AZBusiness May/June 2019

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MAY // JUNE 2019

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INDUSTRY LEADERS of Arizona ARIZONA ENERGY CONSORTIUM

28

ARIZONA TOURISM

58

HEALTHCARE SPECIAL REPORT

72

SUN CORRIDOR

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Table of Contents 6

Trendsetters

12

CEO Series

14

Law

20

Banking

24

Marketing

26

Dining

28 Arizona Energy Consortium 34

DIAGNOSING ARIZONA It’s not exactly a healthy outlook.

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ILoA Awards

58 Arizona Tourism 72 Healthcare 89 Arizona-Mexico Commission Sun Corridor Inc. 105

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ON THE COVER: Brian Bair, Offerpad (sitting). Back row, from left: Ryan Hibbert, Riot Hospitality Group; Nathalie Carruthers, JDA Software; David Rauch, Annexus; David Dexter, Sonora Quest Laboratories; John Bauermeister, Freeport Logistics; and Bill Rogers, Homeowners Financial Group.

(Photos by Mike Mertes, AZ Big Media) 2

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A recent study found that Arizona ranked No. 13 when it comes to states being in danger of having a doctor shortage in the years to come.

As politicians argue over healthcare policy in Washington, an even bigger problem may be on the horizon here at home — and your family’s health may be at risk. The United States is projected to face a doctor shortage of 120,000 by 2030.

While this is a huge national problem, Arizona may have it much worse than others.

According to an “Expected Doctor Shortages by State” study from theseniorlist.com and based on the latest data from the U.S. Department of Health and Human Services and the Association of American Medical Colleges, things are not looking good for the Grand Canyon State: • Arizona has 235.8 doctors per 100,000 people, which ranks the state 32nd.

• In Arizona, 30.9 percent of doctors are nearing retirement, ranking 29th.

• When it comes to medical students nearing the end of their education, 24.6 Arizona residents per 100,000 are about to enter the workforce as doctors, ranking the state 38th.

Factoring in the rankings from all three categories, Arizona has an overall ranking of No. 13 when it comes to expectations of a doctor shortage in the years to come.

But don’t despair. Healthcare experts may have a prescription for what ails the state’s healthcare industry. In a special healthcare report inside this issue of Az Business magazine, we examine why Arizona is facing a huge doctor shortage and what the state is doing to fix that problem.

Also in this issue, we spotlight the healthcare leaders and innovators of 2019 and profile the finalists for the Industry Leaders of Arizona Awards, which just happens to have a healthcare category this year.

So dig deep into the healthcare issue of Az Business. It won’t hurt a bit.

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

THE ESSENCE OF ART AND LANGUAGE Visual storytelling through photography and video by Mark DelSasso

360 VR video

Clients

U.S. Capitol Visitor Center, Fairmont Hotels, The White House Visitor Center, Marriott Hotels & Resorts, Intel, IBM, Hines, Wells Fargo, Leo A. Daly, Perkins + Will, SmithGroupJJR, Philips Lighting Company, Haworth, HCR ManorCare, AECOM Hunt, U.S. Department of Education, Gensler, CBRE, Newmark Knight Frank, U.S. Department of State, U.S. Department of Energy

602.818.5777 | Scottsdale, AZ

markd@videoarchitecture.com

202.337.4358 | Washington, DC

202.337.4358 | Washington, DC

SHOUT-OUTS

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 Interns: Erin Brassey | Alexa Buechler Contributing writers: Alison Bailin Batz | Sierra Ciaramella Victoria Harker | Alexis Krisay | Erin Thorburn

ASU receives transformational gift of $50 million Charlene and J. Orin Edson made a $50 million gift to Arizona State University, to be split evenly between the College of Nursing and Health Innovation and the Biodesign Institute in support of the university’s groundbreaking, Michael Crow multidisciplinary research on dementia, and to enhance education and training for nurses and caregivers. “The Edson family’s generous gift helps to position ASU as a leader in tackling one of the most challenging health issues of our time,” says ASU President Michael M. Crow. “Our belief is that it will serve as an example of how investing in research for the common good makes possible new breakthroughs, better outcomes and faster progress on a whole host of important problems facing society.”

Banner doctor earns award for cardiovascular disease advocacy Martha Gulati, MD, physician executive director for the Banner – University Medicine Heart Institute in Phoenix, was awarded the 2019 Bernadine Healy Leadership in Women’s CV Disease Award by the American College of Cardiology (ACC) as a part of ACC’s 68th Annual Scientific Session in New Orleans. Dr. Gulati was being recognized for her leadership and accomplishments in cardiovascular disease, exemplified by research, teaching, practice, and service. In particular, she has been a tireless advocate for women patients in cardiology as well as for women with careers in medicine.

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 | Kim Bailey

AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN

Martha Gulati

Desert Financial Credit Union — which reached its goal of $7 million in giving in 2018 — raised $460,000 to benefit “1 Darn Cool School” at Phoenix Children’s Hospital at its Desert Financial Foundation Charity Golf Tournament. Desert Financial’s annual tournament benefits PCH through the Children’s Miracle Network Hospitals (CMNH), an international nonprofit organization operating for the sole purpose of providing funds for children’s hospitals, medical research and fostering community awareness of children’s health issues.

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MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Patrick Griffin

AZ BUSINESS ANGELS

Desert Financial Foundation makes huge impact

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ART Design director: Bruce Andersen Art director: Mike Mertes

AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts 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.

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TRENDSETTERS LEIGH-ANNE HARRISON – TUCSON Harrison has been instrumental in building Tucson, literally and figuratively. At work, she helps Chasse Building Team grow its presence across Pima County, helping develop Tucson Premium Outlets, Gladden Farms Elementary School and Mountain View High School College Career & Life Skills Center. In the community, she is involved with the Arizona Builders Alliance, serves on the board for the Boys & Girls Club of Tucson, is vice chair of the Cornerstone Building Foundation and sits on the Emerging Leaders Council, whose mission is to accelerate the growth of Tucson’s business climate.

BRENDA MARTINEZ – PRESCOTT Martinez began her career in real estate at Yavapai Title Agency at just 17 years old. Today, 40 years later, she serves as vice president and chief title officer for the long-running business. A board member for the Central Arizona Partnership, she works around the clock to bring development to the region. Currently, she is working on ensuring the responsible development of the entire state in her role as vice president of the Land Title Association of Arizona (she takes on the presidency in September 2019).

ERICA MUNIZ – GLOBE Muniz got her start in banking at just 21 years old. Over the past 18 years, she diligently worked her way up to branch manager at Washington Federal’s Globe branch in 2014.

An advocate for education, Muniz launched Washington Federal’s Save at School program in Globe, partnering with Copper Rim Elementary School to visit students each month and teach them basic lessons about money. Her team also works with the Freeport Institute to help members of the nearby San Carlos tribe with money matters.

THE

OUTLIERS Here are some of Arizona’s most impactful leaders that live outside of Metro Phoenix

By ALISON BAILIN BATZ

Surprise!

This is not – we repeat, not – a Malcolm Gladwell column.

It’s actually a look into the busy lives of some of Arizona’s most impactful leaders, all of whom have one major thing in common — none live in Greater Phoenix.

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JOHN SCHURZ – MARICOPA John Schurz is a fifth-generation executive of Schurz Communications, which is a 146-year-old privately held family-owned and operated business. He began his career in 1988 and has worked in broadband, radio, newspaper and television at eight of the company’s facilities. He also serves as chairman of Maricopa Economic Development Alliance (MEDA), which is the City of Maricopa’s privatepublic partnership for economic development and champions strategies and solutions that foster economic growth and prosperity in Maricopa.

BRENDA SILVEUS – FLAGSTAFF The next time you are in Flagstaff, mention the name “Brenda Silveus” and see what happens. The area manager and director of sales and marketing for Pioneer Title Agency is an Athena Award winner and past Flagstaff Citizen of the Year honoree widely beloved for her inability to say “no” when it comes to helping the people and businesses in the county. Silveus co-founded Hope’s Closet, a nonprofit organization working to provide young women with the opportunity to attend special High School events with a dress of their choice.

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TRENDSETTERS

NUMBERS SHOW ARIZONA’S ECONOMY ON THE RISE NO. 2: Arizona’s ranking in the U.S. for year-over-year job growth, according to the Bureau of Labor Statistics.

NO. 4: Arizona is the fourth fastest-growing state in the U.S., according to the U.S. Census Bureau.

4.3%: The state’s GDP growth beats 47 other states, according to the Bureau of Labor Statistics. $61,125: Median household income has reached an all-time high in Arizona, according to the U.S. Census Bureau.

TOP 15

NASA inspires innovation in battling opioid addiction

According to the Arizona State Health Department – the number of opioid overdoses in Arizona has now doubled from one year ago.

Scottsdale Recovery Center recognizes this epidemic and is taking progressive action to treat its clients.

Here are Arizona’s best financial advisors, according to Barron’s.

Certified by NASA, the Genesis Life Float Pod is a type of flotation Factors included in Barron’s rankings: assets under management, therapy that is a natural treatment to help those suffering from revenue produced for the firm, regulatory record, quality of practice substance abuse or addiction. SRC is the only center in Arizona and and philanthropic work. Investment performance isn’t an explicit one of the few in the country to offer this holistic treatment. This component because not all advisors have audited results and therapy uses a method that facilitates change from habitual acts to because performance figures often are influenced more by clients’ self-confidence and breaks behavioral patterns. risk tolerance than by an advisor’s investment-picking abilities.

FINANCIAL ADVISORS IN ARIZONA

1| STEVEN SCHULTZ

UBS Financial Services, Phoenix

2| SCOTT HORN

TFO Phoenix, Phoenix

3| ROBERT BANCROFT

Morgan Stanley Private Wealth Management, Scottsdale

4| TREVOR WILDE

Wilde Wealth Management Group, Scottsdale

9| NICK KARABAS

Creative Planning, Scottsdale

10| JAMES MARTEN

Merrill Lynch Wealth Management, Phoenix

11| MICHAEL BUTT

Morgan Stanley Wealth Management, Scottsdale

12| STEVE RABIN

Ameriprise Financial, Mesa

5| GLENN PAHNKE

13| MICHAEL HUDAK

6| DAVID STAHLE

14| PAUL GROVES

7| ALLAN FLADER

15| RUTH TRANSUE

RBC Wealth Management, Scottsdale Merrill Lynch Wealth Management, Gilbert

RBC Wealth Management, Phoenix

8| JEFFRY KORTE

Merrill Lynch Wealth Management, Scottsdale

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Merrill Lynch Private Banking and Investment Group, Phoenix Morgan Stanley Private Wealth Management, Scottsdale Wells Fargo Advisors, Tucson

Does pushup proficiency translate to a healthy heart?

A study published recently found men who could do more than 40 pushups had a 96 percent reduced risk of cardiovascular disease.

Dr. Todd Hurst, director of the Center for Cardiovascular Health at Banner – University Medicine Heart Institute, says the biggest finding is that only being able to do 10 push-ups is a bad indicator for a person’s heart health, and the main takeaway is that strength training is an important aspect of physical activity to ensure a healthy heart.

Dr. Todd Hurst

SAVE THE DATE

AUGUST 22, 2019 | 5:30 - 8:30PM Please join us for an evening of inspiration and connection.

AZ Business & AZRE magazines are proud to host the 2019 Most Influential Women Awards Dinner. We’re excited to announce that we’ll be honoring 50 outstanding women for their impact to their organizations, to the region’s business climate and to our community. All fifty women will be recognized and awarded at the dinner as well as within the July/August issue of AZ Business and AZRE magazines. In addition, we’ll unveil and announce specialty award winners in several areas of leadership. Please join us for an evening of networking, connecting and celebrating the accomplishments of this year’s class of Most Influential Women.

Corporate Tables and Corporate Sponsorships available.

Email Josh.Schimmels@azBIGmedia.com to get involved.

602.277.6045

azBIGmedia.com AB | May - June 2019 9

TRENDSETTERS Here are the

HOTTEST and COLDEST

business sectors in Arizona The Swyft Filings State Report for Arizona provides an examination of business formation trends by looking at the number of newlycreated businesses by industry from 2017-18.

Here are the highlights: • Travel and accommodations (100 percent), transportation (43.6 percent), and food service (35.3 percent) accounted for the top-three industries with the largest growth for new businesses.

Each year, the Phoenix Ad Club celebrates creativity, collaboration and community with the American Advertising Awards (ADDYs).

Awards were handed out in categories such as logo design, copywriting, art direction in print advertising and broadcast.

THIS YEAR’S TOP AWARDS INCLUDE:

THESE ARE THE EMPLOYEES MOST LIKELY TO SUFFER

COPYWRITING OF THE YEAR: R&R Partners — No excuse for Domestic Violence | Chrysalis

YOUNG PERSON OF THE YEAR: Sam Lowy, copywriter and producer, OH Partners WOMAN OF EXCELLENCE AWARD: Fran Mallace, group vice president, Cox Media CREATIVE PROFESSIONAL OF THE YEAR: Ben Bonnan, creative director, LaneTerralever

BE OF SHSOT W

: R & R Pa r t n e rs Barrow H Wealth Realth & There’s af fle No W To Lose ay

AD PERSON OF THE YEAR: Dave Robb, partner and creative director, Riester-Robb OTHER WINNERS (IN ALPHABETICAL ORDER): AdWorks; AIGA Arizona; ANDERSON Advertising; Arizona State University; AWE Collective; Beautiful Science; BIG YAM, The Parsons Agency; Commit Agency; Copper Post; DigitalWire360; EME Design Studio; envida; FACTOR1; Grand Canyon Education; HAPI; Integrated Web Strategy; Knoodle; LaneTerralever; LAVIDGE; Le Debut Animation; Matter Films; Moses Inc.; OH Partners; Off Madison Ave.; Quantum Leap Productions Inc.; R&R Partners; Randy Murray Productions; ReThinc Advertising; RIESTER; Santy; The James Agency; True Story Films; University of Phoenix; VIZTEK Studios; Von Design; Zion & Zion

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• Phoenix, Scottsdale and Mesa were the top-three cities for new business growth in Arizona.

• In terms of volume of new businesses, retail, consulting and real estate led the way, with the majority of new businesses in those industries formed in Phoenix.

JUDGE’S CHOICE AWARDS: HAPI — Old Town Scottsdale rebrand; LaneTerralever — Bugs. Big Bugs!; Big Yam, The Parsons Agency — Happy birthday, Mother Green.

ART DIRECTION OF THE YEAR: AIGA Arizona — Phoenix Design Week 2018

• The consulting (-18.8 percent), wholesale (-13 percent), and retail (-11.1 percent) industries were the three slowest growing industries in the state.

A CYBER ATTACK

According to Sophos, 70 percent of internet users use the same password for almost all the web services they use. To explore the subject further, digital marketing agency Reboot Digital Marketing Agency analyzed the latest research to gain a better understanding of who is most at risk of cyber-attacks globally. Here are some of the key findings: • A staggering 67 percent of all highly targeted attacks are carried out against lower-level employees such as customer service representatives.

• Those in management and upper management were found to represent 27 percent of the most targeted employees within an organization.

• Pharmaceutical drug manufacturing is the most highly targeted industry, with 71 attacks per company on average over a three-month period.

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CEO SERIES

NO SPECIAL CODE Nextiva founder Tomas Gorny says his love and passion for technology drove him to succeed DRIVEN TO SUCCEED: “A lot of

people say they are willing to work hard and do whatever it takes, but you have to truly live it, not just say it,” says Tomas Gorny, cofounder and CEO of Arizona-based Unitedweb and Nextiva. “I grew up in Poland and came to the United States when I was 20 and I had to be street smart. That never left me. To have success, you cannot have fear.

You have to be fearless.”

By MICHAEL GOSSIE

T

omas Gorny remembers the moment he found his passion.

“My pivotal moment came when I was 16 and DOS transitioned to Microsoft,” says the co-founder and CEO of Arizona-based Unitedweb and Nextiva.

“You went from typing long command lines to graphical interface. I was already programming back then and I found it so fascinating that I said, ‘This is what I want to do with my life.’ I want to make technology simpler to use for people.”

That epiphany moment happened before Gorny left his native Poland to chase the American dream. Since arriving in the United States, Gorny used his incredible mind and a credit card to launch IPOWER, a web hosting company, which he eventually sold in 2011 for nearly $1 billion.

Today, Gorny’s passion is Scottsdalebased Nextiva, a cloud-based business communication firm he founded in 2006.

Today, Nextiva has annual revenue that exceeds $100 million and more than 150,000 customers from around the world.

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And in a rare move in the tech space: Nextiva is privately owned with no outside investors.

Az Business talked with Gorny about whether or not there is a special sauce for success in the tech world.

Az Business: It’s incredibly difficult to create one successful company.

How have you been able to repeat your success with Nextiva?

Tomas Gorny: I don’t know if there is any secret to success. It’s more a philosophy of how I personally participate in business.

How I look at businesses is by looking at the market, identifying gaps in the market and seeing if there are ways to fill that gap with a product. Then, you need to create a product that is relevant that people will pay for. When you do that, good things will happen. Making money is just a side-effect of providing value.

AB: What has been the key to Nextiva’s rapid growth?

TG: At the beginning of a business, you’re doing it all alone. You’re wearing

all of the hats. But ultimately, as the business grows, the success of a business comes down to great people. I know it’s a cliche to say surround yourself with people who are better than you are, but it’s true. Knowing where my strengths are, focusing on those strengths and finding people who have strengths in other areas is a key to growing a successful company. Your last team should always be your best team because you need to learn from your mistakes along the way.

AB: What is it about your leadership style that has helped your companies become so successful?

TG: You have to be true to yourself and do what you do best. I couldn’t run every business. There are things I couldn’t do.

If you look at athletes, a great basketball player isn’t going to be the best football player. So I went into the technology business because I am passionate about that. That passion is a key element to success because I love what I do.

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LAW

#NotOK Here are 10 things you shouldn’t do in the workplace that used to be tolerated

By MICHAEL GOSSIE

S

ome of us can still remember when the three-martini lunch was an accepted part of a company’s work culture.

But there are plenty of more practices that have become improper.

“What are some of the things people can’t — or at least shouldn’t — do in the workplace that they might have been able to do 20 years ago?” asks Tracy A. Miller, a shareholder at Ogletree, Deakins, Nash, Smoak & Stewart. “Guys — you know who you are — listen up. You should no longer take a female subordinate lingerie shopping — supposedly for your wife — in the middle of the workday; invite a female subordinate on your boat and explain at the last minute that it makes sense to stay on it overnight; or take a female subordinate to a strip club as part of team building.”

The most disturbing part of those over-the-top guidelines?

“Those are just a few personal real-world examples that did not seem legally troubling to me — as an employment lawyer — at the time,” Miller says.

In the wake of #MeToo, #TimesUp, Millennials taking business leadership roles, increased tension between races and genders, and a volatile political landscape, the workplace has changed.

“Workplace humor has undergone a major transformation over the past several decades,” says Emily Johnson, an associate at DLA Piper. “What was once considered office banter is now creating serious problems for employers … Not only is the ‘joker’ potentially creating liability for the employer — and for him or herself — but the laughing bystanders who acquiesce are also problematic.”

“We were just kidding” doesn’t work anymore, experts say.

Characterizing the workplace as a “joking culture” has not been a successful defense, Johnson says. And with the changing environment in the workplace, legal experts from Arizona say there are 10 things you can no longer get away with that used to be accepted — or at least tolerated — in the workplace.

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1. DON’T USE PET NAMES “‘Honey,’ ‘doll,’ ‘copy boy,’ ‘Psycho Steve,’ or ‘the hot blonde in marketing’ are all examples of terms or descriptions that can be offensive and demeaning — not to mention potential bases for a harassment or discrimination claim,” says Lindsay Fiore, partner at Quarles & Brady.

“Referring to all co-workers by their given name is most appropriate,” says Robert S. Reder, managing partner at Blythe Grace. “While this should be obvious, it often is not and we see numerous employee claims arising out of the use of offensive terms such as these.”

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LAW

John Alan Doran

Lindsay Fiore

Emily Johnson

Tracy A. Miller

2. UNEQUAL PAY

6. BAD JUDGMENT ON SOCIAL MEDIA

“One of the biggest changes that employers have seen centers around the issue of pay equity,” says Shawn Oller, office managing shareholder at Littler. “Twenty years ago, it was very common for employers to ask applicants how much they made at their previous positions and base their new salaries on their previous salary. Now, that would be a mistake. Over the years, there has been an increased focus on pay equity issues with both Congress and various states taking aim at pay practices that may have seemed fine 20 years ago but, now, can only land employers in hot water.”

