see the real value a law firm provides?” So what other questions will need to be answered in 2020 and what other changes can we expect? “We will continue to boom our way right through 2020”, says Grady Gammage, Jr., partner at Gammage & Burnham. “Employment growth will continue to be strong and that is great. Growing a diverse economy beyond just construction and migrants coming for the Arizona sunshine is the most important thing we can continue to cultivate.” Here’s what other legal experts say to look for this year.

MARK S. BOSCO, shareholder, Tiffany & Bosco: “Looking forward at the legal industry, we remain optimistic heading toward 2020 and beyond. The current regulatory changes generally make the industry an easier environment for our clients to operate. The current robust economy generally results in increased activity and investment by our clients into their businesses, thus resulting in their increased need for our legal services. Cybersecurity remains a significant threat and must not be minimized or ignored.” JOSEPH T. CLEES, shareholder, Ogletree Deakins: “Our employment practice will continue to be robust — regrettably, for employers. Employment and labor law is increasingly high-stakes, collectivized, counterintuitive and inconsistent. And workers are increasingly aware of their rights and willing to assert claims, as the #MeToo movement has demonstrated.”

WILLIAM A. CLARKE, chair of the Estate Planning and Probate Department, Jennings Strouss & Salmon: “The current changes in estate tax law have reduced the percentage of taxpayers that are subject to estate taxes to less than 0.1 percent of the overall population. Given the current taxpayer favorable rules, the vast majority of estate planning clients need to focus on doing what is right to secure their families’ future, which is particularly important with ‘blended’ families.”

MARIA CRIMI SPETH, shareholder, Jaburg | Wilk: “E-discovery and AI are changing the way that we litigate cases. I believe that lawyers who do not keep up with technology will be at a great disadvantage and those of us who do keep up with technology will need to continue to use it to become more efficient for our clients.”

JOHN ALAN DORAN, member, Sherman & Howard: “In the labor and employment law space, I expect continued litigation growth, notwithstanding the current conservative administration. I suspect there will be lots of new opportunities for attorneys, and the robots aren’t quite ready to replace us just yet.”

RICHARD A. FRIEDLANDER, member, Dickinson Wright: “Continued consolidation of law firms and more legal work will be moved in-house. Cybersecurity has and will become critical for law firms to adopt policies to implement defenses to protect stored data from cyberattack. I expect key growth areas to relate to infrastructure projects, mergers and acquisitions, project finance and cybersecurity.”

G. JAMES GOODNOW, III, president and managing partner, Fennemore Craig: “Change will continue to be the only constant in the legal field. Forces like artificial intelligence will continue to perform tasks in hours that it took teams of lawyers months to complete, and alternative service providers will continue to make inroads, so law firms better start adapting.”

STACEY F. GOTTLIEB, of counsel, Cohen Dowd Quigley: “My hope heading into 2020 is that the courts will stand strong under the rule of law and not be swayed by political pressures, thereby helping the nation regain a healthy respect for truth and justice.”

ANGELA K. HALLIER, partner, Hallier Lawrence: “The divorce industry stays fairly steady during both economic booms and busts. We are as busy as we’ve ever been with a rush of cases coming in given the good economy. We expect that to continue.”

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2020 OUTLOOK LAW

RANDY NUSSBAUM, shareholder, Sacks Tierney: “My practice focuses on assisting professionals and certain industries facing financial distress. Because Americans have an unfortunate tendency to forget the mistakes of the past, I suspect I may be much more busy in the foreseeable future.”

LAWRENCE J. ROSENFELD, senior counsel, Squire Patton Boggs: “I expect there to be lots of activity in the labor and employment law practice. We are experiencing a sea of changes due mainly to two developments — the dramatic shift we have already experienced (and will continue to experience) as a result of the 2016 election; and the rise of the #MeToo movement. While these developments are at the polar opposite ends of our political discourse, each will likely contribute to the vibrancy of our field, and should continue to keep us very busy.” SANDRA SHERIDAN REGUERIN, partner, Fragomen, Del Rey, Bernsen & Loewy: “Immigration reform is a major focus of the Trump administration. Several proposed changes could fundamentally alter the current employment-based immigration system. It is critical for companies to stay informed and to engage with lawmakers and agencies regarding the impact of such changes to their businesses.”

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WENDY RIDDELL, managing member, Berry Riddell: “I have a positive for 2020, of course. It is amazing to see the types of projects coming down the pipeline that we are seeing, and the investment coming into the Valley on a daily basis. People are attracted to the Phoenix metro area because of our incredible quality of life. I think you are going to see more companies choosing to relocate to the Valley, and more continued economic growth.” KRISTEN B. ROSATI, partner, Coppersmith Brockelman: “Healthcare continues to change at breakneck speed. Healthcare law is in flux, with healthcare reform, regulatory updates and new federal and state laws. But healthcare technology evolves even more quickly, posing real challenges for the law to keep up with it.” BAHAR SCHIPPEL, partner, Snell & Wilmer: “Congress recently enacted the most sweeping set of tax law changes in 30 years. So far, these changes have helped many businesses reduce their tax liability. But tax law is complicated and businesses need capable tax advisors to help them optimize their tax benefits. I anticipate 2020 to be another busy year with me assisting clients with how to reduce their tax burdens through proper planning.” WENDI A. SORENSEN, partner, Burch & Cracchiolo: “Value for service is key. Clients continue to become more knowledgeable and (rightfully) expect excellent service and work quality for their legal dollars. Litigation needn’t be endless or unduly expensive. Attorneys should always develop their litigation plans in a way that emphasizes opportunities for early resolution for an appropriate result.” MICHELLE SWANN, partner, Radix Law: “We will continue to see non-competition and non-solicitation be a focus in employment law as employees move from job to job. The rising minimum wage will continue to be an issue for small to mid-sized companies with unskilled labor and how they deal with it will be a potentially new area for increased legal involvement.”

AB | January - February 2020 35

2020 OUTLOOK REAL ESTATE

BUILDING TOWARD THE FUTURE Here’s what Arizona’s real estate leaders say we can expect to see this year

By MICHAEL GOSSIE

ven a rise in interest rates cannot slow Arizona’s red-hot housing market. “The modest uptick in mortgage rates over the last several months reflects declining recession fears and a more sanguine outlook for the global economy,” says Sam Khater, chief economist for Freddie Mac. “Due to the improved economic outlook, purchase mortgage applications rose 15 percent over the same period a year ago, the second highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into 2020.”

AB | January - February 2020

That renewed confidence in the economy has most Arizona experts bullish on Arizona’s residential real estate sector. “The Arizona housing market stumbled late last year, with rising mortgage interest rates and lower confidence levels,” says Jim Belfiore, founder and president of Belfiore Real Estate Consulting. “Demand levels remain down year over year at the moment, but the delta between last year and this year has narrowed to its lowest level over the last few weeks. We expect demand to surge in the second half of 2020 and in the spring of 2021, with the only concern on the horizon being Arizona’s — and the country’s — ability to attract more workers into the labor market to fill newly created jobs.” But one demographic the residential real estate sector cannot depend on to drive demand in the near future is Millennials. According to Apartment List’s 2019

Millennials & Homeownership Report, 11 percent of Millennial renters in Metro Phoenix expect to rent forever. Of those who expect to purchase a home, 58 percent have not yet started saving towards a down payment. At current savings rates, just 18 percent of Phoenix’s Millennial renters will be ready to put down 10 percent on a median-priced starter home in the next five years. While Millennials have been blamed for destroying a wide array of industries — from tuna to doorbells — their seeming lack of interest in buying homes cannot dim the industry’s optimism as we embark on 2020. Here’s what some Arizona real estate experts expect to see in 2020:

CLINT FOUTS, president and CEO, West USA Realty: “2020 will be a year of similar growth and inventory to 2019. Practitioners must remain focused on the consumer’s experience and perception of our services amidst tech firms’ attempts to attack and diminish the Realtor’s role and value proposition. In addition, consumers are now aware of the iBuyer services and resulting net proceeds. The iBuyers will continue to attract sellers within the existing portion of the market caused by normal default rates, corporate relocation, and sellers who need to sell within a specific time period. Consumers are opting for the traditional real estate listing represented by a Realtor over the significantly discounted net proceeds realized when using the iBuyer services.”

IMPACT OF TECHNOLOGY

MICHELLE SCHWARTZ, senior vice president and county manager, Old Republic Title: “2020 will bring rapid changes in how real estate closings are transacted. I see it becoming faster-paced due to the e-closing and remote notary processes that are on the immediate horizon.” MATT WIDDOWS, CEO and founder, HomeSmart: “The real estate industry is going through a lot of change. Traditionally, everyone has always said that, but this time it’s for real. There is a ton of consolidation – the way things used to be done just isn’t good enough anymore. Much of this is technology driven, but much of it is human driven with consumers wanting more information, more control over processes and more choices. Technology is making this easier for the human to achieve, thereby changing entire industries and business models.”

IMPACT OF LABOR SHORTAGE

JIM LYON, chairman, Russ Lyon | Sotheby’s International Realty: “The industry has become so focused on technology and computer generated service through the Internet, that real estate transactions are impersonal and automated. This year, our focus is going to be taking real estate back the basics of conversations, one on one experiences, and personal relationships, yet maximizing the most up-to-date technology to provide exceptional service for our clients.”

MIKE GODBEHERE, president, GCON Custom Homes: “We have had strategic growth, hitting our 2020 goals three years early. For our industry to continue this success, we need workers in the trades and need to get the word out that there are quality jobs with great benefits that don’t always need college degrees.”

LINDSAY A. CULLUM-COLWELL, managing principal, Cullum Homes: “The residential construction industry will grow at a steady pace in 2020. Thanks to a shortage of skilled labor in a majority of the construction trades, the market is not being overbuilt.” AB | January - February 2020 37

2020 OUTLOOK REAL ESTATE ALANA MANN, president and owner, Statesman Group of Companies: “The costs of construction and staffing — especially in senior living — is rapidly inflating. So, I am going to continue to diversify my portfolio and explore innovative ways to help the mature resident delay the foreseeable lifestyle of expensive assisted care by preserving their independence without compromising social connectivity.”

MULTIFAMILY MARKET

LAURA ORTIZ, president, Evergreen Devco: “The commercial real estate industry continues to evolve, but is strong in our markets. For companies like Evergreen, who innovate and are creative and flexible, there are opportunities for new developments and redevelopments. Evergreen’s multifamily work will also continue to grow steadily. I am very optimistic heading into 2020.” CHAPIN BELL, president and CEO, PB Bell: “We continue to believe in the strength of the apartment market in the Phoenix metropolitan area. Our market continues to benefit from the job growth, population growth and household formation growth in Phoenix. Demographic trends and homebuilding trends also continue to help keep the wind in our sails. We are seeing some softness in some sub-markets, where there has been a large amount of new inventory brought to the market. Even though there is some areas of softness, we believe this is short lived as this new inventory is being absorbed … Projections continue to put Phoenix as one of the top rent growth markets in the country. One area of concern which will have an impact on the amount of new inventory added to the market, is the increase in construction costs. This will slow down the inventory growth as it will be harder to get the new deals to pencil.”

IMPACT OF STRONG ECONOMY

BRUCE E. BEVERLY, CEO, Great American Title Agency: “Phoenix is becoming a top destination, especially for people living in high cost areas like Los Angeles, San Francisco and Seattle. Phoenix’s more reasonably priced housing, lower cost of living, available workforce and stable climate forecasts a growing economy and stronger housing growth in 2020, provided interest rates don’t rise too quickly.”

DAVID M. KITNICK, founder and president, Rosewood Homes:

“Metro Phoenix was hurt badly during the housing and economic meltdown in the latter part of the 2000s, which led to a delayed and muted housing recovery. However, job growth has been vigorous for the past few years while singlefamily building permit activity has been relatively modest. We believe that all of this bodes well for 2020 and beyond.”

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DANIEL BOYLAN, president, DLB Custom Homes: “Our industry often echoes the current economy and geopolitical climate. Our clients are strong, successful, sophisticated, and savvy individuals that make buying decisions when these factors are favorably aligned. With a backlog of projects through 2021, we are optimistic that 2020 will be another great year.” DON MURPHY, division president, Shea Homes: “I expect more of the same in 2020 with a very solid housing market with moderate growth and moderate price appreciation. There might be a slight pause in the market in 2020 or 2021, but our market did not experience the tremendous run-up in pricing that others did so I wouldn’t expect a precipitous fall either.”

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2020 OUTLOOK TECHNOLOGY

A FORECAST FOR THE

TECHNOLOGY SECTOR IN 2020

rizona’s technology ecosystem is no longer a secret to the rest of the world. It’s front and center on a global stage, and companies and talent are inquiring more and more about opportunities for growth here. The efforts of our state’s economic development groups and technology leaders such as the Arizona Technology Council, our members and the Arizona Commerce Authority have worked hard in the public policy arena to ensure our state stays open for business. In the past year, we have improved education funding, sparked investment and offered more

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Steven G. Zylstra Technology

Artificial intelligence and machine learning Artificial intelligence (AI) and machine learning are big features in just about every software tool created today. Not only do these technologies provide us with more data to allow us to make smarter decisions, they’re also the foundation to the next sector on our list. In Arizona, there’s a great deal of research occurring at the university level. The University of Arizona (UArizona) has an entire lab, the Eller College of Management Artificial Additive manufacturing Intelligence Lab, dedicated to this research, Additive manufacturing, also known which provides hands-on learning for its as 3D printing, continues to be one of students, while ASU’s Consortium for our most exciting sectors. Organizations Science, Policy and Outcomes is devoting like PADT and Honeywell Aerospace are a ton of attention to both AI and machine exploring new ways to develop end-use learning. Both of these schools are parts for multiple industries. One of producing top talent that will apply this the newest members of our technology technology to future innovations of their community, Nikola, has one of the largest own. There are also many applications of 3D printers in the world at its new research this technology in sectors like marketing, center/headquarters. We’re on the verge with companies like Botco.ai and Digital of numerous breakthroughs in additive Air Strike implementing new AI and manufacturing for health care. In addition, machine learning technologies into their Arizona State University (ASU) partnered digital marketing tools. Another area is with PADT, Honeywell Aerospace and cybersecurity, where WiZR has developed other companies in 2017 to open the an industry-leading, AI-based computer Manufacturing Research and Innovation vision technology with Internet of Things Hub, the Southwest’s largest additive (IoT) integrations. manufacturing research center. The center boasts $2 million in cutting-edge plastic, Autonomous vehicles, IoT and 5G polymer and metal 3D printing equipment. In 2017, the Greater Phoenix Economic This facility will enable Arizona to Council (GPEC) launched the “Connected become the top producer of additive Place” campaign because the region had manufacturing talent in the nation. become a hub of manufacturing, software development and testing for all things Aerospace and defense connectivity. Since that time, this sector Aerospace and defense has been a key has grown exponentially. We’re home to economic driver of our technology industry some of the world’s largest companies since World War II. Our state boasts the leading the way in the development biggest names in the industry, such as of autonomous vehicles, IoT and 5G Boeing, Honeywell Aerospace, Northrop technology. Waymo and Intel are the Grumman, and Raytheon Missile Systems. biggest names in the operation and testing And there are hundreds of companies, of autonomous vehicles after our governor startups and large manufacturers alike that paved the way for these innovations. are thriving because they support these Companies like Avnet and Benchmark large companies. Aerospace and defense are developing critical technology to will always be a staple of Arizona’s tech facilitate next-generation IoT and 5G, ecosystem and can be found on “tech sectors and major telco brands like Sprint and to watch” lists in this state every year. Verizon are already implementing 5G incentives to growing startup companies. Legislation approved to support the technology business community continues to help us build momentum. As more companies open, expand or move their businesses to Arizona, we’re seeing our strongest technology sectors flourish and new sectors arise. Looking forward to the year ahead, I see Arizona technology taking another leap forward. Here are the industries that will get us there:

