February 2025 issue of In Business Magazine by InMedia

BuildingArizona

CLASSICS

BEETHOVEN’S NINTH SYMPHONY

SYMPHONY HALL

April 25 – 27, 2025

Tito Muñoz, Conductor

Phoenix Symphony Chorus, Dr. Thomas Bookhout, Chorus Master

Felicia Moore, Soprano

Briana Elyse Hunter, Mezzo Soprano

Miles Mykkanen, Tenor

Norman Garrett, Baritone

PROGRAM

Hindemith: Symphonic Metamorphosis

Beethoven: Symphony No. 9, “Choral”

ANN HAMPTON CALLAWAY: THE LINDA RONSTADT SONGBOOK

SYMPHONY HALL

May 9 – 11, 2025

Andrés Franco, Conductor

Ann Hampton Callaway, Vocalist

Tony-award nominee Ann Hampton Callaway brings a joyous performance of songs and stories to the stage in celebration of one of Arizona’s most beloved artists, Linda Ronstadt.

MADISON CENTER FOR THE ARTS

May 10, 2025 | 2:00 PM

Alex Amsel, Conductor

PROGRAM INCLUDES

Bernstein: Three Dance Episode from On The Town

Benzecry: Obertura Tanguera

A one-hour concert created for the whole family. Enjoy fun hands-on activities before an informative live performance.

SYMPHONY HALL

May 16 – 18, 2025

Thomas Wilkins, Conductor

Francisco Fullana, Violin

PROGRAM

Copland: El Salón México

Márquez: Fandango Violin Concerto

Grofe: Grand Canyon Suite

To be announced: Mystery Piece

Goodwill of Central and Northern Arizona turns donations into possibilities by providing no-cost services to more than 30,00 Arizonans annually that help them build a better economic future.

Your purchases and donations help support local, no-cost career services, education, sustainability efforts and housing solutions so Arizonans can build better futures for themselves and their families.

Goodwill of Central and Northern Arizona is a 501(c)(3) non-profit organization dedicated to ending poverty through the power of work! GoodwillAZ.org

GUEST COLUMNISTS

Arizona Lottery: Empowering Arizona through Philanthropy

This month spotlighting the Arizona Lottery, Tyler Butler’s series explores the myriad ways businesses give back and the positive ways their programs impact our community

Resilience – Core of Innovation

Kathleen Gramzay’s series furnishes organizational leaders with a holistic, comprehensive outlook, enabling leadership that leverages the potency of human resilience..

FEATURES

42 The New Administration’s Impact on AI and Digital Assetse

As AI and digital assets are undergoing rapid transformation, David McCarville discusses significant changes expected under the new administration.

DEPARTMENTS

11 Guest Editor Greg Vogel, founder and CEO of Land Advisors Organization, introduces the “Housing Market” issue.

COVER STORY

Building Arizona: Critical strengths and challenges in our housing market

In Business Magazine reached out to real estate analysts, developers and homebuilders to explore the current market in Metropolitan Phoenix for this vital economic sector.

PARTNER SECTION

Arizona Technology Council

12 Feedback

Andrea Aker, Jim Gmelich and Linh La respond to In Business Magazine’s burning business question of the month: What has been an effective team-building experience for your company?

14 Briefs

“Tesoro.vc Launches Accelerator for Early-Stage Startups” “Dailies Top Stories,” “Local Standouts Recognized for Achievements and Philanthropy,” “Title 9 Sports Grill Celebrates Women’s Athletics” and “Electric Pickle Synthesizes Eclectic Entertainment”

18 Startups

“Kitchen Switchen: More than Retail” and “HomeLyfe Provides Roofing Solution”

20 From the Top Scottsdale Collision Center founder Oscar Granados redefines the collision-center experience.

22 CRE

“Construction Costs in Commercial Real Estate: A 2025 Outlook,” “Dominium Acquires Land for Affordable Homes in Maricopa,” “418,000 SF Distribution Center in Surprise,” “Nextwave Breaks Ground on Former Big Surf Site” and “Phoenix Small-Office Product Lagging”

26 Semi Insights

“Arizona Secures Major Semiconductor Research Lab,” “Historic First for the U.S. – Advanced Chip Production Begins in Arizona” and “Foam Packaging Specialties: ‘What Matters Is Inside’”

52 Unlock Organizational Agility and Value Creation

Joe Pusz examines options for leveraging temporary project managers and redefining project delivery value.

30 Healthcare

“Barrow Neurological and PEI Advancing Arizona’s Bioscience Ecosystem” and “Addressing the Challenges of Drug Testing in a Shifting Workplace”

32 Technology

“Insider Threat Awareness” and “3 Things Business Owners Do Wrong with Websites”

43 Books

New releases give fresh insights on business thinking.

44 Economy

Tyler Graves examines the advantages of surety bonds in ensuring projects meet specifications and honor commitments.

46 Legal

Haley A. Harrigan discusses new employment laws Arizona businesses will be seeing this year.

56 Nonprofit

Richard Tollefson considers what executives should know before saying, “Yes” to joining a nonprofit organization’s board of directors.

57 Assets

2025 Mercedes Benz EQB SUVV Plus: to come

58 Powerlunch

The Phoenician Tavern: Up Course Choice

66 Roundtable

Vince Barsolo shares the transformative leadership insights he has gained working alongside incarcerated and formerly incarcerated women.

“Our economy isn't going to recover until the housing market finds its footing.” —Mark Zandi, chief economist at Moody’s Analytics

Feb. 2025 Words

RaeAnne Marsh Editor, In Business Magazine

RaeAnne Marsh became editorial director of Phoenix-based InMedia Company in 2010 and helped launch Valley-wide business resource In Business Magazine. Her journalism career began more than 20 years ago, when she left California and 12 years of teaching to transplant in Phoenix’s vibrant entrepreneurial environment, and includes incorporating her own business, Grammar & Glitz, Inc., to work with business and media clients nationwide.

Holding the magazine to strong editorial standards, she says, “New businesses are founded, out-of-staters bring new strengths, established businesses evolve and expand — all of which contributes to the dynamic vitality that I see as the mission of In Business Magazine to be the voice of and vehicle to nurture, in each monthly edition. It is my challenge to ensure each edition is packed with relevant information on a broad spectrum of issues, aimed at a readership that runs the gamut from entrepreneurial startup to major corporation.” Marsh was awarded 2024 Small Business Journalist of the Year from the U.S. Small Business Administration, Arizona District.

Guest columns are feature articles presented as a special, limited series as well as regular, ongoing series in In Business Magazine.

Tyler Butler

Guest Columnist – Social Impact

A long time corporate social responsibility practitioner, Tyler Butler is known for her expertise in creating, launching and developing successful social impact programs. Her commitment to rallying people together to make a positive difference has created sustainable signature programs empowering people to give back in a myriad of ways globally. Butler operates under the ethos of “each one teach one,” and so her contributions to In Business Magazine provide her with an outlet to share the best of what companies are doing to aid humanity. Butler looks to shed light on good corporate citizens and share stories about the magic they are creating through their generous outreach efforts.

Kathleen Gramzay

Guest Columnist – Resilience

Kathleen Gramzay, LMT, is an entrepreneur, body/mind resilience expert, speaker, author, and founder of Kinessage LLC. The Kinessage® methods are taught nationally to transform stress, chronic tension and pain, and increase mental resilience and long-term health for greater well-being and sustainable success. Her programs empower leaders and teams to be present, think more clearly and work more productively, confidently and collaboratively.

Kim Ryder

Guest Columnist – Resilience

Kim Ryder is a dynamic commercial real estate executive with extensive experience in managing multi-million-dollar, complex projects and the build-out of more than 54 million square feet of retail and commercial space. Ryder has started several business lines in her career, most notably launching Thrive Real Estate and Development groups. Her career in the thrift industry extends over 25 years and led her team to expand the Goodwill real estate portfolio by more than 100 locations, having leadership over more than 400 transactions. Her expertise in thrift real estate has made her a well-known resource of knowledge. .

Bruce Weber

Guest Columnist – Capacity

Bruce Weber sees In Business Magazine as a valuable forum for topics relevant to our business and nonprofit community. “I am deeply interested in organizational capacity and what makes organizations successful and impactful in the work they do. In my work in the community for more than 16 years, I have worked with all sizes of organizations and leaders in helping their businesses grow and expand their impact. My previous careers with Microsoft and Hewlett Packard involved working with business integration partners to design strategies to engage new markets. In today’s complex world, I enjoy exploring the possibilities and opportunities that change can bring.”

Publisher Rick McCartney

Editor RaeAnne Marsh

Web Editor Jake Kless

Graphic Design Matt Fischer

CONTRIBUTING WRITERS

Vince Barsolo

Tyler Butler

Steve Comer

Rose Fass

Paul Frederick

Kathleen Gramzay

Tyler Graves

Holly Harmon

Haley A. Harrigan

Mike Hunter

Victoria Karlic

Amanda Kearns

David McCarville

Logan Newman

Joe Pusz

Stephanie Quinn

Kim Ryder

Erin Thorburn

Richard Tollefson

Meredith Witthar

ADVERTISING

Operations Louise Ferrari

Business Development Raegen Ramsdell

Louise Ferrari

Cami Shore

Events Amy Corben

WTSM TV STUDIO

General Manager Chris Weir

More: Visit your one-stop resource for everything business at inbusinessphx.com. For a full monthly calendar of business-related events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessphx.com

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Financial Manager Tom Beyer

Office Manager Allie Jones

Accounting Manager Todd Hagen

Corporate Office InMedia Company

45 W. Jefferson Street Phoenix, AZ 85003

T: (480) 588-9505

info@inmediacompany.com www.inmediacompany.com

Vol. 16, No. 2 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@ inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. ©2025 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by any means without written permission by

Reimagining legal education

In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS

Debbie Hann, Interim CEO

Arizona Small Business Association Central Office (602) 306-4000 www.asba.com

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org

Kristen Wilson, CEO AZ Impact for Good (602) 279-2966 www.azimpactforgood.org

Terri Kimble, President & CEO Chandler Chamber of Commerce (480) 963-4571 www.chandlerchamber.com

Tanaha Hairston, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

Robin Arredondo-Savage, President & CEO

Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org

Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessphx.com.

ASSOCIATE PARTNERS

Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com

Arizona Chamber of Commerce & Industry azchamber.com

Arizona Hispanic Chamber of Commerce azhcc.com

The Black Chamber of Arizona phoenixblackchamber.com

Economic Club of Phoenix econclubphx.org

Glendale Chamber of Commerce glendaleazchamber.org

Greater Phoenix Chamber of Commerce phoenixchamber.com

Greater Phoenix Equality Chamber of Commerce gpglcc.org

Mesa Chamber of Commerce mesachamber.org

North Phoenix Chamber of Commerce northphoenixchamber.com

Peoria Chamber of Commerce peoriachamber.com

Phoenix Metro Chamber of Commerce phoenixmetrochamber.com

Scottsdale Area Chamber of Commerce scottsdalechamber.com

Scottsdale Coalition of Today and Tomorrow (SCOTT) scottnow.com

Surprise Regional Chamber of Commerce surpriseregionalchamber.com

WESTMARC westmarc.org

Since founding Land Advisors Organization in 1987, Greg Vogel has applied his unique knowledge in the areas of land economics, land use and market trends to become a trusted advisor and broker to a broad spectrum of clients including financial institutions, investors, homebuilders and master planned community developers.

Vogel received his B.S. in Real Estate from Arizona State University in 1985. Within the Urban Land Institute, he is a governor, past trustee, past chair of the Community Development Council (BlueFlight) and past ULI Foundation Board of Directors member.

landadvisors.com

Landing the Housing Debate

Housing is a perennial hot topic. Whether analyzed from an economic development standpoint or spotlighted as an aspect of social issues, it is always a sector that is recognized as impacting the broad community.

The housing and residential real estate sector is a major contributor to Arizona’s economy, driving growth and development. Arizona consistently ranks among the top states for new home construction, fueled by a rapidly growing population and strong in-migration. This demand generates significant employment opportunities in construction, development and related industries while boosting local economies through increased consumer spending. The sector also contributes substantial state and local tax revenues, which fund essential public services such as education and infrastructure. Housing is a fundamental component of Arizona’s resilient economy, enabling continued growth across all sectors.

I’m also pleased to contribute to the cover story this month, which explores the current market and development for the various housing products, from affordable multifamily to luxury single family, as Arizona sees continued record population growth. Developers and homebuilders also discuss such factors as supply chain and workforce issues along with geographic and financial determinants.

Finance is one of the underlying concerns in this month’s feature article, “The Trump Administration’s Impact on AI and Digital Assets,” by David McCarville. An attorney at Fennemore and an adjunct professor at the Sandra Day O’Connor College of Law at Arizona State University, where he teaches a course on blockchain and cryptocurrency law, McCarvill offers his insights for business decision makers.

Kim Ryder, president of Thrive Real Estate Services and Government Relations, debuts her recurring column on CRE topics this month with her feature “Construction Costs in Commercial Real Estate: A 2025 Outlook.”

Women in leadership positions is a topic that sparks debate and studies and, recently, headlines. And second-chance programs and opportunities have gained increasing attention. The two matters come together in this month’s Roundtable feature. In “What I’ve Learned from Women Who Lead Outside the Lines,” corporate leader Vince Barsolo shares thought-provoking insights from his own transformative experiences working alongside incarcerated and formerly incarcerated women.

And, of course, the regular monthly content ranging from healthcare to our growing semiconductor industry fills every edition of In Business Magazine with information relevant to business in our community.

I’m pleased to help bring you this February edition of In Business Magazine, and hope you enjoy the read.

Sincerely,

Greg Vogel Founder and CEO Land Advisors Organization

Wanting to Live Here

Likely the greatest contributing factor to our economic growth is that people want to live here. From the great weather to relatively affordable living, Arizona is a place where people want to grow business, live and build a family. The housing market is both driven by these needs and a market in and of itself through residents’ desire to have it all and build value in property. Developers, builders, service companies of all kinds, renters, property owners and the markets that feed from them are all part of an

ecosystem that, ultimately, make living here an asset. We want to thank Greg for leading this issue and for being such an important part of our growth here. His company has been deeply involved in so many impactful projects over the years that we benefit from his leadership when it comes to the topic of housing. Our cover story digs into the market, and hearing from so many who are greatly invested in our growth makes for a strong and meaningful piece for our reader. —Rick McCartney, Publisher

Editor’s Note: This question generated input also from:

Maria Dillon VP of Operations Phoenix division of Agital Sector: Marketing

Michelle M. Moore Founder Mother’s Grace Sector: Nonprofit

Please visit February’s Feedback entry on our website to learn these companies’ experience with team building. www.inbusinessphx.com

FEEDBACK QUESTION:

Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com

For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.

What has been an effective team-building experience for your company?

ANDREA AKER

CEO

Aker Ink PR & Marketing Sector: Marketing

We host a quarterly volunteer event for the entire team. Not only do we consider it a responsibility to give back to the community, but we always find these efforts strengthen our personal bonds and teamwork capabilities — especially important because we operate in a primarily remote environment, and most inperson activities are centered on client service and the execution of PR and marketing campaigns. Away from our computers and inboxes, we are provided keen reminders about the social, environmental and community issues impacting our neighbors.

Recent volunteer days with EmpoweRanch, Arizona Center for the Blind and Visually Impaired, Clean Up Papago and Treasure House enabled individuals to connect on a deeper level. We can break down siloes among departments and foster connections with fellow colleagues with whom we don’t interact on a daily basis. When the team is connected and bonded, we are more likely to support one another as challenges arise — and we are better equipped to resolve those challenges with grace, compassion and tact.

Aker Ink PR & Marketing akerink.com

Andrea Aker is CEO of Aker Ink PR & Marketing, a full-service agency that helps companies increase awareness, thought leadership, leads and sales. She is an expert communicator and business strategist with a reputation for tenacity, perseverance and honesty. She’s willing to take on complex situations and thrives on new challenges. Under her leadership, Aker Ink is consistently honored as a top agency statewide.

JIM GMELICH

Culture Champion

CHASSE Building Team

Sector: Construction

As a team, we wanted to do more to support the physical and mental health of our employees. Rather than a oneoff team building event, we launched CHASSEing Healthy in 2022 to provide a series of regular programs that are fun but also promote physical and mental well-being. Everything we do is meant to provide our teammates with a better understanding of and access to healthy nutrition and food options, movement and exercise activities, and mindfulness and behavioral health practices. The program’s success is built on buy-in. Leadership does not create these programs in a silo. Each pillar is led by teammates who have shown a passion for that vertical. Together with fellow advocates, these committees develop resources, host events and push innovative health and wellness challenges to their teammates through formal and informal means. In the years since, we have created a wheel of challenges, hosted paddleboarding and yoga retreats, hiked the Grand Canyon rim to rim, and more.

CHASSE Building Team chasse.us

Jim Gmelich is culture champion at CHASSE Building Team, an employee-owned and proudly local general contractor with more than $500 million in Arizona projects annually. A former client and both a former education and nonprofit leader, Gmelich directs talent acquisition, professional and leadership development and career progression while cultivating, promoting and celebrating CHASSE’s extraordinary culture.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.

LINH LA Co-Owner

Loving Hut Sector:

Restaurants

One of the most effective teambuilding experiences we’ve had revolves around our core values of gratitude, community and purpose. A standout example is our Gratitude Gatherings. These annual events began as internal celebrations with food, games and heartfelt gratitude circles where team members shared personal and professional goals. This year, we expanded it to the public, and the overwhelming response strengthened our bond as a team and with the community. The positivity from these events fosters a deeper sense of love and thankfulness, creating a more united team.

Our collaboration with local businesses, such as hosting indoor pop-ups with Aloha Menu and Positively Frosted, also brings our team closer while supporting the community. Through programs like Pay-it-Forward, where we prepare meals for homeless guests, and events where proceeds benefit nonprofits, our team works with a collective sense of purpose. These experiences consistently enhance team morale, empathy and dedication, helping us all move forward together.

Loving Hut lovinghut.us/glendale

Linh La, co-owner of Loving Hut’s three Arizona locations, has proudly served the community for more than 15 years. With her team, she offers 100% vegan international cuisine, from burgers and sushi to pastas and desserts — all at affordable prices. Committed to compassion, sustainability and animal welfare, Linh La creates a welcoming dining experience.

DAILIES TOP STORIES

‘In Business Dailies’ Most Views Last 30 Days

Here are the stories with the most views over the past 30 days (prior to press time) that were features in our In Business Dailies. The In Business Dailies hit email inboxes twice each weekday — at 9:30 a.m. and updated at 4:30 p.m. Sign up today at www.inbusinessphx.com/dailies-signup.

Economy & Trends | Cover Story | January 2025 Trending in 2025: Forecasting Strengths and Challenges in Our Key Economic Sectors

by RaeAnne Marsh

As we look to the new year ahead with the usual mixture of eagerness and trepidation, we recognize how interconnected we are. Business does not exist in silos, so we value insights from fields that touch our own, even if only peripherally. In Business Magazine reached out to leaders of businesses in our community for their thought leadership in areas at the very foundation of our economy.

Leadership & Management | Cover Story | December 2024 16 Top Leaders of 2024: Our List of Valley Leaders Who Are Making a Real Difference!

by Mike Hunter

Each year, we select top leaders who have had great success over the preceding year. This year, we selected 19 leaders in varied established sectors within our business community. We asked hard-hitting questions of these leaders to get a sense of what they see for 2025. Each of them is truly entrenched in growing their companies and our economy, in developing policy, managing people and growing business through innovations that have a positive effect on our business community.

Workforce & Career | inbusinessphx.com | December 16 2024 Investing in Arizona’s Workforce: Weatherization as a Business Opportunity

by Travis Ekenberg

Arizona is at a crossroads of opportunity. As energy demands rise and sustainability becomes a priority, the Arizona Department of Housing’s (ADOH) longstanding Weatherization Assistance Program (WAP) presents a unique avenue for workforce development and business growth. The WAP has been in play since 1977 and has been the driver for energy efficiency standards and practices to date. Not only does the WAP assist low-income households, but it is also one of the most innovative and fiscally responsible programs.