“It might not fall into the ‘having fun’ category, but squarely hits on a driver for #MeToo, #TimesUp and all things Millennial: social media,” says Susan Wissink, director of the Business & Finance Practice Group at Fennemore Craig. “There’s still a lingering notion that Facebook and Instagram are for personal social media interaction and LinkedIn is for professional connections. Unlike when these platforms first launched, you just can’t go around posting believing that a silo exists. There are so many platforms and ways to be found. People look for professionals who use good judgment in how they present themselves everywhere – online and in real life.”

3. NO TOUCHING “Co-workers should never touch each other,” Reder says.

“Individuals may misconstrue what a pat on the arm or a hug means, even if the intent is innocent. Not only may the individual being touched misconstrue the touching, but others in the office may also as well. Keep your hands off each other — particularly when it comes to men touching women. Just don’t do it.”

4. EMPLOYEE DISCIPLINE “Employers should take an even more measured approach when it comes to employee discipline,” Oller says. “The rise of social media puts an employer’s missteps on display in a way that is unprecedented. While many employers may feel time pressure, the adage, ‘Work quickly but don’t rush,’ takes on new importance. Take the time to understand the situation and, if necessary, consult with legal counsel and understand the legal, business and brand implications for your decisions.”

5. NO FLIRTING “It’s important to recognize the difference of isolated workplace flirting and harassment or abuse of power,” says John Alan Doran, a member at Sherman & Howard. “If you’re a boss flirting with a subordinate, you are at much greater risk because you wield implied power and influence even without trying. While #metoo serves an incredibly important social problem, it has also dramatically lowered the bar on what is and isn’t considered harmless flirtation.”

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7. LIMIT DRINKING “Most offices now have alcohol available to its employees — perhaps in a break room refrigerator,” Reder says. “Employees must understand that the workplace is a professional environment and not a social gathering. If alcohol is available or served, consumption should be limited to a single drink and even then only consumed in a group setting after all employees involved have completed their work. Enjoying a single drink with a group of colleagues can be valuable for office cohesion, but employers need to control that interaction and create a safe environment for participating employees — specifically an environment free of any specter of harassment.”

8. DON’T OVERSHARE “Employees should not use work email to forward jokes, memes, photos, etc., around the office,” says Lindsay Fiore, partner at Quarles & Brady. “The content of these emails are often problematic in one way or another, leaving colleagues feeling uncomfortable, embarrassed, or pressured to agree something offensive is ‘funny.’ In addition, as electronic discovery becomes more prevalent and even standard in some cases, what employees say to each other and about each other may end up an integral part of litigation – and a basis for liability. Employees should assume that every email they send will be part of the public record of someone’s lawsuit someday. Work email should be used for work only. It’s hard enough to keep our inboxes up to date as is.”

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LAW

Shawn Oller

Robert S. Reder

Christopher D. Soto

Susan Wissink

9. DON’T BE A COMEDIAN

10. NO PRACTICAL JOKES

“Many a workplace joke began with some variation of the following set-up: A member of a particular religion, a member of a particular race, and a member of another religion or race walk into a bar …” says Christopher D. Soto, founder of Soto Law Firm. “The punchline to such a joke invariably insulted or played upon religious or racial stereotypes. While in isolation a joke of this type may not create employer liability, if this type of humor is prevalent, it can become a strong contributing factor in determining whether an employer has permitted a hostile workplace environment.”

“Practical jokes used to be prevalent in the workplace,” Johnson says.

“Coworkers went to great lengths to top one another’s pranks. Whether it was putting lunch leftovers in a traveling colleague’s desk drawer, hiding office supplies, or temporarily altering office artwork, this type of conduct was far more common at work ten or twenty years ago than it is today. Millennials seem to be particularly prank-averse and unamused by such conduct. Not only can practical jokes be harmful to productivity and morale, but they can also create major headaches for employers when they rise to the level of bullying or harassment. One step too far over the line can be costly. Therefore, perhaps it is best to save the April Fool’s Day tricks for your family and friends.”

MINIMIZING RISK

Here’s what employers should do to make sure their employees aren’t creating legal issues for the company: Lindsay Fiore, partner at Quarles & Brady: “Training, training, and more training. Have I mentioned training?

Employers should have clear written policies that set appropriate expectations for the workplace, including antidiscrimination and anti-harassment policies and policies outlining employees’ options for reporting concerns. Going a step further and training staff on how those policies apply practically in the workplace is key. Effective training should explain the relevant policies, offer real-world examples of policy violations, discuss challenging situations and how to respond to those situations, and provide employees with an opportunity to ask questions.”

Emily Johnson, associate at DLA Piper: “The key to staying out of legal hot water and ensuring that employees are not creating legal issues stems from company culture. In addition

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to making certain that handbooks, policies, and training are legally compliant (and effective), employers should take a hard look at workplace culture. Are there proactive and deliberate attempts to make it inclusive? Employers should also recognize that implicit bias exists in everyone and should educate employees about this. Additionally, emphasize the importance of workplace empathy. Consider sensitivity training that can increase awareness of how words and actions can impact others.”

Robert S. Reder, managing partner, Blythe Grace: “Employers should create codes of conduct that apply to everyone in the workplace. That code should be set forth in a formal policy contained in an employee handbook. Of course, every employer should consider purchasing EPLI insurance to insulate them against employee claims.”

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BANKING

By ALEXA BUECHLER

F

rom security to customer service, artificial intelligence is changing the way we do banking.

Artificial intelligence, or AI, is technology that makes it possible for machines to learn from experience and to perform tasks that would typically require human intelligence. The use of this technology has become increasingly popular in banks and play a heavy role in FinTech companies, which are companies that aid businesses with financial technology, including technological innovation of payments, and the automation of lending and borrowing.

The intersection of banking and technology, such as artificial intelligence, most prominently appears in fraud management and customer service. But the biggest impact on the sector? Analysts estimate that AI will save the banking industry more than $1 trillion by 2030.

“The banking industry can benefit from using artificial intelligence to combat fraud and to personalize a client’s experience in real time,” said Cathy Cooper, executive vice president and retail banking group manager for Washington Federal. “It could also be used to proactively offer products and services to consumers based on factors that may not be obvious or as simple as demographic segmentation.”

“For example, there’s a strong correlation between owning a dog and buying your first home. Artificial intelligence tools could search for purchases of dog food and use that data to target an offer for a no-fee home loan,” she said. “Being able to use artificial intelligence requires that banks find a way to make their data accessible across siloed platforms, and that can be harder for community banks if they use outside vendors to host services.”

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REDUCING FRAUD Amy Zirkle, global payments expert and interim CEO of the Electronic Transaction Association, said technology is transforming the payments industry, especially within the realm of AI. Zirkle said artificial intelligence has been making significant contributions to security.

“We really shape the industry in respect to things like mitigating instances of fraud, gathering critical, vital data to assess what is really going on,” Zirkle said. “Technology makes itself available by the good guys and the bad guys, so the fraudsters have realized what technology means. They’ve elevated their game on fraud, and so as a result, the industry has to be more sophisticated to address these challenges two steps ahead.”

Using artificial intelligence allows banks and the rest of the financial services industry to detect suspicious behaviors that could indicate fraud. “If a customer has nine or 10 transactions in New York and then one in Texas, something is going to look suspicious and the capacity of technology to draw us to that suspicious activity is significant and enabled by artificial intelligence,” Zirkle said.

Zirkle also said that while artificial intelligence can detect fraud, it can also be used to prevent it with authentication. For example, needing a thumbprint or facial recognition to use your electronic wallet on your smartphone.

“At the end of the day, it supports significant activities toward risk mitigation, which is about the creation of a healthy payments ecosystem, one that is viable, one that is sustainable, one that customers come to with trust and confidence,” Zirkle said.

Chuck Monroe, head of Wells Fargo Artificial Intelligence Enterprise Solutions, said the bank is implementing the “massive amounts of data presented during Wells Fargo card transactions, along with historical data, to continuously prioritize potential cases where fraud may be taking place, which helps team members stay focused on the cases with the highest risk.”

Artificial intelligence also means less false negatives or false positives. For example, when you’re at checkout and your card declines even though you know you have enough money in your account, this could be a false positive stemming from fraud. Artificial intelligence predictive analytics cut down on those decline rates. “Leveraging artificial intelligence, they can provide automated decisions about a transaction in a matter of milliseconds,” Zirkle said.

Reducing fraud leads to saving money in banking. “Fraud can be very, very expensive, so these heightened levels of sophistication in analytics reduces instances of fraud and helps contribute to reductions in some of the costs that are associated with instances of fraud and data breach,” Zirkle said.

As artificial intelligence helps to provide a more personalized experience for its customers, the up-and-coming technology can also reduce operating costs, Monroe said.

INCREASING QUALITY OF CUSTOMER SERVICE Artificial intelligence has an increasingly prevalent role in customer service because it creates a more personalized experience for customers, Zirkle said. Retail banks, a type of bank that offers services to small businesses and the day-to-day consumer, offer what is called an omnichannel experience, which

means seeking to provide customers with a seamless shopping experience whether they are online, on the phone or in the physical store.

They are “using every path accessible to engage its customer, consolidate customer data from the bank’s internal and external systems to really and truly ensure a seamless customer experience. The customer feels like they have the specialized and individualized attention they’re looking for from the bank,” Zirkle said.

“Banks have a lot of data,” Monroe said. “With emerging technology like AI, we’re able to more efficiently analyze that data and pull key insights, often in real-time, to deliver personalized guidance to customers in the moment, wherever they are.”

Because banks, such as Wells Fargo, have millions of customers, artificial intelligence will allow it to personalize their guidance, Monroe said. “We’re testing use of AI to help in situations when a customer passes away, which is often an emotionally challenging time for the person handling the estate.

Historically, a banker would need to spend a lot of time accessing dozens of documents and systems. By deploying an AI solution, we can free up those bankers to focus on the caller and their needs and let AI systems surface all the right questions to ask and content to review.”

Monroe said there is an expectation that organizations will use the increasing amount of data to know their customers, which includes anticipating their needs and offering them something they value, to make their lives easier. “Over time, our goal is to use AI to help strengthen customer relationships by delivering contextual, hyper-personalized experiences to each and every AB | May - June 2019 21

BANKING

Cathy Cooper

Chuck Monroe

customer, in the moment, wherever they are. Advice will be specific to the individual – based on where they are and what they need to do,” Monroe said.

Wells Fargo’s future includes artificial intelligence being a part of every aspect of the business and changing the way they work because Monroe believes that “AI is just one component – alongside in-person and contact center support – of providing great customer service.”

EFFECT ON SMALLER BANKS Data and analytics are becoming a key competitive advantage in financial services, which makes it critical to organize now, Monroe said. “For companies of all sizes, there are a number of ways to approach AI, and many times that includes collaborating with FinTechs and other technology providers offering solutions.”

“Smaller merchants are emerging as really robust players,” Zirkle said. “They are, I like to say, small but mighty. It’s trite and overused, but because of technology, smaller players have access to that technology, it is not exclusive to just the big guys, so by utilizing technology, smaller merchants and smaller processors can stand almost comparable to some of the bigger guys in beginning to incorporate and leverage technology such as artificial intelligence.”

Zirkle said technology is becoming more and more accessible to everyone, not just the major players. “It’s a democratization of technology. It’s truly starting to happen,” Zirkle said.

Despite this thinking, smaller banks are adopting AI significantly slower than their larger counterparts, according to the Mercator Advisory Group.

“It is really becoming more accessible to all as they bring and build through in-house expertise, through their own research and development efforts,” Zirkle said. However, not all banks have a research and development function to help them leverage this technology.

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Jeff Schelter

Amy Zirkle

“(Smaller banks) can look toward opportunities for collaboration with similarly situated entities who share a common interest and goal in advancing AI use,” Zirkle said. “Late last year, there was an announcement of the creation of a group comprised of several small community and regional banks to examine opportunities to leverage new technologies. The group presented a means for smaller banks to pool their resources with an eye on shared opportunities.”

Zirkle also said a collaboration such as this could reduce the risk involved with implementing new technology when smaller banks don’t have the same budgets as bigger banks, while still taking advantage of new technology.

“It’s true that advancements in financial technologies are changing banking at nearly every level,” said Jeff Schelter, senior vice president of Alliance Bank of Arizona. He also said FinTech upstarts leveraging artificial intelligence are moving in-house or making partnerships with established banks. “Now, we’ll need to see if these new alliances drive more efficient financial platforms and better, more highly tailored banking solutions.”

EFFECTS ON ARIZONA Schelter said Alliance Bank of Arizona’s customers are going to benefit from this shift to the new technology. While artificial intelligence will improve customer service, it will also lead to “bill paying with a few clicks” and “automated investing” becoming the new normal.

“Financial technologies and artificial intelligence are quickly evolving, bringing unique value propositions to banks and customers,” Schelter said. “It will be interesting to see how the future of AI continues to fuel the innovation that is reshaping financial products and services within the established banking companies in Arizona. But the question remains at what speed will these advances be implemented and how will customers embrace them.”

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MARKETING

BRANDSTANDING Here are the top marketing trends to watch in the coming months

C

hanging with the times and technology is inevitable and happening at faster and faster rates, leaving businesses and marketers scrambling to keep up with the pace. The evolution of strategy and tactics is also a crucial step in keeping your business relevant and thriving. So what changes should we expect to see in marketing this year? The most impactful marketing change we will likely witness in 2019 is “BrandStanding.”

So what’s BrandStanding? It’s a word coined to better describe the evolving “activist capitalist” trend. Unlike grandstanding, which is engaging in attention seeking behavior or trying to influence opinions in a way that’s gimmicky, fake or flashy, BrandStanding should stem from deep, authentic values shared by an organization and its consumers. And more and more brands are taking strong stands on social issues, no matter the potential backlash.

Studies show that consumers feel a stronger connection and are more loyal to companies that take a position on major issues, and less to those who choose to lay low and stay out of the line of fire.

Gillette’s “The Best Men Can Be” campaign was a direct challenge to men to take a long look at themselves in the mirror and ask if they are really living up to be “the best men can be.” The campaign tagline “We Believe” directly confronts the issue of toxic masculinity.

The campaign encourages men to hold each other accountable for bullying and sexual harassment and to raise a new generation of men who will live up to the idea of Gillette’s classic tagline: The Best a Man Can Get. As part of the campaign, Gillette has pledged to donate $1 million each year to nonprofit organizations supporting the brand’s ideals.

Another trend to look for in 2019: Enhanced personalized recommendations.

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This strategic tool will continue to rise in importance to marketers and businesses alike. Enhanced personalized recommendations allow for carefully curated, highly-targeted ads to be served to the individuals who are most likely to buy based on a range of digital behaviors. Everchanging Artificial Intelligence algorithms

Alexis Krisay Marketing

can make this more difficult, however, when executed correctly, new technologies will produce highly accurate customized recommendations. Savvy marketers have the ability to understand customers and motivations for buying at each point of the sales funnel more than ever before.

Hot on the heels of enhanced personalization and AI technologies is the ongoing issue of proving ROI inside the complex digital world and different delivery platforms. The long-standing problem of being able to present true measurements of marketing investment value to clients is a ‘must have’ in 2019 for every marketer. By identifying and isolating data contained in analytics, clients and marketers can agree on a set of key performance indicators for any campaign or outreach initiative, and then use these insights to fine tune the enhanced personalized recommendations in order to increase conversions.

In the closing years of the second decade of the 21st century, shifting values and demographics will continue to expand and evolve the highlighted trends. As the influence of elder generations begins to fade, analytics predict younger generations will increasingly align with companies serving progressive values. It’s a great time to revisit and solidify corporate values and decide where your brand stands. Younger generations increasingly expect their digital worlds to be highly customized to their needs, beliefs, and tastes. Enhanced personalized recommendations will continue to produce individualized web experiences to Internet savvy and digital natives. Finally, marketers that can prove out ROI will continue to thrive as their clients do.

Alexis Krisay is co-founder and president of marketing at Serendipit Consulting.

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DINING

GOING DEEP

Lou Malnati’s Pizzeria will convert thin-crust pizza lovers to Chicago-style in one buttery bite

By MICHAEL GOSSIE

I

was born and raised in New York. Pizza to me is grabbing a slice, folding it, and trying to eat it before the grease drips all the way to your elbow. There’s nothing better than New York pizza.

So Chicago-style deep-dish pizza?

Fugetaboutit! You might as well tell me to root for the Red Sox. Never gonna happen.

Not only can’t you fold a slice of deepdish pizza, everything about it is wrong.

The ingredients in a Chicago-style deepdish pizza are placed in the opposite order of a thin crust pizza. The first ingredient is thick slices of mozzarella that are placed directly on the dough. Additional ingredients like mushrooms, onions and sausage are spread on top of the cheese. Those ingredients are then topped with sauce made with whole chunks of tomatoes. Cheese on the bottom? Sauce on the top? What’s the world coming to?

But a funny thing happened on the way to the pizza oven. Chicago-based Lou Malnati’s Pizzeria moved into the neighborhood. And I saw the lines. And the happy faces. I tried to resist, but then I heard the magic word: Buttercrust.

One of the most recognizable features of a Lou Malnati’s Chicago-style pizza — which Chicagoans lovingly call a “pie” — is

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its deep dish crust and, in the case of the Malnati Chicago Classic, Malnati’s famous Buttercrust. As the name implies, the dough contains butter, which is added to the pizzeria’s 42-year-old dough recipe.

And, if you can imagine, it’s even more delicious than it sounds. Because of that, Lou Malnati’s has quickly become a go-to spot in the Valley since opening its first Arizona location in 2016.

“We have been overwhelmed by the response and are ready to expand so that we can serve more of our authentic deepdish to the people of Arizona,” said Marc Malnati, owner of Lou Malnati’s. “We are looking forward to immersing ourselves in more local communities.”

What local residents really need to immerse themselves in is that Malnati Chicago Classic — made with lean sausage, extra mozzarella cheese and vine-ripened tomato sauce on that mouthwatering Buttercrust. My friends from the Midwest tell me that Malnati’s Classic is as authentic Chicago as it gets.

But there’s more to Lou Malnati’s than just the Chicago Classic.

• The restaurant serves wings that might be the best served west of Buffalo.

• The deep-dish pies served with

vegetables are so delicious that they take away the Buttercrust guilt.

• The Malnati salad, served Volpi salami bits and gorgonzola cheese, combines deliciousness with healthiness in an amazing way.

• And if you’re so inclined, Lou Malnati’s serves traditional thin-crust pizza. But be warned: You run the risk of being scorned if you order it.

The one thing you should know about deep-dish pizza is that it takes about 30 minutes to cook. But here’s an inside scoop: If you call ahead, Lou Malnati’s will put your pie in the oven before you get there to cut your wait time.

So, I grudgingly admit that I’ve warmed up to Lou Malnati’s pizza. Even a New Yorker can admit when he’s wrong.

But I will never root for the Red Sox. Fugetaboutit.

LOU MALNATI’S ARIZONA LOCATIONS Uptown Plaza 100 E. Camelback Rd., Phoenix 3431 N. 56th St., Phoenix, AZ 85018 (carryout and delivery only) 17787 N. Scottsdale Rd., Scottsdale

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COMING NEXT ISSUE •

Featured topics include:

• The Most Influential Women in Arizona Business • A look at how WESTMARC has helped the West Valley • become a hot spot for economic development • Accounting moves you should make now to save on • next year’s taxes • A deep dive into Arizona’s red-hot manufacturing sector

For additional information call 602.277.6045 or visit azBIGmedia.com AB | May - June 2019 27

ARIZONA ENERGY CONSORTIUM

POWER PLAYER: Michelle De Blasi is a director at Fennemore Craig and executive director of the Arizona Energy Consortium. (Photo by Mike Mertes, AZ Big Media) 28

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SHEDDING SOME

LIGHT Arizona Energy Consortium looks to key questions facing the Southwest energy industry

By MICHELLE De BLASI

T

he Arizona Energy Consortium is a business consortium that has been promoting the growth and development of Arizona’s energy industry since 2011. Our mission is to strengthen the energy industry by providing a forum for our diverse base of members to increase business opportunities, while reducing barriers to development by supporting certainty and consistency of policy. The AEC serves as a place for new businesses to integrate into the community, thereby creating opportunities to increase retention of the businesses we attract to the state. Through our collaboration with key stakeholders in Arizona and a broad range of the region’s energy industry, the AEC helps shape the initiatives that promote innovation and strengthen the diversity of our energy industry.

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ARIZONA ENERGY CONSORTIUM

One of the AEC’s key attributes is to provide a collective voice for industry stakeholders to share ideas to move the industry forward.

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Since its inception, the AEC has emphasized the importance to the industry of certainty of policy. Companies must be able to understand the parameters in which they can operate and grow their businesses.