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2020 OUTLOOK TECHNOLOGY

As more companies open, expand or move their businesses to Arizona, we’re seeing our strongest technology sectors flourish and new sectors arise. Looking forward to the year ahead, I see Arizona technology taking another leap forward.

across the nation. As these innovations come to fruition, we will see smarter cities, safer autonomous vehicles and more, and Arizona has an opportunity to be at the center of it all.

desire to improve education and provide more talent to fill positions that require highly skilled workers has resulted in a wave of unique solutions to improve learning. Companies such as Campus Logic, Picmonic, Parchment and Proctorio are among our top homegrown companies while companies like Zovio, which started in San Diego, have taken notice and moved their headquarters here to take advantage of our knowledge base and resources in edtech.

natural that these two giant Arizona industries would spill over into one another to create proptech. This is one of the newest industries on our radar. And just like the fintech industry, we’re cutting the red tape to allow companies to test Biotech and prove their technology in a proptech The work the Flinn Foundation has sandbox. This sandbox was recently put forth with the Arizona Bioscience signed into law with HB2673. Roadmap continues to place our bioscience OfferPad is one of the companies sector at the forefront of growth and headquartered in Arizona that has innovation. Arizona began this journey kicked off the proptech movement with toward becoming a premier, nationwide Fintech innovations that accelerate and simplify health care innovator as a low-tier medtech At the heart of Arizona’s recent the home buying and selling experience. community compared to the rest of the technology success are innovation I expect we will see a number of proptech nation. Today, we have ascended close to a and entrepreneurship, with financial companies starting or moving to Arizona top-tier city because of efforts by the Flinn technology (fintech) companies at the because of our technology resources like Foundation and many other leaders in the forefront. This can be attributed largely the sandbox. health and technology sectors. to Arizona’s fintech sandbox that was To learn more about the growth Arizona companies and organizations officially established earlier in 2018. and innovation occurring in these are taking the lead to significantly impact The sandbox enables new companies to industries, I encourage interested parties our continued drive toward creating a operate with reduced legal and accounting to reach out to leaders of the Council’s premier technology hub. Ventana Medical expenses, allowing them to test their committees. These are groups of likeSystems (diagnostics), Medtronic (medical technologies in the real market without the minded industry professionals who meet technology), Benchmark (medical device imposition of regulatory costs and burdens. to collectively discuss the betterment manufacturer), WebPT (physical therapy To date, Arizona has welcomed eight of their sectors. They cover nearly every software), IMNA Solutions (software), companies into the sandbox program, sector on this list and beyond, including Mayo Clinic (hospitals), TGen (translational including Align Income Share Funding our Additive Manufacturing Committee, genomics research), ASU and UArizona Inc.; Enian Ltd.; Verdigris Holdings Inc.; Cybersecurity Committee, IoT Committee, (research), and the Flinn Foundation Omni Mobile Inc.; Grain Technology Inc.; MedTech Roundtable, and Startup (philanthropy) are working to merge Wisetack, Inc; Zona Digital Commodity, and Entrepreneurship Committee. If technology and health in creative ways. LLC; and Sweetbridge NFP Ltd. interested, please reach out to me at szylstra@aztechcouncil.org. I would be Education technology (edtech) Property technology happy to put you in touch with any of our In March 2019, the Harvard Business Arizona’s real estate industry had committee chairs. Review singled out Arizona in an article always been our largest source of because it has amassed one of the largest economic prosperity. Now that technology Steven G. Zylstra is president and CEO of the Arizona Technology Council. edtech sectors in the nation. Our leaders’ is competing for that crown, it’s only 42

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MARKETING

Here are the digital marketing trends to watch in 2020

ikTok. No, that is not the sound of the time in 2020 already ticking away. TikTok is a short-form video app that is more popular than Facebook among those ages 13 to 16, and gaining more and more users among those 17 to 38 by the day. And really, TikTok only scratches the surface of the digital marketing trends most likely to catch on long-term this year. Here is a quick look at just some of the trends of note: Branding: With people on high alert for scams and fraud, consistent branding on all digital platforms will be more important than ever. That means using the same logos, same images, same contact information and same messages on all platforms. Do everything you can to make users feel confident you are who you say you are. Web Design: Above all else, keep the business or brand website clutter-free. If your pages have too many design elements, it comes across as complicated and overwhelming. Also, it should go without saying, but triple check to ensure your site is mobile-friendly and very clearly showcases how to get in touch with the

business directly. Finally, continuously update the site with fresh content at least once a month. Social Media: Guess what? Everyone’s favorite “online rolodex” is finally going to get a little more of its due in 2020. Yes, LinkedIn is going to be a more viable marketing tool than ever before, along with Instagram and You Tube, which will both continue to dominate among all ages. Authenticity here, and on all social media channels, is paramount. If posting “just to post,” don’t bother. Beyond authenticity, use location-specific content and consider investing in quality visuals – both images and videos. Search Engine Optimization: About 88 percent of consumers who perform a local search contact or visit the store within the same day. Given this, improving SEO is one of the fastest ways to improve one’s bottom line. To do so, establish your credibility first. Google uses the authority of a local business based on entity popularity and engagement, which you’re much more likely to improve when you utilize a professional marketing agency. Also, factor

Eric Olsen Marketing

in local search engagement metrics and how they come into play. Services such as Google Assistant, Gmail, Google Maps, Google Chrome, and more will continue to track user data. The data they generate will be used to rank businesses. In addition, try out voice SEO this year if you’ve not already. And finally, knowing the right keywords is half the battle. For example, searches with the words “near me” have grown exponentially in the past few years. You’ll want to optimize your content with that, among other things, in mind. Finally, check all of your digital marketing platforms for errors. Then do it again. And again. You’d be surprised at how many businesses have basic mistakes – wrong phone numbers, addresses, missing a letter, out-of-date email, et al – in multiple places online. Eric Olsen is CEO of Fasturtle, an awardwinning website design and digital marketing firm focused on small and medium-sized businesses. For more information, visit fasturtle.com. AB | January - February 2020 43

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DINING

ULTIMATE MEAT AND GREET Galeto Brazilian Steakhouse brings authentic churrascaria experience to East Valley

By MICHAEL GOSSIE

ust off the I-10 East in suburban Phoenix, in a warm and comfortable setting nestled in the The Shoppes at Casa Paloma, sits a meat-lover’s — and foodie’s — paradise. Galeto Brazillian Steakhouse, an authentic churrascaria, was opened last year by native Brazilian Eli Nascimento and brings an exceptional dining experience to the East Valley. And if you’re a foodie, be sure to come hungry because Galeto serves an almost endless smorgasbord of meats and hot and cold buffet items for one fixed price. While meats are the star of the show at most Brazilian steakhouses, Galeto does an incredible job of taking two premeal snacks — polenta and fried plantains, which are so sweet and browned perfectly in a caramelized shell — to such a level of deliciousness that that they are impossible to pass up. And don’t even get us started on the airy baked cheese bread, pão de queijo, which will make EVERY bread-lover happy because they are gluten-free. And this all happens before you even get to the brief explanation of the dining process. That’s just one of the reasons why Galeto Brazilian Steakhouse is destination dining for all foodies. Another highlight is the full buffet table in the middle of the restaurant that is surrounded by long rows of cheeses, appetizers, mixed salad combinations, salami and other meats, and fruits — which are prepared daily and defined by their freshness. But be sure you don’t fill up at the buffet table or with the pre-meal snacks because once you’re done with the salad bar, Galeto follows to format of other Brazilian steakhouses: You flip a little card on the table to “green,” signaling that you’re ready to start digging into Galeto’s 14 different types of meats.

AB | January - February 2020

Then, the meat comes on long swords, presented and sliced by servers dressed like gauchos with spit-roasted cuts of beef, pork, lamb and chicken. And until you flip your card back to “red,” the gauchos will slice the meats with a flourish, you grab it with tongs, eat and repeat until you’re ready to take a break. While all 14 of Galeto’s meats are mouthwateringly delicious, don’t pass up these: Some featured meats include: • Picanha, the most traditional Brazilian steak made with sirloin cap. • Alcatra, a signature cut that’s made from top sirloin sliced thinly. • Costela, beef ribs that are slow-cooked and rubbed with rock salt. • Frango, chicken wrapped in bacon and marinated in spices. • Linguiça, traditional Brazilian sausage. The best way to manage the deluge of deliciousness — because you’ll want to save some room for Galeto’s don’t-miss desserts and one of Galeto’s authentic caipirinhas, Brazil’s national cocktail — is to take your time, make note of the dishes being paraded by from the gauchos and break the meal down into self-designated courses. Otherwise, you might miss out on one of Galeto’s incredible dishes and, trust us, you don’t want to miss anything in this authentic churrascaria experience. GALETO BRAZILIAN STEAKHOUSE Where: The Shoppes at Casa Paloma, 825 N. 54th St., Chandler. Hours: 5 p.m.-9 p.m. Sunday-Thursday; 5 p.m.-9:30 p.m. Fridays and Saturdays. Prices: Full churrasco, $39.95. Gourmet bar only, $36.95. Information: 480-744-0130 or galeto.com.

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ACC AWARDS

HONORING EXCELLENCE IN CORPORATE COUNSEL

2020 ACC Awards showcase Arizona’s most accomplished inhouse attorneys and legal teams

By MICHAEL GOSSIE

ffective corporate counsel has never been more important than it is in today’s new and ever-evolving knowledge-based economy. Az Business magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel (ACC) Awards. “The diverse personalities and skill sets of the finalists for the ACC Awards show how much the role of the corporate counsel has evolved over the last few years,” says AZ Big Media Publisher Josh Schimmels. “While maintaining a firm handle on the traditional functions of the legal department, the roles of these in-house attorneys are expanding to handle complex issues such as regulation and compliance, artificial intelligence, data privacy and cybersecurity issues. It’s a difficult, yet vital role that has a direct impact on every organization’s bottom line.” Candidates in several categories will be recognized for their extraordinary legal skills and achievements across a full range of in-house responsibility, exemplary leadership and for contributions to Arizona’s communities. The 31 finalists and winners will be honored during a ceremony and dinner on Thursday, January 16 at the Omni Scottsdale Resort & Spa at Montelucia. Visit azbigmedia. com for more information on the event. Over the next several pages, you will meet the finalists, in alphabetical order.

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ACC AWARDS 2020 FINALISTS Arizona Public Service Company Law Department Background: APS’ Law Department has created a successful pro bono program. Together with their partners Ballard Spahr and Snell & Wilmer, and attorneys from DLA Piper, they conduct quarterly clinics that provide estate planning services to Arizona veterans and their spouses. To date, they have held 199 client appointments, prepared 597 legal documents, and provided more than 350 hours of pro bono and 895 hours of volunteer service. The clinic is held in their offices, making volunteering easy. APS has a contribution program based on volunteer hours, resulting in a donation to the Wills For Heroes Foundation. Members of APS’ Law Department say they are honored to offer this service to the veteran community.

Lacey J. Bundy

Erin L. Borg

Associate general counsel – litigation, employment and compliance PetSmart Background: Borg is responsible for advising leadership on a variety of employment and operational issues. She is also a certified compliance professional, leading the company’s compliance program. Borg is in her 16th year of practice, with almost a decade as in-house counsel. Watching in 2020: “As federal legislation stalls, state and local governments are enacting a patchwork of laws impacting the business community, and doing so at a breakneck pace. Whether the laws are aimed at protecting the environment (plastic bag bans), employees (predictive scheduling laws), or consumers (California’s data privacy law), this trend presents a significant challenge for 50-state retailers like PetSmart.” 50

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Senior vice president, general counsel and corporate secretary PetSmart Background: Bundy joined PetSmart in August 2018. Prior to PetSmart, she served for six years as senior vice president, general counsel and corporate secretary of Express, Inc., a specialty retail apparel company based in Columbus, Ohio. Bundy currently serves on the board of directors of PetSmart Charities and as cochair of PetSmart’s Diversity Action Council. Watching in 2020: “Competition in retail is fiercer than ever. Technology has made it easier to bring products and services to market than ever before and to communicate with customers; it has also been relatively easy for start-up direct-to-consumer brands to raise capital.”

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ACC AWARDS 2020 FINALISTS

CARVANA LEGAL Background: In 2019, Carvana Legal supported another year of growth and revenue expansion for the company (23 consecutive quarters of more than 100 percent year-over-year growth) at a $4 billion run-rate. Legal team members increased by 50 percent, while skillfully advising on the wide variety of issues, questions and challenges facing a young public company that is changing the way people buy cars. Displaying expertise in public company reporting and offerings, complex loan securitization transactions, online consumer lending, light remanufacturing, and heavy asset logistics across the U.S., the legal team kept pace as Carvana launched in 60 new markets, doubled reconditioning facilities, increased vending machines by 50 percent, and organically hired 4,000 net employees.

Kim A. Dennis

Senior counsel – litigation and compliance Knight-Swift Transportation Holdings

Background: Dennis is a 2012 graduate of the Sandra Day O’Connor College of Law at Arizona State University. In her role, she is responsible for overseeing all aspects of employment and commercial litigation. She is a strategic partner who strives to help her internal clients solve legal problems in an often changing industry and seeks to achieve positive and cost-effective solutions through creative problem solving. Watching in 2020: “The biggest issue that currently impacts, and will continue to impact Knight-Swift in 2020 is the need for quality drivers.”