Tesoro.vc Launches Accelerator for Early-Stage Startups

Over the last several years, Greater Phoenix has grown as a hub for startups and tech ventures. The region has attracted record venture capital investment, deal size and company valuation as it finds its place among the other national leaders.

Despite this growth, there has been a missing component to the startup ecosystem: a comprehensive early-stage accelerator that accelerates the entrepreneurial momentum of the market.

Tesoro.vc looks to solve this. The company, launched last month by Arizona Venture Development Corporation founding CEO and co-founder of the Arizona Innovation Challenge and Venture Ready Accelerator Andy Lombard, is offering access to guidance and funding opportunities for early-stage startups, with offerings that include a 12-week accelerator program, a VC demo day and global resource connection.

“Arizona is at the tipping point of becoming a global startup leader,” Lombard said in a statement. “Tesoro Accelerator is the catalyst we need to transform ideas into companies that will shape the future. We’re thrilled to collaborate with our incredible partners to ensure entrepreneurs have the tools, mentorship and investment they need to succeed.”

Tesoro Accelerator is a partnership between Tesoro.vc, the city of Phoenix, StartupAZ and the Greater Phoenix Economic Council.

Greater Phoenix has attracted more than $1 billion in venture capital investment each year over the last seven years, a figure the region had never reached prior to 2018. The median deal size and median company valuation post-funding 2024 were both record highs for the region.

Tesoro.vc will add a complementary component to this burgeoning ecosystem.

“Greater Phoenix is home to a vibrant and rapidly expanding tech sector, and Tesoro Accelerator offers a new avenue for early-stage startups to access funding and critical guidance,” says Chris Camacho, president and CEO of GPEC. “By attracting and developing top-tier startups, Tesoro will amplify the region’s reputation as a premier location for innovation and investment.”

KEY

FEATURES OF TESORO ACCELERATOR

• Program Structure: A 12-week accelerator program designed to prepare earlystage companies for venture capital investment.

• VC Demo Day: Partnership with over 70 VC firms to facilitate investments into graduating startups.

• Silicon Valley Immersion: A one-week immersion program offering founders exposure to top-tier investors and startup ecosystems.

• Batch-Based Model: Two startup cohorts annually, supporting up to 100 startups per year.

• Global Resources: Access to international networks, partnerships and capital opportunities.

• Post-Program Support: Ongoing advisory services, alumni engagement, mentorship and tailored demo days.

• Operational Excellence: Comprehensive legal, financial, marketing and recruiting services to drive scalability.

• Thought Leadership Events: Bi-annual conferences featuring insights from global innovators and entrepreneurs.

Title 9 Sports Grill Celebrates Women’s Athletics

This month, Phoenix will make history with the grand opening of Title 9 Sports Grill, the city’s first sports bar dedicated to celebrating women athletes. Located in the heart of the Melrose District, Title 9 Sports Grill reimagines the sports bar experience, championing inclusivity, empowerment and the spirit of Title IX — the landmark legislation that prohibits gender-based discrimination in education and athletics.

Co-founded by local business powerhouses Audrey Corley, a former college basketball coach and founder of Boycott Bar, and Kat Moore, co-founder of Short Leash Hotdogs + Taproom, Title 9 Sports Grill is built on a mission to champion women’s sports. “This isn’t just another sports bar; it’s a movement,” says Moore. “We’re creating a space where women’s sports are front and center, and everyone feels welcome.”

From wall-to-wall screens broadcasting exclusively women’s sporting events to a menu that celebrates trailblazing female athletes,

every detail at Title 9 Sports Grill honors the power of women in sports. Guests can enjoy signature wings, sliders and plant-based options, with creative dishes named after iconic athletes. Even the drink menu celebrates women, featuring craft beers and spirits from woman-owned breweries and distilleries.

The atmosphere is just as inspiring. The “Trophy Room” pays homage to legendary female athletes with donated memorabilia, interactive games and nods to local sports heroes. Arizona icons and Phoenix Mercury pride shine through bold, empowering artwork, creating a space where fans feel celebrated and inspired.

Title 9 Sports Grill isn’t just a destination, it’s a movement. Die-hard fans, casual viewers and advocates for equality, alike, will find this a new home to cheer for the passion, perseverance and power of women’s sports.

Meredith Witthar

Title 9 Sports Grill titleninesportsgrill.com

Electric Pickle Synthesizes Eclectic Entertainment

Electric Pickle, the nearly 5-acre pickleball, dining and outdoor entertainment destination, is now open in Tempe — the first of six locations planned across the Southwest.

Blending pickleball with globally inspired cuisine and lively entertainment, Electric Pickle offers an elevated experience. The centerpiece is a 12,000-square-foot indoor and outdoor restaurant serving bold dishes like Seared Ahi, Sticky Short Ribs and Garlic Noodles & Shrimp, alongside creative cocktails such as the Pickler’s Punch and Guava Mojito. A chic second-floor lounge provides a more intimate setting — complementing the lively energy of the restaurant below.

Pickleball enthusiasts can book courts online for groups of up to 12 or enjoy walk-in play. Memberships, priced at $100 per month, include unlimited open play, advanced bookings, morning discounts and Pro Shop savings. With nine state-of-the-art courts, including four equipped with AI technology, Electric Pickle redefines the pickleball experience.

Beyond the courts, the venue features private cabanas, Full Swing Golf Simulators,

bocce ball, ping pong, cornhole and a lawn with a live music stage. Guests can enjoy weekly events, as well as a lively happy hour showcasing food and drink specials. Event bookings are also available for celebrations, corporate outings and private gatherings.

Developed by the leaders behind Eureka! Restaurant Group and Knighthead Capital Management, the venue combines modern design with lush greenery to create a dynamic backdrop for its wide array of amenities.

Tempe, selected as the debut location for its vibrant and welcoming spirit, serves as the ideal backdrop for this innovative concept that includes monthly memberships featuring exclusive perks. Located at 8688 S. Emerald Drive near I-10 and Warner Road, this flagship venue is just the beginning of a planned national rollout. Future destinations include Las Vegas; Katy, Texas; Roseville, California; Rancho Cucamonga, California; and Reno, Nevada.

—Paul Frederick, founder and co-CEO of Electric Pickle and Eureka! Restaurant Group Electric Pickle electricpickle.com

Title 9 Sports Grill reimagines the sports bar experience, championing inclusivity, empowerment and the spirit of Title IX — the landmark legislation that prohibits gender-based discrimination in education and athletics.

Kitchen Switchen: More than Retail

Kitchen Switchen was created to be a first-of-its-kind culinary content creators’ community, says co-founder Brittney Valentine, who describes it as “a haven where you can discover the latest and greatest in sustainable products, join a vibrant digital culinary community and participate in an ethical reseller marketplace.”

Valentine began the entrepreneurial enterprise in 2022 with her sister, Emma Valentine, and mother Amy Powers as they were recovering from personal loss. “We needed something that could help us heal but also bring joy into our lives and allow us to give back to the world. We knew that whatever we created would have to be built on our love for each other and the memories we shared around the kitchen table,” she shares.

Kitchen Switchen started as a small resale kitchen store in Phoenix. When its owner decided to move on to new ventures, they saw an opportunity to carry on her legacy by transforming the business into a digital platform.

Valentine says they bring to Kitchen Switchen years of experience in other family business adventures that taught them perseverance is the key to long-term success. This attitude carried them through the creation of Kitchen Switchen’s website. “With its multi-layered features, we aimed to offer the best of what others provide while creating

HomeLyfe Provides Roofing Solution

HomeLyfe is a home maintenance company that helps homeowners build, maintain and protect their equity, starting with their roof. “Ninety percent of asphalt shingle roofs do not need to be replaced — which means that 90% of asphalt shingle roofs qualify for GoNano,” says HomeLyfe CEO and founder Tim Orscheln, enthusiastic about this proprietary roof treatment that, he explains, extends the life of a roof system by 10 to 15 years at a fraction of the cost of a roof replacement. “The treatment prevents granule loss, is hydrophobic, reflects UV rays and is wind and hail resistant. GoNano also regenerates the shingle’s original color, reversing the effects of oxidation and the appearance of the roof’s age. At the end of the day, we save roofs!”

Orscheln discovered GoNano, a patented technology, when seeking an alternative to replacing the 15-plus-year-old asphalt shingle roof on the home he and his wife had just purchased. “My own necessity turned into an opportunity to help others maintain and protect their homes, starting with their roof. When I started HomeLyfe, I was the first entrepreneur to offer the one-of-a-kind solution in Arizona.” He founded HomeLyfe in July 2023 as a roofing company to help with immediate repairs and maintenance that had to be completed before GoNano could be applied.

something truly unique — a first-of-its-kind experience. However, standing out in today’s cluttered, competitive market has been one of our greatest challenges.” They launched the platform in September 2024.

It is, in many ways, a passion project. “As a mother of a three-year-old, I am deeply committed to building a sustainable future, not just for my child, but for all future generations. It’s staggering to think that over 100 million pots and pans are discarded into landfills each year, many containing harmful chemicals that will never decompose,” Valentine says. “We knew we had to be part of the solution.”

—RaeAnne Marsh

“After I met Chris Warner, who became my partner, we needed good people to help run the companies, which can always be a struggle, but we have been blessed to find great people possessing great talent,” Orscheln says about growing the business. Another challenge he cites is the bad reputation of the roofing industry, to which he brings his own belief that “if you’re going to do anything in this world, it is worth doing right and with integrity.”

“Homeowners are often taken advantage of, or their insurance companies are not covering roof replacements,” he says. “We have to educate homeowners that we are offering a solution that saves them thousands of dollars and is a better option than replacing the roof.” —RaeAnne Marsh HomeLyfe homelyfe.net

Kitchen Switchen kitchenswitchen.com

Brittney Valentine sitting at Kitchen Switchen

Photos courtesy of Kitchen Switchen (top), HomeLyfe (bottom)

IS WHAT GIVES US PURPOSE HONOR

Honor is what motivates our team of dedicated healthcare professionals. Through passion and purpose, we come together to ensure every patient is provided with the best possible care. honorhealth.com

In a Nutshell

• Oscar Granados purchased Scottsdale Collision Center in 2018 and has since grown it from one location with three employees to now three locations in Phoenix, Scottsdale and Tempe with 17 employees and plans to expand.

• Scottsdale Collision Center specializes in delivering high-quality repairs with a focus on customer satisfaction and safety through regular employee training sessions and customer service workshops.

• Through his collision centers, Granados has been able to transform the auto-repair experience as his shop is independent and can maintain a commitment to the consumer and the quality while staying ahead of industry standards by continuing to invest in technology and equipment that enhances efficiency and precision.

Oscar Granados: Driving Change in the Auto-Repair Industry

Scottsdale Collision Center redefines the collision-center experience by

Victoria Karlic

In the auto-repair world, the story of Oscar Granados, owner of Scottsdale Collision Center, stands out amongst the rest. With hard work, a clear mission and big goals, Granados has turned a standalone auto-repair shop into a thriving, multilocation business that delivers high-quality repairs, keeping customer satisfaction and safety at the heart of his work.

While Granados’ journey with Scottsdale Collision Center began just six years ago, his path to entrepreneurship started much earlier. In his early 20s, he discovered his passion for business, and it led him to own or manage companies across a variety of industries before landing in the position he is in today. Always, passionate about auto-repair, he shares, “I had always dreamed of having a shop where my dad could work. Not just any shop where he could work, but a true, quality shop — meaning a place with quality repairs, quality service and a great culture.” Now, those dreams are his reality.

Granados knew the auto-repair industry was due for a major transformation. In 2018, while he was looking for his next venture, he noticed a huge need in collision repairs and knew then it was finally the right time for him to get into the business. Determined to not be discouraged by the industry’s often-negative stigma and with a philosophy to never be afraid of opportunity, he purchased the first Scottsdale Collision Center that year.

Under his leadership, Scottsdale Collision Center has grown from three employees to now 17, pulling in close to $5 million in revenue with three locations in Scottsdale, Tempe and Phoenix. He attributes this success to three defining decisions — prioritizing quality over quantity in services to establish a reputation for excellence, investing in technology and equipment that enhances efficiency and precision and, lastly, creating a culture of transparency and accountability, both within the team and with customers. Looking to the future, Granados has big plans for the next phase of growth. With a new location already in the works, he envisions Scottsdale Collision Center becoming an accessible resource for everyone in the Valley and beyond by focusing on accessibility, visibility and proximity to high-traffic areas where his services are most needed, prioritizing areas that are most convenient for the clients. In the next five years, Granados plans to expand past Arizona and open additional centers in surrounding states.

Although Granados has laid a clear path forward for Scottsdale Collision Center, he knows the work starts at home. To continue to grow, he understands the need to maintain a strong foundation and high-quality work, staying ahead of industry standards. For this reason, his first goal is ensuring that all his current shops are running at the most efficient level by the beginning of 2025. With the business locally owned and operated, Granados has been able to maintain his commitment

to quality. “There are a lot of things I love about this business. The main one is that I feel like we are making a difference and providing a change that this industry desperately needs,” he says. “We only repair your car the way it needs to be and hold everyone accountable to make sure that every part of the job gets done.”

Leading by example, Granados believes in the importance of transparency and direct communication, not only in his personal role as a leader within his company but also in how Scottsdale Collision Center engages with its customers.

“I always approach my business like it’s my first day, so I’m constantly innovating and discovering more and more ways to improve, but, more importantly, I also approach my business every day as if I’m a consumer,” he says.

From the start, Granados has been dedicated to consumer satisfaction and safety. He guarantees that every Scottsdale Collision Center client entering his shops’ doors will walk out feeling well-informed, valued and protected every step of the way with each of his employees. “We look for employees who not only have the technical skills but also align with our company values. Training is hands-on and includes customer service workshops to ensure alignment with our standards,” he says. “We emphasize communication and empathy as key traits during the hiring process. Additionally, we conduct regular training sessions and provide feedback to maintain consistent, high-quality customer experience.” Scottsdale Collision Center completely reshapes the collision center culture and has become a place that people feel confident in and can rely on.

Scottsdale Collision Center scottsdalecollisionaz.com

Photo courtesy of Scottsdale Collision Center

Her expertise in thrift real estate has made her a well-known resource of knowledge.

tsginc.com/thrivedevelopment-group

Construction Costs in Commercial Real Estate: A 2025 Outlook

Economic, material and labor market dynamics

by Kim Ryder

Although construction costs are estimated to be relatively flat year over year, with a moderate increase of 5–7% projected, there are many variables that can affect this estimate so early in the year. Construction costs in the commercial real estate sector are driven by a combination of economic, material and labor market dynamics. Factors such as natural disasters, a changing political climate and tariffs, among other influences, can have a significant impact on costs and the future of commercial development.

THE COST EFFECT

One of the primary contributors to the escalating construction costs is the price of raw materials. The costs of essential building materials like steel, lumber and concrete have risen dramatically over the past few years. Supply chain disruptions caused by the COVID-19 pandemic initially triggered these increases, and ongoing geopolitical tensions, along with energy price volatility, have further added to the issue.

Steel prices especially have seen substantial fluctuations, with analysts attributing the instability to supply chain bottlenecks and increased demand from infrastructure projects. Lumber, after experiencing historic highs in 2021, remains above pre-pandemic levels due to sustained demand and inflation. Both steel and lumber are expected to remain high throughout 2025.

According to AIA (American Institute of Architects), with challenging costs, a tough lending market and reduced architectural firm billings, spending on construction is expected to slow in 2025 to an increase of only 2% over 2024. Outside of a few niche sectors such as manufacturing and institutional construction, development is expected to be relatively flat year over year. AIA Chief Economist Kermit Baker, Ph.D., says, “Despite the challenges, specific sectors like manufacturing construction are showing strong ongoing activity from the surge in projects that started during the pandemic, while most institutional sectors are seeing reasonably healthy gains, fueled by the education market.”

LABOR MARKET PRESSURES

The construction industry is also facing a persistent labor shortage, driving up wages and overall labor costs. Skilled tradespeople, such as electricians, plumbers and carpenters, are in short supply, a trend exacerbated by the aging workforce and a lack of new entrants into the field. This shortage has forced construction firms to offer higher wages and benefits to attract and retain workers, further inflating project costs. Future immigration policy may also have an impact on the already strained labor force. Andrew Volz with JLL explains that

an estimated nearly 30% of the construction labor force is foreign-born, and the future of immigration policy may have an impact on available labor, especially in high-growth markets.

The competition for labor extends beyond the commercial real estate sector, with residential construction and infrastructure projects also vying for the same pool of skilled workers. This inter-sector competition has intensified the labor cost pressures faced by commercial developers. With the future of immigration policy uncertain, Volz says, “The impact on residential will be larger than [on] commercial real estate, and in areas impacted by disasters across the Southeast, this could mean unwelcome delays in the already difficult process of rebuilding.”

STRATEGIC RESPONSES FROM THE INDUSTRY

In response to these challenges, the commercial real estate industry is exploring various strategies to mitigate the impact of rising costs. Some developers are turning to alternative materials and construction methods, such as modular construction, to reduce costs and improve efficiency. Others are leveraging technology, including building information modeling (BIM) and project management software, to optimize project planning and execution. Neoroject and the 2025 Construction Costs Forecast share that BIM combined with other technologies reduces costs and rework throughout a construction project by allowing enhanced digital models of buildings.

Additionally, there is a growing focus on sustainability and energy efficiency in new commercial projects. While these initiatives may require higher upfront investments, they are expected to yield long-term savings and align with evolving regulatory standards and tenant preferences.

OUTLOOK FOR THE FUTURE

The outlook for construction costs in commercial real estate remains uncertain. While some analysts predict a gradual stabilization as supply chain issues are resolved and labor markets adjust, others caution that persistent inflationary pressures could sustain elevated costs for the foreseeable future.

For now, stakeholders in the commercial real estate sector are navigating this challenging landscape with strategic planning, innovative solutions and cost-cutting ideas to continue to meet growth demands. As we move forward, the focus will remain on balancing cost control with the delivery of high-quality, sustainable and competitive commercial spaces. Remaining creative and agile will be a key to success. To continue to grow and develop we will: Improvise. Adapt. Overcome.

An estimated nearly 30% of the construction labor force is foreign-born, and the future of immigration policy may have an impact on available labor, especially in high-growth markets.

Dominium Acquires Land for Affordable Homes in Maricopa

Dominium, a leading affordable housing owner, developer and manager, recently closed a deal to acquire land for the development of a new affordable housing community in Maricopa, Arizona.

Dominium plans to use the land located at 18260 N. Alan Stephens Pkwy. to construct Saddleback Village at Stonegate, Dominium’s first Built-to-Rent community. Completed, it will bring 215 high-quality homes to the City of Maricopa and the greater Phoenix metropolitan area. Constructed by Lifestyle Homes, the community will offer residents desirable amenities that include a leasing center, playground, private backyards and outdoor amenity spaces.

Construction of Saddleback Village at Stonegate will be supported by the Section 42 Low-Income Housing Tax Credit program. —Mike Hunter dominiumapartments.com

418,000 SF Distribution Center in Surprise

Surprise Pointe Commerce Center, recently completed from Rockefeller Group, is a 418,400-square-foot distribution center on 24 acres in Surprise, Ariz., part of the Southwest Valley industrial submarket. Designed by Ware Malcomb, it can accommodate one to four tenants and includes customdesigned office space.

The site has access to both Interstate 10 and Loop 303 and is also strategically located near other transportation corridors including U.S. 60, Interstate 17 and Loop 101 which will allow this new industrial building to serve not just Phoenix but Las Vegas, Tucson, Albuquerque and all of Texas.

Cooper Fratt and John Werstler of CBRE are marketing the project for lease or sale. —Mike Hunter rockefellergroup.com cbre.com

Nextwave Breaks Ground on Former Big Surf Site

Developer Overton Moore Properties and its partner, Invesco Real Estate, have started construction on Nextwave Tempe. The project consists of three Class A industrial buildings totaling 689,000 square feet on 35.5 acres at the former site of the Big Surf Waterpark in northeast Tempe at 1500 North McClintock Drive.