The strength of financial investment in the development of new infrastructure is directly tied to the amount of certainty in the market. Last September, the AEC hosted the Southwest Energy Conference, a gathering of regional energy industry experts discussing the continued expansion of the Southwest regional markets. One of the key themes throughout the Conference was the importance of promoting certainty in policy to foster innovation.

One of the AEC’s key attributes is to provide a collective voice for industry stakeholders to share ideas to move the industry forward. The AEC continuously monitors the changing policy landscape and provides opportunities to share this knowledge with AEC members. With the numerous proposed policy changes in Arizona and the regional Southwest, it will be more important than ever to collaboratively find solutions that promote certainty for the future of the Region’s energy industry. The AEC takes a look at some of these policy issues below.

What policies are shaping Arizona’s energy future?

Arizona is fortunate to have a diverse energy portfolio comprised primarily of natural gas, coal, hydroelectric power and nuclear energy, with solar energy and storage opportunities expanding. Recent proposed policies are signaling significant changes in the demand profile for utilities. Arizona’s growing high-tech and data center sectors have significant power loads which, in many cases, demand renewable energy to power their facilities. The renewable energy sector is an economic development driver for the other high-tech industries the state wishes to attract. The Arizona Corporation Commission (ACC) recently adopted a policy statement that requires regulated utilities to implement new alternative generation buy-through programs for larger commercial and industrial customers in their subsequent rate cases.

The changing landscape of utilities’ customer loads and resource demands requires a plan that allows continued expansion of opportunities while also avoiding unnecessary externalities. It was

for this reason that ACC Commissioner Andy Tobin initially proposed Arizona’s Energy Standard Modernization Plan in 2018. This Modernization Plan has since been expanded with additional proposals with other possible modifications to the ACC’s Energy Rules.

Among several other proposed changes, the proposal would change Arizona’s current Renewable Energy Standard and Tariff (REST) to a Clean Resource Energy Standard and Tariff.

The other areas of modernization currently before the ACC would provide updates to the energy storage, forest health/ biomass, dispatchable clean energy, energy efficiency, electric vehicles and Integrated Resource Planning and Procurement rules. The Retail Electric Competition rules currently under consideration would significantly change the structure of Arizona’s monopoly utility system. It has yet to be determined how much of these changes will be adopted or implemented; however, this remains an active docket after two years since first proposed, with ongoing stakeholder meetings showing support for the modernization proposals.

A strengthened energy infrastructure As additional demands are placed on our aging infrastructure, Arizona’s energy regulators are proposing changes to address those demands with other modernization efforts. One of the major changes in the last decade is the integration of rooftop solar energy, known as distributed generation, into the grid. To help streamline this process, the ACC is currently proposing rules to standardize the interconnection of distributed generation and storage into the grid. After months of taking input from interested stakeholders, the ACC is expected to complete the formal rulemaking this year.

A related challenge facing the ACC is how to update and integrate its existing rules such as those dealing with Integrated Resource Planning, the REST, net metering and energy efficiency. In conjunction with the other proposed rules being considered, the integration of these rules in a modern context would substantially transform Arizona’s energy industry.

More advanced and cost-effective energy storage is another driver for strengthening the energy industry, allowing utilities to maximize its generation resource profile while also providing the ability to better manage supply and demand during peak and

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ARIZONA ENERGY CONSORTIUM off-peak times. Energy storage technologies are continuing to improve and become more cost effective, allowing benefits through a more efficient and cost-effective utilization of grid resources. Although Arizona does not currently impose a mandated procurement requirement for energy storage, Arizona’s utilities are actively developing energy storage in an attempt to better understand the advantages and drawbacks. If implemented as proposed, the Modernization Plan would require a target of 3,000 MW of deployed energy storage by 2030.

The AEC continuously monitors the changing policy landscape and provides opportunities to share this knowledge with our members.

The importance of regional cooperation As traditional generation resources change, the importance of regional cooperation grows. In the past, Arizona utilities have focused on providing power within the state.

Recent developments in regional markets, however, have provided opportunities for a strengthened system for the broader region. Arizona’s major utilities have begun to recognize this energy market as a major potential for cost-savings.

In 2014, the Western Energy Imbalance Market (EIM) was established by the California Independent System Operator (CAISO) as a real-time energy market, and the first of its kind in the western United States. The purpose of the EIM’s market system is to automatically find low-cost energy to serve real-time consumer demand across a wide geographic area. Since joining in October of 2016, Arizona Public Service has reportedly saved over $10 Million by participating in the EIM. Salt River Project is expected to join the EIM by 2020.

In addition to generating cost savings for its participants, some additional benefits of the EIM are enhanced grid reliability and improved integration of renewable energy, leading to the development of a cleaner grid program to strengthen the western states’ transmission system and improve reliability cost-effectively.

The AEC will continue to monitor the development of the EIM and its impacts on Arizona’s energy industry, and where appropriate provide a forum for affected stakeholders to have a constructive conversation.

Fostering innovation The changing customer base is one of the major impacts on the utilities’ load profiles.

As more consumers are purchasing electric vehicles (EVs), the utilities’ generation profiles are adjusting to meet those demands.

Challenges are created for the utilities to

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meet substantially increased generation needs when large numbers of customers are charging their EVs in later hours of the day.

These challenges have prompted innovations in battery storage to allow utilities to store power during lower demand cycles and utilize it during higher peak hours. This is also why battery storage works well with solar energy that is generated at its highest peaks in the middle of the day when it is not needed to meet demand. The widespread adoption of EVs will require continued upgrades in the infrastructure and electricity rates to be sustainable in the market.

Arizona has supported innovations in EV technologies, and has recognized additional opportunities to further encourage an increased market penetration of EVs. In December 2018, the ACC adopted a new policy statement to encourage regulated utilities to implement rates and pilot programs to support the increased deployment of EVs, EV charging infrastructure and the widespread electrification of transportation in Arizona.

The ACC has stated it will continue to work with industry stakeholders to improve these programs.

Another area of innovation is through blockchain-based solutions. The Public Utilities Commission of Nevada recently solicited comments on the use of alternative methods of tracking Portfolio Energy Credits. One of these suggested alternatives is blockchain management, previously associated with bitcoin, which is impacting how power is traded by offering peer-topeer and wholesale transactions, differing from the typical utility-dominant structure.

Blockchain offers the ability to create an auditable and automated record of energy generation and consumption, resulting in both cost savings and energy efficiency.

There are many applications for the blockchain technology that will continue to be implemented in the energy sector, with potential to vastly change the current structure of the markets.

With all of these potential opportunities for change, it will require strength in collaboration and coordination among regulators and stakeholders to produce the certainty needed to support a thriving energy industry. The AEC will continue to work with all stakeholders to provide a reasonable voice in reducing barriers to development by supporting certainty and consistency of policy.

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2019 Businesses in five key sectors recognized for leadership and innovation

By MICHAEL GOSSIE

E

ach year, Az Business magazine is proud to present the Industry Leaders of Arizona (ILoA) Awards, which recognize the contributions and impact of Arizona‐based companies on both the economy of Arizona and in the communities they serve.

For 2019, companies were selected from these five key industries: • Financial services • Healthcare • Hospitality • Logistics and distribution • Software The 29 finalists for this year’s ILoA Awards are profiled on the pages that follow. Winners from each category — along with two special award winners — will be recognized at an awards dinner that will be held May 2, 2019 at the JW Marriott Camelback Inn Scottsdale.

Go to azbigmedia.com to buy tickets and for more information.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

AMERICAN VISION PARTNERS Leadership: Kyle Bohannon, CEO; Arthur Brookfield, CFO Website: goodeyes.com What it does: Medical and surgical eye care.

How it leads: Dr. Scott Perkins of Barnet Dulaney Perkins Eye Center, an American Vision Partners affiliate, was the first surgeon in the Southwest to provide a new solution for patients with moderate to high levels of myopia and astigmatism — in one simple procedure — following FDA approval of STAAR Surgical’s Visian Toric ICL. Barnet Dulaney Perkins took part in the original clinical study in the early 2000s.

Barnet Dulaney Perkins has provided state-of-the-art care in Arizona for more than 35 years.

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ANNEXUS

BAYLESS INTEGRATED HEALTHCARE

Leadership: Ron Shurts and Don Dady, co-founders; David Rauch, CFO Website: annexus.com What it does: Designs solutions to help Americans grow and protect their retirement savings.

How it leads: Since 2006, the industry’s best-performing fixed indexed annuities and indexed universal life insurance policies have been powered by Annexus, making Annexus the nation’s leading independent product design and distribution company. Since 2014, its top line has grown by more than three-fold and its bottom line by five-fold. The product development team at Annexus has more patents and patents pending than the rest of the industry combined and was named “Annuity Innovator of the Year” in 2017 and 2018.

Leadership: Justin Bayless, CEO; Graham Johnson, CFO Website: baylesshealthcare.com What it does: Provides family medicine, emotional and behavioral health, addiction treatment, and social healthcare services.

How it leads: As a leader, Justin Bayless’ vision was to treat the “whole” person and make healthcare accessible to the most vulnerable populations in Phoenix. For Bayless, that meant incorporating the most important elements of healthcare services under one roof: primary care and behavioral health. By improving and simplifying services, Bayless established a new value-based model with payers that includes commercial health plans, as well as Medicare and Medicaid, while accommodating those without the benefit of traditional health insurance.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

[

CVAM

Leadership: Tina Cherro, executive director Website: cvam.com What it does: Cardiology — interventional, invasive, noninvasive; electrophysiology; and peripheral vascular services.

How it leads: Founded in 2004, CVAM’s mission is to provide the best cardiovascular care available through patient education, a unique approach to team-oriented medical solutions, quality care and state-of-the-art technology in diagnosing and treating cardiovascular disease. CVAM is a place where employees know they are part of something that is bigger than themselves, take exceptional pride in their work never settle for what was good enough yesterday through integrity, thoughtfulness, passion and excellence.

[

Cancer Treatment Centers of America (CTCA) Phoenix Leadership: Rob Gould, CEO; Jeff Gilbert, CFO Website: cancercenter.com What it does: Comprehensive cancer treatment hospital and three outpatient care centers in North Phoenix, Scottsdale and Gilbert.

How it leads: Patient satisfaction is tantamount to the type of care CTCA employees provide each day. CTCA has consistently ranked among the highest in the country for patient satisfaction, according to Press Ganey.

CTCA prides itself on improving based on patient commentary and scores.

An internal patient satisfaction committee has been formed to address daily, weekly and monthly concerns or compliments that can be acted on to uphold strong scores and a healthy patient care experience.

Dircks Moving & Logistics Leadership: Chip Dircks, president; Holly Powell, controller Website: dircks.com What it does: Moving, logistics and storage company that specializes in the transportation and storage of household goods, office and industrial equipment, and other commodities.

How it leads: Being in a mature, commoditized industry, Dircks utilizes innovation to create competitive advantages. Dircks stays ahead of its competitors by utilizing the newest, most sustainable tools and technology available. Whether it is technology to help coordinators better facilitate a move, assist warehouse crews in locating inventory more quickly, or helping drivers keep track of shipments more efficiently, Dircks empowers its employees with the most innovative technologies available.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

[

Homeowners Financial Group

Leadership: Bill Rogers, president and CEO; Tom Osselaer, CFO Website: homeownersfg.com What it does: Award-winning mortgage banker, taking pride in helping people complete one of the most important financial transactions they will ever have – purchasing a home.

How it leads: HFG understands and embraces the capability, application, and impact of emerging technology in the residential mortgage sphere. In finance, leading companies must develop efficient and beneficial solutions on an ongoing basis, as well as respond rapidly to changes in technology. HFG does just that with their “high-tech with a human touch” methodology, which combines a cutting-edge digital mortgage experience with the experienced guidance of a loan professional.

[

FREEPORT LOGISTICS

HOSPICE OF THE VALLEY

Leadership: John F. Beauermeister, CEO; John C. Beauermeister, president Website: freeport-logistics.com What it does: Family-owned and operated business that provides costeffective distribution, logistics, and transportation.

How it leads: Freeport Logistics has been in business for 47 years since opening in 1971 and has grown to occupy a more than 750,000-squarefoot warehouse. By implementing an inventory management system, being serviced by the Union Pacific and Burlington Northern Santa Fe rail lines, and now having more than 200 expert employees ready to handle everything from full pallet storage to same day shipment, Freeport Logistics continues to lead the third-party logistics industry.

Leadership: Debbie Shumway, CEO; Mary Kirk, CFO Website: hov.org What it does: Provides compassionate end-of-life care, care for advanced illness, dementia care and grief support to all, regardless of insurance or financial status.

How it leads: Hospice of the Valley has helped pioneer a highly acclaimed palliative care program to help people with chronic or advanced illness. Hospice of the Valley continues to evolve this program to ensure it serves as a safety net for those with chronic illness. In addition to home visits, it includes a telemedicine component, 24/7 telephone support by nurses, plus care coordination and education to support these patients at high risk for hospitalization.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

ICON HOSPITALITY GROUP

IMAGINE TECHNOLOGY GROUP

Leadership: Don Talbot, CEO; Clay Moizo, CFO Website: iconhg.com What it does: Phoenix based hospitality management and consulting company which specializes in start-up restaurant and entertainment venues.

How it leads: Icon Hospitality Group is a collection of entertainment, food and beverage industry professionals. A great example of industry leadership is not only their creation, but the expansion of Scramble, a breakfast and lunch restaurant. IHG developed and launched the popular and award-winning breakfast concept in February of 2009. In business now for more than nine years and flourishing, Scramble has expanded to four locations throughout the Valley.

Leadership: Rodolfo Parga, Jr., CEO; Cathy Chambers, CFO Website: itgarizona.com What it does: ITG protects against the unauthorized disclosure of a client’s lifeblood, its confidential information. ITG also makes businesses more profitable by deploying artificial intelligence and machine learning software solutions.

How it leads: ITG utilizes an interdisciplinary approach to create custom technology solutions. Its leadership group includes a former trial attorney and managing partner of a regional law firm who helped clients protect and secure their proprietary information; a former head of technology at the Apollo Group; and two business leaders with industry specific experience building technology companies. This combined interdisciplinary experience affords clients a competitive edge.

JDA Software

Leadership: Girish Rishi, CEO; Kevin Moriarty, CFO Website: jda.com What it does: JDA is the leading supply chain provider powering today’s digital transformation and striving toward an autonomous supply chain.

How it leads: JDA has committed to creating the “Autonomous Supply Chain” of the future. JDA has more than 490 patents and patents pending for capabilities that drive differentiation for its customers through the use of its software, which is 10 times more than any other company focused on supply chains. In May 2018, JDA unveiled JDA LuminateTM, which embraces digital edge technologies such as SaaS, the Internet of Things (IoT), artificial intelligence (AI), and advanced analytics.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

MDSL

Leadership: Charles Layne, CEO; Tamara Saunders, CFO Website: mdsl.com What it does: MDSL is a leading provider of global solutions for technology expense management (TEM) software and services, serving enterprise businesses, governments, and nonprofits.

How it leads: MDSL operates in a highly niche enterprise IT market where just a fraction of TEM solutions providers offer the scalability and depth of analytics required to manage technologies for the world’s leading enterprises. It is noteworthy that the proprietary technology solutions MDSL has developed have been created 100 percent in-house and within a centralized database. MDSL’s best-inclass solutions adhere to standards that are among the highest in the industry.

MRA ASSOCIATES

MACH 1 GLOBAL SERVICES

Leadership: Mark Feldman, CEO; Maureen Rzeppa, CFO Website: mraassociates.com What it does: MRA Associates is a boutique, registered investment advisor with large firm experience.

How it leads: MRA’s approach to demonstrating leadership in investment and wealth management began with constructing its straightforward, conflict-free business model. As fiduciaries, the team is committed to always make decisions and recommendations that are in the clients’ best interests. The financial goals and objectives of the firm’s clients are the driving force of MRA’s dynamic investment and wealth management strategies. This client-first philosophy has helped MRA become one of the Valley’s leading investment and wealth management firms.

Leadership: Jamie Fletcher, CEO; Steve Dulley, CFO Website: mach1global.com What it does: Global logistics, transportation and supply chain management solutions.

How it leads: Mach 1’s most recent industry recognized innovative offering is its Linehaul network, which has been in development for more than eight years. Shipment integrity is a critical focal point of operations and by keeping a majority of its clients’ freight within its own Mach 1 network, the company is delivering industry best key performance indicators while substantially growing its Mach 1 Linehaul network. The Mach 1 Linehaul has become the second largest internal network in North America among freight forwarders.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

MARICOPA INTEGRATED HEALTH SYSTEM

Leadership: Steve Purves, CEO; Richard Mutarelli, CFO Website: mihs.org What it does: MIHS is Maricopa County’s public teaching hospital and safety net system of care, with a 140-year year tradition of caring for the underserved and training the next generation of physicians.

How it leads: Every year, MIHS trains more than 400 physicians in 13 Graduate Medical Education programs, ranging from emergency medicine to child and adult psychiatry. MIHS also trains 1,000 nursing students from 16 nursing schools annually, and trains military members in treating burn wounds before they are stationed overseas. It also is an economic engine, with nearly 4,000 employees and annual revenues of over $600 million.

OFFERPAD

PRISMA

Leadership: Brian Bair, CEO; Britt Chapman, CFO Website: offerpad.com What it does: Offerpad is a real estate technology company and an iBuyer.

How it leads: Offerpad’s on-demand platform is revolutionizing the industry with an innovative end-to-end real estate experience. Essential to Offerpad’s unique product and service is its internal and public-facing tech strategy. Offerpad uses a pointed algorithm to help determine the value of houses and is therefore capable of delivering offers to buy customers’ homes within 24 hours of request. Offerpad marries great customer service with state-of-the-art tech to revolutionize the real estate industry and offers streamlined options when buying and selling.

Leadership: Robert Anderson, CEO; Lisa Lathrop, CFO Website: prismagraphic.com What it does: Prisma offers full-service solutions that helps brands take their marketing to the next level.

How it leads: Prisma’s ability to adapt and evolve in the ever-changing print industry has allowed it to stand out from the competition. By implementing new technology, Prisma has improved the quality, speed, and accuracy in which it helps clients grow their businesses. Prisma’s proprietary web-to-print software, dokshop, has transformed the way clients customize, order, and distribute marketing materials worldwide.

Also, employees from every facet of the company are encouraged to bring inventive and innovative solutions to the table.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

[

Riot Hospitality Group

Leadership: Ryan Hibbert, CEO; Leslie Schreiner, CFO Website: riothg.com What it does: RHG is a hospitality management company dedicated to evolving the typical restaurant landscape into one that provides unique and meaningful experiences for each and every guest.

How it leads: RHG’s business is rooted in innovation, service, and community. RHG has transformed the industry’s landscape through pushing the envelope of the typical hospitality experience, while maintaining exceptional customer service. At its brands El Hefe, Farm & Craft, Hand Cut, Riot House, and Dierks Bentley’s Whiskey Row, the mission is simple: to make every single hospitality experience better than the last.

SCIENTIFIC TECHNOLOGIES CORPORATION Leadership: Michael Popovich, CEO; Sandy Vasseur, CFO Website: stchealth.com What it does: STC is transforming how public and private healthcare professionals do business with the design, development and delivery of innovative technology solutions.

How it leads: Tens of thousands die each year from the flu. New measles cases occur even though it was all but eradicated. These and many more diseases are diminished through the use of vaccines, public health prevention programs, and data intelligence. STC, through its innovative technology solutions and consultancies, is on the front line of this battle with its mission to create a healthier future by creating products that connect the entire healthcare ecosystem.

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[

SONORA QUEST LABORATORIES Leadership: David Dexter, CEO; Al Namey, CFO Website: sonoraquest.com What it does: Sonora Quest is the nation’s largest integrated laboratory, offering a comprehensive test menu and direct-to-consumer testing, and analytics solutions for population health and disease state management.

How it leads: With 75 Patient Service Centers located throughout the state and time-saving services, such as online appointment scheduling, Sonora Quest offers Arizona residents increased convenience to healthcare. Additionally, Sonora Quest is contracted and considered in-network with most major health plans and offer reduced pricing for patients who wish to pay at time of service due to lack of insurance coverage or high-deductibles.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

©2019 DuaneDarling.com

[

Stonegate Capital Advisors

Leadership: Jameson Van Houten, CEO Website: stonegateprivateclient.com What it does: Stonegate provides a wide range of consulting, financial planning services and sophisticated, institutional portfolio management strategies, with a comprehensive suite of wealth management solutions.