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Mickey R. Dragash

Executive vice president, general counsel, chief compliance officer, and corporate secretary Cavco Industries Background: Dragash took over his role at Cavco in February of 2019. Dragash leads Cavco’s legal and compliance functions and also serves as a member of the company’s executive management team. Dragash brings significant legal, compliance and operational experience to Cavco. From June 2015 to September 2017, he served as executive vice president, general counsel, and corporate secretary of Swift Transportation. Prior to joining Swift, Dragash was executive vice president, general counsel and chief compliance officer for Gordon Trucking. He also had legal roles with DHL Supply Chain Solutions and Walmart.

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ACC AWARDS 2020 FINALISTS

Zelle/Early Warning Legal Department Background: For nearly 30 years, bank-owned Early Warning Services has played a critical role in protecting the financial system from fraud and risk. Today, Early Warning is best known for its popular Zelle payments network, which processed 196 million transactions worth $49 billion in the third quarter of 2019 alone. “I am immensely proud of how our legal department not only adapted, but flourished, to meet the high-stakes challenge of bringing Zelle to the marketplace (while continuing to support the existing business) and how, on a daily basis, we help navigate all of Early Warning’s businesses through a highly-regulated and competitive landscape,” says Tracy Cheney, general counsel.

Martin Felli

Executive vice president, chief legal officer, chief compliance officer and corporate secretary JDA Software Felli is responsible for providing leadership on all legal matters, including corporate governance, compliance, litigation and risk management, acquisition activity and commercial transactions. In addition, Felli is also responsible for JDA’s Information Technology Group, procurement, real estate/facilities and the global office administrations group. Toughest professional challenge: “When I joined JDA, the company had just merged with RedPrairie to become the largest software company in the supply chain space globally. I was faced with a full reorganization of company structure. I approached this by tripling our team, fortifying company culture and ensuring the team’s continued excellence and high engagement.”

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Susan R. Hanson Assistant general counsel U-Haul International

Background: A third-generation attorney married to an attorney, Hanson joined the U-Haul International legal department in 2005. She provides employment law counsel, advice, and support to operations throughout the United States and Canada; works closely with human resources; and has ongoing responsibility for the development of employment policies. Hanson implemented an employee arbitration agreement at U-Haul and has managed an extensive number of arbitrations. Watching in 2020: “The trend having the greatest impact is the rapid increase in the number of complex state and local laws affecting the employment relationship. Compliance is a relatively new and ongoing challenge.”

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ACC AWARDS 2020 FINALISTS

Ashley Kasarjian

Senior corporate counsel, employment Republic Services Background: Kasarjian is responsible for ensuring compliance with applicable employment laws, providing day-to-day advice, and managing the defense of Republic in litigation. Kasarjian is chairelect of the executive council of the labor and employment section of the State Bar of Arizona. Watching in 2020: “Companies will need to continue to invest in their company culture and engagement strategies to ensure they are attracting and retaining talent who offer varied experiences and backgrounds. We need to be purposeful in ensuring our employees understand—as demonstrated through our flexibility, compassion, and adaptability—that every employee belongs and every employee adds value.”

Richard Kovacik, JD, MBA Vice president and general counsel VieMed

Background: Kovacik is a business executive and an attorney with more than 10 years of experience in a variety of strategic business growth and in-house counsel roles for innovative and industry-leading healthcare organizations. Kovacik formerly practiced law for national firms, Jones Day and Hooper, Lundy & Bookman. Watching in 2020: “The home respiratory industry is being shaken-up by the addition of life-sustaining ventilators and respiratory therapist support to the Medicare competitive bidding program. Our department is playing a key role in revenue diversification efforts by negotiating and renegotiating contracts for new and existing products, services and strategic partnerships.”

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ACC AWARDS 2020 FINALISTS Andy Kvesic

General counsel The Quantum Group Background: Kvesic is responsible for all of the organization’s legal affairs nationally and advises leadership on a variety of business issues. Before joining Quantum, Kvesic practiced commercial litigation and later worked at the Arizona Attorney General’s Office, where he prosecuted felony fraud and public corruption matters. Kvesic also served as chief counsel for the Arizona Corporation Commission. Watching in 2020: “About 10,000 Baby Boomers turn 65 each day, and this trend is expected to continue for the next decade. As a distributor of insurance products and retirement solutions, Quantum will experience a massive surge in activity by the end of 2020 and beyond.”

Limelight Networks’ Legal Department Background: Limelight’s legal team advises and supports Limelight across all areas of the business, including global sales, corporate governance, securities regulation, compliance, international labor and employment/benefits support, litigation management, global network procurement, cybersecurity risks, and strategic transactions. During 2019, Limelight experienced its highest revenue quarter in company history and had multiple quarterly traffic delivery records, it doubled its network capacity in one year to nearly 60 TeraBits per second, and it won multiple innovation and market leader awards. This came off the heels of 2018, which saw Limelight set company records for annual revenue, gross margin, non-GAAP income, EBITDA, and adjusted EBITDA.

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Brendan N. Mahoney General counsel HBI International

Background: Mahoney has more than 20 years’ experience in large and small firm private practice as well as policy and legal development in government. He has served on many nonprofit boards and has received numerous awards reflecting his commitment to social justice and LGBTQ rights. Watching in 2020: “Although HBI International is not directly involved in the cannabis industry, our products are used by consumers and businesses alike. It is a rapidly growing industry, with new laws and regulations virtually every month. The much-anticipated federal legalization will turn everything on its head, but will great unlimited opportunities for growth.”

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ACC AWARDS 2020 FINALISTS

Adam Martinez Head of legal Offerpad

Background: Martinez is head of legal at Offerpad and Offerpad Brokerage, overseeing all of legal operations, including compliance, corporate and partnership matters, and government affairs. He is an experienced litigator and transactional attorney, and he has served as a strategic advisor and legal counsel to corporations and individuals across the U.S. and Canada. Watching in 2020: “Disruption of the residential real estate industry is just leaving its infancy after five years of continued growth and solid consumer demand. However, real estate, and its ancillary business, have regulations that have had little to no change since creation.”

Randy McCaskill General counsel Tessenderlo Kerley, Inc.

Background: McCaskill serves as chief legal counsel for TKI, a $600 million diversified chemical manufacturing and engineering company producing agricultural fertilizers, pesticides, mining, industrial, food, and water treatment chemicals operating in approximately 70 countries. Watching in 2020: “Data privacy compliance will be the largest driver of extraordinary legal cost and effort for TKI in 2020 and the near future. Developing statebased and international rules with short compliance deadlines and the need to employ new data mapping and management tools along with costly consultants will result in a substantial new and long-term legal and compliance expense.”

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Rachel Molina

Senior counsel, labor and employment PetSmart Background: After practicing at Quarles & Brady for more than four years, Molina was presented with her first in-house opportunity, working as Swift Transportation’s sole employment attorney. Working for a national employer with more than 20,000 employees was a challenge for a relatively junior attorney, but Molina says she loved her time at Swift and it allowed her to grow personally and professionally. That experience parlayed perfectly into her role at PetSmart, where she handles employment law issues for a national employer with more than 57,000 associates. Watching in 2020: “The continuing shift in how consumers shop will be the biggest issue that impacts PetSmart in 2020 and beyond.”

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ACC AWARDS 2020 FINALISTS

Virginia “Gini” O’Malley Vice president and general counsel Imaging Endpoints

Background: O’Malley is responsible for management of the company’s legal affairs including litigation, proposals, contracting matters, employment related matters, legal aspects associated with establishing domestic and international subsidiaries, and the legal aspects of corporate operations. Watching in 2020: “The clinical trial industry is being revolutionized by the rapid pace of breakthrough treatments for common and rare diseases. Artificial intelligence and automation is impacting drug development, requiring the FDA and world drug approval processes to streamline and modernize to keep up with innovation. The global nature of this industry, including the imaging core lab industry, creates legal ramifications impacted by various world cultures and drug evaluation standards.”

PetSmart Legal Team Background: The legal team created a new Code of Ethics & Integrity titled “Being the Trusted Partner” centered around the company’s mission to “be the trusted partner” to pets and pet parents. The new code is organized in line with the company’s new core values that were rolled out by the new leadership team and created with significant input from the PetSmart Legal Team. The team also launched new dispute resolution process (arbitration program) for all new associates and all California associates with class action waivers to reduce wage and hour class action exposure. In addition, the legal team brought management of the company’s trademark portfolio in-house.

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ACC AWARDS 2020 FINALISTS Alexis Pheiffer

Senior counsel, employment and litigation Sprouts Farmers Market Background: Pheiffer leads Sprouts’ Litigation and Claims teams, which includes litigation, labor/employment law, and general liability/workers’ compensation functions. She provides strategic advice on projects and initiatives, emphasizing Operations and HR, plus day-to-day guidance, training, and problem solving for her business partners. Pheiffer has been in-house with major national retailers since 2010. Watching in 2020: “The use of AI, automation and robotics. In retail, this touches hiring, training, inventory, customer experience, provision of legal services, and more … Early legal involvement in development and decision-making is critical to success.”

Justin Powell

Chief legal officer Isagenix International Background: Powell advises Isagenix on legal and business matters and strives to ensure the company leads the industry with its responsible business practices. In addition to managing the legal team, he is responsible for global compliance, human resources, government affairs and public relations. Watching in 2020: “Our industry is the original ‘side hustle.’ But with the rise of the gig economy, influencer marketing, and companies like Amazon. com, our competition is becoming more and more fierce, causing us to innovate and simplify everything. Our legal department continues to adapt to evolving challenges to support our business objectives.”

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Justin Powley Intellectual property counsel Axon Enterprise

Background: Powley is an intellectual property attorney for Axon, where he leverages his technical background to provide counseling on patent, trademark, open source software, data privacy and related matters. Prior to joining Axon, he was an associate in the intellectual property group at Snell & Wilmer. Watching in 2020: “Data privacy will continue to have a big impact in 2020 and beyond. Whether it is new laws and regulations controlling the collection and dissemination of data, the prevalence of data breaches, or the ethical concerns behind the collection and use of personal data in new technologies, data privacy will continue to impact all legal fields and businesses for the foreseeable future.”

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ACC AWARDS 2020 FINALISTS

Mark Rogers

Executive vice president, general counsel and corporate secretary Amkor Technology Background: Rogers joined Amkor in June of 2019. He oversees a team of lawyers and other professionals in the United States, Singapore and Japan. Rogers’ responsibilities at Amkor also include corporate development, planning, human resources and facilities. He brings significant legal and business experience to the position. He is an experienced in-house counsel, having represented Arizona companies in-house since 1999 and has worked on more than 100 mergers and acquisitions over the years. He has successfully brought companies through transactions, and he has helped boards and senior leaders navigate challenges, as well.

Deanna Salazar

Chief administration officer and general counsel Blue Cross Blue Shield of Arizona Background: Salazar directs the company’s community relations, government affairs, legal, and public relations and internal communications teams. The Legal Division advises the company in matters such as risk assessment, contracting, regulatory compliance and litigation management. She also oversees BCBSAZ’s federal and state legislative activities, corporate communications strategy and messaging, community service activity and the office of the corporate ombudsman. Salazar began her service with BCBSAZ in 1999 as associate general counsel. Away from work: Salazar is a recipient of the Valley Del Sol’ Profiles of Success Exemplary Leadership Award and the Los Abogados Community Service Award.

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Beth Schnell

Legal practice group director – banking Alliance Bank of Arizona, a division of Western Alliance Bank Background: Schnell possesses a rare combination of business and legal expertise curated over the course of her career at both public and private financial institutions and corporations, allowing her to provide well-rounded, yet practical, legal advice to her clients. Watching in 2020: “Faster payments continue to have a huge impact on the financial services industry … Traditionally, the legal framework governing payment channels has not kept pace with the technological innovations so it creates challenges for the bank’s legal department in the application of the law and, ultimately, the allocation of the risk when related to fraud or unauthorized transactions.”

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ACC AWARDS 2020 FINALISTS Aileen R. Schwartz

Senior vice president, senior corporate counsel, U.S. and privacy officer Hill International Background: Schwartz has 19 years of in-house experience in the construction and real estate development industries. At Hill, her responsibilities include contract and lease review and negotiation, litigation management, mergers and acquisitions, advising on employment law, insurance coverage, human resource investigations, SEC and privacy compliance, and response and prevention to cyber security breaches. Watching in 2020: “Artificial intelligence will have the greatest impact in 2020. Engineering and construction have lagged behind other industries in this innovation. I anticipate this gap will begin closing in the upcoming year.”

Trevor Steege, Sr.

Robert C. Seibel

General counsel Yuma Regional Medical Center

Background: Seibel’s legal career began as the senior law clerk to the chief justice of the Ohio Supreme Court and, with several formative stops in between, he became the first general counsel at Yuma Regional Medical Center. Seibel has more than 35 years of experience advising healthcare clients in a combination of private practice and in-house positions, including defending physician malpractice cases and leading the in-house legal team at a large academic medical center. Watching in 2020: “The ongoing and complex transition in healthcare to a value-based reimbursement system will pose significant challenges in 2020.”

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Corporate counsel International Cruise & Excursions Background: Steege has been with ICE since 2016 and continues to counsel and support the business and its global growth in all areas including regulatory compliance, product and business development, acquisitions, human resources and overall day-to-day legal management. Watching in 2020: “The regulatory changes in privacy regulations throughout the world are going to have the biggest impact on the industry. The changing privacy regulations cover so many different areas of commerce from hiring to marketing, that it is becoming a requirement that all internal or external counsel are equipped with the necessary training and expertise on global scale.”

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ACC AWARDS 2020 FINALISTS NortonLifeLock Legal Department (Symantec Corporation) Background: NortonLifeLock is among the world’s leading cyber safety and identity protection companies with legal teams located worldwide. The Arizona legal department’s six attorneys and five legal paraprofessionals provide essential legal resources to support the company’s main objectives: helping secure the devices, identities, online privacy, and home and family needs of consumers and providing them with a trusted ally in a complex digital world. Most recently, the team juggled its regular responsibilities with the work associated with the divestiture of the company’s enterprise security business and the Symantec brand to Broadcom, Inc., and emerging as a pure play consumer security company.

Taylor Morrison legal department Background: The Taylor Morrison legal department prides itself on being strong and lean operationally. Though supporting a Fortune 1000 company, the team has remained relatively compact by industry norms, but agile and efficient and able to meticulously support nearly every functional group within the organization. The lawyers on the team consist of Executive Vice President and Chief Legal Officer Darrell Sherman; Benjamin Aronovitch, vice president and deputy general counsel; Todd Merrill, vice president and deputy general counsel; and Kristy Boss, vice president and deputy general counsel. The team credits their diverse legal backgrounds and specialized expertise as one of their biggest strengths.