The three divisible buildings can accommodate customers from 32,000 square feet to 258,727 square feet and are expected to be delivered in Q4 of 2025. Each high-image building has unique features that include heavy power (with expansion), abundant parking, full HVAC in the warehouses, spec offices, and private, secured truck yard areas.

The property is four miles east of the Phoenix Sky Harbor International Airport, near Arizona State University and Tempe Marketplace, and is surrounded by an excellent labor pool with an estimated 3.2

million people accessible within a 30-minute drive from the property.

Nextwave, minutes from the Loop 101 and Loop 202 freeways intersection, will be the first major industrial project completed in the north Sky Harbor Airport submarket in the past two decades.

OMP views the industrial park’s stateof-the-art design and strategic positioning to become a cornerstone for growth and innovation in the area.

CBRE’s John Werstler, Cooper Fratt and Tanner Ferrandi are the listing brokers for Nextwave Tempe, representing OMP and Invesco. —Mike Hunter cbre.com omprop.com

Phoenix Small-Office Product Lagging

Over the last four years, small-office product of 20,000–50,000 square feet has outperformed larger product greater than 50,000 square feet. But Cushman & Wakefield Research, using statistics based on leasable office buildings larger than 20,000 square feet in Metro Phoenix, reports this has changed.

There are 393 buildings in the 20,000 to 50,000 sf size range, accounting for 40% of all office buildings in Metro Phoenix. In square footage terms, this equals nearly 12 million square feet, or about 14% of the total inventory. Vacancy rates in that size range have dropped below 2019 averages, while office buildings larger than 50,000 square feet have trended higher. Despite aggregate negative net absorption across all building sizes over the trailing 12 months ending September 30th, 2024, the office product at 20,000 to 50,000 square feet recorded 19,439 square feet of negative absorption, well below the absorption rates

in larger office product.

What This Means for CRE Flexibility is key for occupiers of small office space. These tenants tend to prefer short- to medium-term lease options, which allows them to adapt relatively quickly to changing office market conditions.

Small office users are also likely to support hybrid or rotational work options for their employees, and these tenants must make the most out of a smaller footprint without sacrificing productivity.

Cushman & Wakefield Research concludes that landlords, to stay competitive, must attract smaller-footprint office users. While total building space typically cannot be changed, segmenting large floor plates into smaller, more collaborative spaces, as well as updating interiors with fresh finishes and tech-enabled infrastructure, can appeal to tenants looking to reduce move-in costs and time. —Mike Hunter

Cushman & Wakefield cushmanwakefield.com

Photos courtesy of Dominion (top, far left), Rockefeller Group (bottom, far left) and Overton Moore Properties (top, right)

If you have news to share about the semiconductor industry in Arizona, email us at semiinsights@ inbusinessphx.com

Arizona Secures Major Semiconductor Research Lab

Transformative potential includes attracting private-sector investments by Stephanie

Quinn

The U.S. Commerce Department and Natcast, the National Semiconductor Technology Center operator, have selected Arizona as the site for a flagship semiconductor research and development facility. Located at Arizona State University’s Research Park in Tempe, the lab will focus on prototyping and advanced packaging, addressing a critical gap in the U.S. semiconductor ecosystem.

This facility is the third and largest of three CHIPS for America research centers. While final terms are still under negotiation, the lab is expected to be operational by late 2028, bringing hundreds of jobs and billions of dollars in investment to the state.

THE FACILITY AND ITS PURPOSE

The new NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility will combine research and prototyping for semiconductor manufacturing and packaging. Packaging, a crucial stage in semiconductor production, involves connecting and protecting microchips to ensure optimal performance, efficiency and heat dissipation in increasingly compact designs.

ASU President Michael Crow emphasizes the lab’s transformative potential. “This is the largest of three CHIPS R&D flagship facilities being launched that, together, represent the greatest national laboratory investments since those that came out of the Manhattan Project,” Crow says. “Arizona will be the hub nationally — and ASU is at the center of the hub.”

The lab will leverage ASU’s MacroTechnology Works facility, which features a 49,000-square-foot clean room and specialized tools for research, development and prototyping. The facility will also benefit from ASU’s partnership with Applied Materials, supported by the Arizona Commerce Authority, and its advanced NanoFab and Advanced Electronics and Photonics labs.

ECONOMIC AND WORKFORCE IMPACT

The lab will contribute to Arizona’s semiconductor ecosystem by fostering innovation, attracting private-sector investments and creating high-paying jobs. ASU’s Ira A. Fulton Schools of Engineering, the nation’s largest engineering school, will support the facility with resources and expertise, ensuring a pipeline of skilled talent for the semiconductor industry. “This strategic collaboration is a significant step toward ensuring the United States remains a global leader in semiconductor research, development and manufacturing,” says Sally Morton, executive vice president of ASU’s Knowledge Enterprise.

The CHIPS and Science Act has already allocated billions to Arizona’s semiconductor industry, including $4 billion for Intel in Chandler and $6.6 billion for Taiwan Semiconductor

Manufacturing Co. in Phoenix. The new lab is expected to build on this momentum, solidifying Arizona’s role as a global semiconductor hub.

NATIONAL SIGNIFICANCE

The NSTC facility aligns with a broader national strategy to rebuild America’s semiconductor capacity. Senator Mark Kelly, who championed the CHIPS Act, notes the importance of keeping advanced semiconductor research and manufacturing within the United States. “This groundbreaking effort will mean that researchers and startups won’t need to go to China or Europe to test their cutting-edge prototype microchips,” Kelly says. “The most advanced microchips in the world that power everything from AI to quantum computing will now be developed, tested and packaged in our state [Arizona].”

Arizona Governor Katie Hobbs highlights the facility’s role in boosting the state’s economy and supporting the national supply chain. “This flagship facility will serve as an anchor for Arizona’s thriving semiconductor ecosystem while supporting R&D and supply chain resiliency nationwide,” Hobbs says.

A COLLABORATIVE APPROACH

ASU’s role in this initiative reflects its leadership in interdisciplinary research and workforce development. Morton notes that ASU’s partnerships with industry and academia position the university to meet the demands of this ambitious project.

Deca Technologies, a global leader in advanced packaging, is among the private-sector partners already collaborating with ASU. Tim Olson, Deca’s CEO, emphasizes the facility’s potential to drive innovation and attract further investments.

“This once-in-a-generation investment will boost the entire semiconductor industry with powerful capabilities to further develop and scale new technologies,” Olson says.

WHAT’S NEXT

As negotiations conclude and plans progress, Arizona is poised to become a central hub for semiconductor research, development and manufacturing. The NSTC facility will play a pivotal role in strengthening the U.S. semiconductor supply chain, advancing critical technologies, and creating economic opportunities for the state.

“This work is essential to U.S. economic stability and defense security,” Crow says. “It begins with building new, expanded national hubs for advanced training, technology development and manufacturing — all concentrated in Arizona.”

With federal support, bipartisan collaboration and ASU’s expertise, the new facility represents a critical step forward for the state and the nation in the global semiconductor race.

The CHIPS and Science Act has already allocated billions to Arizona’s semiconductor industry, including $4 billion for Intel in Chandler and $6.6 billion for Taiwan Semiconductor Manufacturing Co. in Phoenix. The new lab is expected to build on this momentum, solidifying Arizona’s role as a global semiconductor hub.

Local Business. Global Opportunity.

Every business strives to grow revenue, diversify its buyer base, and create more jobs. In Arizona, we help make those goals a reality. Through the Arizona State Trade Expansion Program (AZSTEP) and ExporTech, small business owners can collaborate with public and private sector partners to get assistance exporting their products and services around the world. Together, these programs will help you develop global strategies, implement go-to market initiatives, attend international trade shows and access resources to compete on a global scale. Visit our site to accelerate your expansion and grow your business.

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Historic First for the U.S. – Advanced Chip Production Begins in Arizona

Taiwan Semiconductor Manufacturing Co., the world’s leading chipmaker, has officially begun producing advanced four-nanometer chips at its Vistancia facility near Phoenix. This milestone marks the first time these cutting-edge chips are being manufactured on U.S. soil — a significant moment not just for Arizona but for the nation.

TSMC’s Arizona facility is the first of three planned semiconductor factories, part of a $65-billion investment that began in 2020. Construction started in 2021, and high-volume production of four-nanometer chips is expected by early 2025. These chips will power everything from smartphones to artificial intelligence systems, marking a critical step in strengthening the U.S. semiconductor supply chain.

“For the first time in our country’s history, we are making leading-edge four-nanometer chips on American soil with American workers,” Commerce Secretary Gina Raimondo said in an interview with Reuters.

But this isn’t just about chips — it’s about creating a robust ecosystem. And, while the first facility begins production, the second and third fabs are slated to come online by 2027 and 2030, respectively. TSMC’s investment has already spurred significant economic activity. With $6.6 billion in government subsidies and the potential for up to $5 billion in loans, this is more than a corporate project — it’s a catalyst for regional transformation.

Arizona is now one of the few places in the world capable of producing state-of-the-art semiconductors — a distinction that enhances its appeal to other high-tech industries. Companies in artificial intelligence, electric vehicles and telecommunications may find Arizona’s growing ecosystem and strategic location impossible to ignore.

For local businesses, the message is clear: Seize the moment. Whether through partnerships, supply chain opportunities or workforce development initiatives, the semiconductor boom is creating avenues for growth that extend far beyond chips. —Stephanie Quinn

Foam Packaging Specialties: ‘What Matters Is Inside’

What began as a small family business has transformed into a key player in the semiconductor supply chain. Its story is not just about growth — it’s about foresight, adaptability and commitment to quality in a high-stakes industry.

Founded in 1972, Foam Packaging Specialties started as a small operation serving local businesses with packaging solutions. But years before Arizona’s semiconductor boom started, the company made a pivotal decision: to invest in cleanroom-certified facilities.

“We saw an opportunity that went beyond business,” says the company’s president, Christopher Perry. “Investing in cleanroom-certified facilities was not just about meeting demand — it was about taking on the challenge of becoming experts in a new area of packaging. No one else in Arizona was doing it at the time, and we knew this was our chance to lead and support the unique needs of a rapidly evolving sector.”

In the fast-paced world of semiconductors, where the focus is often on chips, manufacturing plants and cutting-edge technology, one crucial aspect often goes unnoticed: packaging. Semiconductor components, fragile and sensitive, require meticulous care during transport and storage. For Foam Packaging Specialties, the role it plays in this complex ecosystem is vital yet understated.

Foam Packaging Specialties equipped its facility with a Class 10,000 cleanroom certified to ISO 7, ensuring the highest standards of cleanliness and environmental control — a rarity in the packaging industry. This certification ensures that semiconductor components are protected from contaminants, which could cause costly damage or compromise functionality. These facilities have positioned the company as a leader, not only in Arizona but also across the Southwest.

The cleanroom facility is complemented by an extensive lineup of advanced machinery, including CNC knife cutters, routers, a 5-axis waterjet and a mobile 3D scanner. This technology allows Foam Packaging Specialties to create precise, customized packaging designs for semiconductor components, often without needing the physical product to leave the client’s site. “Packaging isn’t just about efficiency — it’s about trust,” Perry notes. “Clients know their components are safeguarded every step of the way.”

Cleanroom-certified packaging isn’t a luxury in this industry; it’s a necessity. Semiconductor

components are sensitive to contamination and physical damage. Even the slightest particle can compromise a chip’s functionality, leading to production delays and financial losses. This complexity has driven the need for customized, advanced packaging solutions. Foam Packaging Specialties’ cleanroom facilities minimize these risks, safeguarding its clients’ products from manufacturing floors to final destinations. Packaging these components is no longer just about physical protection — it’s about maintaining their integrity at a microscopic level.

“Our clients have learned that quality packaging is not an expense — it’s an investment,” Perry says. “The cost of a damaged semiconductor component far outweighs the cost of proper packaging. When you’re talking about components worth thousands of dollars each, the stakes are incredibly high.”

The company’s reputation for delivering reliable, tailored designs for semiconductor wafers, chiplets and other high-value components has earned it a loyal client base. “We’ve seen instances where clients tried to cut corners,” Perry says. “When those cheaper solutions failed, they came back to us, understanding the value of doing it right the first time.”

Semiconductor manufacturing doesn’t happen in isolation — it requires a robust ecosystem, and Foam Packaging Specialties has become an integral part of that network. The company’s role extends beyond Arizona, with its solutions being used globally, including in Southeast Asia. Its contributions are critical as major players like Intel, Taiwan Semiconductor Manufacturing Co. and Amkor Technology expand their operations in the state, creating a demand for local, reliable supply chain partners.

“Our work contributes to the broader success of Arizona’s semiconductor industry,” Perry notes. “By providing reliable packaging solutions, we’re helping manufacturers meet production timelines, reduce waste and maintain quality standards. That has a ripple effect on the entire industry — and the local economy.” —Stephanie Quinn

Foam Packaging Specialties foampackspec.com

Semiconductor components are sensitive to contamination and physical damage. Even the slightest particle can compromise a chip's functionality, leading to production delays and financial losses.

Photo courtesy of Foam Packaging Specialties

WELL, WELL, WELL

Barrow Neurological and PEI Advancing Arizona’s Bioscience Ecosystem

Standard stimulation methods for monitoring comatose patients can cause injuries, and because stimulation is delivered by hand, it can limit the reliability of exams and negatively impact patient care. Dignity Health aims to end this practice through the development of electrical stimulator technology that can activate pain receptors in a standardized fashion without risk of injury. Barrow Neurological Institute plans to submit an FDA 510(k) application in late 2024.

Toward that goal, Barrow Neurological Institute has joined the WearTech Applied Research Center of the Partnership for Economic Innovation, a passionate collective of business and community leaders dedicated to accelerating Arizona’s economic opportunities.

The partnership will support Barrow Neurological Institute through clinical trials and product manufacturing of a device that uses neurological stimulation to monitor comatose patients. Through Arizona Commerce Authority’s fund supporting applied research, $250,000 has been awarded for the project. Matching funds are provided by two research grants from the Barrow Neurological Foundation totaling $219,944.00, and a seed grant from the Flinn Foundation totaling $100,000.00.

“Arizona’s bioscience ecosystem is surpassing national competitors because healthcare companies like Dignity Health’s Barrow Neurological Institute are finding new ways to provide better care for patients and better technology solutions for providers,” says Kathleen Lee, director of Applied Research Centers for the Partnership for Economic Innovation. “Capitalizing on this momentum by powering biotech and health innovations will fuel the creation of more next-generation inventions and commercially viable technologies here in the state.” —Mike Hunter azpei.org/applied-research barrowneuro.org

Address Challenges of Drug Testing in a Shifting Workplace

Recreational marijuana is legal in 24 states (including Arizona), and 39 states legalize it for medical use. Several states are seeing updates to laws surrounding cannabis drug testing, including Arizona’s Smart and Safe Arizona Act (SSAA), which is designed to inhibit employers from firing or refusing to hire someone based on a positive drug test alone. This leaves many employers scrambling to update policies to ensure compliance with their state’s evolving regulations while maintaining a safe work environment.

Similar changes are happening nationwide. For example, the 2024 election saw four states vote on ballot measures that would legalize marijuana for recreational or medical use. As marijuana use becomes more widespread, employers face mounting challenges. These include balancing employee rights, ensuring workplace safety and complying with evolving laws. The prevalence of products designed to mask drug use further complicates these efforts.

To uphold a safe and productive work environment, businesses must implement updated best practices, starting with the hiring process. With comprehensive employee screening and utilizing advanced and compliant drug-testing solutions, employers can build a workforce they trust.

WEAKNESSES IN TRADITIONAL DRUG TESTING

Traditional drug testing methods, such as urinalysis, are prone to tampering. Quest Diagnostics data reveals a correlation between the rise in positive marijuana tests and an increase in attempts to tamper with drug tests. The rate of positive marijuana tests has climbed from 3.1% in 2019 to 4.5% in 2023, reaching 5.8% in states that legalized recreational marijuana in 2023. This increase correlates with higher attempts to manipulate results, posing risks, especially in safety-critical industries like healthcare. Common tampering tactics include:

• Dilution: Drinking excessive fluids to lower drug concentration in the sample.

• Adulteration: Adding substances to alter test outcomes.

• Substitution: Replacing the sample with a “clean” one.

These practices undermine workplace safety and productivity. Additionally, traditional drug testing does not provide real-time results. In states like Arizona, employers need evidence of current impairment, as a positive test alone is insufficient for termination. Fortunately, there are effective strategies to help businesses address

these challenges and maintain a safe, compliant workplace.

RESPONDING TO REGULATORY SHIFTS: NEW TECHNOLOGIES ON THE RISE

Changing marijuana laws complicates workplace policies. The rate of positive marijuana tests after workplace accidents has steadily increased over the past 25 years, now reaching its highest level. States with recreational sales report higher workplace injury rates among younger workers. Adapting to these legal changes is essential for regulated industries.

Advanced drug testing methods assist employers in meeting compliance standards while ensuring a safe work environment. Two innovations stand out: cannabis breathalyzers and oral fluid testing. Cannabis breathalyzers detect recent marijuana use by capturing molecules from the lungs in a tamper-proof cartridge. The collection is done under direct observation, reducing the risk of sample manipulation or contamination. This method also identifies active THC, which can reveal on-the-job impairment.

Oral fluid testing identifies recent marijuana use within 48 hours or as quickly as 20 minutes. Observed collection makes cheating difficult, while real-time results enable swift decision-making. These tools improve accuracy and help employers address the shortcomings of traditional testing. This method has gained further credibility with its recent approval by the U.S. Department of Transportation, highlighting its reliability and effectiveness. Most importantly, these testing tools allow employers to comply with emerging cannabis laws in their respective states.

SETTING NEW STANDARDS IN WORKPLACE DRUG TESTING

Modern drug-testing technologies offer benefits beyond compliance by preventing workplace accidents, deterring on-the-job drug use with real-time results, and safeguarding a company’s reputation to maintain trust with clients and the public.

Businesses across all industries must embrace these innovations to avoid emerging risks. Cannabis breathalyzers and oral fluid testing reduce tampering and provide real-time, actionable results that help maintain a compliant and protected work environment. —Amanda Kearns, VP of Delivery at Shield Screening (www.shieldscreening.com), a PBSA accredited, full-service background screening company

The rate of positive marijuana tests after workplace accidents has steadily increased over the past 25 years, now reaching its highest level.

Insider Threat Awareness

Insider threat awareness is such a significant aspect of cybersecurity that the National Counterintelligence and Security Center in partnership with the National Insider Threat Task Force and other U.S. government agencies designated a month every year to the issue.

“One of the most significant insider threats facing organizations today is the challenge of properly managing employee exits and access revocation. Even weeks or months after departure, it is all too common for exiting employees to still have lingering access to company systems and data. From there, malicious insiders can then steal sensitive data or sabotage critical systems rather easily by exploiting these oversights. And, as organizations have become more reliant on cloud services and remote work, unfortunately this risk has only grown,” says Larry O’Connor, CEO and founder of Other World Computing.

“Luckily, today we have robust identity and access management controls to mitigate these insider risks. This includes automating the process of disabling accounts across all apps and services when an employee leaves the company. Leveraging technologies like two-factor authentication and certificate-based authentication can also help prevent unauthorized access — even if login credentials are compromised. Additionally, maintaining comprehensive, air-gapped backups of critical data is essential — this provides a secure fallback in case malicious insiders do manage to delete or encrypt production data.”

Noting the importance of organizations taking a hard look at their security practices around employee offboarding and data protection, he says, “It’s not a matter of if, but when, an insider threat incident will occur. Companies can significantly reduce the risk and impact of these threats by proactively implementing the right people, processes and, of course, technologies. Bottom line — protecting against malicious insiders should be a top cybersecurity priority all year round.”