How it leads: Van Houten has built one of the premier independent wealth management firms in Arizona from the ground up, and now Stonegate Capital Advisors is one of the largest in the state. Stonegate is a boutique wealth management firm known for its fiduciary focus, sophisticated institutional portfolio management strategies and client-first approach. This allows Stonegate to meet the personalized needs of high-net-worth individuals, endowments, retirement plans and institutions.

[

TIEMPO DEVELOPMENT

TRAX TECHNOLOGIES

Leadership: Cliff Schertz, CEO; James Walbom, CFO Website: tiempodevelopment.com What it does: Tiempo designs, builds and deploys world-class custom software that makes lives better.

How it leads: Tiempo excels at building and deploying high-performing teams comprised of critical thinkers, agile masters, and world-class engineers. Tiempo’s teams have an uncompromising focus on agile methodologies and client outcomes. Tiempo’s teams work in a culture of accountability, flexibility, and transparency. Clients tell Tiempo their work is the best in its class. This is corroborated by the fact that Tiempo has built a fast- growing business on the word of mouth of delighted customers.

Leadership: Chris Connell, CEO; Liz Murray, CFO Website: traxtech.com What it does: Trax helps companies drastically improve the quality and accuracy of their underlying supply chain data at its source.

How it leads: Trax is a leader in unearthing and extracting the vast amounts of untapped value trapped deep inside global logistics data.

Trax creates clarity that helps stop previously unrecognized expense and revenue leaks from negatively affecting bottom line earnings before interest, taxes, depreciation, and amortization. Combining industry-leading cloud-based applications with expert services, Trax is transforming traditional freight and parcel audit to help customers better manage and control their global transportation costs and drive efficiency.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

Tristar Hotel Group - HMBookstore Leadership: Ken Edwards, CEO; Rick O’Neil, controller Website: hmbookstore.com What it does: Hotel management and hospitality online education and training.

How it leads: Ken Edwards has created, managed and grown a Scottsdale-based national hotel management company known for advanced systems and oversight that significantly improve a hotel’s earnings and social media scores. He was also one of the first hotel management organizations to introduce a robot for room service deliveries. Most significantly, he developed an online education and training program to provide hotels, restaurants, colleges and universities with convenient, self-paced learning of the full-range of functions within a hospitality establishment.

TruWest Credit Union Leadership: Alan Althouse, CEO; Mike Ward, CFO Website: truwest.org What it does: TruWest Credit Union operates as a cooperative to provide its members quality financial services and a culture of caring.

How it leads: Over the last two years, employee turnover rate at TruWest Credit Union has decreased by 64 percent. TruWest took their turnover from 26.8 percent in 2016 to 9.7 percent turnover in 2018. CEO Alan Althouse made employee retention a focus when taking the position.

Some of the initiatives TruWest implemented include flexible work schedules and telecommuting opportunities, a fitness reimbursement program, changes in company culture, and more.

UMB Bank

Leadership: Jim Patterson, CEO; Robert Faver, president Website: umb.com What it does: UMB Financial Corporation is a diversified financial holding company offering complete banking services, payment solutions, asset servicing and institutional investment management to customers.

How it leads: UMB supports its’ young leaders through offering an Emerging Leaders Program, a 12-month program designed to give participants exposure to the entire organization through job rotations and interaction with senior leadership. UMB strives to make careers for young associates instead of just offering them their first jobs.

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[ INDUSTRY LEADERS OF ARIZONA ] 2019 Finalists

[

WebPT

Leadership: Nancy Ham, CEO; Darian Hong, CFO Website: webpt.com What it does: WebPT is a rehab therapy software platform for enhancing patient care and fueling business growth by streamlining documentation, billing, scheduling, patient engagement, and practice management.

How it leads: Since its launch in 2008, WebPT has grown to become the nation’s leading electronic medical record (EMR) software and practice management solution for physical, occupational, and speech therapists.

With 30 percent market share, WebPT boasts a user community that is more than 10,000 clinics — and 83,000 rehab therapy professionals — strong. WebPT has also achieved 96 percent revenue growth over the past three years.

[

Wildflower Bread Company

Leadership: Louis Basile, founder and CEO; Cheryl Campbell, CFO Website: wildflowerbread.com What it does: Offers a full line of specialty bakery items, gourmet sandwiches, salads, homemade soups and cafe beverages.

How it leads: Wildflower developed a unique on-boarding experience for all new Breadheads (employees). During the first four weeks at Wildflower, Breadheads are asked to complete a passport journey based on the company’s purpose, values and safe space communication toolset. This interactive journey allows each Breadhead to make a conscious choice to align their actions and interactions with Wildflower’s values. Those who complete the journey receive a pin symbolizing their understanding, commitment and passion.

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ARIZONA TOURISM

ARIZONA’S ECONOMY

TAKES OFF

The state’s success in the tourism industry benefits all business sectors

ARIZONA VISITOR PROFILE They come from the East and West, North and South and everywhere in between, but what do we know about visitors who come to Phoenix? You might be surprised. Take a look at visitor data collected by Longwoods International on behalf of Visit Phoenix: Average Phoenix visitor age

45.1 years

Average number of overnights spent in Phoenix 3.4

Median household income

Average travel party size

$70,550

2.8 persons

The top 5 activities participated in

by Phoenix overnight visitors

Shopping, fine dining, visiting a state/national park, swimming and visiting a landmark or historic site.

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By ERIN THORBURN

W

hile the sun does its due diligence in illuminating the majesty of the Sonoran desert and warming the spirits of visitors near and far, Arizona’s tourism industry has and continues to do its part for Arizona’s business community by sharing its economic impact with a host of additional industries.

And, with $22.7 billion spent by visitors in 2017, each Arizona household gained a $1,293 annual savings thanks to the $3.37 billion in tourism-generated tax revenue.

“Tourism is a vital part of an Arizona economy that is diverse, collaborative and relentlessly growing,” says Arizona Gov. Doug Ducey. “The consumer spending by the 44 million visitors who came to our state last year contributed to every Arizonan’s economic security by creating and sustaining jobs, and generating tax revenues that elevate our quality of life.”

According to the Arizona Office of Tourism’s research, visitor spending directly supported 187,000 jobs in the state in 2017, and those tourism-related jobs generated $6.9 billion in employment revenue.

“These record numbers are a testament not only to Arizona’s appeal as a visitor destination, but to how effectively our state’s tourism community — at every level, state and local, public and private — markets Arizona to the rest of the world,” says Arizona Office of Tourism Director Debbie Johnson.

What is it, exactly, that continues to fuel tourism prosperity in the state of “Ditat Deus?”

THE PLANES, THE PLANES! Let’s begin by addressing one of Arizona tourism’s biggest money-makers.

Did you know that Arizona’s very own Phoenix Sky Harbor airport contributes $38 billion in yearly economic offerings? This makes one of Arizona’s most notable transportation hubs the largest tourism contributor in the state.

“With less desirable weather around the country, Phoenix is the perfect place for visitors to enjoy their vacations,” explains Deborah Ostreicher, assistant aviation director for the City of Phoenix. “And as my economic development partners remind me, coming as a tourist is often the first step to doing business here.”

In addition to bringing in visitors for their dose of sun and fun, Sky Harbor is responsible for generating 57,432 jobs.

Beyond the scope of Sky Harbor airport employees, economic activity generated by the Phoenix Airport System supported an additional 269,580 jobs in the regional economy, with a payroll of $13.5 billion.

MEETINGS, GREETINGS AND GAINS “Based on the 2017 Greater Phoenix Visitor Profile report produced by Longwoods International, 15 percent of domestic overnight visitors to the Metro Phoenix area said the main purpose of their trip was a conference, convention or business trip,” says Megan Trummel, director of marketing and corporate communications for Visit Phoenix.

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ARIZONA TOURISM In 2018, the estimated direct spending from meetings and conventions booked by Visit Phoenix at the Phoenix Convention Center was upwards of $325 million, according to Trummel.

As Ostreicher made clear, nearly 365 days of desirable weather compels companies and corporations throughout the nation and globe to choose Arizona as a meetings and events destination.

“Full-service hotels and resorts in the Phoenix area depend heavily on group business to hit key performance benchmarks,” Trummel says. “Based on data from STR, Inc., in 2018, more than 44 percent of occupancy at luxury and upscale hotels and resort properties in the Greater Phoenix area was from group business. This percentage was one of the highest in the nation when comparing STR’s Top 25 U.S. Markets.”

ECONOMIC IMPACT OF TOURISM The Arizona Office of Tourism Phoenix, courtesy of DeanRunyan Associates, reported that an increase in travel has helped Arizona’s tourism industry achieve its eighth consecutive year of growth.

The Gross Domestic Product of the travel industry was $9.8 billion in 2017.

Total direct travel spending in Arizona was $22.7 billion in 2017, a year-over-year increase of 6.7 percent.

The state’s Revenue per available room (RevPAR) was $61.50 in 2018, a year-over-year increase of 4.1 percent.

Non-transportation visitor spending increased by 6.3 percent, following a 3.3 percent increase from 2015 to 2016.

Air passenger volume was 4.28 million in 2018, a year-over-year increase of 4 percent.

Real travel spending increased by 5 percent in 2017.

Room demand increased by 2.8 percent for 2017, following a 2.9 percent increase the preceding year.

Direct travel-generated employment was 187,100 in 2017. This represents the addition of 2,900 jobs, an increase of 1.6 percent.

The re-spending of travel-related revenues by businesses and employees created secondary impacts of 160,800 jobs, with $7.3 billion in earnings in 2017.

The Gross Domestic Product of the travel industry was $9.8 billion in 2017.

Visitor air travel on domestic flights to Arizona destinations increased by 5.8 percent in 2017.

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ARIZONA TOURISM

Doug Ducey

Debbie Johnson

Stephanie Liegeois

And while Greater Phoenix and Arizona holistically and naturally attract business travelers, the magnitude of conferences and events is largely due to targeted tourism efforts.

Deborah Ostreicher

Megan Trummel

David A. Twigger

UNIQUE ADVENTURES AND OPPORTUNITIES Regardless of why visitors come to Arizona — business, leisure or both — they are taking advantage of the abundance of hospitality, entertainment and recreational activities. We know GROUP EFFORT this through the $62 million Arizona’s visitors spent per day in “The Arizona Office of Tourism and the individual convention 2017. and visitors bureaus coordinate to educate, inform and drive The 44 million people who visited Arizona in 2017 helped our meetings and events industry, providing a number of spread economic prosperity throughout the local entertainment, opportunities,” says Stephanie Liegeois, Bon Appetit general recreational, and hospitality sectors. manager at the Musical Instrument Museum. “There is much Data demonstrates that out-of-state baseball enthusiasts spend comradery amongst our cities. We are all on the same page when upwards of $373 million throughout the Valley during Cactus it comes to driving the tourism industry and making Arizona a League season. Similarly, the Final Four hosted by State Farm top destination.”

Stadium drew 60,000 out-of-state sports fans who stayed an And the cities also benefit from the collaborative approach. average of 4.16 nights and spent close to $500 per day each.

Johnson points out that nearly $2 billion of the tax revenue Perhaps not surprising, because of the state’s nearly perfect generated by tourism in 2017 benefited state and local weather, Arizona attracts a large percentage of golfers and is governments. Tourism-related tax collections at the city and among the Top 5 golf destinations in the country. With 300-plus county level increased 14 percent over the previous year, while golf courses and close to 100 golf events scheduled throughout a tourism-related state tax collections were up 9 percent. calendar year, including charity, opens, and championships, it’s “These are tax dollars that pay the salaries of teachers and easy to see why. police officers, and fund the upkeep of parks, infrastructure, Then, of course, there are unique venues to visit and experience, spring-training stadiums and youth-sports programs,” such as The Phoenix Symphony, Phoenix Art Museum, Heard Johnson says.

Museum, Children’s Museum of Phoenix, Ballet Arizona and MIM. In other words, success in the tourism sectors breeds success “MIM is the world’s only global musical instrument museum,” across the board.

Liegeois says, “delighting and inspiring guests with more than “If you don’t have large revenue producing meetings and events, 6,500 instruments and musical traditions from every corner then you don’t have the revenue to put back into tourism items of the globe. The Music Theater hosts 300 performances a year, and infrastructure,” adds David A. Twigger, creative director and bringing the galleries to life with exceptional performances of all founder of Vermilion Events and Design Group. “To quote one genres and types of music. It’s been called the best theater of its of my favorite Disney movies, it is our own little, ‘circle of life.’ size in the country.”

Arizona understands this.”

While business attendees, sports fans and vacationers take Contributions recirculated into Arizona’s tourism advantage of unique destinations and attractions, they have more infrastructure should remain plentiful with the uptick in regional than 160 hotels and resorts in the Valley from which to choose. and national economic health, but there is simply no shortage of “Arizona has some of the most unique and breathtaking nature events to be had. experiences in the country,” Twigger says. “From desert hikes to “Large events like the Waste Management Phoenix Open, red rock meditations to snow skiing, it is all here. And nightlife Barrett Jackson, the M3 Music Festival and large arena sporting — we have chic nightclubs, neighborhood bars with live music, an events, combined with an abundance of the country’s best inspiring art scene and the hippest hipster festival scene. I dare hotels and resorts, is such an incredible draw for high-profile someone to come to Arizona and not find something to do.” companies,” Twigger notes.

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ARIZONA TOURISM

WILD HORSE PASS 64

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CHILL OUT

in the heat

Here are some of the best staycation deals of 2019 at Arizona’s hottest resorts

By MICHAEL GOSSIE

A

rizona is home to some of the world’s most fantastic pools, luxurious spas, romantic retreats, spectacular golf courses and best restaurants.

So if you need a summer getaway, why not stay home and save money?

Forget about flight delays and rental cars because many of Arizona’s awardwinning hotels and resorts offer summer deals that are designed specifically for local residents who want a staycation to get away from it all. The best part about experiencing Arizona’s best resorts in the summer is that many offer great deals and low rates.

BOULDERS RESORT & SPA THE DEAL: For a peaceful summer

vacation getaway, the “ReTreat Yourself” package includes a luxurious private casita, daily $50 dining credit, unlimited access to the spa facility and complimentary parking. The cost is $154 per night.

TO BOOK: 480-488-9009 or theboulders.com

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ARIZONA TOURISM

THE PHOENICIAN

THE DEAL: Quench your thirst for new experiences this summer as The

Phoenician introduces “Fire & Ice,” featuring the hottest specials and coolest activities. Poolside games and sizzling performances are matched by smokinghot dining, spa and golf offers. Supervised childcare is also sure to ignite your evening. Rates start at just $179.

TO BOOK: thephoenician.com/summer or 480-941-8200. Use code D58

HOTEL VALLEY HO THE DEAL: Jump on a stellar three-day sale with hip accommodations starting at $99 per night and no resort fee. Or stay a little longer for less, by staying two nights and getting the third for free. All guests that confirm one of these offers during the annual three-day sale, will receive a special arrival gift.

TO BOOK: Book online at hotelvalleyho.com or by phone at 877-326-7832 between May 5 and May 7 and stay between May 5 and September 30 for a deal that can’t be beat.

JW MARRIOTT CAMELBACK INN RESORT & SPA THE DEAL: “Casitas & Rita’s” includes overnight accommodations in a casita, two specialty handcrafted margaritas per night and a $50 resort credit per night toward food and beverage, spa or golf.

TO BOOK: camelbackinn.com

FAIRMONT SCOTTSDALE PRINCESS THE DEAL: You don’t need to pack your cape and mask, because the Fairmont Scottsdale Princess will give them to you at check in. Find your inner superhero and take advantage of the Fairmont Scottsdale Princess’ summer packages.

TO BOOK: scottsdaleprincess.com FOUND:RE PHOENIX HOTEL THE DEAL: The Summer Fun Package

includes 25 percent off the standard rate for a “re:markable” room, $25 poolside food and beverage credit per stay, and poolside swag (including sunglasses, a pool floatie and sunblock).

TO BOOK: foundrehotels.com FOUR SEASONS RESORT SCOTTSDALE AT TROON NORTH THE DEAL: Create new summer memories at Four Seasons Resort with rates starting at $189 per night. Enjoy newly renovated casitas and suites, the complimentary Kids for All Seasons program, “dive-in” movies, acclaimed restaurants, and a bi-level pool with a separate pool for toddlers.

TO BOOK: 480-513-5039 or fourseasons. com/scottsdale

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GILA RIVER HOTELS & CASINOS VEE QUIVA THE DEAL: Wake up to mountain views in this AAA Four Diamond Awarded retreat, which features boutique rooms, delicious dining, an oasis pool and the best gaming found in the West Valley – all with no resort fees.

TO BOOK: playatgila.com GILA RIVER HOTELS & CASINOS - WILD HORSE PASS THE DEAL: The AAA Four Diamond Awarded Gila River Hotels & Casinos - Wild Horse Pass features refreshed accommodations, delectable dining, lively nightlife, an expansive casino floor and poolside entertainment – all with no resort fees.

TO BOOK: playatgila.com.

HILTON SEDONA RESORT AT BELL ROCK THE DEAL: Escape the Phoenix heat and head

up to Sedona’s upscale adventure resort.

Take advantage of seasonal specials when you book the Leisure Escapes package from $242 per night and receive a $50 daily credit for every night of your stay.

TO BOOK: hiltonsedonaresort.com/save/

JW MARRIOTT DESERT RIDGE RESORT & SPA THE DEAL: “Splash Into Summer” includes a $50 resort credit toward food and beverage, spa or golf, $10 donation to Phoenix Children’s Hospital, and resort fee (which includes high speed internet, two comped hours of pickleball, comped use of driving range, tennis courts and two-hour bike rental). Prices start at $199.

TO BOOK: jwdesertridge.com KIMPTON HOTEL PALOMAR PHOENIX THE DEAL: An oasis in the heart of the

desert, Kimpton Hotel Palomar Phoenix is coming in hot this year with the “100 Days of Summer” package and brand-new programming up at LUSTRE Rooftop Bar, perched on the hotel’s third-floor pool deck.

Available to book from May 31 through Sept.

30, 2019 for stays June 1 through Sept. 30, 2019, the “100 Days of Summer” package includes rates starting from $129 per night, 20 percent off overnight accommodations and 20 percent off all food and beverage.

TO BOOK: hotelpalomar-phoenix.com/ phoenix-hotel-deals/ LEGACY GOLF RESORT THE DEAL: The entire family will love a staycation at Legacy Golf Resort. An incredible par-7, 18-hole championship golf course plus a golf performance center with a putting lab and HD simulator are among the amenities found at this spacious resort. The beautiful swimming pool area includes two hot tubs, a poolside

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NOMINATIONS NOW OPEN! SUBMIT YOUR NOMINATION BEFORE JUNE 14, 2019

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ARIZONA TOURISM cabana bar and a wading pool for the kids. Using the discount code VACAY19, travelers can save 15 percent off available resort suites.

TO BOOK: extraholidays.com/phoenixarizona/legacy-golf-resort MOUNTAIN SHADOWS

staycation or girls’ getaway between May 25 and September 30, 2019 to take advantage of an incredible summer value. Rooms starting at $135 on select days with no added parking or resort fees ($61 nightly savings).

TO BOOK: omnimontelucia.com and enter promo code PKGFRE

THE DEAL: Take advantage of a three-day

POINTE HILTON TAPATIO CLIFFS RESORT

sale with luxury accommodations starting at $99 per night with a waived resort fee.

Or stay a little longer for less, by staying two nights and getting the third for free. All guests that confirm one of these offers during the annual three-day sale, will receive a special arrival gift.

TO BOOK: Book online at mountainshadows. com or by phone at 855-485-1417 between May 5 and May 7 and stay between May 5 and September 30 for the best deal of summer.

THE DEAL: In celebration of Hilton’s 100 year

MOXY HOTEL THE DEAL: Enjoy a poolside staycation at Moxy Hotel in Tempe from Memorial Day to Labor Day, complete with a cabana, a bucket of beer, $50 in food credit and a late 2 p.m. checkout, all for a rate of $89.

TO BOOK: moxy-hotels.marriott.com/en/ hotels/tempe or 480-968-3451 OMNI SCOTTSDALE RESORT & SPA AT MONTELUCIA THE DEAL: Plan that perfect weekend

anniversary, Pointe Hilton Tapatio Cliffs is offering a special summer rate from $100 per night, per suite with booking code “OX”. Rates are based on availability, nonrefundable and non-cancelable.

TO BOOK: 800-876-4683 or tapatiocliffshilton.com POINTE HILTON SQUAW PEAK RESORT

vibrant culture of Downtown. Chill-out at the Dust Cutter urban saloon, or work out at the state-of-the-art THRIVE Fitness Center.

Package includes a $25 gift card to a local juice bar, a THRIVE welcome amenity and a THRIVE reusable water bottle.