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Dawn Valdivia

Assistant general counsel, labor and employment; chief counsel, labor and employment, Latin America Honeywell Aerospace Background: Valdivia practices law in the area of labor and employment law and immigration. Her current responsibilities include all facets of workplace issues globally with focused areas in the U.S., Puerto Rico and Latin America. Watching in 2020: “As our customers continue to demand efficiency and cost savings, we will need to continue to capture and utilize data in a way that benefits both parties. In the law department, we are looking for ways to use data and artificial intelligence to answer basic questions and improve turn-around time.”

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ARIZONA LODGING & TOURISM ASSOCIATION

The Phoenician Spa 74

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MASSAGING the BOTTOM LINE Here’s how Arizona’s spa industry continues to surge by distinguishing itself from the competition

By ALISON BAILIN BATZ

he International Spa Association reported in its 2019 U.S. Spa Industry Study record highs of $18.3 billion in revenue over the past year. In addition, spa openings out-paced spa closures by a margin of 400, bringing the number of spa locations nationwide to a new high of 22,160. Arizona, declared by Forbes in 2019 as one of the nationwide leaders in the spa and wellness space, continues to innovate and push the industry to new levels each day. Here is a look at some of the top spas across the state and what they’ve done to continue to thrive in one of the most competitive markets in the world:

The Phoenician Spa The Phoenician completed the biggest renovation and refresh in the storied resort’s 30-year history about 18 months ago. Among the most sweeping of changes was to The Phoenician Spa, which is now housed in an eye-popping and built-from-the-groundup three-story building of its own, complete with a rooftop pool, 24 treatment rooms, a salon, a 4,600-sq-ft fitness center and even a tennis lifestyle shop. Its treatments also continue to be cutting edge. In addition to standard and seasonal offerings, The Phoenician Spa offers everything from tarot card readings to harmonic bowl healing. thephoenician.com

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AZLTA CIVANA

AWAY Spa

The Spa at Harrah’s Ak-Chin Less than two years ago, as part of the casino’s multi-million dollar expansion, it celebrated the grand opening of The Spa at Harrah’s Ak-Chin, a first for the Maricopa property. It has both treatment rooms and a couple’s suite as well as adjustable beds to ensure guest comfort and increased relaxation, complimentary LED Light Therapy in each treatment room, a dedicated Esthetics Room with back bar feature, and the Signature Hungarian Face Massage that is featured in all of Eminence Facials. harrahsakchin.com AWAY Spa In honor of its 10th anniversary late last year, Arizona’s only W Hotel debuted its AWAY Spa. Located on the first floor of W Scottsdale, the AWAY Spa Scottsdale includes seven treatment rooms, a co-ed lounge, men and women’s locker rooms featuring dual steam showers, and a beauty lounge. The spa features a variety of customized treatments ranging from traditional deep tissue massages to makeup and hair and an innovative Spa After Dark Concept featuring spa-driven cocktails, glow-in-the-dark treatments and DJ-fueled tunes. scottsdaleawayspa.com 76

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CIVANA This truly unique wellness resort debuted almost exactly a year ago and is built on four pillars: Movement, Spa, Nourishment and Discovery. Its two-story, 22,000 square-foot spa centers around the theme of “healing through water” and features 23 treatment areas including one Watsu® therapy pool, two couples treatment rooms, three wet treatment rooms including a Vichy shower, five facial rooms, and 14 massage rooms. There is also a communal area of hydrotherapy immersions – the Aqua Vitality Circuit – that includes a European-designed Kneipp hot/cold wading pool, therapeutic soaking pool, a cold deluge shower, and the five-climate KLAFS SANARIUM. civanacarefree.com Hashani Spa In late 2019, The JW Marriott Starr Pass Resort & Spa completed a renovation to its property, including the awardwinning Hashani Spa in Tucson. Now, the 20,000-square-foot spa has a whole new look – while still keeping its roots in all things Sonoran Desert in mind – thanks to head-to-toe re-imagining of the design, furniture and equipment throughout as well as an update to its acclaimed adult only saline pool, cabanas, decking and hot tubs. As with some of the other resort spas, Hashani is also embracing more cutting-edge services with options including oncology massages, cupping, lymphatic drainage and even an Arizona Copper Peptide Facial. jwstarrpass.com

Joya Spa Joya Spa Joya roughly translates to jewel. The name is fitting given this Omni a crown jewel in the spa kingdom, in Arizona or otherwise. The custom-built, 31,000-square-foot building and only Hamman-inspired spa in the region features treatment rooms named for different Moroccan dances, monkey vines throughout imported from Costa Rica, a bathing ritual circuit that dates back to ancient Rome, and naturopathic services by a board certified naturopathic physician. Never one to rest on its laurels, the Joya Spa Terrance and men’s sauna just completed refreshes; a new spa menu will debut in the spring with the introduction of two new skincare lines: Skin Authority and Knesko. joyaspa.com The Spa at Camelback Inn When it was built in 1989, The Spa at Camelback Inn was the largest and most comprehensive resort spa in the Southwest, and one of the first in the country to offer a comprehensive fitness and exercise center, a unique blend of desert-inspired body and massage treatments, lifestyle-enhancing wellness programs and Scottsdale’s first spa restaurant. As relevant as ever and always

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AZLTA

body work. An added unique element: the spa offer’s a build-your-own-body-scrub option, where guest can sample and then select their favorite all-natural ingredients and make their own preferred body scrub to take home. hiltonsedonaresort.com Alvadora Spa

being refreshed, today 32,000-square foot spa features 32 treatment rooms, a heated outdoor lap pool, private poolside cabanas, separate men’s and women’s locker rooms, co-ed Jacuzzi, a full-service hair and nail salon, skin care boutique, retail spa boutique and one of the best juice bars in the state. camelbackinn.com Alvadora Spa Late last year, the Royal Palms debuted a new look and offerings at its 11,000-square-foot Alvadora Spa that touched all elements of the Mediterraneaninspired retreat. Beyond that, they welcomed an in-house herbalist to provide custom botanical treatments as well as small-batch, hand-formulated products. The new botanical program and on-site apothecary, led by herbalist Rachel Sloat, utilizes plants, herbs, flowers, roots, berries and citrus foraged locally as well as sourced from the Mediterranean. The program currently features two new body treatments and will later expand into teas, extracts, masks, exfoliants and oils this year. royalpalmshotel.com Amara Spa As a city where visitors travel from all over the world to experience the serene landscape and metaphysical energy that many believe is connected to meditation and healing, it’s only natural that the award-winning spa reflects these techniques. At this intimate spa, limited to just six treatment rooms, 78

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Hashani Spa

expect gemstone-enhanced treatments, eucalyptus steam rooms, meditative and spiritual rituals, private yoga and all natural products. amararesort.com Eforea Spa When the Hilton Sedona Resort at Bell Rock completed its multi-million dollar transformation in recent years, among the biggest enhancements was made to the 25,000-square-foot Eforea Spa, which also features a wellness center. Taking advantage of the locale, the spa has gained national acclaim for its use of indigenous and locally-inspired spa treatments, including several that include energy and

Well & Being Spa The 44,000-square-foot Well & Being Spa at the Fairmont Scottsdale Princess offers everything from aerial hammock yoga and aqua fit yoga to a eucalyptus inhalation room and aromatherapy blending bar. Among regular patrons’ favorite ways to spend a day with the girls are congregating the scenic rooftop pool, complete with food and drink offerings, as well enjoying the indoor/outdoor Jacuzzi areas that are connected and almost like a grotto. And then there are the indoor, single sex areas – a favorite is the indoor cold plunge and whirlpool areas, which are right next to each other. And, in coming months, the spa will also launch wall yoga and singing bowl sound therapy. Tibetan Singing Bowls have been used for centuries for healing and meditation purposes. scottsdaleprincess.com The Spa at the Boulders This 33,000-square-foot gem features sweeping views of the awe-inspiring 12-million-year-old boulder formations nearby. The facility incorporates the elements of feng shui and a Zen-like ambiance while staying true to the natural environs and Native American influences for the region. All guests can enjoy the yoga studio, steam room, sauna and O’furo, which is a Japanese bath, as well as an outdoor pool and jacuzzi. The facility also offers the Sun Suite, a 700-square-foot space tailor made for girlfriend getaways with a private whirlpool, terrace and outdoor fireplace steam showers, a private patio, outdoor shower, private Jacuzzi, indoor and outdoor massage tables and more. theboulders.com

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SPOTLIGHT ON ARIZONA RESORTS: SPECIAL ADVERTISING SECTION

A Tradition of Excellence Little America Hotel Flagstaff combines 247 guest rooms and 13,500 sq. ft. of meeting space with the natural beauty of Northern Arizona. Set in 500 acres of ponderosa pine, Little America Hotel, Flagstaff’s only AAA Four-Diamond hotel, provides a rich tradition of hospitality and comfort. At 7,000 feet in elevation, Flagstaff offers summer guests a chance to beat the heat and enjoy many of the most breathtaking and historical sites of the Colorado Plateau. In winter, Little America Hotel’s proximity to Arizona Snowbowl provides ski enthusiasts easy access to a unique winter playground. Meeting & Event Space As Flagstaff’s largest convention hotel, Little America meetings are met with 13,500 square feet of renovated event space, including an expansive Grand Ballroom and contemporary breakout rooms, hosting events for up to 425 guests. Accommodations Little America Hotel is a welcoming retreat with natural guestroom tones, plush down bedding, Irish throws, and custom furnishings. Unique live edge maple headboards and desks adorn the rooms while spacious bathrooms offer full-length double mirrors, Spanish tile showers, and granite vanities. • 247 Spacious Guest Rooms • Large Flat-Screen TVs • Wireless Internet • Mini Refrigerators • Microwaves

Amenities Located on 500 acres of ponderosa pine, Little America is a gateway for awe-inspiring sightseeing and recreational opportunities at the Grand Canyon, Sedona, and the Arizona Snowbowl. On-site amenities include: • 2.5 Mile Nature Trail • Outdoor Pool & Hot Tub • Free Shuttle* • Fitness Center • 24-Hour Travel Center *from Flagstaff Pulliam Airport and Amtrak Train Station Silver Pine Restaurant & Bar Under the guidance of Executive Chef Eduardo Mata, Little America Hotel’s on-site restaurant, Silver Pine Restaurant & Bar, serves a mix of signature favorites, innovative international dishes, and quintessential Arizona flavors. • Bar & Lounge • Happy Hour • Private Dining

AAA Four-Diamond Award Best of Flag Award Winner for 11 Consecutive Years in Hotel Services 2019 TripAdvisor Certificate of Excellence 2515 East Butler Avenue Flagstaff, Arizona 86004 FLAGSTAFF.LITTLEAMERICA.COM 928-779-7921

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SPOTLIGHT ON ARIZONA RESORTS: SPECIAL ADVERTISING SECTION

Plan Your Next Meeting at Hacienda Del Sol Guest Ranch Resort Tucson’s historic Hacienda Del Sol Guest Ranch Resort is a meeting destination that inspires creative thought, relaxed collaboration and award-winning service. The Forbes 4-Star resort has fifty-nine guestrooms and over 18,000 square feet of inspiring function space. Nestled at the base of the Santa Catalina Mountain Range, Hacienda Del Sol offers a natural, desert setting with a variety of room options and set-ups perfect for meetings and events of all sizes. The resort’s newest meeting space – Casa Luna – features over 5,100 square feet of indoor and outdoor space. Polished concrete floors, soaring wood-beamed ceilings, handmade Talavera tile, Southwestern accents and warm colors set the tone for a successful meeting or event. Casa Luna also includes a retractable wall, floor to ceiling draped windows, state-of-the-art audio-visual capabilities with double eleven-foot screens, theater lights, self-controlled accent lighting and a dedicated catering kitchen. Casa Luna’s beautiful lobby area provides a private space for guest check-in and registration, coffee breaks and cocktail receptions. Hacienda Del Sol also offers smaller spaces for more intimate board meetings and collaboration. The Hacienda Room features a private covered patio, open courtyard, fireplace and conference style seating for up to twenty-five. Casa Feliz, with its private covered patio,

sweeping desert views and fireplace offers an additional space for groups to collaborate and meet with a variety of set up options. Known for its award-winning culinary program, Hacienda Del Sol has received many awards and accolades over the years for its restaurant and catering menus and facilities. Awards include the AAA Four Diamond Award, Wine Enthusiast Magazine’s “The Award of Ultimate Distinction” and for twenty-one consecutive years, the “Best of Award of Excellence” from Wine Spectator. The resort’s experienced and passionate culinary team, led by Executive Chef Bruce Yim, offers several menu choices in either plated or buffet style, all with expertly created flavors and presentation. After your team has finished the day’s work, Hacienda Del Sol offers plenty of ways to unwind and renew the mind for the next day’s agenda. The resort offers Happy Hour, live music, in-room spa treatments, a fitness center and two pools. Above all else, the Hacienda Del Sol team offers unmatched service to all who enter the historic gate, making sure every meeting or special event is perfect.

Our team is ready to help plan your next meeting or event. Contact Cathy Ried today at 520-901-1344 or at cmried@haciendadelsol.com.

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AZLTA

SUNNY DAYS AHEAD AzLTA helps Arizona’s tourism sector ride a wave of success and growth By MICHAEL GOSSIE

he Grand Canyon State is on a winning streak. “Arizona enjoyed an elevated three-year run in the sports tourism spotlight just a few years ago and that’s paying dividends in recent years,” says Kim Sabow, president and CEO of the Arizona Lodging and Tourism Association (AzLTA). “Mega events are significant to Arizona’s tourism industry and our economy holistically.” And the economic impact of hosting sports’ biggest events has been powerful. • $719 million from the Pro Bowl and Super Bowl in 2015 • $274 million from the College Football Championship in 2016. • $324 million from the Final Four in 2017. “That’s a total of $1.3 billion economic impact,” Sabow says. “The value surpasses the immediate results in other ways, too, including the incredible exposure Arizona receives during the build-up and time of the actual event elevating Arizona to a global spotlight for millions of people to see.” In addition, Sabow says the sports fans that come here to attend events often relocate to Arizona or set up their businesses in the state after vacationing here and witnessing what the state has to offer. It’s also turned tourism into a growth industry in Arizona. According to STR, the premium data benchmarking and analytics provider for the hospitality industry, there was more than a four percent increase in revenue per available room and a 3.7 percent increase in passenger air traffic in October compared with 2018. And Arizona’s top hospitality properties are investing in upgrades in hopes of capitalizing on the hot market. “The growth we have experienced as a leisure destination and the need for future sustainability to compete with other destinations resulted in our hotels and resorts investing in their properties and amenities to ensure Arizona continues to offer some of the best accommodations in the world,” Sabow says. “You will continue to see improvements to keep up with the needs of technologically savvy, Millennial and social travelers. It isn’t so much about the demographic differences of millennial travelers or baby boomers – it is a mindset – travelers want a social, connected and local experience.” Some sizeable upgrades and additions in the Valley include the new Andaz Scottsdale Resort & Bungalows, Mountain Shadows, the iconic Phoenician Resort, and the new Hotel Adeline. “I must also mention how thrilled we are to welcome the new 20-acre Ritz-Carlton Resort overlooking Camelback Mountain,” Sabow says, “which is scheduled to open in 2020.”