Mike Hunter

3 Things Business Owners Do Wrong with Websites

Having a well-thought-out website is critical for any business trying to succeed in today’s world. Many business owners build websites without knowing what is best for their brand. They overflow the homepage with information and add social media links — and it becomes convoluted, making the site difficult to navigate for potential customers.

The following are three areas business owners starting out should stay away from when building a website for their company.

DIFFICULT NAVIGATION

Poorly organized websites make it difficult for customers to find the services or products they need. Business owners often overlook the importance of easy navigation on the website, making users search tirelessly for information or services they need. Complicated menus and no way to easily get back to the home page are among issues with bad websites. This problem can be avoided by making the site clear and concise. Business owners should create menus that are direct and to the point. It’s important to create an easy layout so customers know where to click. Service pages can be created for specialty issues. Key is to make it simple.

FOCUSING ON SOCIAL MEDIA

Too many businesses focus on social media. By focusing on social aspects, all the business owner is doing is inviting potential customers to go to another page — which they will most likely stay on and never return to the first website. Best to stay away from social media links. Those who may be active on social media should remove those links at the bottom of the page and lay them aside for

potential future use (stache them). The key to a website is to keep the desired customer on it long enough so that they want to make a call or fill out a form to connect with the business. Posting social links high up on a webpage makes visitors switch their focus —so, this is something to definitely not do. Stick social links at the bottom so the business’s potential clientele stays on its page as long as possible.

TOO MUCH INFORMATION

It’s important to not overload a website with a lot of words or images. Many first-time business owners who build websites think they need to put everything they know about the business on the front page. This is something to avoid. Businesses should just highlight what they do: Give the most important information about what the business does and move on. Breaking up what the business does into small subheads and paragraphs is a smart way to go. An even better way to simplify it more is to use bullet points to point out the business’s best services. Limiting any distraction a potential client can have will make them focus on the information the business owner wants them to receive.

Business owners who try to create a website themselves need to understand what information to place on their website and, more importantly, how to arrange it in a way that attracts customers. Others may choose to work with a reputable company to help them design their website. — Steve Comer, president and owner of Split One Technologies (www.splitone.com) a web-based software development company in Tempe, Arizona, focused on website development, search engine optimization and internet marketing

By focusing on social aspects, all the business owner is doing is inviting potential customers to go to another page — which they will most likely stay on and never return to the first website. Best to stay away from social media links.

SRP’s New Construction Program Encourages Sustainability and Cost Savings

by Erin Thorburn

Booming development throughout Phoenix makes having a partnership that encourages sustainability and lowering costs a major advantage for construction companies. Knowing this, Salt River Project created the New Construction Solutions Program to ensure project teams have the support needed to complete energy-efficient, sustainable and cost-effective buildings.

RYAN COMPANIES PARTNERS WITH SRP

Ryan Companies, a full-service real estate company, recently shared its experience with SRP’s new construction program and the benefits yielded from their partnership.

“Our goal is to build impactful projects for people to live, work and play in,” says Molly Carson, executive vice president and market leader of Ryan Companies’ Southwest Region.

SRP’s construction-tailored initiative aligns with Ryan Companies’ goal to create desirable and cost-effective projects, ultimately making them energy efficient for their clients as well.

“Who doesn’t love a rebate or trying to do the right thing working towards energy efficiency?” —Molly Carson

“SRP walked us through the rebate program, the process and benefits,” Carson explains.

To maximize overall cost savings, the SRP new construction program unites key stakeholders — building architects, engineers and building owners, as examples — early in the project design stage. Carson notes, “Our developers, property managers, accountants — everyone — got to hear the same thing at the same time, which makes things a lot easier and more streamlined on our side.”

Carson says that having a dedicated SRP Strategic Energy Manager added to the ease of the process, from learning about eligibility to rebate implementation. “The availability of a

human being is key — just being able to talk to someone if we had any questions was fantastic,” she says.

REBATE PATHWAYS AND PLUS-SIDES

SRP’s new construction program offers several rebates to encourage energy saving measures. Members of the Energy Design Assistance service team can receive up to $50,000 at $0.08 per kWh of verified savings. Design team rebates, ranging from $10,000 to $15,000 based on building size, help offset the costs of involving essential project members like owners, architects, contractors and engineers.

Ryan Companies recently worked with SRP for the Confluence project in Mesa, completing the last three of a nine-building project, taking advantage of the new construction rebate program.

“Who doesn’t love a rebate or trying to do the right thing working towards energy efficiency?” Carson asks, adding that rebate opportunities save the company thousands of dollars.

BUILDERS TO BUSINESS OWNERS: EVERYONE SAVES

Carson and her Ryan Companies team affirm that, by passing along energy savings, SRP’s construction program provides an advantage in that property managers can offer more competitive lease rates, benefiting tenants and attracting quality businesses.

Carson explains that this lifecycle enables Ryan Companies to “attract great businesses and be as competitive as possible.”

As for future demand of energy-efficient cost savings such as SRP’s new construction program, Carson closes with this: “I think it will only continue to grow. Together, we encourage, push and challenge each other to continue to rise up to these occasions in a manner where we can continue to attract great businesses and be as competitive as possible.”

Erin Thorburn is an accomplished editor, writer, journalist, photographer and illustrator with more than 20 years of experience. She is the founder and creative director of The Best of the Southwest Her work has appeared in multiple print and online publications including Az Business, AZRE, Experience AZ, PTK, SF Gate, Chicago Tribune, The Toronto Star and more.

For more information on how your project can benefit from SRP’s New Construction Solutions Program (including eligibility and participation information), contact your Strategic Energy Manager or our New Construction Administrator, Humayun Kabir, at (480) 7683905 or hkabir@ resourceinnovations.com.

To maximize overall cost savings, the SRP new construction program unites a project’s key stakeholders early in the project design stage.

Molly Carson

BUILDING ARIZONA BUILDING ARIZONA BUILDING ARIZONA

Critical strengths and challenges in our housing market

by RaeAnne Marsh

Metro Phoenix is the No. 3 housing market in the United States, according to Greg Vogel, founder and CEO of Land Advisors Organization, who cites data from the U.S. Census Bureau showing single-family and multifamily permits totaled 45,000 for the 12 months through September 2024.

Says Laura Ortiz, president of Evergreen Devco, “Demand, from a national perspective, continues to be hitting cycle highs; however, deliveries are still outpacing absorption.” Speaking of Phoenix specifically, she notes, “Phoenix is absorbing its supply, but still not quickly enough to maintain or grow occupancy rates or rents.” As this article was being developed, she shared that, in the Phoenix metropolitan statistical area, 2024 was tracking to be the most active year for new deliveries since the mid-1980s. “At this point in time, it does feel like we’re getting close to being able to pinpoint when supply and demand will be back to equilibrium.”

Currently, Metro Phoenix has 3.7 months of inventory (compared with 2.1 months in 2019), whereas the national figure is 2.9 months, according to Ali Wolf, chief economist for Zonda, the largest new home construction data company in North America.

Dan Richards, partner and co-founder of Greenlight Communities — a leader in providing attainable housing for renters with a range of incomes — credits the business-friendly environment as a factor in Phoenix’s continued strength in housing development. “However,” he adds, “like everywhere, developers face hurdles, including rising material costs, labor shortages and challenges in finding available land” — factors addressed separately in this article. “Meeting demand while keeping housing affordable requires careful planning and innovative solutions,” he observes.

“The Greater Phoenix housing market continues to thrive, driven by robust population growth and a high demand for diverse housing options, including multifamily, single-family, affordable and build-to-rent homes,” says James Attwood, division president of Tri Pointe Homes Arizona. He describes activity in several submarkets that, he says, reflect the Valley’s diverse and evolving housing landscape: Multifamily developments are experiencing low vacancy rates, while inventory constraints in the single-family market have driven up prices. Build-to-rent communities are expanding in suburban areas to meet the needs of renters seeking flexibility without sacrificing quality or community amenities. Suburban areas like Mesa, Chandler, and Glendale are seeing notable growth, offering a broad mix of housing. “Affordability,” he notes, “remains a critical issue, especially in urban centers like Phoenix and luxury markets like Scottsdale.”

Geographic Diversity

Richards cites North Phoenix, the East Valley and the West Valley as areas where new development is concentrated, explaining this aligns with access to jobs, infrastructure and affordability. Charley Freericks, Phoenix region president for Howard Hughes Holdings and Teravalis community, points out an additional reason the West Valley is booming: It has the land to accommodate growth for industrial, commercial and residential.

Vogel points out that the East Valley grew first because of jobs and transportation. Now, the West Valley is an industrial hub. In fact, he says, “The 303 is the hottest industrial growth in the country.”

Reporting that more than 25 multifamily projects broke ground in 2024, Ortiz says more than 80% of the build-to-rent units currently under construction in the Valley are west of I-17. Attesting to this popularity of BTR, she observes, “What’s interesting is, of the 12 multifamily projects west of I-17, only two of them are traditional garden apartments and the balance were all BTR.”

While the West Valley is reaping benefit of major economic projects such as the Loop 303 corridor, Richards notes that North Phoenix is growing quickly due to its proximity to major employers and convenient access to the I-17 and Loop 101 corridors, and the East Valley — home to cities of Chandler, Gilbert, Mesa and Tempe — “remains a hub for tech companies, healthcare providers and education, making it a desirable area for professionals and families.”

Salman Ahmad, co-founder and CEO of Mosaic — the national leader in BTR construction — names Southwest Phoenix, North Phoenix, Glendale, Avondale, Peoria, Surprise and Queen Creek as areas where suburban communities are being developed, and Buckeye, Maricopa, San Tan Valley and Apache Junction as areas where rural communities are being developed. But also, he notes, “Infill communities are being developed in or around the central portions of the city: Phoenix, Mesa, Chandler, Tempe and Gilbert.”

And Vogel points out that regional malls — Park Central and Metrocenter in Phoenix, Paradise Valley Mall, and Fiesta Mall in Mesa — are being redeveloped and repurposed to include housing.

The map of luxury is also geographically diverse. “When you think of luxury homes in Arizona, for years that has meant Scottsdale. Over the last couple years, the luxury market has shifted to areas all over the Valley,” says

The Edge at Joy Ranch, a 52-home luxury home community in North Scottsdale; photo courtesy of Camelot Homes

FirstStreet Ballpark Village , a 25+ acre community in Goodyear; photo courtsey of Harvard Investments

Kevin Rosinski, COO of Camelot Homes, addressing single-family luxury housing. “Camelot Homes has predominantly been a Scottsdale builder, but we are finding success now outside the Scottsdale market as well,” he says. He credits this expanded market to migration of businesses within Arizona as well as demand from remote workers. “With the growth of the 303 corridor as a major employment center, many executives are working in the West Valley. While, previously, you didn’t see many luxury homes in that area, the number of homes in the West Valley over $1 million increased 116% this year. I expect that number to grow even more in 2025. We’re seeing more luxury home growth in the North Central Phoenix corridor as well, with small infill communities and custom remodels. Paradise Valley will always be the kind of ultra luxury, and you still have large vacant lots where homeowners can design their dream home and build whatever they want.”

Relating that the average luxury buyer today is looking for a $3- to $5-million luxury production home, Rosinski notes, “There are a lot of $2 million plus homes being built in areas like Queen Creek.” It’s a market he expects to remain strong. “Arizona will continue to see migration to Arizona from states where home prices are higher, and there is a strong demand for luxury homes.”

The Single-Family Segment

Freericks finds single-family homes to be in high demand and says that will be a primary housing option available in Floreo, the first village in Teravalis, where Howard Hughes Holdings is currently partnering with seven leading homebuilders to develop homes. “Recently reported November housing numbers show that residential sales surged as listings increased some 13% with about 4,000 homes purchased, which is a good sign,” Freericks says.

New sales activity at entry-level and move-up in Phoenix is average, compared to national, according to Wolf — but high-end is significantly overperforming, as of October 2024. The strength of high-end home sales “correlates with the fact that Phoenix-Mesa-Chandler is the second-best area nationally for high-income job growth,” she notes.

At the same time, Richards points out the single-family market faces challenges. “High home prices and rising mortgage rates have made ownership less attainable for many, pushing more people into the rental market. Affordable housing is particularly hard to find as increasing construction costs and limited land make it difficult for developers to deliver cost-effective options.”

Still, the number of spec homes per community rose significantly in 2022/2023, according to Wolf. Adding, “More than 90% of spec homes include incentives from the builder,” she explains that, normally, it is 54% more expensive to own a home than to rent but, now, it is 97% more expensive, “but buydowns lower the gap to 57%.”

John Carlson, president of Mark-Taylor, the largest multifamily housing developer in Arizona, points out, “The single-family for-sale market is undersupplied, with high prices and interest rates making homeownership less attainable. As a result, 2024 turnover is the second lowest on record behind 2021.”

The Rental Market

“The Greater Phoenix area is growing rapidly, with around 65,000 new residents expected to move here annually over the next five years,” Richards says “To meet this growth, the region will need about 25,000 new housing units each year. Of those, around 40% will need to be rental housing — about 10,000 units annually, a mix of multifamily and build-to-rent options.”

Wolf’s analysis of the figures has led her to the conclusion: “There is more demand to rent than buy.”

Carlson believes we’re at the epicenter of build-to-rent and single-familyrental product, attracting families and expanding the renter demographic.

“Families are willing to rent these private, detached homes while awaiting better homebuyer conditions,” he says. “The asset type is helping to offset the low single-family housing supply.”

“The Phoenix market does not have a demand problem, which is a great thing,” says Tim Brislin, president of Scottsdale-based Harvard Investments, which specializes in residential, office and industrial development in the Southwestern U.S. “What we have are supply and mortgage financing problems — both contributing to affordability issues.” He notes that, while supply on the resale side is loosening up a bit, the resale market supply overall is still at historic lows.

The rising cost of homeownership is driving the continued strong demand for multifamily housing, says Richards. “Many people are renting longer, whether by choice or necessity, which has also fueled the popularity of build-to-rent communities. These neighborhoods offer the feel of singlefamily homes but without the financial commitment of buying, making them especially attractive to families or those seeking more space and privacy.”

Says Carlson, “Phoenix MSA remains a strong, stable national rental market due to high demand and low turnover, despite economic headwinds and the current influx of supply.”

The Multifamily Segment

Addressing that “influx of supply,” Carlson notes, “In Phoenix, we’re experiencing supply outpacing demand in multifamily housing for the first time since 2009-2011, creating a renter-friendly, high-incentivized environment.” He reports that more than 22,341 units were delivered in 2024 and another approximately 23,500 units are expected to deliver in 2025, with the West Valley and Downtown submarkets facing the highest saturation.

Carlson expects recovery from oversupply to vary geographically, with economic indicators pointing to increased stability by 2027. “Overall, Phoenix endures as a national leader for growth in multifamily housing for many years to come,” he says.

Attainable housing is a hot topic in today’s market and Greenlight Communities addresses what Richards describes as “an essential need in the market” with multifamily product that follow employment corridors. “Our developments are designed for the workforce that keeps the region running — teachers, first responders, healthcare workers, military personnel and service industry employees — groups that often struggle to find housing near their workplaces.”

One of the budget-conscious Streamliner communities; photo courtesy of Greenlight Communities

The Build-to-Rent Segment

Observing that BTR properties continue to do very well, Rosinski explains, “When you compare the cost to rent with a mortgage payment at today’s high interest rates, renting still costs less, driving rental demand. SFR communities provide the experience of being in a house and give families the opportunity to either save for a future home purchase or wait it out until rates go down.”

While most BTR companies are building on the outskirts of Phoenix, where land prices are lower, Camelot Homes is investing in build-to-rent communities in higher demand areas “within the loops” of the 101, 202 and 303, says Rosinski. “We look for infill projects in highly desired areas and we build a more luxury, higher-end rental home option than most BTR builders.” Camelot homes is currently partnering with The Bower Group on the Willo Lofts community at 3rd Street and Virginia, and building BTR communities in the Southeast Valley and South Scottsdale.

Within the strong demand for BTR, more options are available to this tenant pool than earlier in this economic cycle, according to Ahmad. “Builders’ starts reached a sector high in 2021 and 2022, and those projects began leasing in 2023 and 2024,” he says, and notes a similar situation occurred in the multifamily segment, with fierce competition for new leases. “This is playing out in decreases in rent growth, increased incentives and softness in the sector for new project starts,” he says. “We expect this trend to reverse in the latter part of 2025 as new supply is absorbed with fewer new projects coming online to service the strong demand.”

Single-family detached, attached townhomes and horizontal cottagestyle apartments are the three main sectors within the BTR sector and Ahmad explains each product type targets a different consumer segment, with the primary differentiators being cost, bedroom count, detached vs. attached living and community amenities. “Infill locations tend to skew to higher density (horizontal cottage-style apartments and townhomes) with fewer amenities, given the availability of existing services within a community (think a gym nearby or a city park.) Suburban communities tend to include a mix of all three BTR product types, which are biased towards more community amenities. Rural communities on the periphery tend to include larger product types (townhomes and single-family homes) catering to families wanting to live in or near a master-planned community with space to raise their children.”

Harvard FirstStreet has responded to the unprecedented growth in the West Valley with two luxury, single-family rental communities: FirstStreet Ballpark Village in Goodyear and FirstStreet Skyline in Buckeye. Ballpark Village is situated off the I-10 on Estrella Parkway in the shadow of — as the

name would imply — Goodyear Ballpark. The 25-acre community features 251 single-level homes, with five floor plans showcasing one, two and three-bedroom homes. FirstStreet Skyline, located at the southwest corner of Sienna Hills Parkway and McDowell Road in Buckeye, broke ground in July and will comprise 222 units on 23 acres at full build-out. “We are excited to bring amenity-rich, build-to-rent communities to the West Valley. These communities offer a unique blend of luxury living and vibrant amenities, catering to modern families and individuals seeking a high-quality rental experience,” says Robert Trujillo, vice president of Harvard First-Street.

LAND TO BUILD

“The availability of land for multifamily development in the Phoenix area largely depends on utilizing undeveloped parcels, as well as occasional opportunities for infill or redevelopment of existing properties,” Richards says. “However,” he adds, “most future multifamily projects will require navigating the entitlement process, particularly when working with undeveloped land.”

Noting the challenges of the entitlement process vary by municipality, Richards explains the process involves securing necessary zoning and municipal approvals, which can take anywhere from 6 to 12 months, with some areas offering more streamlined procedures than others. Success rates depend on factors such as local policies, community support and infrastructure availability. Because these steps add time to the development timeline, it could take an additional two to three years after a project has been approved before construction is complete and residents can move in.

“This timeline underscores the importance of strategic planning and long-term vision in meeting the housing needs of the Valley’s growing population,” says Richards. “It also highlights the necessity for partnerships between developers and municipalities to ensure that future housing projects can move forward efficiently while addressing community needs.”

Discussing land for multifamily development in Metro Phoenix, Richards notes availability differs significantly across different regions and describes the opportunities and challenges unique to each:

• North Phoenix: Much of the available land for development consists of undeveloped parcels that require entitlements. This area is seeing rapid growth, but navigating zoning and approval processes can be complex due to the region’s evolving infrastructure and community considerations.

• East Valley: This area, which includes cities of Chandler, Gilbert and Mesa, has limited undeveloped land remaining. Most opportunities here are focused on infill projects or the redevelopment of underutilized properties.

Aerial of Teravalis Amenity Center with Reclaimed Water View at Teravalis master-planned community in Peoria; photo courtesy of Howard Hughes

While these projects can revitalize established neighborhoods, they often face stricter zoning restrictions and heightened competition for available parcels.

• West Valley: This area, which encompasses cities such as Goodyear, Avondale and Buckeye, offers some of the most affordable and plentiful undeveloped land. This region is primed for large-scale developments, but entitlement processes still vary widely by municipality, potentially impacting timelines for new multifamily projects.

Looking at the build-to-rent segment, Ahmad believes the West Valley will lead the metropolitan statistical area in new project starts, “given the supply of available land and the growth orientation of planning and development departments and City Councils within those jurisdictions.”