TO BOOK: renaissancephoenixdowntown. com or 602-333-0000 ROYAL PALMS RESORT AND SPA THE DEAL: No Fee Summer Staycation

features rates from $159 per night (twonight minimum stay) and waived fees for daily resort fee and daily parking ($60 value). Offer is valid from May 28 through Aug. 25. Summer happenings include weekend pool activities, including pool bingo and dive-in movies.

TO BOOK: royalpalmshotel.com or 602-283-1234

THE DEAL: Splash into summer fun at the

THE RITZ-CARLTON, DOVE MOUNTAIN THE DEAL: During the first week of June, the resort is offering a special starting rate of $189. For those with timing flexibility, there are dates in July and August when rates start at $149. Packages: “Stay for Breakfast” includes breakfast for two guests daily; “Experience Spa Package” includes breakfast for two guests per night and a $200 spa credit; and “Unlimited Golf for Two” RENAISSANCE PHOENIX includes breakfast for two, plus golf for two.

DOWNTOWN HOTEL THE DEAL: With rates as low as $189 per night, TO BOOK: ritzcarlton.com/dovemountain summer is the perfect time to discover the THE SCOTTSDALE RESORT AT MCCORMICK RANCH, A DESTINATION HOTEL THE DEAL: The resort is bringing back the highly anticipated “Rock Your Staycation” this summer with room rates starting as low as $97 on the weekends, a $30 daily resort credit, two $25 Luna Spa vouchers (per reservation) and a 50 percent discount on the daily resort fee ($29 plus tax).

TO BOOK: Use promo code ROCK19 at destinationhotels.com/scottsdale-resort resort’s popular four-acre waterpark featuring a half-mile lazy river, waterslide, poolside activities and much more. Get more for your getaway with a $50 daily resort credit and rates starting at $184. Must book promo code “RPTVS1” to receive credit.

TO BOOK: 602-997-2626 or squawpeakhilton.com/specials

WESTIN PHOENIX DOWNTOWN THE DEAL: Plan your summer staycation at

HERMOSA INN

THE DEAL: Summer in Paradise at the Hermosa Inn is available May 19 through

September 30, with rates starting from $149, plus tax and resort fee of $32, which includes valet parking; two drink tickets upon arrival per room and a $25 daily food and beverage credit.

TO BOOK: reservations.hermosainn.com

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the Westin Downtown Phoenix and receive a $30 food and beverage credit to use in room or at the onsite restaurant Province Urban Kitchen plus free WiFi. Staying at the Westin Phoenix Downtown puts you in the heart of all downtown has to offer.

TO BOOK: westinphoenixdowntown.com and use promo code ZJL

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AB | May - June 2019 71

HEALTHCARE

A CURE FOR WHAT AILS

Why Arizona is facing a huge doctor shortage and what the state is doing to fix that

By MICHAEL GOSSIE

Y

ou might as well just say, “Ahhhhhhh,” right now because your jaw is about to drop.

The unemployment rate recently hit a 49-year low of 3.7 percent. Any idea what the unemployment rate is for hospital workers? It’s just 1 percent.

“It is an employee’s market and healthcare is clearly impacted,” says Carol Cheney, vice president of staffing and workforce planning for Banner Health. “We are in need of many positions, as are other healthcare organizations. There is also a national nursing shortage, which adds to the complexity in our space.”

According to data from the Association of American Medical Colleges, the United States could see a shortage of up to 120,000 physicians by 2030, impacting patient care across the nation. And few states feel that shortage as much as Arizona, which ranks 44th of 50 states in total active primary care physicians, with just 77.9 primary care physicians per 100,000 population. The U.S. average is 91.7 primary care physicians per 100,000 population.

“This year’s analysis reinforces the serious threat posed by a real and significant doctor shortage,” says AAMC President and CEO Darrell G. Kirch, MD. “With the additional demand from a population that will not only continue to grow but also age considerably over the next 12 years, we must start training more doctors now to meet the needs of our patients in the future.”

To make matters worse, the aging population not only impacts the demand for physicians, but the supply because one-third of all currently active doctors will be older than 65 in the next decade.

When these physicians decide to retire, it could exacerbate the current shortage.

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IMPACT IN ARIZONA So how badly is the shortage of healthcare workers impacting Arizona?

“Arizona is facing a workforce shortage that is impacting every part of the healthcare industry,” says Jennifer Carusetta, executive director of the Health System Alliance of Arizona. “Members of the Health System Alliance of Arizona already compete with other states to recruit the best and brightest healthcare minds to Arizona. The workforce shortage and the projected growth in the Arizona population have only exacerbated this shortage and increased the urgent need to find solutions.”

Much of the increased demand comes from a growing, aging population. The U.S. population is estimated to grow by nearly 11 percent by 2030, with those over age 65 increasing by 50 percent by 2030. And with Arizona being an attractive retirement destination, it only amplifies the crisis.

“Metro Phoenix is an attractive place to live,” says David Hanekom, MD, CEO of Arizona Care Network. “As a result, we have one of the fastest-growing counties in the nation – more than 100,000 new residents join us each year. Consequently, the demand for healthcare services is increasing. We face a critical shortage of primary care providers. That’s why we are seeing the proliferation of innovations like telemedicine, the ‘retailization’ of healthcare and discussions on how to relieve provider burnout to save the providers we do have.”

But it’s not just primary care physicians that is in short supply.

“Throughout Arizona and the country, there is a shortage of registered nurses and other allied health professionals, creating a staffing challenge at times,” says Frank Molinaro, CEO of Abrazo Community Health Network.

THE GREATEST NEED Cheney says Arizona’s healthcare sector has workforce needs across the spectrum — from ambulatory care services to acute inpatient.

“From a clinical perspective, we are in need of nurses — from ICU to operating room, progressive care, care coordination, home health, etc.; physicians — especially those in the primary care areas; certified medical assistants; surgical technicians; medical imaging and radiology technologists; certified nursing assistants; and behavioral health RNs and technicians,” Cheney says. “Those are amongst some of the clinical areas with the greatest need.

Also due to the employee market, we are in competition for housekeeping and culinary jobs, as well, but that is also a nationwide challenge.”

Technology and information security roles are also in high demand, and experts say most people do not understand that healthcare has those technology needs, opportunities and challenges, as well.

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HEALTHCARE

Jennifer Carusetta

Jacqueline Chadwick

Carol Cheney

Molinaro says. “Consumers expect the latest technology and procedures. But to provide care for our patients we need physicians, nurses and allied health professionals who are not only clinically qualified, but also well-versed in the technologies we use.”

LEGISLATIVE HELP Recognizing the growing crisis, the Arizona House of Representatives Appropriations Committee hopes to make the path toward becoming a doctor a little easier. Senate Bill 1354 will help alleviate the physician shortage by appropriating a total of $50 million split among five programs including Graduate Medical Education (GME), the University of Arizona Medical School, primary care provider loan repayment, medical student loan repayments and nurse training.

“This legislation is an important step toward ensuring Arizona has a sufficient number of medical professionals to care for our rapidly growing population,” says Steve Purves, president and CEO of Maricopa Integrated Health System. MIHS operates one of Arizona’s largest and longest running physician training programs and is affiliated with the Creighton University - Arizona Health Education Alliance. “With Maricopa County set to double in population by 2040, we need to solidify a plan today to meet the healthcare needs of the Valley tomorrow.”

Only 42 percent of Arizona’s medical students remain in the state after graduation, according to the Association of American Medical Colleges. The most significant factor impacting this rate is the shortage of post-graduation training opportunities. GME, commonly known as physician residencies, has not been statefunded in a decade, thus leaving matching federal funds on the table. SB 1354 will contribute $20 million to GME, matched by approximately $47 million in federal funds — making it a total of $67 million that would become available.

“We desperately need to retain our trainees in the state, and these funds will help us achieve that goal,” says Dr. Jacqueline Chadwick, executive director of the Creighton UniversityArizona Health Education Alliance, which oversees more than 20 residency and fellowship programs training more than 300 learners in Phoenix.

David Hanekom

Darrell Kirch

Frank Molinaro

shortage of healthcare workers.

“There is no magic bullet,” Dr. Hanekom says. “We need to be addressing our challenges with innovation on all fronts.”

A few that Dr. Hanekom considers essential: Expanding the use of advance practiced providers like physician assistants and nurse practitioners: “We can greatly extend physician network capabilities by inviting advance practice providers to serve on the healthcare team. This team approach to care ensures that appropriate resources are available for all patients.”

Data-driven decision-making. “There is no shortage of data in healthcare,” Dr. Hanekom says. “The challenge is making that data actionable. Despite many advances, there remain significant barriers to unlocking the value of data transfer. If we are going to ensure that patients have access to the care they need in the setting their condition requires, we must solve our interoperability issues and make that data actionable at the provider level.”

An evolution to value-based medicine: “We are in the midst of a transition from the legacy fee-for-service healthcare delivery model to a value-based medicine model,” Dr. Hanekom says.

“The skill set required for success under this new model is very different from the training providers receive today. Tomorrow’s successful physician must possess financial and actuarial acumen, understanding of contract risk factors and predictive modeling.

They must be committed to placing the patient at the center of care coordination rather than continuing with a comfortably familiar physician-centric model. They must view care not in episodes, but along a continuum. Today’s training, technology and reimbursement models are not yet fully aligned with these needs.”

EASING THE CRISIS Better use of technology and telehealth has also proven to be a critical bridge to help fill the gap in care, according to Carusetta.

“Using telehealth, we are able to connect patients in outlying areas with providers around the state,” Carusetta says. “This provides an important resource for those who might have otherwise suffered from access to care, or for those who needed access to specialty care, but who did not have access to that specialty in their local community.”

Arizona’s schools are also doing a better job of preparing FINDING RELIEF students for a career in healthcare by offering more STEMWhile a boost from lawmakers is a step in the right direction, experts say there isn’t one pill that will cure all that ails the state’s focused curriculum, experts say.

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FACTS ABOUT ARIZONA’S PHYSICIAN SHORTAGE

Arizona has primary care physician (PCP) shortages in all counties & worse in rural areas.

• Arizona meets just 41.7% of its PCP need.

• 98% of residents in Cochise County live in a primary care shortage area (HPSA)

•A rizona ranks 44th of 50 states in total active PCPs at 77.9 per 100,000 population (U.S. is 91.7)

• 68% of residents in Pinal County live in a primary care shortage area (HPSA) • 61% of residents in Mohave County live in a primary care shortage area (HPSA)

• Arizona’s rural counties face the most severe shortages • 100% of residents in Yuma and Santa Cruz counties live in a primary care shortage area (HPSA)

(Source: University of Arizona Center for Rural Healthcare http://bit.ly/AZPhysicianShortage )

Percent living in a primary care shortage areas (HPSAs) and number of providers needed to eliminate shortage (2018)

Coconino 10.9

Mohave 16.1

La Paz 4.6

Apache 4.2 Navajo 2.8

Yavapai 9.4

Maricopa 214 Yuma 45.1

% population living in a HPSA

Gila 2.5 Pinal 63.9

Pima 108.1

Graham 2

Greenlee 0.6

Cochise 10.9

76-100% 51-75% 26-50% 0-25% 76

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Santa Cruz 6.1 Number of providers needed to eliminate the PCP shortage

10.9

“We have partnered with local school districts to provide guest speakers and invite STEM students to visit our hospitals, as we recently did at Abrazo Central Campus,” Molinaro says. “On the post-secondary side, our colleges and universities continue to offer health profession courses and degrees, and partner with hospitals for educational opportunities. Medical schools are expanding, and starting this year Abrazo is growing its graduate medical education program by adding Internal Medicine and General Surgery residencies in addition to our existing Family Medicine residency program.”

So while many people in many different industry sectors worry about how artificial intelligence may someday take their jobs, the healthcare sector — with it’s startlingly low 1 percent unemployment rate — promises very healthy job security.

“Many people don’t realize that healthcare makes up approximately 20 percent of Arizona’s economy,” Carusetta says. “Arizona’s hospitals alone contribute nearly $25 billion in direct economic impact and, year after year, members of the Health System Alliance of Arizona are among the largest employers in the state.”

HEALTHY INDUSTRY People travel to Arizona from around the world for the world-class, innovative care that Arizona healthcare facilities offer to their patients.

“In addition to growth in high-paying jobs, growth in healthcare means growth in support to other industries including retail, hospitality and finance,” Carusetta says. “If the healthcare industry is expanding, it benefits the broader economy in a very positive way, which provides a net benefit for the residents of our state.”

So where should you focus if you want to become part of this recession-proof industry?

“There are so many areas — depending on the desired schooling time and passion areas,” Cheney says. “We have careers that are supported by two-year degrees, four-year degrees and so forth.”

Regardless of the role that is chosem, experts say working in healthcare is one of the most rewarding career choices available.

“Each and every day, you are impacting the lives of people in your community,” Cheney says. “Opportunities in this space are endless. Additionally, healthcare is in a unique position to transform from old models of healthcare delivery to new models that meet technological and consumer demands.

Healthcare is now being compared with Amazon, Apple, Google, Uber. This means the need for those interested in innovation, technology, supply chain, administration, etc. have the unique opportunity to apply their skills in a way that impacts the health of a nation, literally.”

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L E A D E R S H I P

Dr. Ghafoor is the former CMO of the Forensic Unit at Arizona State Hospital and Valley Hospital. Last year, Cigna had a patient that required urgent care, but all the available providers had a waiting list. Dr. Ghafoor came into the office on his off day to assess and treat the patient, which is just one example of his dedication. Dr. Ghafoor specializes in medical detoxification of patients with alcohol and drug dependence and integrated treatment of patients with co-occurring disorders.

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2019 Behavioral Healthcare

Leaders of the Year

BILL SOUTHWICK | CEO Banner Behavioral Health Hospital Southwick has 21 years of healthcare leadership experience, including 11 years running a behavioral health hospital. As a registered nurse, he understands the need to focus on the experience of the patient.

“One of our goals at Banner Behavioral Health is to help our patients maintain their dignity and selfrespect, as they work to meet the needs of their everyday lives,” Southwick says. “My experience has helped me gain a passion for helping these patients, and reassuring them and their families that there is hope.”

ALICIA COWDREY, MD Medical director and psychiatrist Maricopa Integrated Health System First Episode Center Dr. Cowdrey is a pioneer in behavioral health who has worked on the front lines as a case manager and as a psychiatrist. The opportunity to start an innovative program to help teens and young adults who experience their first psychotic break matched her medical philosophies. Thanks to her tireless efforts, the MIHS First Episode Center was developed and opened in 2017 to provide early intervention brain health services for youth ages 15-30 when they first experience psychosis.

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CATHY PADDACK HIV educator and advisor Terros Health In her 35 years at Terros Health, Paddack has touched tens of thousands of lives – individuals struggling with substance use disorders and homelessness, and HIVinfected patients of all ages, cultures and circumstances.

At Terros Health, her name is synonymous with HIV testing and substance use treatment.

Thanks to Paddack, Terros was at the forefront of HIV and AIDS education and testing long before other providers took notice, securing a grant to launch Safety Counts in Maricopa County.

JAIME VINCK | CEO Sierra Tucson As only the second woman CEO in Sierra Tucson’s 35-year history, Vinck’s focus on compassionate care and clinical excellence has resulted in the advancement of specialized treatments to respond to the most demanding healthcare challenges, including today’s gripping suicide and opioid crises.

With approximately 130 individuals being discharged monthly, Sierra Tucson supports them with a unique continuing care program featuring recovery coaches and a specialized app. A true breakthrough in providing recovery support, Vinck has championed this innovative approach that no other U.S. treatment center provides.

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2019 Behavioral Healthcare

Organizations of the Year

ST. LUKE’S BEHAVIORAL HEALTH CENTER With more than 45 years of experience and dedication to mental health care, St. Luke’s Behavioral Health Center provides both psychiatric and substance abuse services.

With 124 licensed beds, the center offers a wide variety of inpatient and outpatient treatments for children, adolescents, adults and seniors. The experts at St. Luke’s Behavioral Health Center include a wide variety of specialists, including licensed psychiatrists, psychiatric nurse practitioners, licensed masters-level counselors/social workers, mental health technicians, occupational therapists, recreational therapists, registered nurses, case managers and nutritionists.

SONORA BEHAVIORAL HEALTH HOSPITAL Sonora Behavioral Health provides programs for children ages 5-11 suffering from mental health issues, chemical dependence or dual diagnosis, especially important with younger suicides on the rise. Sonora recently opened its renovated 22-bed outreach center with an activities therapy room, outdoor basketball court and play area to treat ages 1217 needing psychiatric stabilization, bringing its total beds for adolescents to 65. Providing short-term intensive treatment and medication management from master’s level clinicians, Sonora also treats adults. In the past two years, Sonora has seen patient growth of nearly 48 percent.

AURORA BEHAVIORAL HEALTH SYSTEM

SOUTHWEST BEHAVIORAL & HEALTH SERVICES

SIERRA TUCSON Known for treating individuals suffering from alcoholism, drug addiction, depression, anxiety, trauma, complicated pain, and disordered eating, Sierra Tucson also provides a multitude of specialty programs.

From supporting individuals affected by suicide, to those suffering from PTSD, Sierra Tucson individualizes care using a foundation that uncovers the underlying issues that cause such personal struggles.

Additional programs support first responders, active military and veterans with PTSD. Known as the “Red, White, and Blue Program,” it is led by a veteran and retired Navy commander, who truly understands the lingering emotional and traumatic scars of war and traumatic experiences.

Incorporated in 1974 as a 501(c)3 nonprofit, Southwest Behavioral & Health Services is a leader in the development and delivery of services in the areas of housing, residential care, prevention services, outpatient services to children, incarcerated persons and dually diagnosed adults.

An innovative leader in behavioral health, services are client directed-outcome informed, evidencebased and include treatment of co-occurring disorders, the FAST model in prevention services, the Arizona Treatment Initiative for children and families, and the Recovery Model for persons with serious mental illness.

Aurora Behavioral Health System is Arizona’s largest free-standing psychiatric hospital system with 238 beds within two facilities serving the entire State of Arizona. Aurora Behavioral Health System’s Glendale hospital has 100 beds and its Tempe hospital has 138 beds. Both facilities pride themselves on having full-time internal medical doctors on staff in addition to board certified psychiatrists and addictionologists. As a leader in behavioral health treatment for more than 10 years, Aurora’s leaders believe in individualizing treatment and healing the entire person – physically, psychologically and spiritually.

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SUSAN CORDTS CEO and founder | Catalytic Health Partners Cordts, a former nurse and serial entrepreneur, is reshaping how healthcare is delivered today and in the future. CHP uses proprietary application technology combined with in-home visits, telemonitoring, telemedicine, and education to drive improved health outcomes. Cordts’ approach to healthcare is industry-changing, with proof. Engagements start with social health to identify where CHP can make an immediate impact to stabilize their member’s environment. CHP team members then work in coordination with the plan and practitioners to address physical and behavioral health needs, working to improve an individual’s health outcomes.

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2019 Healthcare

Delivery Method of the Year

MAYO CLINIC Mayo Clinic has developed and implemented electronic consultation for providers in the rural areas of Arizona. This allows customers in non-populated areas of the state to have access to sophisticated medical consultation. This improves access and health outcomes. Mayo Clinic is a nonprofit organization committed to clinical practice, education and research, providing expert, comprehensive care to everyone who needs healing. In Arizona, Mayo Clinic serves more than 100,000 patients each year with an integrated, team-based approach. The clinical practice is focused on adult specialty and surgical care in more than 65 medical and surgical disciplines.

JAMES BATES CEO | AdviNOW Medical AdviNOW Medical’s virtual provider assistant, Hannah, completely automates the clinical visit within regulatory guidelines using artificial intelligence (AI) and augmented reality (AR). The AI interacts with patients to collect symptoms, take vitals, and prepare all information in an easy-toreview format for the provider.

The information is auto-charted and provider notes auto-scribed to reduce the provider’s time-perpatient while improving patient satisfaction and outcomes. This system revolutionizes patientprovider interaction, enables cost containment of healthcare costs, and expands primary and acute care coverage.

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TELADOC HEALTH With operations around the world, including offices in Phoenix and Mesa, Teladoc Health is recognized as the global virtual care leader and is helping millions of people around the world, including in the Valley of the Sun, resolve their healthcare needs with confidence and unprecedented accessibility. After acquiring two Scottsdale telehealth companies in 2015 and 2016, Teladoc Health has expanded its Phoenix offices, including the addition of a 10,000-square-foot customer service center that connects people with the right physician for their care need. In addition, Teladoc Health is successfully addressing one of the nation’s – and the world’s – largest healthcare issues – mental health.