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KIM SABOW: “We are moving confidently into 2020 and anticipate another year of steady growth,” says the president and CEO of the Arizona Lodging and Tourism Association (AzLTA). “Although we are entering an election year which can sometimes result in uncertainty for the industry, Arizona is well- positioned as an appealing destination by millions across the world.” (Photo by Mike Mertes, AZ Big Media)

Here’s what — and who — will drive Arizona’s financial sector throughout 2020 and beyond By MICHAEL GOSSIE

f you ask experts in the banking industry what 2019 trends are most likely to carry over to 2020, most will say we can expect competitive lending and lower interest rates to continue to shape the sector. But there is so much more we need to look for in 2020. “Financial technology (FinTech) like smartphone payments, better rewards integration and mobile banking, will become an even greater focus in the industry, as innovative companies continue to disintermediate banks by offering a vastly better customer experience,” says Carson Lappetito, president at Sunwest Bank. “As long as there is no regulatory oversight for or FFIEC (Federal Financial Institutions Examination Council ) compliant cybersecurity programs, we can also expect to see continued regulatory scrutiny placed on depository FinTech programs. FinTech companies are essentially creating their own internal,

‘mini-core processors’ or ‘banking ledgers’ that take customer deposits. This trend will continue in 2020 to solve the issue of scalability with banks while creating an unregulated depository risk in the banking system.” Another trend that banking experts say will continue is the need for business owners and borrowers of capital to be more cautious and diligent in the capital partners they select to invest alongside them. “Now, more than ever, business owners need to ensure the bank or financial partner they select are aware and committed to the factors impacting the Arizona economy,” says Benjamin Frank, executive vice president and head of commercial lending at Sunwest Bank. “Entrepreneurs should seek out more than the ‘lowest-cost provider’ because if/when there is an economic slowdown, the lowcost provider that doesn’t have a long-term strategy for growing and maintaining relationships within the state of Arizona will likely be the first look to deploy capital elsewhere and this will have negative impacts on the business community.” With that being said, Frank says Arizona has seen a level of growth not experienced in most markets around the country.

“Both population growth and investment opportunities that fuel job growth are likely to continue,” he says. “Many large national banks have taken a keen eye to the Arizona market and have made strategic investments in the state to expand their footprint. This has resulted in the acquisition of much smaller community and regional banks headquartered in Arizona. So long as the Arizona markets continue to see steady economic growth on the foundation of population growth and non-construction related industries, the reputation of a ‘boom-bust’ economy will disappear and the financial markets will become more efficient.” One of the drivers of that steady economic growth has been Arizona’s exceptional banking industry. Over the next several pages, you will learn more about the individuals and institutions that are excelling in Arizona’s banking sector and making the state a better place in which to do business.

Benjamin Frank

Carson Lappetito

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EXCELLENCE IN BANKING

Banks

of the Year Alliance Bank of Arizona

Background: Alliance Bank of Arizona, a division of Western Alliance Bank, helps business clients realize their growth ambitions. Founded in 2003, Alliance Bank of Arizona offers a full spectrum of loan, deposit and treasury management capabilities, plus superior service. Alliance Bank has 10 offices in Greater Phoenix, Tucson and Flagstaff. alliancebankofarizona.com

Bank of America

Background: Bank of America’s leaders are guided by a common purpose to help make financial lives better through the power of connection. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together the collective networks and expertise to achieve greater impact. bankofamerica.com

WaFd Bank Arizona

Background: WaFd is a full-service national banking institution that focuses on business-to-business banking, commercial and equipment lending, and home loan and corporate real estate financing. It has 31 offices in Arizona including locations in Chandler, Fountain Hills, Gilbert, Glendale, Goodyear, Green Valley, Mesa, Yuma, Phoenix, Prescott Valley, Scottsdale, Sun City, Sun City West and Tucson. wafdbank.com

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Credit Unions of the Year

Desert Financial Credit Union

Background: Celebrating 80 years in Arizona, Desert Financial is the state’s largest credit union with $4.6 billion in assets, more than 330,000 members and 48 locations across the Valley. In 2018, Desert Financial gave $7 million back to the community and its members, including Teacher Appreciation and Random Acts of Kindness programs. desertfinancial.com

OneAZ Credit Union Background: OneAZ is owned by its members and its earnings are returned to its members in the form of better interest rates and lower fees for service. With 21 locations, more than 140,000 members, and more than $2 billion in assets, OneAZ Credit Union has been serving Arizona since 1951. oneazcu.com

Vantage West Credit Union

Background: Vantage West is the largest credit union in southern Arizona. It was established in 1955 to serve airmen at Davis-Monthan Air Force Base. Since then the credit union has expanded to serve Members in Pima, Pinal, Maricopa and Cochise counties. Vantage West offers consumer and business banking services. vamtagewest.org

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EXCELLENCE IN BANKING

Community Banks of the Year

Bank 34

Background: Named in recognition of its 1934 origins, Bank 34 exhibits the spirit and rewards of standing around as an independent bank. In 2012, the Bank established a loan production office in Scottsdale and in 2014, acquired Bank 1440 in Arizona. Today, Bank 34 operates banking centers in Scottsdale and Peoria. bank34.com

State Bank of Arizona (Country Bank and Mohave State Bank)

Background: John and Roxane Nielsen, founders of Prescott Brewing Company, credits Country Bank for working with them in 1993 when their business plan was first presented to the bank, and continuing to support the business and work diligently on its behalf for more than 25 years. mohavestbank.com

West Valley National Bank

Background: Founded by a group of West Valley business leaders â&#x20AC;&#x201D; real estate developers and owners, a farmer, two doctors, an attorney, and small business owners â&#x20AC;&#x201D; who strongly believe that the West Valley area needs an independent community bank, WVNB fills a much needed niche as a true community bank. wvnb.net

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Small Business Lenders of the Year

BBVA

Background: BBVA USA has pledged nearly $15.5 billion in lending, investments and services toward supporting low- and moderate-income individuals and neighborhoods across the U.S. That figure includes nearly $7.3 billion in small business lending, $4 billion in community development lending, and more than $1.1 billion in community development investments. bbvausa.com

National Bank of Arizona

Background: As an SBA preferred lender, National Bank of Arizona can help small business owners find government-guaranteed SBA loan options that give entrepreneurs the chance to seize opportunities. With longer terms and lower down payment requirements due to government guarantees, SBA loans allow you to retain more capital to grow your business. nbarizona.com

Pacific Premier Bank

Background: Things break. Technology becomes outdated. Pacific Premier Bank offers term business loans for equipment financing needs. Equipment financing includes business vehicles, computers, machinery, tools or other fixed assets for your company. Pacific Premier bankers can tailor a business loan that suits your unique situation and budget precisely. ppbi.com

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EXCELLENCE IN BANKING

Outstanding Innovations in Banking Early Warning Services

Background: Early Warning Services, born here in the Valley, was entrusted by the banking industry to create Zelle — a payments network that would get money moving fast, safe and easy. Zelle allows consumers to send money from one U.S. bank account to another within minutes, when both parties are already enrolled.

STORE Capital

Background: For more than 30 years, Chris Volk has created real estate mortgage and lease solutions to businesses that use real estate in their daily operations to produce profits. Collectively, those companies have supplied more than $15 billion in financing to the chain restaurant, education, fitness, convenience store and other industries.

Verdigris Holdings

Background: The startup company’s mission is to help solve the national challenge facing more than 63 million Americans who are unbanked or underbanked. These consumers are turned away by most traditional banks which cannot service them profitably. Verdigris is already working to deliver its solutions in the state thanks to Arizona’s FinTech Sandbox.

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Outstanding Customer Service Alliance Bank of Arizona

Background: Its sharp focus on customer relationships, attracting and retaining top banking talent and a unique approach that serves national businesses alongside business clients in its regional footprint, has differentiated Western Alliance Bank as the business bank of choice for many companies in Arizona.

National Bank of Arizona

Background: “In 1984, National Bank of Arizona was founded on the mission to build local relationships and deliver exceptional customer service,” says Mark Young, president and CEO of National Bank of Arizona. “More than 30 years later, our approach has not changed.”

WaFd Bank Arizona

Background: WaFd’s training emphasizes both the “Why” and the “How-to” of its unique take on customer service. Training topics range from how colleagues should greet clients when they walk in the door, to WaFd’s 90-day, one-on-one, high-touch welcome process for new account holders.

Community Impact FirstBank

Background: FirstBank’s commitment to charitable giving is a key part of its business philosophy. The company heavily invests at the local level, believing nonprofit organizations are integral to the social fabric and that the bank is only as strong as the community in which it operates.

Geneva Financial

Background: Geneva Gives was born out of a desire to make an impact on a very personal level in the communities in which it serves. Geneva Financial’s goal is simple and clear — consistently recognize those who impact their communities every single day. From that belief rose the Geneva Gives - Hero Award.

U.S. Bank NA

Background: Through U.S. Bank Community Possible, the organization invests its time, resources and passion in economic development by supporting efforts to create stable jobs, better homes and vibrant communities. U.S. Bank also gives back through the U.S. Bank Foundation and through corporate giving.

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EXCELLENCE IN BANKING

Banking Leaders of the Year Jennifer Anderson, Wells Fargo

Jennifer Anderson

Background: As executive vice president for Wells Fargo Commercial Banking, Anderson’s territory covers Northern Arizona, including Phoenix, Scottsdale and Northwest Valley. She leads teams focused on serving the financial needs of business banking and middle market banking customers in Metro Phoenix and Northern Arizona.

Jack Barry, Enterprise Bank & Trust Jack Barry

Background: “I have always been a firm believer in endeavoring to help people/clients succeed,” says the chairman and CEO of EB&T’s Arizona Region. “I learned early on in my career to ask, ‘What can I do to help you?’ That mentality has benefited me throughout my career.”

Jim Patterson, UMB Bank Jim Patterson

Background: Patterson has served as the CEO of UMB Bank Arizona since 2009, and during that time he has helped the region grow significantly to $509 million in deposits. Under Jim’s leadership, UMB has grown from 16 employees to nearly 90 employees.

Commercial Real Estate Lenders of the Year BMO Harris Bank

Background: BMO’s commercial real estate bankers are committed to delivering insights on industry and local market trends, as well as a breadth of services and resources for your business – whether it’s a middle market real estate development firm, REIT, private equity fund or institutionally sponsored firm.

BOK Financial

Background: The BOK Financial team prides itself on being able to offer commercial real estate borrowers creative loan structures to meet their challenging financing needs. The team understands the current market conditions and how those affect their ability to lend and meet the needs of CRE clients.

Walker & Dunlop

Background: Walker & Dunlop is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties.

Wealth Management Organizations of the Year Arizona Bank & Trust

Background: Arizona Bank & Trust believes that its clients are best served by a team of investment experts rather than a single portfolio manager. Each member of its investment team specializes in a particular asset class, sector or market. The team designs portfolios to meet each client’s objectives.

BNC National Bank

Background: BNC provides a complete array of investment planning and management services for IRAs and agency accounts. BNC provides its clients with access to resources and educational opportunities that enable them to achieve their asset management objectives through a disciplined investment process.

Comerica Bank

Background: Comerica wealth management experts believe that positioning your portfolio for success requires the right mix of assets. Comerica Asset Management helps clients structure and manage a personalized investment portfolio by balancing their goals, time horizon and risk tolerance with solid investment strategies. 94

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Arizona Mining Association Minerals Make it Possible

2020

THE IMPACT OF MINING on Arizonaâ&#x20AC;&#x2122;s economy and quality of life

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ARIZONA MINING ASSOCIATION

WIRED FOR THE FUTURE Arizona’s mining industry rises to the challenge as minerals become increasingly critical for the nation’s technology, renewable, and consumer markets

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By ERIN THORBURN

he long-treasured love and nostalgia surrounding Legos has always been of the limitless possibilities involved. Despite the instructions included within many modern Lego sets, amazing, unforeseen and unplanned creations often far exceed the intended schematics. Think of the mining industry in a similar light. What mined metals currently offer in tangible goods, sustainability and renewable energy are simply indicative of todayâ&#x20AC;&#x2122;s metal mining needs. Think about the metallurgy practice of 5000 BC. Would early smelters have conceptualized the need for copper in cell phones, electric vehicles and wind turbines? Entire combinations of mined metals and their potential uses have yet to even be conceptualized, but based on metal mining history, we know the future possibilities are limitless.Â AB | January - February 2020 101

ARIZONA MINING ASSOCIATION

Neville Judd

David Kimball III

Francis McAllister

What we do know now is that there is — and will continue to be —greater demand and dependence upon mined metals for electric vehicles, electric-vehicle charging stations, consumer electronics, military applications and renewable energy technologies. “Copper will be a key metal in the transition to renewable and sustainable energy,” says Francis McAllister, vice president of land and water at Freeport-McMoRan and chairman of the Arizona Mining Association. “Whether it is electric cars or solar or wind power farms, copper is a key component to environmentally beneficial energy.”

Lee McPheters

Steve Trussell

for Hexagon Mining. “This will require roughly 10 million tons of copper — a 50 percent increase over current annual global copper consumption (20 million tons).”