Although he notes many infill BTR projects have been delivered or are in the pipeline, he points out the smaller unit counts of an infill community (8–20) versus a suburban community (150–250) reduces their impact on the overall housing supply. “Many projects are near the end zone in the planning process; however, they’re unable to get into the end zone, with high interest rates impacting the viability of their projects. We expect these to commence construction in the middle-to-end of 2025.”

Although the bulk of BTR development activity is occurring in the West Valley, Ahmad notes there is also strong new development activity in North Phoenix along the I-17 corridor, with many developers expecting to serve TSMC and their supplier’s employees.

Attwood describes opportunities for undeveloped land and in-fill locations in places like Chandler, Gilbert and Queen Creek as becoming increasingly scarce and highly competitive. As a homebuilder, he says, “These have been integral to Tri Pointe’s success in recent years.” He observes that, while some opportunities remain, demand is pushing developers to explore alternative solutions and believes state land auctions represent some of the most promising avenues for securing prime development parcels.

“There is, technically, land everywhere, but it depends on what price and if you can make it pencil,” says Rosinski. The homebuilder notes, for example, North Scottsdale can be tricky because most lots are three and a half acres “and it’s difficult to get them rezoned into smaller parcels.”

Developer Howard Hughes Holdings went west for its current project,

Teravalis, which encompasses 37,000 acres on the west flank of the White Tank Mountains in Buckeye. Teravalis will be in development over the next several decades and will become Arizona’s largest master-planned development. Its first village, Floreo, is slated for a grand opening this year.

“The City of Buckeye, alone, has hundreds of thousands of acres still undeveloped,” Freericks says, observing that Queen Creek, Peoria and others also have ample acres for growth. However, he notes, “It is not really about the availability of land. It is the supply of zoned land with access to water and all the infrastructure required to deliver housing and commercial uses.” Of his own project, he says, “We are full-steam-ahead with our first village of Floreo at Teravalis as we have the assured water supply necessary for the projected 8,500 homes that we are building over the next decade.”

[Editor’s note: A discussion of water and additional issues impacting housing development is included in the expanded version of this article available online at www.inbusinessphx.com.]

IS SUPPLY CHAIN STILL AN ISSUE?

“The supply chain has steadily improved over the past 12 months but still has a ways to go to get back to pre-pandemic efficiencies,” says Ortiz. In some cases, Ahmad shares, supply chain issues are being addressed

San Sonoma, luxury apartments in South Tempe; courtesy of Mark-Taylor

with changes in how power is designed for projects. “Generally, it’s a known issue,” he says. “It has surfaced as a critical path item that builders and developers focus on earlier in their projects’ life cycle.”

The delay in procuring electrical gear and panels was cited specifically by Ortiz, Ahman and Richards as the most significant supply chain challenge impacting development and construction today. Noting that, for commercial electrical equipment, delivery timelines can extend beyond 60 weeks, Richards explains this creates a bottleneck in the construction process. “This delay affects critical project milestones, particularly inspections and final approvals, which depend on the availability and installation of these components. As a result, these disruptions can push back the overall timeline for project completion and occupancy,” he says.

Shortages of raw materials, production backlogs and logistical challenges are among the global supply chain constraints Richards cites as he notes electrical manufacturers have not presented a clear solution to address these delays. “Developers and contractors are working to adapt by ordering materials earlier in the construction timeline or seeking alternative suppliers, but these are stopgap measures rather than permanent fixes,” he says. “Until the supply chain stabilizes, the industry will need to remain flexible and proactive in managing timelines and expectations.”

Making a comparison to the challenges of the past few years, Attwood is finding supply chain disruptions almost non-existent. “While occasional product shortages or substitutions still occur, they are manageable and have had minimal impact on our business operations,” he says. On the land development side, some challenges remain, but we’ve been able to navigate these issues effectively to keep projects on track. Overall, the supply chain landscape has vastly improved, providing greater stability in our industry.”

That is not the end of the matter, though, as Carlson points out. “The bottleneck of supply chain issues related to the pandemic has been mostly removed; however, the effects are shown in the increased supply: Construction deliveries are cresting as delayed and on-track deliveries overlap,” he says. Reporting that the expected peak of excess inventory has shifted from the third and fourth quarters of 2024 to those periods this year, Richards says, “Although absorption numbers improved in the second half of the year, they were still below the historical average, which raises concerns as supply continues to grow.”

Supply chain issues also overlap workforce issues. “During the height of the of supply chain disruptions, the industry faced inefficiencies caused by delays in material availability, which created a stop-and-start workflow that strained the labor pool,” Attwood explains. Observing that the residential construction labor market is currently in a much healthier position compared

to previous years, Attwood says, “With supply chains stabilizing, we’ve seen a significant improvement in efficiency and in the workforce, allowing construction schedules to normalize and making it easier to attract and retain skilled labor. This improvement has been a welcome development for both our company and the broader industry.”

WHERE’S THE WORKFORCE?

Labor is always a cyclical issue in Arizona because labor can move to where the demand is — and it does, Freericks points out. He credits the State of Arizona and others for building capacity in trade programs but, he says, “That is more of a longer-term solution, so we still experience shortages.” And adds, “Threatened changes in immigration policies are causing concerns among many of our trades.” In fact, there’s increased competition for labor from other sectors, Richards points out.

Plus, the average age of construction craftsmen continues to rise, Ahmad points out. “Construction work has continued to fail to attract the next generation of workers given the nature of the work and the pay relative to other alternatives.” Observing that immigration has, historically, been a tool to address this, he notes, “There is a lot of uncertainty around immigration policy today and if it can help increase labor availability for construction.”

“Labor remains tight in the Phoenix MSA and continues to have an impact on the ability of subcontractors to hold pricing,” Ortiz says, adding, “In many cases we are seeing ongoing increases.” She cites statistics from the Bureau of Labor: In September of 2006, there were 181,000 people in the MSA employed in the construction industry, while there were 1.903 million people in the total workforce. Fast-forward to September 2024, and the

Whispering Hills backyards; photo courtesy of Tri Pointe Homes

Tri Pointe Homes' Waterston Central Models Avocet and Canastero Elden; photo courtesy of Dustin Revella

Phoenix MSA has 9,000 fewer people (down to 172,000) employed in the construction field, while our workforce sits at 2.46 million people. “If this trend in the reduction of skilled labor is not reversed, costs and delays will continue to impact our industry. It is a critical issue.”

Rosinski estimates a 30–40% shortage in what the industry needs to produce the number of permitted homes every year, with no easy fix. “Labor is also one of the most difficult challenges to solve because we can’t just enact a policy or flip a switch and have 10,000 new construction workers overnight. It will have to be incremental.”

He believes the industry has done a good job of promoting careers in construction but has faced the challenge of how to easily train someone interested in a career. “Locally, the industry decided to tackle that training by starting the Home Building Academy through the Home Builders Association of Central Arizona. At the Academy, we offer nine weeks of tuition-free training for anyone interested in getting into homebuilding. This includes training in plumbing, HVAC, roofing and framing; at a facility in Phoenix, those interested in the construction industry receive teaching, training and certifications to get into the industry.

“It’s not an immediate solution, but we are working to generate interest and feed the pipeline — from those in high school and those with college degrees who may be interested in learning the skills and eventually becoming business owners in the construction industry.”

Rosinski reports that, through November 31, 2024, the Academy has had 406 students enroll, with 357 attending at least one day of class. Of the 357 students that have started classes 212 (65%) have graduated and 145 have been placed with employers. There are about 36 students currently enrolled, and 64 students actively onboarding for the next cohort enrollment.

“While labor shortages have been a challenge for the construction industry as a whole, Greenlight Communities has managed to sustain

adequate subcontractor labor to keep its projects on schedule,” Richards says. He attributes this stability to strong relationships with local subcontractors and a focus on maintaining consistent work pipelines, which help ensure a reliable workforce, and maintaining efficient project timelines to avoid disruptions. For the industry at large, he believes there is a need to focus on workforce development initiatives — such as apprenticeship programs and/or partnerships with trade schools, for example — to build a stronger labor pool for the future.

Ahmad brings a different experience to the discussion, relating that Mosaic has not seen any considerable shifts in labor availability other than during the first few years of the COVID-19 pandemic. In fact, he says, “We have seen an increase in the availability of subcontractors resulting from a slowdown in new project starts in both the BTR and multifamily segments. This benefits projects starting today as there’s a broader range of qualified subcontractors to work with in addition to emerging gaps in their pipelines of work, and can result in better costs or schedules.”

Brislin, noting that homebuilders are seeing their build times return to a more typical six- to eight-month cycle time, down from a one-year-plus post pandemic, says, “Right now, we’re not hearing as much from our trade partners about labor or material shortages being major concerns. There are still some challenges on the horizon that may materialize as the new administration comes into office in 2025.”

[Editor’s note: A discussion of water and additional issues impacting housing development is included in the expanded version of this article available online at www.inbusinessphx.com.]

Camelot Homes camelothomes.com

Evergreen Devco evgre.com

Greenlight Communities livegreenlight.com

Harvard FirstStreet hillcompanies.com/our-companies/harvard-investments-inc

Harvard Investments hillcompanies.com/our-companies/harvard-investments-inc

Howard Hughes Holdings howardhughes.com

Land Advisors Organization landadvisors.com

Mark-Taylor mark-taylor.com

Mosaic joinmosaic.com

Tri Pointe Homes Arizona tripointehomes.com

Zonda zondahome.com

Night view at Estrella, master-planned community in Goodyear; photo courtesy of Harvard Investments

Teravalis Community Entrance; photo courtesy of Howard Hughes

Why AI and Digital Assets Are Linked

AI and digital assets share decentralized, transparent and opensource traits, making their connection natural for reshaping traditional paradigms.

Decentralization:

Blockchain’s distributed ledger system eliminates the need for intermediaries, just as AI increasingly leverages decentralized computing power to enhance scalability and efficiency.

• Open-source development: Both fields benefit from open-source ecosystems, which fosters collaboration but raises concerns about misuse and security risks.

• Data integrity and security: Blockchain’s immutable ledger offers a robust solution for ensuring data integrity, which is critical for training AI models.

• Global reach: Both AI and digital assets operate beyond national borders, raising challenges around jurisdictional regulations and compliance.

David McCarville is a legal technologist and partner at Fennemore, the fastest-growing AMLaw 200 law firm in the country, where he chairs Fennemore Labs, the firm's technology committee. He is also an adjunct professor at the Sandra Day O'Connor College of Law at ASU, where he teaches a course on blockchain and cryptocurrency law. fennemorelaw.com

The New Administration’s Impact on AI and Digital Assets

What business owners need to know

by David McCarville

AI and digital assets are undergoing rapid transformation, with significant changes expected under the new administration. With the appointment of David Sacks as the new AI and Crypto Czar and the resignation of Gary Gensler from the Securities and Exchange Commission, these developments signal a shift in how the federal government plans to regulate and support these groundbreaking technologies.

DAVID SACKS: LEADING A UNIFIED APPROACH TO AI AND CRYPTO

Sacks’ appointment reflects the administration’s recognition of the interconnectedness of technology and blockchain because Sacks is a seasoned entrepreneur in both areas. With a deep understanding of decentralized systems and opensource innovation, Sacks is expected to champion policies that balance innovation with necessary safeguards.

Sacks’ appointment signals a pivot from the historically fragmented regulatory approach, where AI and cryptocurrency were often treated as distinct domains. His mandate includes fostering collaboration between industry stakeholders and government agencies, streamlining regulatory frameworks, and promoting U.S. leadership in these critical areas.

U.S. DOLLAR-DENOMINATED STABLECOINS AND PAYMENT INNOVATIONS

The new administration is set to clarify rules for U.S. dollardenominated stablecoins, paving the way for their broader use in payments. Stablecoins are digital assets designed to maintain a stable value by being pegged to a reserve asset, such as the U.S. dollar. These assets combine the efficiency and speed of blockchain-based transactions with the reliability of traditional currencies, making them a compelling tool for modern payment systems.

Regulatory clarity is expected to establish clear standards for the issuance, management and use of stablecoins, particularly for payment purposes. This clarity will likely address concerns around consumer protection, reserve backing and financial stability, enabling stablecoins to be seamlessly integrated into the broader financial system.

For businesses, the adoption of stablecoins as a payment method offers several advantages:

• Faster transactions: Stablecoins can facilitate nearinstantaneous payments across borders, reducing the time delays often associated with traditional banking systems.

• Lower costs: By bypassing intermediaries such as banks and payment processors, stablecoins can significantly reduce transaction fees, especially for international payments.

• Improved cash flow management: Stablecoins enable real-time settlement, allowing businesses to access funds

immediately and improving liquidity management.

• Increased financial inclusion: Businesses operating in regions with limited access to traditional banking infrastructure can leverage stablecoins to expand their customer base and streamline operations.

BITCOIN AS A TREASURY ASSET

Bitcoin, despite stablecoin advancements, remains uniquely positioned as a strategic asset for businesses. As the first and most prominent cryptocurrency, Bitcoin has evolved beyond its initial use case as a decentralized peer-to-peer payment system. Today, it is increasingly viewed as a store of value and a potential hedge against inflation, similar to gold.

Regardless of whether the U.S. government adopts Bitcoin as part of a strategic reserve, private companies are beginning to emulate the approach of MicroStrategy and other pioneers by diversifying their treasury holdings to include Bitcoin. Businesses that allocate a portion of their treasury to Bitcoin benefit from several potential advantages:

• Inflation hedge: Bitcoin’s fixed supply of 21 million coins makes it a deflationary asset, offering protection against the erosion of value caused by inflation.

• Portfolio diversification: Holding Bitcoin can reduce risk by diversifying a company’s treasury portfolio beyond traditional fiat currencies and assets.

• Enhanced liquidity and accessibility: Bitcoin operates 24/7 on a global scale, allowing companies to access liquidity and settle transactions outside of traditional banking hours.

• Market leadership and innovation: Adopting Bitcoin signals to stakeholders that a company is forward-thinking and prepared to embrace innovative financial strategies.

NFTS AND THEIR POTENTIAL COMEBACK

Non-Fungible Tokens faced challenges due to regulatory uncertainty but hold significant potential in the collectibles and sports trading card markets. NFTs are poised to make a strong comeback, but their resurgence in these markets hinges on clear regulatory guidelines that distinguish them from securities.

NFTs represent unique digital assets that are verified on the blockchain, making them ideal for collectibles and trading card applications. In the sports market, NFTs can revolutionize the way fans engage with their favorite teams and athletes. For example, college athletes, leveraging their Name, Image and Likeness (NIL) rights, could use NFTs as part of their revenue generation strategies.

• Enhancing fan engagement: NFTs allow fans to own exclusive digital memorabilia, such as game highlights, autographed digital collectibles or limited-edition trading

As the first and most prominent cryptocurrency, Bitcoin has evolved beyond its initial use case as a decentralized peer-to-peer payment system. Today, it is increasingly viewed as a store of value and a potential hedge against inflation, similar to gold.

cards. This creates a direct connection between athletes and their supporters.

• New revenue streams for athletes: College athletes can mint and sell NFTs tied to key career moments, personal branding or exclusive experiences. By doing so, they can generate income while maintaining control over their intellectual property.

• Transparency and authenticity: Blockchain technology ensures the authenticity and provenance of NFTs, reducing issues of counterfeiting and fraud common in traditional collectibles markets.

• Expanding market opportunities: As NFTs become more accessible, businesses operating in sports merchandise, gaming, and entertainment can explore partnerships with athletes to create co-branded NFT products, reaching a broader audience.

IMPLICATIONS FOR BUSINESS OWNERS

Business owners face both challenges and opportunities as the policy landscape evolves. Understanding the shared characteristics of AI and digital assets can help businesses anticipate how regulatory changes might impact their operations:

• Streamlined compliance: A unified regulatory framework could simplify compliance processes, reducing the burden on businesses that utilize both AI and blockchain technologies.

• Innovation incentives: Policies aimed at fostering innovation, such as tax incentives or grants for AI and blockchain startups, could create new opportunities for growth and investment.

• Enhanced payment systems: The adoption of stablecoins for payments can create more efficient and cost-effective financial transactions, benefiting businesses that embrace these technologies early.

• Treasury management strategies: Diversifying treasury holdings to include Bitcoin can provide an inflation hedge and signal a commitment to financial innovation.

• Revenue opportunities with NFTs: Clear regulatory guidance on NFTs can unlock new revenue opportunities for businesses in sports, entertainment and collectibles markets.

• Increased accountability: Enhanced data security measures and transparency requirements could improve consumer trust, benefiting businesses that prioritize ethical practices.

AI’S POSITIVE IMPACT ON BUSINESSEs

AI is transforming industries by significantly increasing efficiency and reducing operational costs. Early adopters of AI technologies can gain a competitive advantage by automating repetitive tasks, improving decisionmaking through data analysis and enhancing customer experiences. These innovations not only reduce expenses but also enable businesses to capture greater market share by delivering faster, more personalized services.

The rise of AI also supports the growth of “little tech” companies — small and mid-sized firms leveraging AI to develop niche solutions and disrupt traditional markets. By democratizing access to advanced tools, AI empowers these companies to compete with larger players, fostering an innovative and dynamic economy.

LOOKING AHEAD

The new administration aims to position the U.S. as a leader in AI and digital assets by fostering innovation and streamlining regulations. By recognizing the interconnected nature of these fields, providing regulatory clarity around stablecoins and NFTs and supporting Bitcoin’s adoption as a treasury asset, policymakers are paving the way for a more cohesive and supportive regulatory environment.

Beyond No

This thought-provoking book explores of the concept of resistance — something that is bound to arise within every organization in response to new projects, policies or initiatives. Rather than seeing resistance as an inconvenience that needs to be eliminated, this book invites readers to take a new approach to different types of resistance, both hidden and obvious, and instead view resistance as a guiding light to discover objective differences, dissatisfaction, criticism of procedures or different assessments or values. Beyond No earns a well-deserved spot on the bookshelves of all business leaders, executives and managers seeking to achieve excellence in leadership through a thoughtful approach to resistance instead of relying on ineffective command-and-control tactics.

Beyond No: Harnessing the Power of Resistance for Positive Organizational Growth

Erik Nagel

Wiley

Available 2/11/2025

Changemakers Wanted

$30

256 pages

Changemakers Wanted is an inspiring guide for female professionals across all industries who are ready to challenge the status quo and drive meaningful societal change. Danaya Wilson, a visionary leader with more than 17 years of experience, shares her personal transformative journey from battling anxiety to becoming a powerful advocate for ethical leadership and social reform. Inside, she reframes the question “what if” to tackle critical issues such as the childcare crisis and the need for more equitable employee benefit plans. Changemakers Wanted is a must-read for aspiring entrepreneurs, established professionals and anyone seeking to make a significant impact in their field. Danaya’s comprehensive approach provides readers with the tools and inspiration needed to rise above challenges and lead with confidence and purpose.

Changemakers Wanted: Your Blueprint for Lasting Impact and Ethical Change

Danaya Wilson

Forbes Books

Available 2/18/2025

Designing for Diversity

$49.95

232 pages

Organizations are keen to recruit and retain a diverse workforce but the talent management processes in place are often biased. Talent Management processes need to be fair, equitable and inclusive and, most importantly, they need to be designed with diversity in mind. This book has the answer. Designing for Diversity shows organizations how to rethink their talent management structures, processes and activity so that all employees are supported to develop and progress, not just a select few. It explores each element of talent management from performance management systems and talent identification methods through to talent development and promotion processes. This book also examines the limitations of target setting and the benefits of both formal and informal mentoring. The final part of the book is a full action plan.

Designing for Diversity: Developing Inclusive and Equitable Talent Management Processes

Binna Kandola

Kogan Page

$40

Available 2/25/2025 176 pages

Non-Fungible Tokens are poised to make a strong comeback, particularly once regulatory clarity confirms they are not categorized as securities

Tyler Graves is an Arizonabased bond director with Marsh McLennan Agency, providing oversight of the local brokerage’s bond department and handling client surety needs. With more than 15 years of experience in the financial industry, including the last decade specializing in construction surety, Graves crafts creative, effective solutions tailored to his clients’ diverse business challenges. marshmma.com

Surety Bonds: A Key to Managing Construction Risk in 2025

Ensuring projects meet specifications and honor commitments by Tyler Graves

As Arizona continues to experience rapid population growth, the construction industry is a critical player in accommodating the evolving needs in the state — from new commercial projects and infrastructure developments to housing community demand.