SPOTRX SpotRx is a next-gen pharmacy that will do to the traditional pharmacy model what Netflix did to Blockbuster. Launched in Arizona last year by parent company MedAvail, SpotRx’s pharmacy kiosks are already simplifying the way residents in Metro Phoenix and southern Arizona receive medication. The company’s current distribution methods include pharmacy kiosks and near-real-time delivery for prescription or drugstore needs that can be ordered online or via a mobile app. At the kiosk, individuals can consult a pharmacist, transfer a prescription, scan a paper script and pickup their medications – in one convenient, discreet and cost-effective place.

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2019 Healthcare

MATTHEW BENNETT President and general manager Cigna Medical Group When Bennett joined CMG in 2018, he brought a renewed sense of focus and positive energy that was quickly felt throughout the organization. His powerful blend of visionary and collaborative leadership, innovative thinking, strong business acumen and agility, and ability to translate ideas into successful execution were just what the doctor ordered. He led the planning process to shape and launch CMG’s compelling, forward-looking vision and strategy and identified and invested in resources to support the strategy and drive better health outcomes for patients and a better experience for patients and CMG team members.

PETER FINE President and CEO | Banner Health Fine has led Banner Health through significant growth and transformation.

From the expansion into urgent care to partnerships in medical imaging and rehabilitation to the strategic alignment with the University of Arizona, forming Banner’s academic medicine division, Fine has boldly led the organization to quickly adapt to changes in the healthcare industry. He has also managed Banner Health through a transformation initiative that is focused on delivering care to its customers when, where and how they want it at an affordable price. In 2018, Fine was named to Modern Healthcare’s list of the 100 Most Influential People in Healthcare.

Executive of the Year DAVID J. JACOFSKY, MD Chairman and CEO | The CORE Institute Dr. Jacofsky is the founder of The CORE Institute, a nationally recognized surgeon and internationally respected authority on healthcare reform strategies.

His career as an orthopedic physician and expert in complex adult joint reconstruction and oncology spans more than 20 years, most of that in the Valley. Dr. Jacofsky is one of the leading thinkers when it comes to the business of healthcare and is an innovative executive whose writings have been featured in The Harvard Business Review. He is also an inventor, dedicated to providing technologically advanced surgical techniques with more than 30 patents to his name.

JARED MUENZER, MD Chief operating officer Phoenix Children’s Medical Group With a multi-faceted view of healthcare, Dr. Muenzer’s approach to running the hospital has saved lives, time and money. Thanks to his adaptability and proactivity, Phoenix Children’s was able to treat 800 patients without admitting them to the hospital in 2018. His effective leadership style not only improves operations, it attracts top pediatric experts. Since assuming his role as COO of the medical group in 2016, Dr. Muenzer recruited eight directors across the organization’s Centers of Excellence and largest specialty divisions. Dr. Muenzer still dedicates 25 percent of his time to clinical practice in the emergency department.

LAURA R. YOUNG-SHEHATA Senior vice president and chief information officer Dignity Health As a well-respected, transformative leader, Young-Shehata has more than 25 years of healthcare and information technology experience. Her extensive background includes executive leadership, global digital transformation, creation of new service lines and acquisitions, hospital operations, and diagnostic imaging. YoungShehata’s areas of expertise include innovative strategic planning, change leadership, and major information technology systems implementation with a focus on business redesign. She has experience working with major industry companies as well as community, government, and multifacility healthcare systems.

She has been widely published throughout the healthcare industry.

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2019 Healthcare

Facilities of the Year

ARIZONA BURN CENTER AT MARICOPA INTEGRATED HEALTH SYSTEM The Arizona Burn Center at MIHS captured the world’s attention in May 2018 when pop icon Taylor Swift visited 9-year-old burn survivor Isabella McCune in her hospital bed. The international spotlight gave viewers and readers a glimpse of what happens at the facility every day, without fanfare or press coverage: Amazing care from a top-notch team that includes internationally recognized burn surgeons, burn nurses, occupational therapy and physical therapy rehab specialists, psychiatrists, pharmacists, social workers, and researchers. The Arizona Burn Center treats more than 6,000 inpatients and outpatients every year with a 98 percent survival rate.

BANNER-UNIVERSITY MEDICAL CENTER PHOENIX This year, Banner-University Medical Center Phoenix was named to the nation’s 100 Top Hospitals list by IBM Watson Health. BUMCP also recently received Level 3 Accreditation from the American College of Emergency Physicians’ Geriatric Emergency Department Accreditation Program. BUMCP is the first entity in the entire Banner system, and in the state of Arizona, to earn this accreditation. BUMCP is nationally ranked in five adult specialties specialties and rated high performing in four adult specialties and four procedures and conditions. It is a general medical and surgical facility and is also a teaching hospital.

ABRAZO ARIZONA HEART HOSPITAL As the first hospital in Arizona, and one of the first in the nation solely dedicated to cardiovascular care, Arizona Heart Hospital is still leading the way in providing innovative care and research for heart patients from across Arizona and beyond. In addition to offering procedures which are often first in the market, research and education continue to play a large role on the hospital’s contributions to medical care. It is only Arizona hospital and one of approximately 60 sites worldwide participating in the clinical trial of the Apollo trial for Transcatheter Mitral Valve Replacement (TMVR) therapy using the investigational Intrepid TMVR system.

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PHOENIX CHILDREN’S HOSPITAL Phoenix Children’s Hospital remains the only standalone pediatric hospital in Arizona and one of the largest children’s hospitals in the Southwest.

At the end of 2017, Phoenix Children’s main campus opened its new Center for Cancer and Blood Disorders Outpatient Clinic and Infusion Center, where it serves more than 20,000 patients per year, including more than 300 new patients each year. Phoenix Children’s main campus houses the state’s only full-service clinical laboratory dedicated to pediatric cases, a Level IIIC NICU and Neuro NICU, the Valley’s only Level 4 Epilepsy Center, and the Valley’s only pediatric cystic fibrosis center.

TUCSON MEDICAL CENTER Tucson Medical Center is part of the Local Plus strategy in Pima County for Cigna and has collaborated with community providers in order to improve access for Cigna customers in Pima County. Tucson Medical Center, licensed at more than 600 beds, has been Tucson’s locally governed nonprofit regional hospital for more than 75 years. TMC is Southern Arizona’s leading provider for emergency care and pediatric care (including Tucson’s first Pediatric Emergency Department), with intensive care units for adults, children and newborns. Other specialty areas include women’s, maternity, cardiac care, orthopaedic, neuroscience, hospice, surgical, vascular and geropsychiatric care.

EL RIO HEALTH El Rio Health in Tucson is a sophisticated accredited medical home that has been on the cutting-edge with real time virtual physician transcription and other practice enablers.

El Rio uses the latest encryption technology to deliver secure L E A D E R S H I P communication between its patients and its providers. El Rio patients can schedule non-urgent appointments, access L E A D E R S H I P medical records and more via a secure portal. As a medical 2019 Healthcare home, they have been a leader in innovating physician practice in Pima County. El Rio cares for more than 104,000 people at multiple locations in Tucson and is a leader in the development of nationally recognized healthcare programs.

Innovator of the Year

ERIC STOFFERS CEO | BioXcellerator Staffers and Phoenix-based BioXcellerator, headquartered in uptown, is on the forefront of the next major healthcare sector: stem cells. BioXcellerator conducts clinical trials, cultivates more than one billion stem cells every week and treats patients ranging from age 9 to 84 (including a host of famous athletes) for Alzheimer’s, MS, lupus, diabetes and a host of other conditions out of its year-old, state-of-the-art medical clinic in Medellin, Colombia. While BioXcellerator must practice its treatments and clinical trials in Colombia, it still operates locally with six Arizona-based employees supporting more than a dozen neurosurgeons and nurses nearly 3,000 miles away.

VINAY VAIDYA, MD Chief medical information officer Phoenix Children’s Hospital Dr. Vaidya joined Phoenix Children’s in 2009 and immediately set his sights on fully implementing computer order entry for all inpatient units. From there, he moved on to designing a dose range checking solution now used at hospitals nationwide, and then tackled converting Phoenix Children’s ambulatory clinics to a fully electronic medical record. In recent years, Dr. Vaidya focuses his attention on utilizing the vast amounts of clinical data collected at Phoenix Children’s facilities to target and improve care for thousands of patients with many different diseases.

FREDERIC ZENHAUSERN, PHD Director of the Center for Applied Nanobioscience and Medicine University of Arizona Dr. Zenhausern applies interdisciplinary science approaches to medicine that are aimed at early diagnostics of human diseases, in particular, cancer, infectious and cardiovascular diseases. Through this work, Dr. Zenhausern has changed the medical industry for the better. As a partner with clinical, academic and industrial leaders, Dr. Zenhausern creates a large number of devices that serve a multitude of purposes.

His expertise, leadership and motivation make him not only a hero in the Phoenix community, but his work has touched the lives of people nationally and internationally as well.

ANNA BURKE, MD Karsten Solheim chair for dementia Barrow Neurological Institute Dr. Burke’s expertise includes the treatment of challenging behavioral and psychiatric disturbances that result from Alzheimer’s disease and other neurological conditions.

She has led numerous clinical trials of investigational drugs, neuromodulation, environmental modifications, prevention methods, and novel neuroimaging techniques for cognitively impaired patients with Alzheimer’s and other neurodegenerative disorders. Dr. Burke has helped build an intensive community outreach program to teach people in the Phoenix area about brain health, Alzheimer’s and the importance of clinical research.

She spoke to more than 800 people at community events in 2018, and many signed up for memory screening.

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2019 Healthcare

Insurance Provider of the Year BLUE CROSS BLUE SHIELD OF ARIZONA Led by CEO Pam Kehaly, Blue Cross Blue Shield of Arizona is committed to helping Arizonans get healthier faster and stay healthier longer. With a focus on connecting people with the care they need, BCBSAZ offers health insurance and related services to more than 1.5 million customers.

BCBSAZ, a not-forprofit company, is an independent licensee of the Blue Cross Blue Shield Association.

The company employs more than 1,500 people in Phoenix, Chandler, Flagstaff and Tucson.

As an active supporter of the community, BCBSAZ supports more than 200 organizations statewide through volunteering and contributions all with the aim of inspiring health.

Led by CEO Tom Grote, Banner|Aetna is a health care company focusing on bettering member outcomes at a lower cost, all while improving the overall member experience for employers and consumers in Arizona. The collaboration combines Banner Health’s high quality, local providers and delivery systems with Aetna’s health-plan experience, care management and health-information technology. Banner|Aetna is the brand name used for products and services provided by Banner Health and Aetna Health Insurance Company and Banner Health and Aetna Health Plan Inc.

CIGNA Cigna, a global health services company, delivers choice, predictability, affordability and quality care through integrated capabilities and connected, personalized solutions that advance whole person health. Among recent innovations, Cigna added digital tools to empower customers to make healthy changes. In the last six months, the company expanded its behavioral health offerings in collaboration with mental health and well-being technology companies and helped customers better cope with stress, anxiety, and depression. Through the Brighter acquisition, Cigna accelerated the development of Cigna’s mobile and desktop platforms connecting customers and providers with the tools needed to increase quality of care and maximize cost-savings.

DELTA DENTAL OF ARIZONA Delta Dental is the leading dental insurance provider in Arizona, serving more than 1 million enrollees and more than 3,400 contracted dentists across the state.

Passionate about oral health and its importance to families, Delta Dental of Arizona has worked for more than 45 years to improve oral health by emphasizing preventive care and making dental coverage accessible to a wide variety of employers, groups and individuals.

Delta Dental’s foundation distributed $600,000 in grants in early 2019 (and more than $11 million since 2006) to nonprofits throughout Arizona focused on improving oral health in underserved and uninsured populations.

UNITEDHEALTHCARE OF ARIZONA Led by CEO Heather Kane, UnitedHealthcare is dedicated to helping people live healthier lives and making the health system work better for everyone by simplifying the health care experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. In the United States, UnitedHealthcare offers the full spectrum of health benefit programs for individuals, employers, and Medicare and Medicaid beneficiaries, and contracts directly with more than 30,235 physicians and care professionals in Arizona. There are 853,650 total UnitedHealthcare commercial plan members in Arizona. Of those, there are 477,813 in PPO plans.

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2019 Healthcare

Physicians of the Year

KEVIN N. FOSTER, MD Arizona Burn Center at Maricopa Integrated Health System Under Dr. Foster’s leadership, the Arizona Burn Center boasts a 98 percent survival rate, even though surgeons see some of the most complex medical cases, ranging from severe burns to rare skin disorders like flesh-eating bacteria and Stevens-Johnson syndrome. Dr. Foster also is a national leader in advancing burn care for patients everywhere. He pioneered use of the ReCell “skin spray” to cover large surface burns at a time when it was under study by the FDA for approval in the United States.

SAUL PEREA, MD | Terros Health Dr. Perea’s greatest joy is helping his patients at Terros Health – about half of whom are Spanish-speaking – find a path to recovery, whether it’s through psychiatric consultations, holistic treatment of the body and mind or helping teenagers kick addiction. To them, he is a partner, sharing bilingualism and a fierce determination to thrive.

He creates a rapport and an environment of safety. And he connects with people, particularly the economically disadvantaged. His greatest reward: “seeing a smile on his patients’ faces and having them thank you,” he said.

“That’s how you know you are making a difference.”

TIMOTHY BYRNE, MD Arizona Heart Hospital In 2016, Abrazo Community Health Network had a vision to make its Arizona Heart Hospital a destination center for Transcatheter Aortic Valve Replacements and other advanced cardiovascular care.

Later that year, Byrne assumed the reins of Abrazo’s cardiac service line, overseeing strategy, programs, education, research and quality initiatives for Abrazo Arizona Heart Hospital and its sister hospitals in greater Phoenix. Since then, Byrne has been at the helm of the hospital’s transformation, stepping up involvement in clinical trials, bringing in renowned caregivers who embrace his vision, and building out Abrazo’s six cardiovascular centers of excellence.

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MICHAEL RITCHEY, MD Phoenix Children’s Hospital As chief medical officer of Phoenix Children’s, Dr. Ritchey supervises the hospital system’s medical staff, oversees all patient safety initiatives, and ensures the quality of patient care. Never one to pat himself on the back, Dr. Ritchey’s staff are eager to innumerate the qualities that make him an exceptional physician – and the linchpin of Phoenix Children’s continuous improvements in patient outcomes. His humble and mild manner belies an unshakeable commitment to his work. Most recently, his focus on safety and quality helped Phoenix Children’s clench “Best Children’s Hospital” rankings in 10 out of 10 specialties.

SARA SALEK, MD Arizona Health Care Cost Containment System Dr. Salek is chief medical officer of AHCCCS, which is Arizona’s Medicaid agency that offers health care programs to serve Arizona residents. Dr. Salek has introduced innovation in healthcare for Medicaid and dual patients in Arizona. She has influenced the state’s approach to managing opioid utilization, adult and pediatric care. Dr. Salek never forgets “it’s about the patient.”

Her administration decisions are patient-centric. Her patient-centered approach gives birth to medical policies which are always in the best interest of the citizens of Arizona that receive care via AHCCCS.

L E A D E R S H I P L E A D E R S H I P

2019 Healthcare

Researcher of the Year

ROBERT KELLAR, PHD Chief science officer Axolotl Biologix Dr. Kellar is a highly respected biotechnology innovator focused on improving patients’ quality of life through advanced regenerative medicine technologies. In 2018, Dr. Kellar led the scientific team that rolled out two new regenerative medicine products, Axolotl Shot and Axolotl DualGraft, which enable the body’s own cells and tissues to repair and regenerate. This gives patients additional options to avoid the costs, discomfort and downtime associated with surgery and improve their quality of life. He is currently working on technologies which will allow the creation of biomimetic skin scaffoldings, replacement blood vessels and heart patches which are perfect matches for patients.

SUNIL SHARMA, MD Deputy director of clinical sciences Translational Genomics Research Institute (TGen) Dr. Sharma is a celebrated cancer investigator responsible for helping develop some of the world’s most advanced anti-cancer agents. “Dr. Sharma’s entrepreneurial spirit and penchant for far-reaching innovative new ideas makes him a great match for TGen and our proven record of ‘translating’ research findings into demonstrated patient benefit,” says Dr. Jeffrey Trent, TGen president and research director. “Dr. Sharma’s ‘end to end’ success in identifying novel therapeutic agents, and then working with or establishing commercial opportunities to move targets to treatments is remarkable.”

MARC JACOFSKY, PHD Chief scientific officer The CORE Institute

AKINLOLU O. OJO, MD Associate vice president for clinical research and global health initiatives University of Arizona Health Sciences Dr. Ojo is an international leader in chronic kidney disease and kidney transplantation research and clinical care with a focus on health disparities and an expert in global health research. Dr. Ojo’s research and clinical interests include chronic kidney disease and kidney transplantation and their complications, including cardiovascular disease; pharmacotherapy of hypertensive and diabetic renal disease; minority health and health disparities; global health; and global health capacity development. He has a particular clinical interest in chronic kidney disease in African Americans and blacks in developing nations.

KRIS VIJAY, MD Medical director Institute of Congestive Heart Failure at Abrazo Arizona Heart Hospital Under Dr. Vijay’s direction, the Institute for Congestive Failure opened in fall of 2017, with a focus on everything from prevention and early detection to a variety of treatment options using optimized medications, heart valve repair and replacements, pacemakers, defibrillators and other cutting-edge devices that help the heart work better. He used telehealth and remote monitoring technologies to make newer diagnostics and therapies available. And he created what is believed to be the first outpatient Cardio-Renal Center in the nation to diagnose, treat and monitor patients with kidney disease.

Dr. Jacofsky is an expert in the field of musculoskeletal anatomy and biomechanics.

His PhD work focused on comparative anatomy of the hand and the application of bioengineering techniques to the study of mammalian functional morphology, which he has continued to build on throughout his career.

In addition to his research, Dr. Jacofsky is also a prolific inventor. He currently has more than 20 peer-reviewed publications and has presented his teams’ research at more than 50 national and international medical conferences. He holds over 25 issued United States patents and dozens of international patents.

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PRESENTS

AZ Business Magazine is proud to host a panel discussion with leading experts who will address the issues impacted by the shortage of healthcare professionals throughout the state. We’ll take a look at the state of healthcare, and more importantly, what is being done to influence change. This is an opportunity to listen to, learn from and network with some of the very best thought leaders in the industry

PANEL TOPICS TO INCLUDE: • What the shortage of physicians and other healthcare professionals means to the industry • How this shortage affects patients and how it trickles down to impact employers • How technology is being used as a solution through virtual medicine and improved efficiencies • The impact SB1354 (Graduate Medical Education) might have on the state’s healthcare shortage • A look into what healthcare experts see in the future.

FEATURING

JENNIFER CARUSETTA Executive Director Health System Alliance of Arizona

CAROL CHENEY

Vice President of Staffing & Workforce Planning Banner Health

FRANK MOLINARO CEO Abrazo Community Health Network

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ARIZONA-MEXICO COMMISSION

Ducey drives partnership with Mexico Governor-led Arizona-Mexico Commission celebrates 60 years of cross-border relationships

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ARIZONA-MEXICO COMMISSION

S E S S O R C T C A IMP

S R E BORD

By SIERRA CIARAMELLA

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fter decades of increasing trade opportunities and building relationships with Arizona’s neighbors in Mexico, the ArizonaMexico Commission is celebrating its 60th anniversary.

“International relationships have never been more important and the Arizona-Mexico Commission brings the right people together to fuel our state’s continued trade success,” Jessica Pacheco, Arizona Mexico Commission (AMC) president, said.

“As we enter the sixth decade of cross-border collaboration,

CELEBRATING HISTORY WHAT: The Arizona-Mexico Commission’s 60th Anniversary Summit WHEN: June 26-29, 2019 WHERE: JW Marriott Desert Ridge Resort and Spa INFORMATION: azmc.org/events

the ArizonaMexico Commission will focus on celebrating the organization’s legacy, while defining our future – our relationship with Mexico has never been better, and we are dedicated to expanding progress.”

AMC works to improve the economic prosperity and quality of life for Arizonans through collaborations with Mexico in advocacy, trade, networking and information.

“I’m proud to say that, as we celebrate our heritage with the 60th Anniversary of the Arizona-Mexico Commission, our relationship with Mexico is stronger than ever,” Gov. Doug Ducey said at his State of the State address in Tucson last week.

Ducey continued by announcing a new port of entry investment in his budget proposal. “It includes $700,000 to better preserve produce as it’s being inspected at the Mariposa Port of Entry in Nogales. And with an updated North American trade AB | May - June 2019 91

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ARIZONA-MEXICO COMMISSION

deal, known as the USMCA, this investment will mean even more trade coming through our ports and more jobs for Arizonans.”