Heavy metal demand Revisiting our Lego analogy, we need to remember that electric vehicles are just one (albeit hefty) building-block set. If our Lego sets are shelved side-by-side in the copper sustainability aisle of a store, here are some of the other boxes you would see: • Lighting • Air conditioners Massive demand for metals and minerals • Refrigerators A recent study — “Metal Demand For Renewable Electricity • Motors Generation in the Netherlands” — says this: “The demand for • Transformers nearly all critical metals is growing, caused by our increasing need • Information technology for applications which include these metals.” “When it comes to solar and wind, both are heavily dependent The study goes on to highlight the demand created by consumer upon copper,” Kimball says. “This is because on the wind side you electronics, military operations, and renewable energy as the need turbines — which are full of copper — that are necessary to three applications that will drive the need for coveted metals for efficiently produce power. For the solar arrays, they need copper to the foreseeable future. operate the electrical system in order to not only convey and create “Copper is the best, most economical conductor of electricity,” electricity, but they also use copper for electrical storage units.” McAllister says. “As such, wind power, solar power, hydroelectric According to Judd, the additional wind turbines expected to be built by 2030 will require roughly two million tons of copper — power, nuclear power and even coal-fired power plants require copper to produce and to distribute electricity. Coal and nuclear about 10 percent of the world’s current production. Yet, copper usage and benefits are not limited to sustainability power will continue to play a large role in base-load power generation; however, the significant shift to solar and wind power and renewable energy. Going back to military applications, copper generation as more sustainable power supplies will continue to drive is utilized to construct essential aircraft and advanced weaponry, the demand for copper, as these generators are copper intensive. and is considered a “strategic and critical mineral.” While other metals also will be critical to sustainable electricity “From planes and submarines to military equipment, the defense department is dependent on copper and the continued supplies, copper is the main component in this transition.” In addition, electric vehicle charging stations serve as production of copper,” Kimball says. an example of what we do know metal mining — copper in Perhaps less known by the general public is the fact that copper particular — is in great need of now and moving forward. serves as a valuable antimicrobial element. With 99.9 percent Within the next decade, by 2030, there will be an estimated bacteria reduction, copper aids in killing bacteria found in hospital 20 million electric vehicle charging stations, creating a demand bed rails, surgical instruments, and diagnostic imaging systems. for 250 percent more copper than what is used today. Yet, if we’re So what does the rising demand of copper mean for Arizona? looking at charging stations as metaphorical building blocks of a Considering that Arizona is the nation’s biggest producer of larger box set, it’s important to examine the other pieces. copper, it means incredible economic potential. “Besides the charging stations, which in and of themselves place “Arizona currently produces 65 to 70 percent of the total U.S. a massive demand on copper production, the electric vehicles copper,” McAllister says. “The state has great resources and significant themselves — not just passenger vehicles, but buses, trains, opportunity to supply more copper for the growing demand.” subway cars — will independently demand an increase in copper,” But that’s not all. says David Kimball III, shareholder at Gallagher and Kennedy. “Some 125 million electric vehicles (EVs) are predicted to be on Bountiful economy and employment boost the road by 2030,” adds Neville Judd, communications director For all the demand for copper, there are additional aspects of 102

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ARIZONA MINING ASSOCIATION non-fuel mineral mining that impact Arizona. These include molybdenum, which can be used for diverse applications, from additives for water treatment and feedstock to lighting and electronics; potash, used primarily as an agricultural fertilizer; silver, found in anything from watches and cars to works of art; zinc, frequently found in batteries, tires, cement, paint and more; uranium, which serves as the largest source of carbon-free energy in the world; and coal, which supplies 30 percent of the nation’s energy. Together, these minerals and metals are undeniable and invaluable drivers of Arizona’s economy and a tremendous employment generator for the state. “The average income for someone working in Arizona’s copper industry is nearly double the average state wage,” McAllister says. “The industry maintains and brings high-paying jobs to Arizona, as well as pays significant taxes to state and local governments.” According to Lee McPheters, research professor of economics in the W. P. Carey School of Business at Arizona State University, who released “Arizona Mining Economy Outlook” in October 2018, the state’s mining industry means $11.4 billion in economic impact, including: • 38,963 total Arizona jobs supported • $2.8 billion total income to Arizona workers • $5 billion purchases from Arizona Business “It’s important to note that Arizona is second in the nation in non-fuel mineral production,” says Steve Trussell, executive director of both the Arizona Rock Products Association and the Arizona Mining Association. “There are more mining projects attempting to come online in the future to meet the demand for several key and strategic minerals. As a state, we will continue to be a major source for key mined materials.” “Two-thirds of this country’s copper is produced in Arizona,” Kimball says, “and because the U.S. is the most stable political entity across the globe, you’re seeing more and more copper production come out of the U.S.” Additionally, as more artificial intelligence, robotics and global positioning systems (GPS) have emerged, they enable more comprehensive mining recovery than historical operations. “This means that many of the historical, lowgrade ores and/or low-grade tailings become new feedstock,” Kimball says, “that can be re-processed to recover the residual copper that the original technology was not capable of extracting.” Stepping up environmental efficiency Globally, the mining industry has endured heavy scrutiny for its navigation of environmental impacts. Mining industry leaders don’t shy away 104

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BY THE NUMBERS

8.4% Employment increase in Arizona’s mining industry from 2017 to 2018.

13.6% Income increase in Arizona’s mining industry from 2017 to 2018.

12.4% Output increase in Arizona’s mining industry from 2017 to 2018.

11,249 Direct mining industry jobs in Arizona.

27,714 Indirect (additional) Arizona jobs.

38,963 Total Arizona jobs created

$370 million Amount paid in state and local taxes.

from this topic, but at the same time hope to help change the narrative. “The industry recognizes that by definition, mining will change the landscape in a particular location,” McAllister says. “However, the industry is continually working to minimize impacts and engage with local communities to help them understand the impacts and get their input. Each mine in Arizona is regulated heavily by local, state and federal regulatory agencies that monitor air quality, water quality, habitat impact and safety. The industry must receive permits to operate and work within the parameters of the permits. These regulations protect the communities and environment from undue impact.” While changing the industry’s narrative, the takeaway is to demonstrate that the mining industry today is not what it once was. “With most ore grades in long-term decline, mines are compelled to be smarter about doing more with less and doing it sustainably,” adds Judd. “By converging both physical and digital worlds, Hexagon helps smart mines to put their data to work, enabling efficiencies and automating processes on-route to a safer, autonomous future.” Opposed to the past, the mining industry we know today stands as one of the most heavily regulated industries in the country. “There are no regulations as comprehensive and as effective as what we have here in the U.S. in ensuring public health and protection of the environment,” Kimball says, “We have federal and state regulatory programs that protect ground and surface water, air quality, concentrations of contaminants in soil and mandates reclamation for post-mining re-uses.” One example Kimball references is Arizona’s Aquifer Protection Program, adopted to protect Arizona’s groundwater quality. According to the Arizona Department of Environmental Quality, “Arizona’s groundwater protection programs are highly regarded by many states and agencies, including the U.S. Environmental Protection Agency (EPA), as comprising one of the most comprehensive approaches in the nation.” “The mining industry is dedicated to the people in our industry, the communities in which we live, and the environment that nurtures us all,” Trussel says. “Mine employees have a great affinity for the environment and spend a great deal of time not only working, but recreating outdoors. As such, mine employees work hard to provide much-needed resources while striking that critical balance of being protective of air, water and land resources. Our future depends on that and I am affirmed that no one understands this as well as our industry. Mining will provide the needed resources for a better future.”

ARIZONA MINING ASSOCIATION

LEADING THE

REVOLUTION University of Arizona Lowell Institute for Mineral Resources helps Arizona solidify its status as the Silicon Valley of mineral resources By ERIN THORBURN

amed in honor of former University of Arizona alumni J. David Lowell, the University of Arizona Lowell Institute for Mineral Resources can be said to mirror the ambition and accomplishments of its namesake. Lowell worked for 110 companies throughout 26 countries, found the million-ounce San Cristobal gold mine, and personally financed an exploration program in Peru, among many additional achievements in mining. Today, The Lowell Institute for Mineral Resources is instrumental in preparing a skilled and knowledgeable mining workforce. Students are exposed to a multidisciplinary education experience, with the inclusion of an underground mining lab combined with real-time introspection into today’s mining challenges — more efficient mineral acquisitions and resource recovery, environmental and biodiversity issues and how to mitigate social license issues (to name a few). Az Business sat down with Mary M. Poulton, PhD, co-director of the Lowell Institute, to learn more about the institute’s mission to advance responsible mining practices, educate students and stakeholders on the importance of mineral

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resources, and encourage a steady pipeline of mining employees who are educated and prepared to navigate the latest in mining industry challenges. Az Business: How does the Lowell Institute help advance responsible mining and use of minerals? Mary M. Poulton: Demand for minerals and mineral resources expertise is on the rise. A population expected to grow to 9.7 billion people by 2050 will demand more efficient and sustainable use of all our resources. By 2050, we could see as much as a 350 percent increase in the demand for copper, driven largely by electric vehicles. Thirty-three minerals are critical to U.S. national and economic security, and that number will continue to grow. AB: What are some of the challenges that come with that? MP: Just as the demand for mineral resources is ever-growing, the challenges of supplying those resources are also mounting. The easy-to-find mineral deposits are largely discovered and new resources are in more challenging environments – deeper, closer to urban areas or in environmentally sensitive areas. The Industrial Revolution 4.0 has

DEEP STUDY: Workers enter the University of Arizona San Xavier Mining Laboratory, 23 miles south of Tucson. (Photo courtesy of University of Arizona Lowell Institute for Mineral Resources)

increased the demand for more minerals for technology, renewable energy, server farms, and new forms of transportation. Society expects zero harm to people and the planet, but with maximum benefit to communities; and societal expectations and pressures constantly shift. The workforce to meet these challenges also faces disruption from mass retirements to new requirements for continuous learning and different skill sets to solve critical problems. AB: How is the workforce impacted? MP: Change is not happening fast enough in education, knowledge creation and innovation. We have been experiencing a decline in university programs related to mineral resources for more than a generation. In U.S. universities, the number of accredited mining engineering programs has declined from 25 to 13, with a similar decline in the number of economic geology programs (the geology of mineral deposits). In Canada, more than one-third of the mining workforce can retire in the next few years. In Australia, the number of university degrees in mining engineering dropped from 171 in 2012 to 47 in 2020. The University of Arizona Lowell Institute for Mineral Resources works on the full spectrum of mineral resources issues from fundamental science through the economic, social, and policy implications of wise use of resources and post-consumer recycling and re-use. Our interdisciplinary approach brings unique expertise to all these issues. We believe that only through an integrated approach that links all aspects of the resource value chain can we derive optimal solutions to the problem of supplying materials to a growing world population in a more sustainable manner.

Mary M. Poulton

AB: Why is it important to understand the value of locally mined mineral resources and innovations in mining? MP: All of the advances that will drive Arizona and the regionâ&#x20AC;&#x2122;s economies

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ARIZONA MINING ASSOCIATION require more and more materials that are responsibly produced and managed – and those materials have only one source – the rocks and minerals on this planet. This beautiful planet is made up of 92 naturally occurring elements. Our bodies are made of 11 key elements; 99 percent of the rocks in the earth’s crust are made of eight elements. But your cell phone needs about 62 elements. Everything we are, everything we grow, and everything we make is sourced from the elements that exist on the planet. We aren’t running out of anything, but with a growing population and growing affluence, how we responsibly source and use these materials is one of our greatest challenges.

electricity generated than coal. In addition, the copper deposits in Arizona also contain critical minerals like molybdenum, rhenium, yttrium and many more. And that is just copper – we are leaders in the production of many mineral products.

AB: How can Arizona maintain its leadership in the mining industry? MP: Because of the large number of world-class mines in Arizona, and the long presence of strong mineral resources programs at the University of Arizona, we have become a global technology hub for the minerals industry. Arizona has become the Silicon Valley of mineral resources. We have the necessary components of a world-class innovation ecosystem with the AB: How does that impact us in Arizona? university, technology transfer, industry, MP: We have to extract mineral government, and civil society. resources where nature has placed them Arizona also encapsulates many of rather than where it is convenient for us the challenges facing mineral resources. to mine. Arizona happens to be one of the Water is a precious resource and we must few places on the planet where nature has continue to find ways to use less water concentrated great amounts of copper near and have less impact on watersheds. the earth’s surface. The size of the copper More energy must come from renewable deposits in Arizona dwarfs many of the sources and Arizona is a perfect location other copper deposits around the world. to perfect solar technologies for mineral Arizona produces over 60 percent of the extraction and processing. Our semiU.S. copper supply. We have been mining arid environment and our sky islands many of these deposits for a century but are precious ecosystems and new mining have barely tapped their full potential. And methods must be developed to lower the our latest knowledge of the formation of footprint of mining and ensure restoration these deposits has led to new discoveries. of these ecosystems. Once remote mining Copper is one of the most important camps are now in suburbs of expanding metals for technology, renewable energy, metropolitan areas. Mining must become and electric vehicles. Server farms for our compatible with communities rather than cloud-based applications use huge amounts isolated from them. Ensuring workers go of copper. Electric vehicles contain more home safe and healthy from work every copper than conventional cars. And wind day is a top priority. How to ensure a fair energy requires more copper per unit of distribution of the economic benefits of

In the past decade, faculty associated with the Lowell Institute for Mineral Resources has contributed to more than 10 startup companies or licenses. 108

BY THE NUMBERS 100 10,000 12,000 The Lowell Institute has involved more than 250 faculty, students, and staff on more than 100 research projects involving 27 different disciplines.

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The Lowell Institute The Lowell Institute has reached more has used innovative than 10,000 K-12 training technologies students and to teach safety to teachers in more than 12,000 their classrooms. mine workers.

resource development requires innovative thinking about law, policy, and taxation. AB: How does the Lowell Institute help foster a new generation of skilled workers? MP: The Lowell Institute for Mineral Resources has helped sustain core strengths in geoscience, mining engineering, and extractive metallurgy as well as integrating those disciplines with many others that are important to the wise use of resources from law to environmental science to health and safety. We integrate education and research, so we have knowledge transfer at all levels from K12 through professional development. Over the past 10 years, we have developed new technologies to revolutionize the way workers are trained, we have created professional development courses that attract top geologists from nearly 80 companies in 30 countries to come to Arizona, and we have prepared our students to understand not only the fundamentals of science and engineering but also the latest technologies. The challenges we face in supplying the world with resources requires a more diverse and systems-oriented education which is hard to do in traditional academic departments that are designed to be very narrow and insular. What makes the Lowell Institute different? MP: No other university fully integrates the breadth of academic disciplines and organizations needed to provide innovative solutions to today’s risks and prepare the next generation of diverse professionals for tomorrow’s challenges. The Lowell Institute leads this collaboration, bringing together the best the UA and industry have to offer. We truly are a one-stop-shop for mineral resources issues and we are focused on solutions. The Lowell Institute is an umbrella organization that brings people and ideas together across boundaries, catalyzes innovation, and increases the visibility and impact of the work being done. By capitalizing on the resources in the surrounding area, engaging and collaborating with the diverse and wellestablished college programs, and working with successful and innovative companies and industry leaders, the Lowell Institute has the potential to lead and support this revolution in the mining industry.