And while this economic activity is ultimately a good thing, it also brings with it increased risk and a high bar for quality, budget and timelines. Add to that other market dynamics like labor shortages, rising material costs and supply chain disruptions, and construction industry leaders may find themselves in a difficult and pressurized predicament.

With so much at stake, risk management tools like surety bonds have become more essential than ever to safeguard all parties involved.

SURETY BONDS: A RISK MANAGEMENT IMPERATIVE

Surety bonds are legally binding agreements involving three parties: the principal (contractor), the obligee (project owner) and the surety (insurer). In essence, a surety bond is a guarantee from the insurer/surety that the contractor will fulfill its obligations.

Sureties conduct a thorough prequalification of contractors before issuing a surety bond. During this process, the project owner’s financials, past project history and management processes are all investigated and must meet rigorous requirements to qualify. After the surety bond is granted to a contractor, the surety continues to monitor the contractor’s performance and ability to meet high-quality standards.

These bonds come in different shapes and sizes depending on project needs and goals, including:

• Payment bonds: Protects a project owner from liens against the property, guaranteeing a contractor will pay subcontractors and suppliers as agreed.

• Bid bonds: During the bidding process, guarantees a contractor will enter into the contract and follow through on job completion as bid.

• Performance bonds: Ensures a contractor will complete work in alignment with the construction contract and protects project owners in the event of a contractor default.

Each bond type serves a specific role in safeguarding a project’s integrity and all work to ensure projects meet specifications and honor commitments.

This doesn’t just benefit project owners — it also provides necessary stability to contractors. That includes protecting them from the possibility of owners severing a contract midproject, offering assurance that contract terms will be honored with mitigated risk and aiding new construction businesses in meeting quality and performance standards.

ADVANTAGES OF BONDED WORK

Beyond monetary benefits, surety bonds contribute to construction industry stability and offer several key advantages:

• Guaranteeing project completion: If a contractor defaults on a project, a surety bond financially compensates the project owner or covers a new construction company to finish the remaining work.

• Providing capable and qualified contractors: Project owners can rest easier knowing a bonded contractor has gone through the process of qualifying for a bond, which can be rigorous.

• Cultivating trust and confidence: Since bonded projects protect from delays and costly impacts, investors, stakeholders and clients often feel more secure in project completion compared with unbonded projects.

WHY SURETY BONDS ARE CRUCIAL IN 2025

Forecasts of the construction industry heading into 2025 balance optimism with caution. As of July 2024, The American Institute of Architects (AIA) reported construction financing rates run between 4.25% and 4.5%.

Since then, the Federal Reserve has begun to implement rate cuts — a change welcomed by construction leaders who are eager to see lower borrowing costs and more construction activity. Even so, leaders noted that lower rates are only one piece of the puzzle, and the full impact will take time to materialize.

Another major factor: cost of materials. According to a September analysis by Associated Builders and Contractors (ABC), construction input prices rose slightly in August. Despite that, ABC reported overall construction input prices were 0.7% lower than the year prior, and nonresidential construction input prices were down by 0.9% — a possible sign of stabilization.

On the labor market front, ABC reported signs of loosening in November, while September U.S. Bureau of Labor Statistics data showed a decrease in construction unemployment rates across 21 states compared to September 2019. This suggests a mixed landscape where overall hiring may be slowing, but certain states are seeing improved employment within construction. These dynamics underscore the importance of surety bonds in maintaining project stability and mitigating risks tied to workforce fluctuations.

All told, surety bonds are key to navigating common construction risks and today’s complex market nuances, as well as the associated potential legal ramifications and reputational damage when projects go awry.

When a contractor defaults on an unbonded construction project, the cost of completion is 85% higher than on projects protected by surety bonds, according to “Surety & Fidelity Association of America, EY Value of Surety” survey.” Unbonded projects are also approximately 10 times more likely to default than their bonded counterparts.

2024 Legislation No Longer in Effect

Two major changes in employment law implemented in 2024 have since been blocked: the FTC’s ban on noncompete agreements and the increases to exempt salary threshold and overtime requirements.

Read the digital article at www.inbusinessphx.com for a complete summary.

New Employment Laws Affecting Arizona Businesses

A glimpse into 2025

by Haley A. Harrigan

The year 2024 was one of the most active ones for federal and state agencies in passing workplace legislation — many of which created new compliance obligations for employers. Although 2025 does not currently have as much on the agenda, there are some key changes that may affect various businesses. Here is a preview of what employers should expect in 2025.

STATEWIDE MINIMUM WAGE INCREASE

Effective January 1, 2025, Arizona’s minimum wage increased by 35 cents — from $14.35 to $14.70 per hour — as per The Fair Wages and Healthy Families Act, which requires Arizona’s minimum wage to increase yearly based on the cost of living.

Employers should also be aware of local minimum wage requirements, as several Arizona municipalities have independent minimum wages. Flagstaff increased its minimum wage to $17.85 per hour, and Tucson increased its minimum wage to $15.00 per hour, both effective January 1, 2025.

While certain employees and employers are exempt from the state’s minimum wage requirements, it’s important to note that even if exempt, employers may still be subject to the federal minimum wage of $7.25 per hour, unless a higher state or local minimum wage applies.

Employers should display the updated 2025 Minimum Wage poster in a place that is accessible to employees.

Haley Harrigan is a shareholder at Gallagher & Kennedy. She represents and counsels individuals, small businesses, franchised operations and large companies on a wide range of employment and business disputes, and litigates matters spanning labor and employment, commercial litigation and general liability. She serves as chair of the firm’s employment and labor law department. gknet.com

FTC BANS FAKE AND OTHER MISLEADING REVIEWS AND TESTIMONIALS

Last year, the Federal Trade Commission announced a final rule banning fake reviews and testimonials in order to combat deceptive practices. In short, it prohibits using reviews and testimonials from someone who does not exist or have actual experience with the business and prohibits businesses from providing compensation or other incentives conditioned on writing reviews. Further, it prohibits companies from using legal threats, intimidation or false accusations to prevent or remove a negative review.

Effective October 21, 2024, the rule allows the FTC to seek civil penalties and monetary remedies up to $51,744 per rule violation against those engaging in false and misleading practices relating to online reviews.

Companies should evaluate their contracts (such as those with influencers and affiliates) and update their policies and terms to ensure current marketing practices comply with the final rule. Professional counsel can train legal and marketing teams on these issues and enhance compliance with the nuanced rules.

BACKGROUND CHECK AND VERIFICATION REQUIREMENTS FOR HOMECARE WORKERS

Arizona recently passed HB 2764 requiring the Arizona Department of Health Services to implement stricter standards and oversight for nursing care institutions, residential care institutions and home health agencies, particularly memory care services. The new legislation makes it easier to report such conditions, doubles penalty fines and provides additional resources to deny certain proposed actions by health care institutions if they are not in compliance with the licensing requirements or pursue legal action against facilities that violate the required standards.

Beginning January 1, 2025, home care employers are prohibited from hiring anyone listed on the Adult Protective Services registry. Employers must conduct registry verification checks for all new prospective employees and contact an applicant’s previous employers to obtain information relevant to the applicant’s fitness to work in the healthcare institution.

By March 31, 2025, home care employers must verify that each current employee is not on the APS registry, and are required to annually re-verify this for each employee and terminate any employee who is found to be on the APS registry.

Effective June 30, 2025, assisted living facilities providing memory care services must be licensed to provide memory care services and maintain the minimum continuing education and training standards.

Arizona healthcare employers should update their hiring and screening policies to make sure they comply with these requirements.

TRENDING LEGISLATION

A major recent trend is statewide attempts to regulate artificial intelligence use in the workplace. Several states recently proposed or implemented regulations intended to mitigate the risk of algorithmic discrimination arising from an employer’s use of an AI system. Arizona could be next.

Employers should take note and consider implementing policies to regulate the use of AI, including how AI systems communicate, make employment and hiring decisions, and use employee data.

NEXT STEPS FOR 2025

Now is the time leaders ensure their business complies with today’s rapidly changing employment and labor laws.

From minimum wage increases to new pay transparency requirements, employers have a lot to keep track of to stay ahead of the curve.

Effective October 21, 2024, there is a rule in place that allows the FTC to seek civil penalties and monetary remedies up to $51,744 per rule violation against those engaging in false and misleading practices relating to online reviews.

Big Brothers Big Sisters of Central Arizona empowers youth through oneto-one mentoring relationships, helping children ages 6 to18 in Maricopa and Pinal counties realize their potential and achieve their futures. With a vision that all youth reach their full potential, BBBS fosters higher aspirations, greater confidence, better relationships, success in school and avoidance of risky behaviors.

Partnering with parents, guardians and community members, BBBS creates meaningful connections that leave a lasting legacy for children and their mentors alike. bbbsaz.org

Windows of Impact: Renewal by Andersen’s Commitment to Community

Through compassion and connection, building a brighter future one family at a time

by Tyler Butler

Renewal by Andersen, the replacement window division of Andersen Corporation, has long been known for its superior craftsmanship and innovation. However, the company’s charitable efforts, powered by its affiliate group Esler Companies, showcase a side of the organization that prioritizes people over profit. Esler Companies’ “With LOVE” philosophy serves as the foundation of a thriving culture of giving back, where care and respect for teammates, customers and communities intersect to create lasting impacts.

Over the years, this philosophy has grown into structured community engagement programs, such as the Renewal Cares: Window of Giving initiative. Since its inception, this program has infused more than $7 million into nonprofits through financial support, gifts-in-kind and sponsorships. But it doesn’t stop at writing checks — the program also emphasizes hands-on volunteering, with teammates dedicating time to everything from serving meals to building playgrounds.

“At Esler Companies, we believe doing business with love means supporting people in the communities where we live and work,” says Shawn McClain, general manager. “To witness our teammates taking part in this program, being mentors and helping organizations raise funds has been one of the highlights of my career. It truly takes little to be big.”

Tyler Butler, a trailblazer in ESG and corporate citizenship, has led Fortune 500 sustainability programs, contributed to two IPOs and founded Collaboration for Good. With degrees from ASU, Boston College and Cornell, she writes for top publications and serves as head of Public Affairs for Phoenix Rising FC. collaborationforgood.com

One of the standout aspects of Renewal by Andersen’s approach is the intentional involvement of its teammates. Through paid volunteer hours, a 3:1 donation-matching program and opportunities to directly recommend deserving causes, employees are empowered to champion what matters to them. For instance, their Door of Opportunity Scholarship program has awarded more than 200 scholarships since 2020, enabling students to pursue college, trade school or other career paths. Teammates actively participate in reviewing applications, ensuring that the program remains as personal as it is impactful.

Locally, Renewal by Andersen has partnered with organizations like Big Brothers Big Sisters of Central Arizona to extend its reach. This year alone, the company supported events such as Big Night Out and Tee Up for Kids, sponsored a Little’s Night Out, and hosted holiday drives for families in need. A particularly heartwarming example was the adoption of a local family during the holiday season. Teammates delivered gifts for six children and two adults, ranging from bicycles to essential clothing. The mother of the family shared, “This makes a big difference. We’ve applied for this in the past, and this is the first year our kids were selected. It will make this

Christmas very special.”

These efforts go beyond seasonal generosity. Through initiatives like Paul’s Car Wash and the Match BBQ, Renewal by Andersen strengthens its relationships with community partners while fostering meaningful connections. Whether assembling school supply kits or participating in fundraisers, the company demonstrates that its mission to do business with love isn’t just rhetoric — it’s action.

The impact of these programs resonates deeply, not just with the families and organizations they support but also within the company itself. Teammates describe the sense of purpose and fulfillment that comes from giving back. This alignment of values fosters a workplace culture where everyone feels connected to a greater mission, reinforcing the company’s belief that business success and community support are inherently linked.

For organizations like Big Brothers Big Sisters, partnerships with Renewal by Andersen bring invaluable support. Beyond the financial contributions, the company’s presence at events and its genuine engagement with the cause exemplify what corporate responsibility can achieve. This sentiment is echoed by the families who benefit directly. “It’s about more than gifts,” one participant remarked. “It’s about feeling seen and supported.”

Renewal by Andersen’s efforts underscore the power of a collective commitment to kindness. From transforming lives through scholarships to creating joy during the holidays, the company proves that business can be a force for good. By prioritizing compassion, they’re not just installing windows — they’re opening doors to brighter futures.

As the company continues to expand its outreach, its guiding principle remains clear: uplifting teammates, customers and communities by doing business with love. In the words of McClain, “The positive impact we’re having on kids and families in need is extraordinary. To be part of that is a privilege.”

Renewal by Andersen’s story is a testament to what’s possible when businesses align their operations with their values. Through its Window of Giving program, the company sets a powerful example for others to follow, proving that with the right mindset and commitment, businesses can truly change lives.

Renewal by Andersen renewalbyandersen.com

Through paid volunteer hours, a 3:1 donation-matching program and opportunities to directly recommend deserving causes, employees are empowered to champion what matters to them.

courtesy by Renewal by Andersen

Photo

Strengthening communities through charitable giving.

For over 40 years, the Arizona Community Foundation has supported nonprofits and students across our state by mobilizing the collective passion and generosity of thousands of Arizonans.

When you are ready to take the next step in your personal charitable giving journey, we are here to help you achieve your goals.

The purpose of this column is twofold: to expand leaders’ awareness of the exponential impact that individual resilience has on organizational success, and to elevate its consideration as a highly prudent strategy for long-term organizational sustainability in times of tumultuous change.

Identify and foster fundamental traits of innovation

by Kathleen Gramzay

Innovation is essential to organizational sustainability. It drives value, improvement and adaptation. Through creative responses to challenges or opportunities, innovation serves as the conduit for new or improved products and processes that benefit stakeholders.

TRAITS OF INNOVATION

• Innovation requires fostering specific traits that enable creativity, collaboration and execution:

• Open-Mindedness — willingness to embrace diverse perspectives, challenge assumptions and explore new ideas without judgment.

• Psychological Safety — team culture where members feel safe to express ideas, take risks and make mistakes without fear of criticism or retribution.

• Curiosity — genuine desire to ask questions, seek new knowledge and explore uncharted territories.

• Collaboration – strong communication, mutual respect and teamwork to integrate ideas and leverage collective expertise.

• Adaptability — ability to pivot and adjust to new information, challenges or changing environments with ease.

• Perseverance — capacity to face setbacks, learn from failures and continue to push boundaries.

• Empathy — understanding of user or stakeholder needs, ensuring that solutions are relevant and impactful.

Kathleen Gramzay is an entrepreneur, body/ mind resilience expert, speaker, author and founder of Kinessage LLC. The Kinessage® methods are taught nationally to transform stress, chronic tension and pain, and increase mental resilience and long-term health for greater wellbeing and sustainable success. Her resilience strategy consulting and programs empower leaders and teams to be present, think more clearly and work more productively, confidently and collaboratively. kathleengramzay.com

• Critical Thinking — ability to analyze problems thoroughly, evaluate options logically and make informed decisions.

• Proactivity — taking initiative and ownership in pursuing innovative ideas rather than waiting for direction.

• Experimentation Mindset — willingness to test, iterate and refine ideas, focusing on learning and improvement.

• Vision Alignment — shared understanding of goals and purpose that drives cohesive efforts toward innovative outcomes.

Most leaders would agree that these are important traits. The obvious question to ask is: How can they be fostered? More crucial questions are: What factors impede individuals from exhibiting innovative traits? How can those factors be mitigated? Is there a fundamental, common-denominator factor that, if addressed, can alleviate numerous other barriers?

CHRONIC STRESS – CORE IMPEDIMENT TO INNOVATION

When it comes to impact, the most fundamental level is neurological. Uncertainty and constant change innately trigger the human nervous system’s emergency modes of fight, flight or freeze. Continual stimulation of the emergency response without reset results in well-documented levels of chronic stress and burnout, as widely observed since the pandemic.

According to the Gallup State of the Workplace 2023 Report (Gallup.com), 44% of the global workforce experiences chronic stress or burnout, with rates in the U.S. and Canada reaching 52%. In such a state, individuals’ cognitive abilities, problem-solving skills, health and interpersonal relationships are significantly compromised.

The McKinsey 2022 Women in the Workplace Report cites that 56% of senior women, 44% of senior male leaders and 50% of managers report burnout.

External stressors, such as market fluctuations, geopolitical unrest and environmental concerns, have become commonplace, exacerbating an underlying sense of insecurity. Workplace stressors, including increased workloads, communication challenges, layoffs and a lack of professional development opportunities, further contribute to chronic stress and burnout.

How do chronic stress and burnout impede innovation? They keep the nervous system operating in emergency modes where threat avoidance and self-protection take neurological precedence over other priorities.

It is important to note that the fundamental aspects of innovative traits — open-mindedness, psychological safety, curiosity, collaboration, adaptability, perseverance, empathy, critical thinking, proactivity, experimentation mindset and cohesion — are not accessible in emergency mode.

These traits emerge from the parasympathetic side of the nervous system, where critical thinking, positive social engagement, creativity, and physical and mental restoration are accessible.

INDIVIDUAL RESILIENCE – THE COMMON DENOMINATOR OF INNOVATION

There is a common denominator to address: understanding the human nervous system’s function, the mechanics of resetting it and conditioning it for greater resilience under stress.

For leaders seeking to foster the traits of innovation and guide their organizations through today’s uncertainty and accelerated change, the priority should be human resilience as an organizational strategy for sustainability.

Humanity’s greatest strength — resilience — is already neurologically wired along with the inherent traits of empathy and positive social engagement. This is the fundamental variable of innovation and sustainability.

Organizations that provide and set resilience skills practice as a prioritized organizational standard will shift both the paradigm and the power. Rather than reacting to external triggers, their leaders and teams will access their innate skills to internally mitigate the stress response, access higher-order thinking traits, and engage more quickly for greater collective health, innovation and success.

According to the Gallup State of the Workplace 2023 Report (Gallup.com), 44% of the global workforce experiences chronic stress or burnout, with rates in the U.S. and Canada reaching 52%. In such a state, individuals’ cognitive abilities, problemsolving skills, health and interpersonal relationships are significantly compromised.

Unlock Organizational Agility and Value Creation

Leveraging temporary project managers and redefining project delivery value by Joe Pusz

Executives today are challenged to think creatively about how they invest in people, processes and technology. In a business landscape driven by rapid innovation, fluctuating demands and the constant need to remain competitive, successful project delivery has become more critical than ever.

To meet these demands there must be a better way, and that’s the rise of the “as a service” movement. Organizations are embracing the idea of outsourcing functions to experts, and the same goes for project delivery with PMO as a Service (PMOaaS). Seventy-three percent of organizations today leverage temporary project management resources.

But what’s the value of this?

Organizations have recognized the significant advantages of flexibility and cost-effectiveness of outsourcing project delivery teams. By tapping into experienced contract projectbased resources, companies can address common skill gaps, manage project surges and respond to unique project needs in ways that wouldn’t be feasible with permanent roles alone. This approach provides several benefits:

Cost-Effectiveness: Temporary project management team members align directly with organizational needs, meaning the organization pay only for the talent they need, when they need it. This is particularly valuable in environments where budgets are tight and cost efficiency is a priority.

Increased Flexibility and Scalability: Temporary resources allow organizations to scale up or down as needed, enabling a more agile response to project demands. This is especially useful in times of uncertainty, as companies can respond to market changes without the burden of a large permanent workforce.

Specialized Expertise: Many projects and initiatives within organizations require niche skills or specific industry knowledge, and temporary project managers can bring that experience on-demand. For example, an organization implementing a new software system might hire a project manager who specialized in that particular technology, improving the chances of a smooth and successful deployment.