Gov. Ducey also commended AMC for its work to strengthen Arizona’s relationship with Mexico in his Inauguration Day remarks.

He said, “Over the last four years we’ve worked hard to build the relationship that’s founded on trust and mutual respect.

And today, I’m proud to say we’re more than just neighbors with Sonora, we’re partners. And that partnership is leading to more growth and prosperity for both our states.”

AMC was founded in 1959 when former Arizona Gov. Paul J. Fannin and former Sonora Gov. Alvaro Obregon banded together to reach shared goals for the region. Representatives from each state were selected from a variety of industries to improve relations.

About 13 years later, former Arizona Gov. Jack Williams expanded the organization by appointing community leaders to lead AMC as its Board of Directors.

Over the last six decades, AMC has continued to grow and strengthen the relationship with its neighbors in Mexico. The 60th anniversary is geared to embrace that growth and focus on fostering relationships.

The organization will have an action-packed year of activity that both celebrates the 60-year legacy and continues building on the relationships critical to Arizona’s place as a leader in the global economy.

WORKING TOGETHER: In March, Gov. Doug Ducey hosted

Mexican Ambassador to the U.S. Martha Bárcena to discuss the importance of the Arizona-Mexico relationship.

Sierra Ciaramella is a communications associate and reporter for Chamber Business News.

AMC HISTORY In 1959, then Arizona Gov. Paul J. Fannin came together with former Sonora Governor Alvaro Obregon to bring the two states and countries together around shared goals for the region. The partnership led to the founding of the Arizona-Mexico West Coast Trade Commission and its sister organization in Sonora, the Comité de Promoción Económica y Social de SonoraArizona.

Representatives from each state were selected from industries ranging from agriculture to education, to improve relations and development of their respective industries.

Governor Fannin’s vision for the organization was based on his view that “God made us neighbors, let us be good neighbors.”

In 1972, former Arizona Gov. Jack Williams took action to elevate and expand the organization’s activity, appointing a select group of prominent business leaders, educators, and others with an interest in working with Mexico to help lead the organization as its Board of Directors. As part of this

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restructuring, Gov. Williams also gave the organization its new name, the Arizona-Mexico Commission.

Over the last six decades, the AMC has stood by Gov. Fannin’s vision of improving the quality of life in the region. In the spirit of being good neighbors, the AMC continues our proven legacy of promoting a strong, cooperative relationship with Mexico.

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ARIZONA-MEXICO COMMISSION

GOOD NEIGHBORS

AMC’s president says Arizona’s strengthening relationship with Mexico is driving the state’s economy

By MICHAEL GOSSIE

W

hen Jessica Pacheco started working for APS in 1997, she immediately learned how important Arizona’s neighbor to the south was to the state – and what potential economic opportunities existed between Arizona and Mexico.

“My first trip on behalf of the company to a community outside of Maricopa County was to Douglas,” recalls Pacheco, vice president of state and local affairs for APS. “Spending some time with local officials and local business leaders and talking through the importance of the border relationship, the importance of border infrastructure, the importance of transportation infrastructure, I saw how critical those things were to Arizona achieving its economic goals.”

Since then, Pacheco says, “It’s been on fast forward.”

Now president of the board of directors of the Arizona-Mexico Commission (AMC), Pacheco talked with Az Business about the importance of the relationship between Arizona and Mexico and what it means to the business community.

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Az Business: How do you view the current relationship between Arizona and Mexico?

Jessica Pacheco: The current relationship between Arizona and Mexico is exceptional. We have a relationship between Arizona Gov. Doug Ducey and Sonora Gov. Claudia Pavlovich and Gov. Ducey and the federal government in Mexico that is better than it’s ever been before at any time in our history. It’s been a drive of this governor — supported by the business community and our border communities — to ensure that our story is told and we focus on the areas of commonality and agreement, which is the vast majority of issues and situations that we have to deal with. There is a tremendous amount of mutual respect, admiration and willingness to collaborate and work together.

AB: What are some examples that illustrate the collaborative environment?

JP: From a security standpoint, the Highway Safety Corridor between the Arizona border and Rocky Point is a great

set a standard – a national best practices – for any international relationship that Arizona is going to have, whether it’s with Israel or China or Europe. The model has really been established at the Arizona-Mexico Commission.

AB: How do the AMC and Arizona’s relationship with Mexico impact Arizona’s economy?

JP: It’s not enough to lead with our numbers. It’s not enough to just talk about the $16.6 billion in trade value we have with Mexico or the 228,000 jobs that are directly supported by our trade with Mexico or the fact that those number are up 7.7 percent over 2017. Those numbers are great, but what we want to do is take that and enhance it through relationships.

AB: What do you consider as the Arizona-Mexico Commission’s greatest accomplishments over its first 60 years?

JP: First and foremost, just surviving 60 years through different political administrations and through different national appetites and tenor in regards to the relationship with Mexico is an amazing accomplishment. Then, it goes back to the dedication to the people who engage in our committee infrastructure on both sides of the border, the folks who are living this day in and day out and want real-world, workable solutions to challenges they might

WORKING TOGETHER: To address safety concerns that arose over Mexico’s Federal 8 highway between the Arizona border town of Lukeville and Puerto Peñasco, Arizona Gov. Doug Ducey and Sonora Gov. Claudia Pavlovich in December announced the creation of a Highway Safety Corridor along Federal 8, with bilingual road signs and better trained medical and law enforcement first responders.

(Photo by Angel Mendoza, Cronkite News) have in that region. The heart of the Arizona-Mexico Commission is personal relationships and the one-on-one connections. It’s being able to pick up the phone and say, “Hey, we have a challenge.

How can we work through this together to find a resolution?”

AB: How much of an impact do events like the Mexican ambassador’s recent visit to Phoenix and the AMC’s summits impact Arizona’s relationship with Mexico?

JP: They’re wildly significant. I cannot emphasize enough how much leadership Gov. Ducey has shown in this space. It takes a AB | May - June 2019 97

ARIZONA-MEXICO COMMISSION tremendous amount of diplomatic skills to be able to navigate the new Mexican administration – President Andrés Manuel López, his ambassador and his secretary of state – and at the same time be able to navigate the administration in the United States as well. The level of understanding, being able to manage nuances, engaging productively, focusing on what works and resolutions that we have at the highest level of our state is really tremendous.

It’s evidenced by the ambassador coming here, by the warm reception and valuable conversation she and the governor shared, and her outreach to get the governor’s advice and guidance. On multiple levels, we see that his thoughtful approach to leadership — that is based in the business community — in approaching some of these challenging public policy conversations has really borne a tremendous amount of fruit for Arizona.

AB: How does the United States-Mexico-Canada Agreement (USMCA) position Arizona to lead in a global economy?

JP: First and foremost, the USMCA must be ratified. We need Congress not to play partisan politics with this. There is not a state in this country that does not benefit from the USMCA agreement. NAFTA was something that needed to be updated,

WORKING TOGETHER: In March, Gov. Doug Ducey hosted Mexican Ambassador to the U.S. Martha Bárcena to discuss the importance of the Arizona-Mexico relationship. (Provided photo) 98

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particularly with the evolution of new industries. USMCA is an agreement that sets up a platform that allows us to engage and exchange with our neighbors in both Canada and Mexico productively and to grow the economy in Arizona and in the United States. Through this agreement, we will only be expanding and deepening our business relationships with Mexico and Canada and that only creates a greater position of strength. The more economically prosperous we are and the more economically prosperous our neighbors are, the better our foundation will be to have this conversation with the world.

AB: How do you see the relationship between Arizona and Mexico boosting our state moving forward?

JP: A healthy, strong, vibrant relationship between the State of Arizona and country of Mexico only enhances our economy and only enhances our prosperity. It’s that simple. We will work diligently on ensuring that our relationship with Mexico is growing and expanding and business development opportunities grow and expand for the entire state. It’s important to remember that this relationship doesn’t only benefit our border communities. It benefits the entire state’s economy.

ARIZONA-MEXICO COMMISSION Jessica Pacheco

WHAT IT IS: The Arizona-Mexico Commission (AMC) is Arizona’s premier cross-border nonprofit organization. AMC’s mission is to improve the economic prosperity and quality of life for all Arizonans through strong, public/private collaborations in advocacy, trade, networking and information. For six decades, the AMC has has worked to strengthen Arizona’s ties to Mexico and build a crossborder community of professionals from nearly every industry from agriculture to medicine. This mission is fueled by the policy priorities of the governor and in line with his vision for an Arizona that ensures “Opportunity for All.” ADVOCACY: The AMC actively works to influence policy and decision making in areas that impact the bilateral relationship between the U.S. and Mexico. From policies that facilitate the flow of goods and people at the border to policies that protect the environment, there are many areas of critical interest to the AMC and its members. The AMC is well positioned to communicate the the vision of the governor and its members to policymakers on both sides of the border.

TRADE: International trade and commerce are a substantial part of Arizona’s economy, reaching nearly $16 billion in two-way trade in 2017. And visitors from Mexico contribute more than $7 million every day shopping in our stores, eating at our restaurants, staying in our hotels and other businesses, contributing substantially to Arizona’s economy. The AMC is committed ensuring continued growth of trade and tourism with Mexico, by supporting key projects and policies that can support this critical piece of our economy.

NETWORKING: The AMC brings together business leaders, academics, policymakers, and others all interested in strengthening Arizona’s ties to Mexico. The AMC helps its members build relationships through its signature events, meetings and one-onone meetings.

INFORMATION: Information is an important part of all of the work at the AMC. The commission strives to bring together the most relevant numbers, research and experience that can support informed dialogue and decision making. The AMC partners with subject area experts working with Mexico and brings all the information together to develop meaningful policy and drive impactful programs.

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A BOOST FOR

USMCA would power Arizona’s economy and job growth

By VICTORIA HARKER

B

y Arizona’s economy has expanded immensely under an open trade agreement between the U.S., Mexico and Canada for the past 25 years, and is poised to do even better under a new modernized version, according to reports.

Now, state leaders are hoping Congress will move swiftly to ratify the the proposed new agreement — the United States Mexico Canada Agreement (USMCA) — which is vital for Arizona to sustain its relationship with its trading partners, according to a policy brief commissioned by the non-profit Arizona Chamber Foundation, the Arizona Chamber of Commerce and Industry, and Arizona-Mexico Commission.

“The latest trade figures tell the story of a state with an economy that is deeply integrated across international borders,” Arizona Chamber Foundation CEO Emily Anne Gullickson said.

“The adoption of the USCMA will build on Arizona’s alreadyoutstanding environment for business and will attract more investment in our state, creating new jobs and prosperity.”

Between 2015-2017 alone, Mexico and Canada purchased $10.5 billion in Arizona exports, which is twice the combined value of

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the state’s next eight-highest export markets.

The research brief was commissioned to provide Arizona businesses and decision-makers with an overview of the benefits and key changes in the new agreement, the United States-MexicoCanada Agreement (USMCA). If Congress approves it, it would replace the North American Free Trade Agreement (NAFTA) that has governed open trade between the three countries since 1994.

NO SLAM DUNK Ratification of the new deal, however, is not a sure thing. While all three leaders signed off on it, their top legislative bodies have final approval. Mexico and Canada officials are holding off until the U.S. acts.

The longer Congress waits, the more likely the deal could face headwinds, the report said.

“The longer the ratification process in the United States stretches out, the more objections and requests for changes to the agreement will begin to gain ground not just in the U.S., but also in Canada and Mexico,” the brief states.

TRADE As a border state, Arizona would face significant economic instability if the highly integrated trade relationship is fractured.

Arizona is ranked ninth among states that would suffer the most if the U.S. withdraws from NAFTA, according to the U.S. Chamber of Commerce.

Without the deal, tariffs put into place last year and resulting inconsistent standards could put tens of thousands of Arizona jobs at risk, the policy report states.

“More than 228,000 Arizona jobs are dependent on trade with Canada and Mexico,” Arizona-Mexico Commission President Jessica Pacheco said. “The USMCA’s modernized provisions in areas like agricultural market access, digital trade, and the automotive sector will enhance Arizona’s ability to compete globally. Arizona’s relationship with Mexico is a model for North American collaboration.

Adoption of the USMCA makes a good thing even better.”

OPEN TRADE AGREEMENT BENEFITS STATE NAFTA has made it easier for Arizona to attract investment from Mexico and Canada and grow a range of export- and import-

oriented industries including electronics, agricultural goods, mining, machinery, logistics and services.

Arizona agriculture exports nearly $800 million of goods to Canada and Mexico every year. Regional companies alone in metropolitan Phoenix saw exports grow from $1.7 billion to $4.9 billion from 2015-2017, the U.S. Department of Commerce reports.

Other benefits include more than 236,000 jobs in Arizona due to trade and investment with Mexico and Canada. Millions of shoppers and tourists visit each year from the two countries.

Canada provides tremendous direct foreign investment.

Under the North American Free Trade Agreement, Arizona’s economy experienced major expansion and strengthened ties with Canadian and Mexican companies. Some 400 Canadian companies are now doing business here in Arizona and have annex offices, while also doing business in Mexico, essentially using Arizona as a gateway. Some of the Arizona-based firms that are owned by Canadian companies include Bombardier, Inc., Circle K, Stantec, UNS Energy Corp., Fairmont Hotels, FreeportAB | May - June 2019 101

ARIZONA-MEXICO COMMISSION

McMoRan Inc., Kahala Brands, OpenText Corp., and EPCOR Water.

While the agreement is debated, local leaders, including Glenn Williamson, CEO and founder of the Canada Arizona Business Council, are waiting to see how things shake out.

“All we want is a rule book. If I need to do business between Arizona and Canada and Mexico, I’ll still do business. It’s still going to happen, but this is a rejiggering by the government for what we need to do,” Williamson said. “At the end of the day, the U.S. is the consumer between the three involved in the agreement. The government recognizes that and is using it as leverage to rearrange things. If this Congress goes back in and doesn’t pass the USMCA, then we end up going back to how things were before NAFTA, and then we have a big problem. That would be horrifying.”

NEW AND IMPROVED USMCA CHANGES The USMCA’s stated purpose is to deepen gains from trade and preserve and expand regional trade and production by further “incentivizing the production and sourcing of goods and materials in the region.”

Changes to the new agreement include: • New rules of origin: More stringent rules from the automotive industry. Seventy-five percent of vehicles, including electric vehicles, would have to be produced in North America instead of the current 62.5 percent, and 40-45 percent of vehicles would be assembled by workers who earn at least $16 an hour.

These new rules could benefit Arizona, tilting automotive original equipment manufacturers (OEMs) toward the southern part of the United States and Mexico.

Arizona is well positioned, given its proximity to OEMs in Northwest Mexico like Ford in Sonora, and Toyota in Baja California, and its connectivity via I-19 to Mexico’s Highway 15 corridor, leading to the Bajío automotive cluster. Binational electrical vehicle projects, such as the proposed Lucid Motors factory planned for Pinal County, also would be well positioned to meet USMCA goals and leverage research and development and auto assembly in the U.S. • Agricultural access: The agreement preserves market access for Arizona’s agricultural industry and includes additional U.S. access to Canada’s poultry, dairy and wine markets. There are additional measures to improve phytosanitary inspections.

• Higher duty-free thresholds: Minimum thresholds would be increased, removing tariffs on more goods. This should allow for some additional flexibility in sourcing globally while also keeping the duty-free incentive to source in North America. This also would have a positive impact on the SkyBridge initiative at Phoenix-Mesa Gateway Airport, a new operation that capitalizes on the U.S.-Mexico Unified Cargo Processing that expedites import and export processing times of goods.

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Emily Anne Gullickson

Glenn Hamer

Glenn Williamson

• Stronger IP protections: New protections for intellectual property would extend patent protections to 10 years from eight in Canada, expand copyright protections, and broaden trademark rules to cover sound marks and scent marks. Penalties would increase for violating trade secrets or trading counterfeit goods. Custom rules for detaining illegal counterfeit goods would be modified. Internet service providers would be required to implement a “notice and takedown” system in Mexico when digital information infringes on ownership rights.

• Digital trade and cybersecurity: New provisions for digital trade such as e-books, music, software and video games include a prohibition on tariffs on digital products distributed electronically, rules for validating e-signature and e-documents, anti-spam measures, and coordinated cybersecurity measures for the three countries’ highly integrated telecommunication systems.

WHAT’S NEXT? The Trump administration is working to build congressional support for the modernized agreement. The goal is to have it approved by this summer. Meanwhile, Trump has made rumblings that he may withdraw from NAFTA to force Congress to approve the new pact.

Without NAFTA and the USMCA, that could undermine infrastructure investments spurred on by Arizona’s trade and tourism with Mexico like the $244 million expansion of the Mariposa Point of Entry (POE) in Nogales, the $6 million pedestrian facility modernization at the San Luis POE, improvements for the Raúl H. Castro POE in Douglas, or the new SkyBridge-Arizona international air cargo hub.

“This paper makes clear not only that trade benefits Arizona greatly, but that the USMCA is a modern trade agreement for the 21st century economy,” Arizona Chamber of Commerce and Industry President and CEO Glenn Hamer said. “The Arizona business community is pleased to join Gov. Ducey in calling for the swift ratification of the USMCA. Let’s take advantage of all that the USMCA has to offer and launch Arizona into even more robust growth in the years ahead.”

Victoria Harker is a contributing writer for Chamber Business News.

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SUCCESS

IN THE SOUTH 2019

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SUN CORRIDOR INC.

REGION IN Sun Corridor Inc. drives economic development and helps make Tucson a hot spot for technology and innovation

By ERIN THORBURN

T

here’s a reason why nationally-recognized companies such as Amazon, Caterpillar, Raytheon Missile Systems, Bombardier, GEICO, Homegoods, Hexagon Mining, and other powerhouses set their sights and sites on Tucson.

How did this former seemingly small college town transform into a home for more than 1 million people, 160 new and expanding companies, and a dynamic, expanding downtown?

In addition to the tireless economic development efforts and strategies of Sun Corridor Inc. and its board members and Chairman’s Circle, the collaboration of Tucson’s educational, government and private sectors has kicked Tucson’s growth into the highest gear in years — with no signs of stopping or even slowing down.

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N MOTION IMPACT OF SUN CORRIDOR INC. Sun Corridor Inc. data shows that the Tucson area continues to be a region in motion. Sun Corridor Inc.’s qualified projects are up 12 percent from last year and up 26 percent from two years ago. Site selectors see the value that Tucson and the region has to offer resulting in more businesses relocating and expanding here. This trend is expected to continue and see more companies like Caterpillar, Amazon, Banner Health, and Northwest Healthcare growing and expanding their presence in the region.

• Tucson was recently named one of the fastest-growing tech metropolises in the U.S. This study, by The Oliver Wyman Forum, shows Tucson tied Austin with 33 percent tech job growth from 2007-2017.

• Tucson and Southern Arizona are key players in this growth.

Since 2015, 55 companies have announced relocations or expansions, representing 13,770 direct jobs, more than $1.5 billion in capital investment and a $19.2 billion economic impact over the next five years.

• George Hammond, the director of Economic and Business Research Center at the UA’s Eller College of Management reports that the Tucson metro area saw a 1.5 percent increase in jobs in 2017 and is on pace this year to post the fastest job growth since 2006, before the Great Recession.

• With the current unemployment rate in the Tucson metropolitan statistical area (MSA) at 4.5 percent, Tucson is able to provide the skilled workforce that companies need.

• Since Sun Corridor Inc’s inception 13 years ago, the organization has seen 162 company successes, 48,000 jobs and $24.8 billion economic impact.

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INNOVATION DESTINATION: Sun Link, also known as the Tucson Streetcar, is a single-line streetcar system that connects riders to five of Tucson’s most unique districts. (Provided photo)

MOMENTUM BUILDS Tucson currently exemplifies Newton’s First Law: bodies in motion, stay in motion.

“We are a region in motion,” says Sun Corridor Inc. President and CEO Joe Snell. “We’ve had a dramatic two-year turnaround that has involved a tremendous amount of behind-the-scenes work. The best times are ahead of us.”

Snell’s assertion is an understatement. Economic development for Tucson has become the proverbial snowball that has amassed into a monolith for the entire Southern Arizona region.

Since 2015, 55 companies have announced relocations or expansions in the region. Those moves represent 13,770 direct jobs, more than $1.5 billion in capital investment and $19.2 billion in economic impact over the next five years.

What catalyst kicked Newton’s First Law into motion for Tucson?

“Tucson has historically been filled with a lot of missed opportunity when it comes to the economy,” Snell says. “The main reason being, that we weren’t working collaboratively in years past. The turnaround for us was the great recession. When the recession hit, everything just stopped.”

Not only stopped, according to Snell but devastated Tucson, driving unemployment to 11 percent, in addition to creating unprecedented commercial vacancies.