ARIZONA MINING ASSOCIATION

OPPORTUNITY KNOCKS Arizona’s mining industry offers plenty of lucrative career opportunities

By ERIN THORBURN

ining careers have a rich history in Arizona. In 1910, one-quarter of Arizona’s workforce was employed in the mining industry. By 1970, after the state population had increased more than eight-fold, copper mining was still touted as one of the Five Cs that drove the state’s economy — along with citrus, climate, cotton and cattle. Since establishing itself as a prime element in Arizona’s economy, copper has provided ample employment opportunities for Arizonans. Today, non-fuel mineral production in Arizona ranks second in the nation, with a value of $6.7 billion annually and offers lucrative and diverse

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career pathways in the mining industry. “Over the past four decades, Arizona’s population has more than tripled in size and the economy has continued to become more diverse, experiencing rapid growth in new high-technology industries such as semiconductors and aerospace,” says Steve Trussell, executive director of both the Arizona Rock Products Association and the Arizona Mining Association. Prior to Arizona’s statehood, mining was already well at work, according to the University of Arizona’s Arizona Geological Survey. Native Americans mined surface outcrops, such as quartz, obsidian, stone, turquoise, coal and more.

It wasn’t until 1854 that the Arizona Mining and Trading company helped usher in what became the modern era of hard-rock mining in the state. By the time Arizona had reached statehood, the state supported 445 mines. “I don’t think people have any idea of the breadth of careers in mining,” says David P. Kimball, III, shareholder at Gallagher & Kennedy. “Everyone thinks of geologists, metallurgists and mining engineers, but few people understand how much technology plays a role in mining,” adds Sarah Strunk, director at Fennemore Craig. “More and more, technology is the

factor that allows mines to keep costs contained and continue to operate and be productive. Of course, mining also includes all of the other disciplines of any other business, including accounting, finance, environmental, legal and compliance.” When discussing mining careers, chemists; metallurgists; environmental engineers; safety managers; geologists; industrial designers; biologists; wildlife managers; plant engineers; public relations; government relations; mechanics; electricians; engineers; surveyors; and flotation, grinding and reagent operators are simply a few examples. These career pathways and others in mining offer unique opportunities, which include exploring the far reaches of the world. “Working in mining is truly international, providing opportunities to travel to some very interesting locations and perhaps work as an ex-pat at some point,” Strunk says. “On the international nature of the business, mining has allowed me to travel to China, Chile, Peru, Brazil, Uruguay, Mexico, Canada, U.K., Sweden, Denmark, Germany and France. I have worked on projects involving South Africa, Botswana, Russia, Greenland and all over South America.” In addition to not fully comprehending the the wide breadth of mining employment potential in Arizona, the earning potential may not be fully understood, either. “Hexagon alone is the largest supplier of technology to the mining industry, with more than 1,000 employees worldwide

supporting it,” says Neville Judd, communications director for Hexagon Mining. “The company attracts University of Arizona talent with six-figure salaries on average. Its manufacturing facility near the Tucson airport provides highly-skilled, technical positions that create made-inAmerica solutions for the world.” Arizona’s mining industry boasted 38,963 jobs in 2018 alone. According to Trussell: • $102,860 was the average labor income per mining worker in 2015, which is more than double the $49,820 for all other Arizona workers. • $891 million was the total state and local taxes generated by mining companies, suppliers and employees in 2018. • The total payroll of Arizona mining companies in 2015 was $1.23 billion. • Arizona mining companies purchased $2.77 billion in goods from Arizona- based suppliers in 2015. “From 2017 to 2018, mining employment was up 8.4 percent, income was up 13.6 percent and mining output increased 12.4 percent,” Trussel says. “I don’t see that trend changing from 2019 to 2020 or beyond. The labor market is strong, wages are rising, inflation is moderate, unemployment dipped to a 50-year low and Arizona is among the leading states for job gains and population growth.” “The mining industry currently has more jobs than we have job applicants,” Kimball adds. “Because of the continued need for these specific careers and skill sets, you’re going to have a career that’s stable and secure, in one of the highestpaying industries.”

MINING CAREERS AT A GLANCE

Mining employment opportunities are as diverse as they are plentiful in Arizona. Take a look at some of the mining industry’s most coveted careers.

GEOLOGIST/EXPLORATION POSITIONS Average salary: $57,000 - $89,000+ annually

Requirements: Bachelor of science in geology or geoscience, MSHA certification, valid driver’s license

METALLURGIST/PROCESSING CAREERS Average salary: $73,000-$93,000+ annually

Requirements: Bachelor of science in metallurgy, MSHA certification

MINING ENGINEER/ ENGINEERING CAREERS Average salary: $59,000-$98,000+ annually

Requirements: Bachelor of science in mining engineering

GEOSCIENTIST

Mean wage: $81,940 annually Minimum education: Bachelor’s degree

MATERIALS ENGINEER

Mean wage: $94,530 annually Minimum education: Bachelor’s degree

HYDROLOGIST

Mean wage: $72,640 annually Education: Bachelor’s degree

OCCUPATIONAL HEALTH & SAFETY SPECIALIST Mean wage: $69,990 annually Education: Bachelor’s degree Source: Arizona Mining Association

Neville Judd

David Kimball III

Sarah Strunk

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2020

BUILDING A

CONNECTED REGION

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GREATER PHOENIX ECONOMIC COUNCIL

CONNECTED TO The Greater Phoenix Economic Council helps Valley become a magnet for innovation By MICHAEL GOSSIE

he numbers are staggering. In its just over 30 years of existence, the Greater Phoenix Economic Council (GPEC) has helped more than 800 companies set up business in Arizona, helped bring more than 144,000 jobs to the state, and attracted more than $16.1 billion in capital investment to the region.

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SUCCESS

“(GPEC President and CEO) Chris Camacho and his team consistently lead the nation in net absorption and retention figures due to their strategy, consistency and tenacity in identifying and targeting domestic and international end users to choose the Valley of the Sun as a place to select for their business destination,” says James Murphy, president and CEO of Willmeng Construction and long-standing GPEC member. “GPEC represents Arizona at the highest level to make the business case that Arizona is the right choice for the long-term success of the prospect. This business case spans from the cost of the KW-hour for power, the availability of water, pipeline of qualified labor, ability to expand, distribution logistics, incentives, and multiple tiers of a comprehensive tax discussion.” With GPEC’s success in attracting and growing companies has come explosive growth — both economically and in the sheer number of people. From July 2017 to July 2018, Greater Phoenix welcomed 62,000 new residents, the most of any metropolitan area in the United States during those 12 months. While the population is shifting and evolving, so is the reputation of the Valley. Although Greater Phoenix has been touted to outside markets for its great weather and strong real estate market, the region is becoming a destination for emerging technologies, including autonomous vehicles, cybersecurity, medical technology, blockchain, artificial intelligence, the Internet of Things (IoT) and wearable James Murphy technology. “We’ve really bet on the right things and we’ve put a lot of infrastructure, data analytics and data sciences into our efforts,” Camacho says, “so we are speaking the language that top global companies are speaking today. That puts us in a position to win a lot of deals.” AB | Ja nua r y - February 2020 117

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GPEC 10 big wins for GPEC And winning deals is something GPEC is doing with great skill. In a year packed with significant economic development successes across a variety of industries, here are 10 game-changers that GPEC helped lock down last year: Infosys: The global digital services and consulting firm is building a technology and innovation center in ASU’s Novus Innovation Corridor south of Tempe Town Lake. Infosys has pledged to add a total of 1,000 jobs in Arizona by 2023. Deloitte: Experts at the company’s 102,000-square-foot U.S. Delivery Center in Gilbert will develop and implement emerging technology solutions for a range of private and public sector clients. The center is expected to generate 2,500 jobs for the region. Front: The Sequoia-backed, highgrowth tech company that is replacing corporate email with an inbox built for teamwork, will create up to 50 new jobs in Greater Phoenix in 2020, its inaugural year in the region. Nike: The iconic company is making a significant manufacturing investment in its U.S. innovation footprint by opening a new Nike Air Manufacturing Innovation facility in Goodyear, which is expected to generate more than 500 full-time jobs and result in an investment of at least $184 million. Red Bull, Ball Corporation and Rauch Fruit Juices: The three companies have partnered to create a new West Valley manufacturing hub south of Peoria Avenue near Loop 303. Red Bull and Rauch cans will be filled in the 700,000-square-foot building, which is set to open in the first quarter of 2021. Silicon Valley Bank: The bank of the world’s most innovative companies has secured an additional 60,000 square feet of office space in Tempe that it will move into this year and aims to grow its presence by more than 300 employees in the next three years.

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Verdigris: The company bringing banking to the unbanked selected Arizona for its corporate headquarters and will bring more than 210 well-compensated jobs to the Greater Phoenix area with average annual salaries of more than $150,000. Creighton University: The school is building a new, nearly $100 million health sciences campus at Park Central in midtown Phoenix. The campus eventually will house nearly 800 Creighton health sciences students in Arizona. Zillow: The company’s new Greater Phoenix office acts as the Southwest hub for Zillow Offers, which is transforming the process of selling a home by giving sellers a free, noobligation cash offer. Zillow Group expected to add 160 employees by the end of 2019. Microsoft: The tech giant is building three new “world-class” data center campuses in El Mirage and Goodyear. The project will create 110 new jobs for mechanical engineers, electrical engineers, data center technicians and more. There will also be more than 1,000 construction jobs created to build these three data centers. “In terms of the industries in which I foresee growth in Metro Phoenix, we will see massive technology growth — both through consolidation from higher-cost markets pushing out some of the highergrowth companies, and we will also see organic growth in technology companies from new ventures that are being launched,” Camacho says. “You’re going to see technology companies getting to scale in Arizona, which is very exciting. Ideally, in the next decade, we will see another homegrown company like Carvana or Keap get to scale and go public.”

CHRIS CAMACHO: “Financial services will continue to be a strong driver of new job growth in Metro Phoenix, as will healthcare,” says the president and CEO of GPEC. “We are seeing massive growth in healthcare, outpacing the national average by three times.” (Photo by Mike Mertes, AZ Big Media)

GPEC

THE CONNECTIVE

GETS SMART

Greater Phoenix public, private, university and community partners collaborate to deliver the nationâ&#x20AC;&#x2122;s largest smart region By ERIN THORBURN

he definition of a smart city essentially describes a city comprised of a more connective infrastructure. It means that data and technology are utilized to their most efficient capacity and capability to improve sustainability, spur economic development, and enhance quality of life. You can find them all over the United States. But why limit the possibilities of connecting a city, when you can connect an entire region? Welcome to The Connective, the first Greater Phoenix smart region.

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“Seamless borders need to be seamless by way of technology, data sharing and integrated solutions, too.” — Jenn Daniels

“Two years ago we announced the intention and vision for a smart region consortium in Greater Phoenix,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council (GPEC). “Now a reality, this consortium will elevate the region’s competitiveness and enhance the reputation of Greater Phoenix as a preeminent market where companies can test, develop and deploy technology at scale while providing our residents with a technologically advanced lifestyle opportunity.” What will be the nation’s largest and most connected smart region in Greater Phoenix is the result of the unified effort of the Partnership for Economic Innovation (PEI), GPEC, Maricopa Association of Governments, Arizona State University and the Institute for Digital Progress. “The connective is a governing structure that establishes a process by which the region can holistically adopt smart technology by entirely re-engineering the system as we know it today,” Camacho says. Team approach The Connective, Greater Phoenix’s Smart Region Consortium, was founded with support from Cox Communications, Dell, Maricopa County, Salt River Project and Sprint. “These great organizations are conveners of ideas and are key to developing a vision for our future,” says Jenn Daniels, mayor of Gilbert. “No one does anything alone. Each group brings strengths and expertise to the table without ego. It’s a remarkable accomplishment to collaborate across so many disciplines, but it’s also the Arizona way. We’ve been working together on various issues for decades and we’ve gotten really good at it.” This collaborative effort to construct the nation’s largest smart region is designed to enable high-level problem solving that encourages connectivity, affordability, and intra-operative capability of services. “The Connective is another step forward for smart community applications and services,” explains Ed Aaronson, vice president at Cox Communications, “engaging city leaders and citizens, nonprofits, university faculty, student researchers, industry experts, and visiting scholars to build the metropolitan and regional infrastructure of the future.” The cities interwoven into The Connective include The City of Apache Junction, City of Buckeye, City of Casa Grande, City of Chandler, Town of El Mirage, Town of Fountain Hills, Town of

Gilbert, City of Glendale, City of Goodyear, City of Mesa, City of Peoria, City of Phoenix, Town of Queen Creek, City of Scottsdale, City of Surprise, City of Tempe, City of Tolleson and the Town of Youngtown, with the potential for additional cities to join in the future. Connectivity by region While the needs of individual cities will certainly be addressed, The Connective seeks to solve the challenges of all jurisdictions by approaching solutions on a larger, regional scale. According to Diana Bowman, associate professor for Arizona State University’s School for the Future of Innovation in Society, “The Connective is meant to identify what the challenges are from a regional vantage point. This is not about ASU having a research agenda and going out to deliver technology to the cities and region because we think that’s what needed. It’s about each participating city telling us what they need and The Connective finding the best solution to address that need.” Intra-operative efforts beyond borders Bowman provides a real-time, palatable example of how the concept of interchangeable systems will play out in the Greater Phoenix Smart Region. “When I wake up in the morning,” explains Bowman, “I wake up in the City of Phoenix. When I go to work at the Tempe campus, I cross a jurisdictional border. Most citizens in Greater Phoenix cross jurisdictional boundaries every day — whether they know it or not. To have smart system transportation that only operates in Tempe or Phoenix (independent of one another) makes no sense. Having an intra-operable system allows seamless flow of vehicles and people.” Intra-operative transportation is but one aspect of The Connective’s drive for refined fluidity between municipalities. “Seamless borders need to be seamless by way of technology, data sharing and integrated solutions, too,” Daniels says. “I would love to work with The Connective to ensure that solutions don’t end at municipal boundaries, but that as a region and state, we all work together to ensure total integration when it comes to traffic management, 5G connectivity and resource protection.” Whereas smart technology solutions have historically come in the form of a pushed product upon a city council, Camacho reiterates that The Connective works in opposition to this strategy. AB | Ja nua r y - February 2020 123

