SUNDAY, MAY 29, 2022 |
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SCIENCE& RESEARCH
LEE ENTERPRISES ILLUSTRATION
INNOVATION DRIVES FLAGSTAFF ECONOMY CITY OF FLAGSTAFF
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Flagstaff’s economic revitalization
ovid-19 marked one of the most difficult times for businesses in the last 100 years for employers and employees. Whether it was a fortune 500 company or a local mom and pop store front, no business was immune to the adverse effects the virus created. However, as the pandemic appears to be nearing its end, economic revitalization is on the top of many communities’ minds and the City of Flagstaff is leading the charge on the road to recovery. Recovery can be gauged using many different factors but for our community two metrics are illustrating significantly positive results. Economic reports from April 2022 indicate that the City of
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Flagstaff is experiencing a 27% increase in domestic tourism when measured against pre-pandemic levels. Additionally, retail sales have also increased and are 7% higher when compared to pre-Covid numbers. With tourism and retail both bouncing back better than ever, this certainly bodes well for Flagstaff and our residents from a recovery perspective. This increase is vastly due to the fact that our marketing arm for the destination, Discover Flagstaff, continued to market Flagstaff during the pandemic with safety messaging and welcoming them back when things got better. This messaging included how visitors should stay, play, distance, and mask responsibly and more. Marketing respon-
sibly during a downturn continues to be a smart practice for our city and has assisted businesses with rebounding faster than other Arizona cities. Flagstaff has also seen significant growth in several of its key economic sectors over the last 12 months. Tourism and retail are certainly significant sectors that contribute to the overall economic well-being of our community, but additionally the healthcare, technology, aerospace, and advanced manufacturing sectors also have had a significant positive impact on the local Flagstaff economy. The strengthening and growth of these sectors is another vital indicator to measure further recovery in our community.
Aerospace company locates to Flagstaff
Automotive company opens fourth facility
One example of this growth comes from the arrival of a new aerospace company known as Katalyst Space Technologies. Katalyst is the embodiment of the company the City of Flagstaff searches for to expand our growing aerospace sector. Katalyst looks to address the growing sustainability concerns that threaten Earth’s atmosphere. By developing technology that can preserve and update existing satellites already in orbit, Katalyst hopes to limit the number of debris and clutter currently in revolution around our globe. The forward thinking company recently secured contracts and partnerships with NASA and the U.S. Department of Defense. Katalyst plans to hire 30+ employees in the next two years and has made their new home at the Northern Arizona Center for Emerging Technology (NACET). Katalyst’s decision to choose Flagstaff also arose for a variety of reasons, but the key lures for this decision were due to an already expansive aerospace sector. Lowell Observatory and USGS, coupled with Northern Arizona University (NAU) will help provide the expertise and partnerships their business so greatly wanted. Additionally, the City of Flagstaff ’s Job Creation incentive program helped supply Katalyst with funds to make the move to our community and assisted in solidifying their decision to grow their business in Flagstaff.
Another major success story comes with the arrival of the largest new business to be attracted to Flagstaff in the last 50 years. UACJ Whitehall Automotive Industries is a global leader in automotive manufacturing and made the decision to Choose Flagstaff as the new home for their fourth production facility. Whitehall manufactures components for numerous automotive companies; however, their true specialty lies in producing components for electric vehicles and are major producers for Tesla and Lucid Motors. Whitehall plans to bring over $65 million dollars in capital investment and 350 jobs to Flagstaff over the next three years. They ultimately chose Flagstaff for a variety of reasons including our highly educated workforce, immense quality of life, and the rapid expansion of the electric vehicle supply chain in Arizona. Whitehall is a welcomed new addition to our expanding advanced manufacturing sector and is a clear indicator that economic recovery is in full effect here in Flagstaff. Although there is still much work to be done, there have been many examples of economic development success and growth in Flagstaff. As we continue to navigate our way through the hardships that Covid-19 created, the city is optimistic to gain even more traction for further success. To learn more about economic recovery in Flagstaff and economic development efforts please visit—https://www.chooseflagstaff.com/