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“We had to look at things through a new lens,” Snell says.

Under the leadership of Snell, the Sun Corridor Inc. Chairman’s Circle and board of directors established a three-pillar economic development strategy that focused on fostering relationships with education, government, and business leaders.

“Education is critical to the development of talent,” Snell says.

“A large majority of our board is comprised of leadership from the University of Arizona, Arizona State University, and Pima Community College.”

Government relationships have dramatically improved, according to Sun Corridor Inc. Chair David Hutchens, president and CEO of UNS Energy Corp, Tucson Electric Power & UniSource Energy Services.

UNITY PAYS OFF “I’ve been involved with Sun Corridor Inc. for over 10 years and have witnessed the transformation of Tucson’s government and municipalities,” Hutchens says. “It used to be that there was an ‘us versus them’ mentality. Now, everyone is collectively setting common economic development goals and pulling in the same direction.”

The result of collaboration has been Southern Arizona’s mass attraction of new business builds and relocations.

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“Tucson is now being described as what Austin was about 10 years ago.”

Fletcher McCusker, Sun Corridor Inc. Chairman’s Circle member, CEO of UAVenture Capital

David Hutchens

Fletcher McCusker

John Patterson

“Tucson is now being described as what Austin was about 10 years ago,” says Sun Corridor Chairman’s Circle member Fletcher McCusker, CEO of UAVenture Capital. “Typically, Tucson was not one of the top-five economic development contenders. Now, we see Tucson consistently mentioned because of companies like Amazon, HomeGoods, Comcast, and Caterpillar.”

And, where markets like Denver used to be among the most prolific in tech job growth, Tucson has rivaled those industry hotbeds as one of the fastest-growing areas for technology. The Oliver Wyman Forum shows Tucson tied Austin with 33 percent tech job growth from 2007-2017.

In addition to job growth and economic development in the tech sector, Tucson has shown tremendous growth and strength in the aerospace and defense sector, automotive industry (with a huge push and presence with autonomous vehicles), bioscience, healthcare, renewable and mining technology, and transportation and logistics.

LAW OF ATTRACTION In addition to Newton’s First Law, Tucson exemplifies the law of attraction. With a critical mass already established in the previously mentioned industries, companies from across the nation can’t help but zero in on Tucson.

“Raytheon is in the middle of a major expansion in Arizona,” explains Raytheon Missile Systems PR Director John Patterson.

“Last summer, Raytheon executives, along with federal, state and local leaders, formally dedicated six new buildings at the company’s Tucson plant site.”

According to Patterson, the $275 million, 18-month construction project will support many of the more than 2,000 workers the company plans to hire by 2021.

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Joe Snell

Similarly, Amazon’s new 855,000-square-foot distribution center will provide an estimated 1,500 full-time jobs for Tucson residents.

And, while positive job growth and economic growth are major advantages to the presence of nationally-recognized companies such as Raytheon and Amazon, there are more benefits to consider.

“Raytheon employees volunteer thousands of hours annually in Arizona classrooms, tutoring students in math and science,” Patterson says. “The company sponsors numerous outreach efforts to help spark student interest in science, technology, engineering and math. Raytheon also supports military veterans and their families through various programs.”

While offering employees a career choice that enables them to receive tuition reimbursement for two years of community college, Amazon also strives to partner with local businesses and vendors.

“In terms of day-to-day interaction, Amazon fulfillment centers partner with local vendors for T-shirts, gear, catering, construction, and more,” says Zeshan Kazmi, Amazon’s regional public relations manager for the Greater Los Angeles Area. “There are many different partnerships we can form with the local community.”

GRAVITATIONAL FORCES In discussing the expansion of Tucson’s economic development, downtown Tuscon has — and continues to be — an integral focus.

“Downtown Tucson has been the center of Tucson’s resurgence,” McCusker says. “Caterpillar just moved their headquarters downtown; we have a light rail; and real estate investment banks

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have collaboratively created 21 projects in downtown, partnering with the city and county.”

The Caterpillar hub to which McCusker refers is for the company’s Surface Mining & Technology Division, which accepted Rio Nuevo’s offer to build a new building for its headquarters to be leased back to Caterpillar for a 25-year term.

The 150,000-square-foot building has helped to create between 750 and 1,000 engineering, product development and support position jobs.

The concerted efforts of Rio Nuevo’s Tax Increment Finance (TIF) District has also made several other downtown projects possible. A partnership with Bank of Tucson and development group Bourn Companies has yielded the five-story City

Park project, a retail, restaurant, office and entertainment building planned for downtown’s Congress Street at what is now the site of the U.S. headquarters of Hexagon Mining.

Similar partnerships are adding a new home for the Tucson Roadrunners, new AC Hotel Tucson Downtown at Broadway Boulevard and Fifth Avenue and countless dining and entertainment options.

“We made deliberate effort to collaborate to create a very sustainable effort of collaboration,” McCusker says, “and it’s been especially successful with inbound companies, which is Sun Corridor Inc.’s purpose.”

For businesses ready to relocate, expand, or start a business in Tucson — now is the time — the welcome mat awaits.

RECENT ECONOMIC DEVELOPMENT SUCCESSES Amazon

Amazon.com, Inc. recently announced plans to open its first fulfillment center in Tucson, creating more than 1,500 full-time jobs with competitive hourly wages and a comprehensive benefits package.

Caterpillar Surface Mining & Technology

Caterpillar, the world’s leading manufacturer of construction and mining equipment, has relocated its Service Mining and Technology headquarters to Tucson. The company is expected to hire more than 650 employees. Economic impacts are estimated at $1.9 billion over 10 years.

Southern New Hampshire University announced in April its plans to open a new operations center in Tucson to better support its growing student body across the country. SNHU will hire approximately 100 staff members initially, with plans to hire up to 350 total new staff members in Tucson by 2021.

The economic impact of the new Tucson SNHU Operations Center will be $218 million over the next 5 years.

Texas Instruments

GEICO is the second-largest private passenger automobile insurance company in the U.S. and is a leading employer in Tucson with 2,100 employees. The company will relocate to a larger, purpose constructed office complex and expand by 700 jobs.

Texas Instruments, a global semiconductor design and manufacturing company, is building a new facility in Tucson to accommodate their future needs. They anticipate moving into the new facility in the Williams Center by mid 2020. Texas Instruments plans to create 35 new electrical engineering positions at their Tucson facility. Also, Texas Instruments plans to invest $30 million in capital expenditures, which will create an economic impact of $67.8 million over the next five years.

Hexagon Mining

TuSimple

GEICO

Hexagon Mining, an information technology provider of planning, operations and safety solutions for the mining industry, announced the relocation and expansion of its Tucson, AZ-based North American headquarters to downtown Tucson. Hexagon Mining employs 140 people in Tucson and plans to add 120 jobs over the next five years.

Raytheon Missile Systems

Raytheon Missile Systems has selected Tucson/Pima County as the site for a significant expansion. The expansion represents the addition of nearly 2,000 new high-skilled, high-wage jobs and will result in an impact of several billion dollars being added to the regional economy over the next few years.

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TuSimple, a global self-driving truck solutions company, plans to expand its operations in Tucson, by adding 200 trucks to its autonomous fleet in 2019. With 500 trucks worldwide in 2019, TuSimple will be the world’s largest autonomous truck fleet. TuSimple will be adding 500 new jobs, which are primarily engineering and truck driver positions, along with other technical and administrative jobs. TuSimple’s expansion will create an economic impact of $1.1 billion over the next five years.

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PERFECT LANDING SPOT Tucson International Airport becomes a premier place for commercial business to take off

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By ERIN THORBURN

I

n addition to serving as a significant transportation hub for Tucson, Tucson International Airport (TIA) is proving to be a valuable driver of economic development.

While producing an impactful $7 billion annual economic impact, TIA continues to attract businesses near and far. With plenty of room to grow; an all-access infrastructure, including access to Interstate-19; a location just an hour or so from the Mexican border; and already home to competitive business sectors like aerospace and defense, TIA is Tucson’s premier place to park a business.

“TIA plays a critical role in some of Southern Arizona’s largest business sectors,” says Lisa Lovallo, market vice president at Cox Communcations and a member of Sun Corridor Inc.’s Chairman’s Circle. “Our airport is home to one of the largest Air National Guard units in the U.S.. It is also a critical part of our aerospace and defense sector and Davis Monthan Air Force Base and Pima Community College’s workforce development programs. TIA is an important partner in Southern Arizona’s tourism and attractions business as well, with almost 3 million passengers choosing to fly through TIA annually.”

A major component of Sun Corridor Inc.’s economic development efforts is to help highlight the existing presence of various industry occupants in the TIA Airport Employment Zone.

Harsch Investment Properties, for example, acquired a 113,546-square-foot industrial building with an additional 15 acres of adjacent land for future development. The property is located just one mile north of Tucson International Airport and two miles west of Interstate-10.

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purchased our first industrial building four years ago. Because of the multi-tenant distribution product we sell, we fell in love with the TIA location.”

In addition to the physical placement of Harsch Investment Properties, Rodewald has been equally pleased with the process of site selection and development. “We’ve never been in an environment that collaborates as successfully as Sun Corridor Inc., the City of Tucson and Pima County,” Rodewald says. “In Tucson, we felt that everyone is pulling on the same oar and it’s very exciting to us.”

The Airport Employment Zone has also attracted companies such as Bombardier, Raytheon Missile Systems, Universal Avionics, and FedEx, among many others.

“We’re always looking to attract new industries,” says Joe Snell, Sun Corridor Inc.’s president and CEO. “Commercial aerospace, maintenance and repair hubs and organizations, flight schools and MROs (maintenance, repair and operations) work well close to airports. We’re also really trying to take a visionary and bold approach in our focus on commercial development.”

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Lisa Lovallo

Bill Rodewald

this into a commercial economic driver and that’s what we’re working on full bore,” he says.

“The future is very bright for Tucson and TIA,” Lovallo adds.

“We have secured a $280 million runway safety enhancement grant from the federal government, which will improve our overall efficiency and safety. This large-scale project will be completed in 2022. In addition, TIA’s refreshed 10-year strategic plan will be completed this summer. We are focused on providing the best airport possible today and into the next decade.”

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FLYING It’s more than just magic driving Tucson’s economic growth and prosperity

By ERIN THORBURN

W

hen it comes to driving Tucson’s growth, Sun Corridor Inc.’s leadership doesn’t simply sit back, relax and wait for the magic to happen. They make it happen.

It’s understandable in light of the leadership that comprises the organization’s Chairman’s Circle and board of directors.

Sun Corridor’s collegiate presidents, government representatives, CEOs and other notable business leaders propel Sun Corridor Inc.’s economic development — aggressively and collaboratively. From some of the most ambitious minds, strategies pour forth to invigorate and draw top industries to Tucson and Southern Arizona.

No wallflowers Who makes up Sun Corridor Inc.’s leadership? They are David Hutchens, president and CEO of UNS Energy Corp, Tucson

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HIGH Electric Power & UniSource Energy Services; Bonnie Allin, Tucson Airport Authority’s president and CEO; Robert Robbins, University of Arizona’s president; Michael Crow, Arizona State University’s president; Fletcher McCusker, the CEO of UAVenture Capital; and a who’s who of Arizona thought leaders.

They come from different backgrounds and from various industries, but what they all have in common is the drive to push Tucson’s “economic blueprint.”

“The Chairman’s Circle isn’t comprised of wallflowers,” says Hutchens, Sun Corridor Inc.’s chair. “They all work for the good of the community. Partnerships are the most critical component of Sun Corridor Inc. As a collaborative community, it’s important for us to have representatives in education, government, business and the general public.”

The results of this steadfast collaboration has not only developed Sun Corridor Inc.’s economic blueprint to facilitate

job growth and economic growth in Southern Arizona, but it’s also helped define and foster competitive industry targets.

These economic development focal points include aerospace and defense, bioscience and diagnostics, transportation and logistics, and renewable and mining technology.

Sun Corridor Inc. and the beanstalk Sun Corridor Inc. may not have actual magical properties, but in many ways the organization has become akin to Jack’s beanstalk — strong, reliable and leading to something grand and impressive.

“When we have a specific skill set or specific workforce needed for a particular industry, we go after it and we do it with great success,” Hutchens says. “Workforce is always the No. 1 thing folks are looking for. The cluster of industries we’re targeting already has a critical mass here. People will move here because there are other aerospace, defense and bioscience jobs available.”

ECONOMY SOARS: Davis-Monthan Air Force Base is the fourth-largest employer in Pima County and the third-largest installation in air combat command, providing $1.5 billion in economic impact to Tucson’s economy.

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When Sun Corridor Inc.’s economic development crew realized that Tucson was competing with Ann Arbor, Mich., and Boulder, Colo., for Accelerate Diagnostics, they initially felt as if they were on the outside looking in, according to Sun Corridor President and CEO Joe Snell.

“Accelerate Diagnostics needed a specific kind of ‘clean room,’ which we didn’t have at the time,” Snell says. “So, we built a clean room. It’s not always what’s off the shelf. We’re in the business of why we can — not why we can’t.”

Accelerate Diagnostics is simply one example of Tucson staking claim on businesses seeking to relocate through creative vision.

Another example is the establishment of technology and bioscience incubators, such as Oro Valley Innovation Labs. The 4,000 square feet of lab and office space is dedicated specifically for bioscience startups and is near Roche Tissue Diagnostics in Innovation Park.

“We want to be the leaders in the fourth industrial revolution,” says UA President Robbins. “We have a new director at UA Tech Park and we are focusing our research efforts on what we’re really good at — technology, aerospace, health and engineering.”

The UA Tech Park is as much a significant research entity to Tucson as it is an economic driver. Home to more than 40 companies and organizations, including Raytheon, UnitedHealth Group/OptumRx, and others, UA Tech Park generates $50 million annually in state and local taxes, with the average park employee’s annual wage set at $91,145.

“The use of artificial intelligence in medicine is going to be massive,” adds Robbins. “Siemens, Philips and General Electric are spending millions on algorithms. That’s all going to be very good for economic development in the state.”

As AI continues to become more mainstream, Tucson’s autonomous vehicle research and dominance continue. One particular exciting addition to this realm is TuSimple, a Chinese company that develops self-driving commercial trucks.

“As a startup story, TuSimple’s is quite unique,” Hutchens says, “They’ve already had two groundbreakings in Tucson and are planning to add 500 jobs over the next two years.”

Digging deep and flying high “Mining is and will continue to have a huge economic impact in Southern Arizona,” Hutchens says. “Caterpillar chose Tucson because of the mines.”

Caterpillar isn’t the only one. Hexagon Mining, an information technology provider of planning, operations and safety solutions for the mining industry, also chose to establish roots in Tucson.

The company’s new 26,000-square-foot facility will house 140 122

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EYE ON THE FUTURE: “We want to be the leaders in the fourth industrial revolution,” says Robert Robbins, the University of Arizona’s president. “We have a new director at UA Tech Park and we are focusing our research efforts on what we’re really good at — technology, aerospace, health and engineering.”

Hexagon Mining employees, with plans for an additional 120 jobs over the next five years.

Aerospace, near space and defense, alongside mining will continue to drive the economy and high-wage employment opportunities for Southern Arizona.

“It’s all about retaining our bases and remaining ready for the missions that we currently have and could have,” Hutchens says.

“We make sure they have all the support from community, state and federal sources to get the funding they need.”

Davis-Monthan Air Force Base, for example, is the fourth-largest employer in Pima County and the third-largest installation in air combat command, providing $1.5 billion to the local Tucson economy.

“Space and sustainability science will emerge to lead our market in the future,” says McCusker. “Companies are looking to launch and build their own satellites. There’s also spacerecovery technology and other related spin-outs gaining traction.

Raytheon has placed Tucson in a nice position to be viewed for our aerospace work.”

All in all, Tucson seems to have it all, and not simply in terms of economic development success.

“We have the people we need and we have the education,” Hutchens says. “Southern Arizona sells very well, and not simply from a talent perspective. It offers a beautiful quality of life, weather and recreation. We are a million-plus, but still feel like a small town.”

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SUN CORRIDOR INC. LEADERSHIP

Chair: David G, Hutchens, president and CEO, UNS Energy Corp, Tucson Electric Power & UniSource Energy Services Immediate past chair: Dennis R. Minano, managing director, CMM; vice president of public policy and chief environmental officer, General Motors (retired) Secretary/treasurer: Robert D. Ramirez, president and CEO, Vantage West Credit Union President and CEO: Joe Snell

CHAIRMAN’S CIRCLE Bonnie Allin, president and CEO, Tucson Airport Authority Sharon Bronson, Board of Supervisors, District 3, Pima County Michael Crow, president, Arizona State University Larry M. Goldberg, president, Banner – University Medicine Division Lee Lambert, chancellor and CEO, Pima Community College Taylor W. Lawrence, vice president, Raytheon Company; president, Raytheon Missile Systems Lisa Lovallo, market vice president, Southern Arizona, Cox Communications Fletcher McCusker, CEO, UAVenture Capital Ian McDowell, vice president and regional director, Tucson, Sundt Construction Judy Patrick, board director, CopperPoint Mutual Insurance Company

Jon Dudas, senior vice president and chief of staff, University of Arizona Michael Eastman, vice president, customer service strategy and operations, Tucson National Center of Excellence, Comcast Ali Farhang, partner and founder, Farhang & Medcoff Marc Fleischman, CEO, BeachFleischman Tom Florino, senior manager, economic development, Amazon Sarah Frost, CEO, Banner University Medicine Mike Groeger, vice president of commercial group and specialty sales, Blue Cross Blue Shield of Arizona

Mara Aspinall, CEO, Health Catalysts Groups Don Bourn, CEO, Bourn Companies Joseph Coyle, managing director, The Patrick Group 124

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Walter Richter, public affairs administrator, Southwest Gas Corporation

Jonathan Rothschild, mayor, City of Tucson

Nancy Johnson, CEO, El Rio Health

Jeffrey S. Rothstein, vice president and head of legal, Roche Tissue Diagnostics

Steve Lace, vice president, Royal Automotive Group & Lexus of Tucson

David Adame, president and CEO, Chicanos Por La Causa

Barbi Reuter, president and principal, Cushman & Wakefield | PICOR Commercial Real Estate Services

Mary Jacobs, town manager, Town of Oro Valley

Clinton Kuntz, CEO, MHC Healthcare

BOARD OF DIRECTORS

Chuck Potucek, city manager, City of Sierra Vista

Steven E. Rosenberg, publisher and owner, BizTucson

Robert C. Robbins, president, University of Arizona

Sandra Watson, president and CEO, Arizona Commerce Authority

Ricardo Pineda Albarran, Consul of Mexico, Consulate of Mexico in Tucson

Larry Hecker, (of counsel, Sun Corridor Inc.), managing member, Hecker

Judy Rich, president and CEO, TMC Healthcare

Anthony Smith, Board of Supervisors, District 4, Pinal County

Steve Odenkirk, Southern Arizona regional manager, Alliance Bank of Arizona

Randy Rogers, CEO, Tucson Association of REALTORS

William Kelley, CFO, Diamond Ventures

Jean Savage, vice president, Caterpillar Surface Mining & Technology Division

Tom Murphy, mayor, Town of Sahuarita

Guy Gunther, senior director, Central Region consumer markets, CenturyLink

Diane Quihuis, board of directors, The Industrial Development Authority of the County of Pima

Bill Rodewald, senior vice president and regional manager, Harsch Investment Properties

Farhad Moghimi, executive director, Pima Association of Governments/Regional Transportation Authority

Adriana Kong Romero, SVP, Tucson market president, Bank of America

Rob Lamb, COO, GLHN Architects & Engineers David Larson, president, BFL Construction Co. Clint Mabie, president and CEO, Community Foundation for Southern Arizona Xavier Manrique, senior vice president, Wells Fargo Bank Edmund Marquez, agency principal, Edmund Marquez Allstate Agency Enrique J. Marroquin, president, Hunt Mexico Kelle Maslyn, executive director, community relations, ASU Tucson Omar Mireles, president, HSL Properties Mark Mistler, CEO - Tucson and Southern Arizona, BBVA Compass

Mary Seely, lead human resources manager, Caterpillar Surface Mining & Technology Division Keri Silvyn, partner and owner, Lazarus, Silvyn and Bangs David Smallhouse, managing director, Miramar Ventures Kevin Stockton, market CEO, Northwest Healthcare James V. Stover, Medicaid president, Arizona Complete Health Guillermo Valencia, chairman, Greater Nogales and Santa Cruz County Port Authority Robert Walkup, honorary consul, South Korea in Arizona Josh Weiss, president and CEO, Hexagon Mining Steven G. Zylstra, president and CEO, Arizona Technology Council

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