GPEC

Ed Aaronson

Diana Bowman

Chris Camacho

“Ours is a partnership and governance that enables us to form audits with our cities to find out what residents want in terms of issues that they foresee in their communities,” he says. “We find common ground in shared challenges that propel the governance system to enable a call for innovation and to ultimately come forward and address what those issues are.” While The Connective goes to work on addressing the varied issues within the new Greater Phoenix Smart Region, there will be added advantages for those involved. “The training, knowledge sharing and awareness that will result from participation in The Connective will greatly benefit cities as they seek to better understand how and when to implement smart technologies in their cities,” says Dan Cotterman, deputy city manager for Goodyear. Saving cities time and money Often, cities share common challenges, further reinforcing the value of regional collaboration in working toward connectivity. Camacho explains that the likely shared challenges of The Connective’s participating cities allow for the adoption of a scale. This scale enables the overarching cost that a city or set of cities would normally incur to procure needed technology to significantly decrease. Cities aren’t the only entities that have the potential to save. Because The Connective ultimately seeks to provide the smartest solutions through the most efficient solutions, Greater Phoenix businesses and universities will likewise reap the rewards. “Think of Arizona in the last five years as becoming known as the proving ground for emerging technologies” Camacho says. “In 2015, there was executive order on autonomous vehicles, then there’s the FinTech sandbox, wearable technology, and the recent emergence of PropTech (property technology) and new regulatory sandboxes. All of this has evolved into a partnership with private industry, including APS, SRP and others with ASU.” The result of such partnerships is going to enable a mass number of proving grounds, testing models, where Internet of 124

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Dan Cotterman

Jenn Daniels

Things (IoT) devices can be deployed alongside other forms of state-of-the-art smart technology to be tested and validated before they get brought back to the consortium for adoption, according to Camacho. “Businesses are increasingly incorporating technology in their workplace environment,” affirms Cotterman. “The use of technology spans all business sectors, from engineering companies to advanced manufacturers, who use sophisticated technology to grow and compete in the global marketplace. The Connective allows us, as a region, to stay relevant and become more competitive as we vie for knowledge-based and other highly desirable companies.” Becoming more competitive While financial and logistics benefits are likely to manifest in both public and private sectors, Bowman emphasizes that there is a far greater motivation at play when it comes to the underlying drive of The Connective. “At all times, the discussion has ultimately centered around quality of life,” Bowman says. “Having the mindset that the Smart Region isn’t so much about technology or business development — but rather improving quality of life in the region — has been the driving force for everything we’ve done and is critical to our mission moving forward.” “If we do this well over the next few years,” Camacho says, “We believe as we put the new governance structure in place, we’ll have a structure by which public and private interest in smart technology advance together, the result of which will yield an innovative brand for the region.” And, Daniels adds, “When we demonstrate our willingness to drive change, we will attract others who see value in the same. Our universities are turning out world-class graduates already contributing to our economy. All levels of government are challenging the status quo and clearing the path for business and personal success. Our businesses are investing in solutions and in people delivering unprecedented Arizona growth. We’re all in this together and it shows.”

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WEARTECH

MedTech innovators perfect and create wearable technology

By ERIN THORBURN

ave you ever considered the possibility that wearable technology could vastly improve your life? The innovators at the WearTech Applied Research Center have. In fact, these entrepreneurs aren’t simply considering the health and lifestyle benefits of WearTech, they’re creating it. The WearTech Applied Research Center, a collaboration between Arizona State University and local government, economic and healthcare organizations, opened in October in the newly-renovated Park Central and is positioning the Phoenix metro area to be the hub of wearable technology innovation. The first-of-its-

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kind applied research center will support an entrepreneurial ecosystem to improve quality of life and human performance through the development of innovative wearable technologies. “Our goal with this institute is that we become proud Arizonans of an Arizonabased intellectual property generation,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council (GPEC). “It’s less about importing other states’ and other people’s technology and more about building our own.” With the help of a $750,000 grant that was awarded to GPEC from the U.S. Department of Commerce, Arizona’s

MedTech innovators are changing the way consumers, medical providers, and the world view health and technology. And, in doing so, they are expected to further brand Arizona as the most innovative and forwardthinking MedTech center in the nation. The foundation The WearTech grant originates from the Economic Development Administration’s 2018 Regional Innovation Strategies program competition and it aimed at accelerating wearable and medical technology entrepreneurship in Greater Phoenix. The distribution of funds will be facilitated by GPEC, the Center for

TAKEOVER to add to Arizona’s invaluable intellectual property

Entrepreneurial Innovation (CEI) at the Maricopa County Community College District, Arizona State University (ASU), the Partnership for Economic Innovation (PEI), and StartupAZ Foundation. “We were very fortunate that a year ago as we went out and talked to the Legislature about garnering support the Wearable Technology Center,” Camacho says. “The Legislature afforded us — with the governor’s support — dollars to go build what we built at Park Central. Immediately upon finalizing the legislation, we were oversubscribed for the number of private sector WearTech companies that were seeking out the grant infrastructure that the state provided.”

Not your mom’s SmartWatch When discussing WearTech, those not well-versed with MedTech and wearable technology may wonder, “What are we really talking about?” “Wearable technology is identified as first being able to be physically wearable on the body,” says Joe Hitt, co-founder and CEO of GoX Labs, which operates out of the WearTech Applied Research Center. “Second, it needs to be able to do something — a quantitative measure — monitor heart rate, sleep or even glucose levels.” The SmartWatch is probably the most recognizable type of wearable technology, but earbuds, head-wraps, harnesses and exoskeletons are additional examples.

“Wearable medical technology is the next generation of healthcare and can improve the quality of life for patients,” said Christine Mackay, director of Phoenix Community and Economic Development. Among the residents and early innovators that are calling the 5,000-square-foot WearTech Center at Park Central mall in Midtown Phoenix home are: • Hoolest Performance Technologies. The company is focusing on an electrical nerve stimulator earbud that calms anxiety. • GoX Labs. Researchers are developing human exoskeleton standards and testing research in the pursuit of improved mobility and performance. • Flexbio and TrueMobile Health. The company is working on an absorbent patch that can detect the presence of alcohol in sweat and is paired with software for wearable technology.

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the MacroTechnology Works Initiative and foundation professor of engineering at ASU. “As the award encourages expansion in MedTech, it also promotes opportunity for continued intellectual property to be created in Arizona.” Joe Hitt Christine Mackay That is something Camacho stresses as vital to shaping Greater Phoenix as the hotbed for WearTech development and advancement. “I expect in the next few years, we will have a myriad of innovation centers across this central hub — the location of Catapulting into a competitive market the WearTech Applied Research Center in While the physical logistics for the Central Phoenix — that will redefine our WearTech Center are optimal for its city as we know it,” Camacho says. resident innovators, so is the logistic Now that legislators have what positioning within the growing MedTech Gregory Raupp Kyle Squires Camacho refers to as “a taste of what these sector. Arizona is becoming an increasingly innovations are,” he expects more of a more competitive arena for companies like very good thing to come from Arizona’s Hoolest Performance Technologies, GoX groundbreaking MedTech innovators. Labs, Flexbio and TrueMobile Health and the support and access to research and a “As we put more and more of these in LevelUp. pipeline of talent from local universities. play, we’re going to be wildly successful in Why now? Why should entrepreneurs “If you look at the top innovation not only recruiting companies, but growing and thought leaders in the MedTech space hubs globally, the centerpiece is always a turn their attention to the Valley? strong research university or universities,” the base of companies in Arizona,” he says. Industry analyst firm CCS Insight “Because now, the need for wearable says Kyle Squires, dean for the Ira A. estimates the wearable technology technology, combined with public Fulton Schools of Engineering at ASU. industry, with more than 245 million awareness knowledge, is intercepting,” “This collaborative center converges devices sold in 2019 alone, is worth $25 Hitt says. “Prior, the public wasn’t aware of our world-class faculty and impactful this type of medical technology. And the research with industry partners’ ideas and billion globally. “Today, there are more than 133,600 need for this technology has become more needs. It embeds our ability to effectively innovators and businesses in the apparent with the rise of preventative translate fundamental research into the Valley’s wearable technology workforce,” diseases — 80 percent of chronic diseases marketplace at the pace of industry and Mackay adds. “This includes electronic, are preventable.” make ASU’s backyard the competitive biomechanical and mechanical engineers, Furthermore, according to Hitt, home of wearable medical technology.” electrical and electronic technicians and insurers, consumers, medical providers software developers, plus supporting and employers are starting to realize Expanding and scaling the potential to predict and monitor the Camacho says ASU is continuing to fuel occupations and vendors. This is a progression of medical conditions. the labor force needed for these innovative field that can draw upon experience, “Wearables will help us predict chronic startups by pursuing an aggressive plan to knowledge and acumen horizontally across many industries.” diseases and help us change behavior on a keep building one of the best engineering And, Mackay says, “The Valley is massive scale,” he says. schools in the nation. establishing prominence at the inception While greater awareness of wearable “This new federal award provides a great technology and what it can do in the opportunity to strategically expand the scope, of the industry. It’s a pioneering effort, and Phoenix is the world center of the healthcare industry certainly underscores scale and reach of our MedTech Ventures pioneer spirit.” the idea of “right timing,” so does having Program” adds Gregory Raupp, director of • LevelUp. This company is producing a baseball hat with an EEG headband that utilizes neurofeedback to enhance human performance. The diverse projects housed in the WearTech Applied Research Center could not be more perfectly positioned, with the Phoenix Biomedical Campus, Barrow Neurological Center and a host of other predominant healthcare providers in close proximity.

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THE BRIDGE SkyBridge offers a unique opportunity to strengthen and streamline Mexico-Arizona e-commerce, consumerism, tax processing and more

By ERIN THORBURN

rik Lee, executive director for North American Research Partnership, summarizes the impact very succinctly. “SkyBridge is the most consequential Mexico-Arizona business project in this part of Arizona,” Lee states emphatically. SkyBridge marks the nation’s first inland air cargo hub to house a joint United States-Mexico customs facility. The recent groundbreaking of SkyBridge, housed in Phoenix-Mesa Gateway Airport, marks an opportunity for 17,000 projected longterm jobs to enter the region — both directly and indirectly. But job creation is just one snippet born of a much larger “SkyBridge vision.”

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“Mexico continues to be our No. 1 trading partner by far,” explains Chris Camacho, president and CEO of the Greater Phoenix Economic Council (GPEC). “In the last three to four years, we’ve really enhanced our relationship with the State of Sonora and other states.” Those wondering just how valuable the Mexico-Arizona partnership is can simply look at the statistics regarding e-commerce. According to Marco A. López Jr., president and CEO of Intermestic Partners and founding partner of SkyBridge Arizona, e-commerce in the Latin American market is a $359 million industry — and growing.

TO MEXICO

Opportunity knocks “Opportunity is tremendous when you think about the fact that we are currently at less than one-half of the market penetration into Mexico and Latin America,” López says. “The question has been, ‘How can we facilitate it?’ That’s where we come to the SkyBridge opportunity. This is an Arizona story centered at the Gateway-Mesa Phoenix airport.” According to López, 75 percent of goods bought online from Latin American countries are being purchased from e-commerce websites in the U.S. This makes SkyBridge perfectly positioned as an international clearance hub for goods bought in the U.S.

“It offers e-commerce to Mexican consumers in big-box retailers,” Lee says. “It seems to me that it’s a golden opportunity to connect high tech, automotive and aerospace industries in Mexico. It’s both highly profitable and time-sensitive.” SkyBridge Arizona is a 360-acre, long-term development at PhoenixMesa Gateway Airport that will allow U.S. Customs and Border Protection and Mexican Customs officers to work side by side to jointly inspect and process shipments in preparation for international transit. “SkyBridge is a great asset to add to what we have at Phoenix-Mesa Gateway AB | Ja nua r y - February 2020 133

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Doug Ducey

Airport,” says Ryan Smith, director, communications and government relations, Phoenix-Mesa Gateway Airport Authority. “We view Phoenix-Mesa Gateway Airport not as much as an airport, but as a large redevelopment project that just happens to have an airport. So when you look at a project like SkyBridge, with lots of acreage and direct access to three 10,000-foot runways, the possibilities are limitless as to what you can produce there and what can locate at SkyBridge.” According to Gov. Doug Ducey’s office, SkyBridge is a $230 million commercial development that will have 2 million square feet of warehouse space, 1 million square feet of office space, 800,000 square feet of air cargo operations, 900,000 square feet of light industrial and flex space, and 100,000 square feet of retail and restaurants. It is also expected to increase cargo flights out of Phoenix-Mesa Gateway to 2,000 per year, a number that will skyrocket to 10,000 by 2036. Time is of the essence Camacho agrees with Lee that when it comes to maximizing SkyBridge opportunities, time is of the essence. “SkyBridge got out the gate quickly with Mexican and U.S. customs,” Camacho says. “What I hear every day is the clock ticking because every day there are other states that are running vigorously to pursue similar opportunities. They also see the Latin American market as a tremendous e-commerce platform.” 134

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Erik Lee

Marco A. López Jr. Jackie Orcutt

Why will other regions rush to formulate their own versions of SkyBridge — or try to anyway? There are several motivating factors. First, SkyBridge enables a streamlined duty process essential to fostering a healthy and productive e-commerce environment. “The duty for goods is paid here in Arizona and transmitted to each country’s tax collection office,” López says, “which means no more abandoned goods that taxes aren’t collected on.” This results in a win-win for the consumer who buys the product; the tax authority who collects the duty; the logistics chain that can expand its operation into Latin America; and the company that operates only in the U.S.today, but wants to expand south of the border. “Arizona then becomes the leader in logistics,” López says. “We have the Arizona State University Polytechnic Campus across from SkyBridge. We know that e-commerce will not only continue to grow in Latin America, but also locally and globally.” It’s also an opportunity to grow other business sectors. “This is an inland port that brings the conversation to tech businesses in Arizona,” Lee adds. “It was going to take someone like Marco (López ) bringing his meaningful relationships with Mexico to make this work. It’s a real project for Arizona politicians and local officials and focus on — touch, feel and think about — and anchor their interest in Mexico and border relationships.”

Better delivery The other logistic advantage SkyBridge offers is in expedited delivery of goods. With Mexican customs officials on site at Phoenix-Mesa Gateway Airport, the customs approval process can happen before the plane departs from the U.S. to Mexico, allowing cargo to be delivered to its destination the very same day, according to CBRE Senior Vice President Jackie Orcutt. “In the past, there’s been a bottleneck for delivery of product to Mexico via air cargo and it could take up to 14 days for cargo product to make it through customs once it had landed in Mexico,” Orcutt says. “This process allows it to happen essentially the same day.” In addition, companies operating out of SkyBridge benefit by saving three to four months of tax benefits since taxes are not required to be paid until a company has a buyer. Goods can be trucked to Mesa, stored in a warehouse, add value by being assembled onsite, and all the while, still be classified as a foreign product until it goes to the buyer. “For Arizona, this means our state becomes the place where companies come that want to interact with Mexico,” López says. “There’s no stop in terms of opportunity potential. The long-term potential of SkyBridge is that in terms of national logistics leadership, no other city in America has this type of infrastructure ready to go.”

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