By integrating temporary project management resources strategically, organizations can stay competitive, adaptable and aligned with market dynamics. However, for these benefits to be fully realized there needs to be alignment within the project management office (PMO) and a clear understanding of the PMO’s purpose from the executive and organizational level.

successfully, many executives struggle to see the full value of PMOs. Recent research highlights that 93% of unsupported PMOs say executives don’t understand the value of PMOs. This disconnect often stems from several challenges:

Focus on Project Metrics over Organizational Metrics: Many PMOs concentrate on project metrics such as project timelines, budgets and task completion rates. While these are important, executives are focused on the strategic outcomes such as project ROI, competitive advance and value creation. When a PMO fails to connect its activities to these broader business objectives, it’s contributions can seem less impactful from an executive perspective.

Lack of Clear Alignment: Often, PMOs focus on internal process improvements or project execution details without explicitly tying their efforts to organizational strategy. When a PMO does not demonstrate how its work aligns with the company’s long-term goals or vision, executives are going to struggle to see its relevance to business growth.

Perception of Bureaucracy: In many organizations, PMOs are seen as process enforcers rather than strategic enablers. If the primary purpose of the PMO appears to be enforcing compliance, following rigid frameworks or adding administrative oversight, executives may view it as a bureaucratic cost center rather than a value-generating partner for the business.

To bridge the disconnect, executives and project delivery leaders can take several actions to ensure their PMO functions as a strategic partner and that temporary project resources contribute and aid in optimizing organizational goals.

It’s important for organizations to think of project delivery as an organizational function and not just a project team or PMO function. With this mindset, executives and project delivery leaders can collaborate on what’s best for the organization and create a strategic plan that aligns with that. Once that plan is established, leaders will need to identify the people who are going to go and execute. That’s where leveraging temporary project delivery resources comes into play as tools to align necessary resources with project demands.

thepmosquad.com

THE DISCONNECT: PROJECT DELIVERY VALUE WITH EXECUTIVES

Despite the advantages of project delivery done

Leveraging temporary project management resources offers organizations a dynamic approach to handling evolving project needs, providing both flexibility and expertise without the burden of long-term hires. However, to truly harness this strategy, executives and project delivery leaders must partner together to ensure every project services the company’s greater strategic goals and mission.

Joe Pusz is the CEO and founder of The PMO Squad, a staffing and consulting firm that specializes in project management and helping organizations deliver projects better.

Rose Fass is the chairman and founder of fassforward Consulting Group. In her more than 40 years of experience in technology and consumer-based industries, she has opened new businesses in the United States, been a general manager with full P&L responsibility and led major corporate transformations such as Xerox’s transition to the global industry and solutions business. An award-winning business leader and best-selling author, her most recent book is The Leadership Conversation: Make Bold Change, One Conversation At A Time.

Trust, Transformation and Thinking Patterns

How leaders can reshape company culture

by Rose Fass

In times of upheaval, the success of a business often hinges on its ability to adapt — and adaptation begins with trust. Trust fuels the conversations that create alignment, encourage inclusivity and inspire change. But trust, especially in teams grappling with complex challenges, doesn’t just happen. It must be built deliberately through shared understanding, transparent leadership, and a culture that values diverse thinking.

Trust is the foundation for any transformation. Without it, there are no honest conversations, no alignment, and certainly no collaboration or innovation. But trust doesn’t just show up because you want it to. It’s earned through deliberate actions, clear communication and by having better leadership conversations.

And that’s where Thinking Patterns come in. I’ve worked with leaders for years, and I can tell you, navigating the messy world of transformation demands a framework — something to guide the decisions, the conversations and the clarity a team craves. Thinking Patterns gives leaders a tool to navigate complexity, foster trust and shape a culture that drives meaningful results.

THE STAKES OF TRANSFORMATION

Companies today are operating in high-stakes environments. Whether it’s activist investors, competitive disruptions or shaky market confidence, the stakes couldn’t be higher. It’s tempting to focus solely on hitting quarterly numbers, but transformation isn’t just about short-term wins — it’s about reevaluating how leadership teams think, communicate and operate to create lasting impact.

When I talk about culture, I always come back to this: “Culture is how we do things around here.” It sounds simple, right? But it’s often the root of why things go off track. Misaligned leadership teams, operating in silos, create what I call “Chocolate Conversations” — where everyone is talking but no one is really hearing each other. These miscommunications can unravel even the most well-intentioned plans. True transformation starts with a shared language, a way to ensure everyone is on the same page.

COURAGE, VISION, REALITY, ETHICS

Thinking Patterns provides that shared language. At its core are four pillars:

• Courage: This is about when to act. It’s making the tough calls, especially when the path forward isn’t clear.

• Vision: This tackles the what — painting a bold, compelling picture of the future that inspires people to

think bigger.

• Reality: The how. Grounded in facts and pragmatism, it keeps leaders from veering off into fantasy land.

• Ethics: This anchors the why, reminding leaders to value integrity and fairness in every decision.

When leadership teams embrace these patterns, it’s like flipping a switch. Decision-making becomes clearer, alignment clicks into place and trust builds naturally.

BUILDING CULTURES OF TRUST AND INNOVATION

Here’s the thing about trust: it’s contagious. When leaders are aligned and transparent, people notice. A shared leadership framework shifts the conversation from the reactive to the proactive, from short-term fixes to long-term strategies. And it doesn’t stop at leadership — it cascades through the entire organization.

And let’s not forget, diversity of thought isn’t just a niceto-have. It’s a business imperative. Different perspectives challenge assumptions and spark innovation. But diversity only works when inclusion is real — when people feel their voices matter. Thinking Patterns gives leaders the tools to make that happen.

THE POWER OF A LEADERSHIP CONVERSATION

Transformation doesn’t come from sweeping declarations or grand strategies. It happens one conversation at a time — conversations that cut through noise, reframe thinking and drive action. I’ve seen it time and again: When leaders commit to having those conversations, cultures shift, trust deepens and teams rise to challenges they never thought they could meet.

When leaders are aligned and transparent, people notice. A shared leadership framework shifts the conversation from the reactive to the proactive, from short-term fixes to long-term strategies.

Help Can’t Wait DURING EMERGENCIES

We invite you and others to join the American Red Cross mission by volunteering, giving blood, learning lifesaving skills or making a financial donation. Your support helps ensure families don’t face emergencies alone.

Volunteer. Give Blood. Donate. Take a Class. Visit redcross.org/AZNM to learn more.

Board Members

Should NOT …

While there are a host of responsibilities board members should embrace, they should also step aside from a number of areas. They should not: Get involved with the day-to-day operations or staffing issues of the nonprofit.

Speak on behalf of the organization when not fully prepared and empowered to do so. Treat the board appointment as an afterthought but rather apply the same level of engagement given their daily job.

Virginia G. Piper Charitable Trust’s Good Governance

Profile is a resource for understanding healthy board engagement and expectations — offered in partnership with BoardSource. boardsource.org pipertrust.org/ wp-content/ uploads/2022/04/GoodGovernance-Profile.pdf

Ready to Be a Board Member?

What executives should know before saying, “Yes” by

Richard Tollefson

Being asked to sit on a nonprofit board is, admittedly, a nice boost for the ego. But what should corporate executives consider before making the commitment?

For starters, they shouldn’t view their board role as a simple résumé builder, says Kristin Crellin, chair of the California State University Philanthropic Foundation Board. “They must have a passion for the organization.”

Steve Zabilski, president and CEO of Virginia G. Piper Charitable Trust, agrees. He says potential board members need to ask themselves if they have a genuine interest and true commitment to the mission. “This is imperative. It’s very important to reflect on ‘the why’ when joining a board.” He recommends potential board members sit down with the nonprofit’s leader in advance to develop an understanding of the organization’s vision and plans for the coming years. “Find out what the organization’s dreams and challenges are.”

UNDERSTAND BOARD EXPECTATIONS

While passion and alignment with the organization is paramount, that, alone, doesn’t make for a good board member. Before saying yes to board participation, executives must clearly understand their role in the organization. What responsibility will they have regarding the nonprofit’s governance or with financial oversight and strategic planning? What type of philanthropic leadership is anticipated? New board members must understand their expected personal financial contribution and ways they’ll need to assist with fundraising efforts.

ASSESS TIME COMMITMENT

Does the board meet four times a year or two? Is there an expectation to be active on a committee — and, if so, how much time might be spent working in that capacity? “When board members fail, it often comes down to time,” says Crellin. “They didn’t really understand the time commitment, or something popped up in their personal lives.”

It can also boil down to being on too many boards at once. “They become overextended, which often affects attendance and participation,” says Zabilski.

makeup intimidating or validating, and what does it say about the board’s capacity? Ask existing board members about the chair’s leadership style and the nonprofit leader’s style to avoid surprises.

Ask lots of questions before saying “yes.” Find out if the organization requests board member commitment forms or encourages board members to evaluate their own effectiveness annually.

Nonprofits that focus on these areas are serious about advancing their missions and about board member success. Such evaluations also often reveal if it’s time for a board member to cut ties.

SHARE SKILLS, BUILD SKILLS

Board members don’t need to walk into a position with “all the skills.” Many can be learned.

“Board members are capable of growing their fundraising and development capacity,” says Zabilski, “especially with intentional support from the organization.” He says they also can become adept storytellers for the organization, sharing details about the nonprofit that illustrate its impact and transformative and life-changing outcomes.

Procedural rules — Robert’s Rules of Order, for example — says Crellin, also can be learned. “But it’s up to board leadership to survey what specific skills might be needed from new members.” The prospective board member doesn’t need to know it all — marketing, finance, advocacy, law — because those capabilities may likely exist among other board members.

Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

That’s why it’s important to establish open dialogue with the nonprofit early on. In some cases, prospective board members may indicate, up front, their time limitations and ask if the organization is still interested in partnering. If attendance at all board meetings and a committee structure don’t fit, a board member might offer the CEO direct counsel via phone and e-mail during critical moments, or volunteer for a prioritized assignment.

DO YOUR HOMEWORK, ASK QUESTIONS

It’s also advisable to do some homework. Crellin suggests looking at the board’s current composition: Is it filled primarily with CEOs, finance experts or a mix of professionals? Is that

Board members can fail due to misalignment with the nonprofit’s culture or its leadership style.

What’s more, key-performing boards provide orientation for new members to help them get up to speed. Many offer additional get-to-know-the-organization training opportunities, and it’s customary for a new member to be assigned a “Board Buddy,” a mentor who can share insight and act as a sounding board.

“Honestly, if you agree to serve on a board and there’s no guidance provided,” says Crellin, “I would recommend reconsidering.” Growth and guidance are key to board members’ success.

In the end, Zabilski says the common denominator for successful nonprofits is an effective board of directors. “They individually and collectively understand the role of the board and work to establish the culture for the organization as a whole.”

It’s an important job, and one not to be taken lightly.

2025 Mercedes Benz EQB SUV

It’s a capable SUV with room for up to seven; an advanced EV its owner can enjoy every day. Intelligent technology and thoughtful luxury are delivered with swift response and silent refinement.

Dual electric motors team up for 225 hp in the EQB 300, and 288 hp in the EQB 350. Both deliver instant torque with 4MATIC® all-wheel drive that can adapt in fractions of a second to optimize grip and handling. The EQB 250+’s compact motor sends 188 hp to the front wheels.

Along with up to 250 miles of driving range and brisk response, an industry-advancing charging ecosystem offers more than 80,000 public charge points nationwide. Intelligent navigation can help optimize the route and even precondition the battery before the driver reaches a charging station.

Crisp yet aerodynamic lines outside define a modern marvel of space efficiency inside the EQB. The 64-color cabin lighting lets drivers dial up their own ambience, including a dash trim option that evokes a starlit night. EQB luxuries help energize drivers’ spirit while they enjoy electric motoring.

A Tablet to Scribe

These days, digital devices to take notes in meetings, do an impromptu presentation or quickly and easily email or text are a true asset for any businessperson. These new tablets are recommended as our top picks. Mike Hunter

Apple iPad Air 13-inch (M2)

A built-in trackpad lets users scroll, click and use Multi-Touch gestures. Floating cantilever design enables smooth adjustment to find the perfect viewing angle. The redesigned iPad Air comes in two portable sizes and is equipped with the M2 chip and a Landscape 12MP Center Stage camera. Comes in beautiful new colors. Starting at $599 apple.com/ipad-air

Apple Additions:

• Add a pen or a keyboard to make the experience seamless and useful. For the Apple iPad, the Apple Pencil Pro ($129) transforms iPad Air into an immersive drawing canvas. apple.com/apple-pencil

• The Magic Keyboard features a great typing experience and a builtin trackpad, while doubling as a protective cover for iPad. (from $249) apple.com/ipad-keyboards

The rear cabin adapts to optimize, not compromise, comfort and cargo. The 40/20/40-split second row reclines and slides fore-aft. Its sliding range doubles when with the addition of the optional 50/50-split third row.

Full-width LED lighting elements accent the EQB’s signature black panel front end. Red rear lighting similarly spans the wide power liftgate. EQB wheels and styling options are designed to reduce drag while catching admiring glances. Wheel choices from 18 to 20 inches include intriguing, ultramodern details, and iconic AMG® designs can be paired with the sporty AMG Line and bold Night Package options.

Standard augmented reality enhances navigation by overlaying guidance on live video of the car’s turns. Pinnacle Trim adds a Head-Up Display, control of some cabin features with simple gestures, and a blanket of Stars to illuminate the driver’s entry and exit.

—Mike Hunter

Mercedes Benz mbusa.com/en

BOOX Tablet Note Max 13.3 B/W ePaper Notebook

This is an A4-sized ePaper notebook designed for expansive thinking and clarity — for academics, writers and professionals to read, brainstorm and organize with ease. The ultra-slim Note Max features a 13.3-inch HD E Ink Carta 1300 screen, providing ample space for effortless thought development. Starting at $649.99 shop.boox.com

SAMSUNG Galaxy Tab S10 Series

With so many awesome AI abilities, the Galaxy Tab S10 Ultra and Tab S10+ everywhere will be handy to take anywhere — and its slim design makes for portable, powerful productivity. Two sizes and multiple options. Starting at $999 samsung.com/us/tablets

MSRP: $53,050

EPA-estimated

MBUX: Mercedes-Benz User Experience is the driver’s onboard virtual voice assistant. Just say “Hey, Mercedes” to control countless features by talking naturally. MBUX uses artificial intelligence to deliver genuine convenience that gets to know the driver better with use. The fully digital cockpit responds to the driver with tactile and visual clarity.

Three

The Phoenician Tavern: Up Course Choice

by Holly Harmon

$27

Salmon

$28

The Phoenician Tavern, located at The Phoenician in Scottsdale, is anything but your typical resort dining destination. Perched above the Golf Clubhouse, the restaurant offers a casual and lively atmosphere with stunning views of the emerald-green golf course. The perfect spot to grab a midday bite — whether it’s following a morning of networking on the Phil Smith-designed 18-hole course or a lunchtime reprieve to recharge with co-workers.

Cozy up to the bar and catch a game on one of the many flatscreens or have a working lunch in the open and airy dining room, which has plenty of seating for groups of all sizes. For al fresco dining, a large patio offers more of those amazing golf course views.

Savor polished pub grub while enjoying a local beer, or sip on a signature craft cocktail from the extensive drink menu.

Offering lunch and dinner daily, The Phoenician Tavern serves a menu that has something for every taste. Must-have shareable appetizers include Pull Apart Pretzels with cheddar mustard and spicy ale dip or Charred Brussels Sprouts with sweet honey soy and toasted sesame.

A wide variety of entrée choices ranges from inventive sandwiches and burgers, farm-fresh salads, irresistible pastas, to grilled meat, seafood and chicken items. For a light lunch, try the AZ Cobb Salad with romaine, avocado, blistered corn, black beans, hard-cooked egg, cotija cheese, tortilla strips and guajillo dressing. Standout handheld choices include an Asian twist on a classic chicken sandwich, the Tokyo Crispy Chicken Sandwich, topped with furikake slaw, soy glaze, ginger pickles and sriracha aioli on a brioche bun, or a bacon lover’s dream,

the Triple Bacon Burger, which features a burger patty studded with bacon pieces, cooked to perfection and then topped with bacon onion jam, smoked bacon slices, whiskey BBQ sauce and melted gouda.

For a hearty appetite, indulge in the 14-ounce Split Bone Ribeye Steak, served with herb whipped mashed potatoes, broccolini and cherry demi. At The Phoenician Tavern, every day is Friday; Ale Battered Icelandic Cod, with salt and vinegar fries, appears on the menu daily.

A meal would not be complete without one of The Phoenician Tavern’s signature housemade shakes — with many flavors available in an adult version. Don’t skip the Banana Split Milkshake, or try one of the rotating, seasonal selections.

For the ultimate ease in midday dining, The Phoenician Tavern offers complimentary parking just adjacent to the restaurant, making it a convenient, regular go-to spot.

The Phoenician Tavern

6000 E. Camelback Rd., Scottsdale (480) 423-2445 thephoenician.com/dine/the-phoenician-tavern

Every Friday and Saturday, from 8 to 10 p.m., the restaurant hosts dueling pianos, an energetic live music entertainment experience. Two musicians simultaneously perform popular song requests, while the audience is encouraged to join in the fun.

Nashville Hot’ Fried Chicken Bites

Fried chicken bites with buttermilk ranch and garlic dill pickle

$17

Kobe Beef Sliders

burgers with Thousand Island relish and American cheese

Seared Salmon

served with snap peas, habanero pickled pearl onion and lemon basil butter

IN THIS ISSUE

Say Hello to ADA

Chatbot created to answer questions about Council

What’s in a Name?

SciTech Institute initiative identi es crossover workfor skills

The Ties That Bind New committee unites interests of aerospace, defense community Council Chief Feted for His E orts

WHO WE ARE

The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix O ce

2800 N. Central Ave., #1530, Phoenix, AZ 85004

Phone: 602-343-8324 • Fax: 602-343-8330 info@aztechcouncil.org

Tucson O ce

1215 E. Pennsylvania St., Tucson, AZ, 85714 Phone: 520-388-5760 tucson@aztechcouncil.org

MANAGEMENT AND STAFF

Steven G. Zylstra President + CEO Diana White Chief of Sta

Deborah Zack Vice President, Membership Services

Karla Morales Vice President, Southern Arizona Regional O ce

Leslie Marquez Director, Marketing + Communications

Darryle Emerson Director, Programs + Events

Jamie Neilson Director of Operations + Events, Southern Arizona Regional O ce

Angelica Espinoza Bookkeeper

Victor White Administrative Assistant

Don Rodriguez Editor

Ron Schott Executive Emeritus, Phoenix

SCITECH INSTITUTE

Steven G. Zylstra, President + CEO

Jeremy Babendure, Ph.D., Executive Director

Claire Conway, STEM Ecosystem Director

Maiya Cheeks, STEM Ecosystem Program Manager

Eileen Healy, CSO International Program Director

Mary Chisholm, CSO International Program Coordinator

Sarah Cundi , CSO International Program Coordinator

Ashton Grove, CSO Arizona Program Manager

Brittany Sweeney-Lawson, Marketing & Communications Manager

Yvonnda Shelton, Finance Administrator

Tom Wilson, Workforce Development & Post-Secondary

Education Coordinator

Makenna Littell, Event Coordinator

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message

I’m fortunate to be in the position of seeing and supporting Arizona’s quest for greatness every day. Speci cally, I’m referring to the activities surrounding the building of a technology ecosystem that impacts not just our state but the world.

It’s not surprising that many members of that global community want to be part of the action, too. But to reach for the stars, we need talent that is the best of the best no matter where they were born.

You likely have heard renewed conversations questioning the use of H-1B visas, which are made available for employers who want to hire immigrants to temporarily work in specialty elds. According to the U.S. Department of Labor, a specialty occupation is one that requires the worker to have highly specialized knowledge and at least a bachelor’s degree or its equivalent.

Specialized knowledge and a degree. That perfectly captures those workers found at the forefront of innovation in industries such as aerospace, computing, robotics and arti cial intelligence.

If our goals for success are high, we need all the top- ight talent we can get. But given the limits of the H-1B program, even that’s not a guarantee. The annual cap of new H-1B visas remains at 65,000, a level last set as part of omnibus legislation signed into law in December 2004. Since then, the number of applications routinely has far exceeded that limit.

The time has come for Congress and the new administration to address what has become an outdated limit as we compete with the rest of the world. At minimum, we should be using market-based caps on H-1B visas to adjust to the supply and demand in the U.S. economy. Even better, limits should be removed altogether.

Just think of the impact of such changes when you consider the results of a study released by Information Technology & Innovation Foundation eight years ago, which revealed these facts about foreign-born workers:

• More than 17% of innovators were not U.S. citizens but were making invaluable contributions to U.S. innovation.

• More than 35% of U.S. innovators were born outside the United States despite the population making up just 13.5% of all U.S. residents.

When it comes focusing on opportunities for those born in the United States, the gures support there have been plenty. U.S.-born college graduates working in STEMrelated jobs between 2003 and 2021 jumped by more than 5.5 million, or 69%, according to a National Foundation for American Policy analysis of government data.

We all can agree that the economies of the United States — especially Arizona — have been built with the help of foreign-born workers.. That can continue in the world of innovation with some overdue ne-tuning of the H-1B program.

Steven G. Zylstra, President + CEO Arizona Technology Council SciTech Institute

Say Hello to Ada

Chatbot created to answer questions about Council

In this 24/7 world, it’s hard to imagine anyone not getting what they need when they need it. Arizona Technology Council members are no different, especially when many work at businesses where customers expect to be served around the clock.

But what happens when a member traveling on the other side of the world needs to know details about an upcoming Council event when it’s the middle of the night back in Arizona?

No worries. “Ada” is the Council’s newest “employee,” ready to answer that question and many more since she is always on duty.

Ada actually is a chat assistant available to assist everyone — member or not — with Council-related questions and information related to offerings such as membership, upcoming events and even public policy.

It’s common for Council staff to respond to a mountain of email from members and the broader technology community across Arizona with questions about the organization and its activities. So, when President and CEO Steven G. Zylstra introduced the opportunity to develop an AI chatbot to help, his team gave a collective thumbs up since they knew it would offer a quick way to address frequently asked questions, helping staff better serve members and prospects.

But what to call it? Chief of Staff Diana White suggested “Ada” in honor of Ada Lovelace, widely known as the rst computer programmer. Lovelace was an English mathematician who created a program for the prototype of an early digital computer created by Charles Babbage.

To bring Ada to life, the Council worked with the team at SkillBuilder (https://skillbuilder.io) to create and train her. Based on years of

applied research at Carnegie Mellon University and decades of tactical sales and product experience, SkillBuilder.io is purpose-built to empower founders and sales and product leaders to tap their teams’ knowledge to answer their most frequently asked questions, align teams for growth and accelerate sales cycles.

Training a chatbot is a large task in itself but the effort was made more palatable in this case, thanks to the SkillBuilder team, says Leslie Marquez, the Council’s director of marketing and communications.

“The sheer amount of information we needed to input into Ada was signi cant, but we knew that the more information we provided her, the better she’d be able to work for us and help our members,” she says.

In all, more than 400 Council-related questions and answers were created to launch Ada “and that number keeps growing as we continue to add new information to her database,” Marquez says.

To help with ne-tuning, the platform is able to track questions and review responses, so issues can be corrected and insight into the most frequently asked questions can be gained.

For next steps, the Council will use Ada throughout the year to develop event-speci c FAQs to help attendees know what to expect. In addition, plans call for developing an internal version of the chatbot to assist with staff processes, new employee onboarding and more.

“So far, Ada has been performing exceptionally well and the feedback has been overwhelmingly positive,” Marquez says. “We’ve really just scratched the surface of how Ada can help our members, prospects and staff.”

To chat with Ada, click the orange chat icon on the Council’s website at aztechcouncil.org.

What’s in a Name?

SciTech Institute initiative identiﬁes crossover workforce skills

When it comes to preparing the future workforce for careers, one size de nitely doesn’t t all.

This is a key discovery arising from discussions led by SciTech Institute with stakeholders in Arizona’s science, technology, engineering and math ecosystem to determine what skills are really necessary.

“When we have these conversations, we ask employers what they need and it’s, ‘We need these certain skills,’ but it ends up being the same skills, which are the professional skills no matter where you’re at,” says Jeremy Babendure, SciTech Institute’s executive director. SciTech Institute is a collaborative initiative with the Arizona Technology Council and Arizona Commerce Authority.

It turns out that even nding a single name for necessary skills is not easy. Depending on the eld, one sector may call it “problem solving,” another labels it “innovation” while still another refers to it as “creative thinking.”

“It’s all really around how do you think in this world,” Babendure says. “What we lack is a system to actually know that we’re teaching that skill and how it’s being integrated across the spectrum.”

The result?

“We nd that the students are not coming out trained. They don’t have the skills. We’re having to do remediation,” he says. “And at the end of the day what our belief is, this is a very dif cult problem because it’s not something that anybody can solve in isolation. It’s an ecosystem problem.”

While institutions such as trade schools are known for teaching speci c skill sets required for certain jobs, “how do you do it in all the settings across our whole ecosystem so that these skills do not become the thing that’s the afterthought but the most important thought that happens across what we do?” Babendure asks.

In an attempt to have conversations lead to real solutions, SciTech Institute’s initiative currently is focused on the merits of a pieshaped rubric developed with a grant from USAA. The Arizona Education Foundation has taken the lead by training school districts in the state on merits of the different components found in the rubric:

• At its heart are social determinants divided into core groups: sense of self and others, engaged community member, communication and collaboration, and critical thinking and problem solving.

• What lies at the core provides the foundation for corresponding emerging groups: ethics and accountability, career awareness, media and technology literacy, and adaptability and resilience.

• In turn, corresponding groups pair to ultimately shape individual abilities: manage oneself, community participation, work with others and personal mindset.

While initial feedback from the school districts has been positive, more development of the rubric is underway.

“What we hope is to really continue to establish more common language with the synergies and then trajectories that organizations can meaningfully take in,”

Babendure says. “What we’re after is to align the communities — this education system is often af liated with the education track and skills workforce track — to really align on that common language of skills.”

As the work continues, some potential outcomes already have been identi ed. They include:

• Encourage employers and educators to work together across all job sectors.

• Match skills with industries and create aligned training programs.

• Boost training for educators; increase enrollment in relevant programs; and encourage employers, students and job seekers to use recognized skills.

The Ties That Bind

New committee unites interests of aerospace, defense community

It’s no secret that Arizona is home to a community that creates and supports the technology that lls the skies and protects the nation. Who would be surprised to learn that some of the companies evolving — and competing — in these sensitive sectors wind up existing in siloes.

A new committee launched by the Arizona Technology Council is a forum where members instead will nd that they can go farther when they don’t go alone.

The Aerospace, Aviation, Space, and Defense (AASD) Committee was created to serve as the central coordinating body under the direction of the Council to position Arizona as the global hub of aerospace excellence.

Committee co-chairs Darren Long and Jonathan Roll recently joined Council President and CEO Steven G. Zylstra in leading the committee’s inaugural meeting. Among their accomplishments, Long is vice chairman of Tucson Metro Chamber’s Military Affairs Committee and Roll is research and management analyst at Arizona State University’s NewSpace Initiative.

The committee was created to drive innovation and address critical aerospace, aviation, space and defense challenges by encouraging collaboration among industry leaders, academia, government agencies and emerging companies.

The AASD committee aims to bridge startup gaps, shape state and national security, promote economic growth through strategic partnerships, connect associated manufacturing, inspire policy advocacy, and support workforce development.

Speci cally, the committee’s goals are to:

• Develop and implement a comprehensive AASD development and deliverables plan to include methods and tools for identifying, recruiting, orienting, training, educating and evaluating diverse, skilled

and knowledgeable board members.

• Annually assess key industry trends and challenges with input from the Council’s board, ensuring the committee’s focus aligns with the most pressing opportunities and obstacles in the aerospace, aviation, space and defense sectors.

• Shape and guide the committee’s subcommittees in achieving strategic initiatives within their respective sectors, ensuring consistent communication and alignment with the Council’s broader mission.

• Work with Council leadership to advocate for policies, funding opportunities and industry partnerships that drive innovation and development in Arizona’s aerospace and defense industries.

• Promote diversity, equity and inclusion within the committee’s activities, ensuring a broad range of perspectives and expertise.

When it comes to recruiting members, the AASD committee will follow a structured framework. Regular evaluations will occur to ensure progress and alignment with Arizona’s Aerospace Roadmap.

Although not formally established, tentative subcommittees could be appointed annually to manage the nominating responsibilities for aerospace and defense, space and launch satellites, aviation and airports, startups and innovation, cybersecurity and IT defense, emerging technologies, and research and development.

The committee will develop an annual strategic plan, host quarterly industry roundtables and publish a yearly report on Arizona’s aerospace sector progress to drive accountability and results. The committee also will work to enhance Arizona’s aerospace infrastructure, support startup growth, and ensure sustainable development within the global aerospace ecosystem.

Council President and CEO Steven G. Zylstra addresses attendees of the inaugural meeting of the Aerospace, Aviation, Space, and Defense Committee. To his immediate right are (in order) co-chairs Jonathan Roll and Darren Long.

Council Chief Feted for His Eﬀorts

Steven G. Zylstra, president and CEO of Arizona Technology Council and SciTech Institute, has been recognized for his efforts on two fronts.

Zylstra was named to the Arizona Space Commission Board of Directors in September by Arizona House of Representatives Speaker Ben Toma. Zylstra’s leadership has been pivotal in fostering innovation, entrepreneurship and public-private partnerships in Arizona, making him the right t in shaping the future of space exploration and technology in the region.

In addition, Zylstra has provided valuable expertise due to more than two decades’ experience working in the aerospace industry as an engineer and executive, including his role as a technical manager on the attitude control system for the Defense Support Program at Bendix Guidance Systems.

“This is an exciting time for Arizona and the Commission as we develop a strategic plan for expanding the space, aeronautics and aviation sectors,” Zylstra says. “I look forward to contributing to the state’s leadership in these high-growth areas.”

The Commission was established to oversee and promote the state’s space-related activities, working in collaboration with industry partners, academic institutions and government agencies. The panel is key to fostering the development of space technology, infrastructure and workforce to ensure Arizona remains at the forefront of this rapidly growing industry.

Also in September, the Arizona Capitol Times named Zylstra one of its 2024 Leaders of the Year to recognize their efforts to advance the interests of the people of Arizona. He was named a leader in the Technology category.

Engineering Firm President Named Board Member

Patrick Marcus, president of Tucson-based Marcus Engineering, was elected unanimously to serve a three-year term at the Arizona Technology Council’s quarterly board meeting in late October. Marcus’ company provides regulated electronics products for medical, military, aerospace, mining and other industries where design quality is critical. Marcus also sits on the advisory boards of The University of Arizona College of Engineering, Bioindustry Organization of Southern Arizona and Southern Arizona Technology & Entrepreneurship Center at Pima Community College. He earned his doctorate in biomedical engineering and Bachelor of Science in electrical engineering, cum laude at the university. Marcus is a graduate of UA’s prestigious McGuire Center for Entrepreneurship, as well as the Goldman Sachs 10,000 Small Businesses program based at Babson College.

The Council also announced the continuation of the following board of cers at the October meeting:

• Chairman – Alex Iuorio, senior vice president, Avnet

• Vice Chairwoman – Christine Boles, vice president, Intel

• President and CEO – Steven G. Zylstra, Arizona Technology Council and SciTech Institute

• Secretary – Jonathon Talcott, partner-elect, Ballard Spahr

• Treasurer – Eric Lewis, partner, EY

• Chairman Emeritus – Eric Miller, principal and co-founder, PADT

Program Brings Tuition Discount

In a new relationship with University of Maryland Global Campus (UMGC), employees of Arizona Technology Council members are granted a 25% tuition discount when they enroll in the postsecondary education provider’s undergraduate and graduate degree and certi cate programs.

The discount also applies to member employees’ spouses and dependents. Excluded from the discount are UMGC ‘s specialty programs and courses.

UMGC offers courses online and at physical locations, including

military installations. Its mission is to serve non-traditional students, particularly working adults.

Information about the school’s programs, academic requirements for admission and cost information is available at umgc.edu.

Patrick Marcus

AI, IT & COMPUTER SCIENCE

MARCH 25, 2025 | 12-5PM

GRAND CANYON UNIVERSITY

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Aker, Andrea, 12

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Babendure, Jeremy, 61

Baker, Kermit, 22

Barsolo, Vince, 66

Brislin, Tim, 34

Butler, Tyler, 48

Camacho, Chris, 14 Carlson, John, 34

Carson, Molly, 33

Comer, Steve, 32

Corley, Audrey, 16

Crellin, Kristin, 56

Agital, 12

Aker Ink PR & Marketing, 12

Alliance Bank of Arizona, 7

American Institute of Architects, 22

American Red Cross, 55

Apple, 57

Arizona Commerce Authority, 27

Arizona Community Foundation,49

Arizona Financial, 5

Arizona Innovation Challenge, 14

Arizona State University, 9, 26

Arizona Technology Council, 59

Arizona Venture Ready, 14

AV Concepts, 53

Banner Health, 16

Barrow Neurological Institute, 30

Blue Cross Blue Shield of Arizona, 31

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California State University Philanthropic Foundation, 56

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CHASSE Building Team, 12

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Esler Companies, 48

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Goodyear, City of, 23

Greater Phoenix Economic Council, 14

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Harvard FirstStreet, 34

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National Bank of Arizona, 13

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Moore, Kat, 16

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O’Connor, Larry, 32

Orscheln, Tim, 18 Ortiz, Laura, 34

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Shifting Stereotypes

A 2021 study by social psychologist Mansi P. Joshi found that women in leadership positions inspire trust and fairness within organizations. This trust isn’t confined to specific industries or roles — it reshapes entire cultures. The women I’ve worked with demonstrate this potential, challenging the notion that leadership must fit a conventional mold. They show that innovation often emerges from the margins and that our greatest assets may come from the most unexpected places.

What I’ve Learned from Women Who Lead Outside the Lines

Radical potential to advance resilience, authenticity and connection by

Vince Barsolo

Reflecting on my leadership journey, one of the most transformative experiences has been working alongside incarcerated and formerly incarcerated women. These women have challenged my views of resilience, strength and what it means to lead. Decades of research on women in leadership confirm what I’ve seen firsthand: When women lead, organizations become stronger, more collaborative and more resilient. Their presence reshapes how we work together, fostering environments where human connection and empathy drive business results and cultural change.

RESILIENCE AS LEADERSHIP’S CORE STRENGTH

Where many people see vulnerability, I see resilience — a strength forged through lived experiences. Psychological research shows that women in leadership foster higher productivity and deeper organizational commitment. These qualities translate into powerful, authentic interactions, building team trust and transparency.

In my experience, women who have faced incarceration redefine resilience. For them, it’s about standing firm in purpose despite overwhelming odds. Their openness about past mistakes and their determination to rebuild have profoundly influenced my understanding of leadership. Resilience, I’ve learned, is more than a trait — it’s necessary for effective, sustainable leadership.

A DEMAND FOR DIGNITY

Vince Barsolo is CEO of Televerde, a global revenue creation partner supporting marketing, sales and customer success for B2B businesses around the world. A purposebuilt company, Televerde believes in second-chance employment and strives to help disempowered people find their voice and reach their human potential.

televerde.com

In society and in the workplace, assertiveness in women is often labeled aggressive or disruptive, while the same trait is celebrated as decisiveness in men. Research confirms this double standard: Women frequently pay a penalty for being ambitious or assertive. The McKinsey 2024 Women in the Workplace Report highlights how gender biases continue to hinder women’s advancement, affecting their representation at every organizational level.

In women who have navigated incarceration and emerged to lead, assertiveness has a different meaning. Their advocacy is not disruptive; it is a demand for dignity — a way to reclaim their voice and assert their value. They remind us that leadership is not about wielding authority but about elevating and acknowledging diverse perspectives. Empowering women to challenge the status quo doesn’t weaken organizations; it enhances them by fostering cultures of mutual respect and accountability.

RADICAL POTENTIAL BEYOND NEGATIVE PERCEPTIONS

Concerns about hiring formerly incarcerated women often focus on perceived brokenness, risk and negative stereotypes. Yet, what I’ve witnessed — and what research supports — is that this supposed brokenness is a wellspring of radical potential. Rather than dwelling on their pasts, these women

bring creativity and problem-solving skills honed through navigating life’s harshest challenges.

THE UNTAMED LEADERSHIP OF WOMEN NAVIGATING SYSTEMIC BARRIERS

Leadership only sometimes looks polished or refined; sometimes, it’s raw, unfiltered and shaped by immense obstacles. Many women who have faced incarceration bring emotional intensity and determination that some interpret as volatility. However, studies, such as those by organizational psychologist Anita Williams Woolley, show that women enhance group dynamics, enabling better decision-making and problem-solving.

The assertiveness and drive these women exhibit aren’t signs of volatility but rather untamed leadership — an emerging power navigating a system that wasn’t built for them. Their approach may be unpolished, but it’s rooted in authenticity. Leadership requires making room for genuine expression and recognizing that the raw, unfiltered drive of a determined leader can push an organization to new heights.

A CATALYST FOR CHANGE

The women I have worked with who have faced incarceration have an unstoppable will to survive and the resilience and commitment to rise above circumstances designed to hold them back. Their drive to thrive despite systemic barriers is unmatched.

The “broken rung” phenomenon identified in McKinsey’s Women in the Workplace report reveals that for every 100 men promoted to management, only 81 women achieve the same. For women who’ve faced incarceration, these barriers are even steeper. Yet, their determination persists. As Billie Jean King said, “You have to see it to be it.” These women show what’s possible, breaking barriers and rewriting narratives for others to follow.

EMPOWERING A BROADER CULTURAL SHIFT

Creating opportunities for women to lead, particularly those who have faced incarceration, isn’t just about closing gender gaps. It’s about redefining leadership models to be more inclusive, empathetic and effective. Early identification of leadership potential, mentorship and sponsorship are essential steps. These lessons apply universally: Leadership is most impactful when it elevates diverse voices and fosters environments where everyone has the opportunity to thrive.

The women I’ve worked with remind me daily that leadership isn’t about perfection — it’s about resilience, authenticity and connection. Their journeys inspire me to rethink what leadership can be and to commit to building pathways for others to succeed. By empowering women to lead, we create a more equitable and innovative future for all.

A 2022 study found that female CEOs in S&P 500 companies significantly influenced organizational language, shifting perceptions of women’s competence and agency. This change challenges deep-seated stereotypes and fosters more equitable workplace cultures. pnas.org/doi/10.1073/pnas.2026443119

Heartfelt stories celebrating the human spirit this season at The Phoenix Theatre Company

Miracle on 34th Street: A Live Musical Radio Show

November 20 – December 28, 2024

Seussical the Musical

December 18, 2024 – January 26, 2025

Churchill

February 5 – April 13, 2025

Jersey Boys

February 19 – May 4, 2025

Forbidden Broadway: the next generation

April 23 – June 22, 2025

Into the Woods

May 21 – July 13, 2025

Let the Good Times Roll: A New Orleans Gumbo

August 6 – August 31, 2025

The Phoenix Theatre Company invites you to experience world-class, self-produced plays and musicals at our vibrant multi-theatre campus, located in the heart of the Phoenix Downtown Arts District. As we celebrate our 105th season, join the over 150,000 patrons who visit us each year to enjoy everything from bold new works to cherished classics and modern hits. Coming in Summer 2025, don’t miss the grand opening of the Dr. Stacie J. and Richard J Stephenson Theatre — a Broadway-caliber venue featuring cutting-edge sound, lighting, and top-tier accommodations.

your tickets today at

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