Converge- September/October 2015- Vol.1 Issue 2

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A PHOENIXMART PUBLICATION

SEPTEMBER/OCTOBER 2015

A PHOENIXMART PUBLICATION

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I am sincerely delighted to see this issue of Converge packed with engaging and helpful detail. It shares powerful, inside information about an exciting channel for industry success— whether the focus be retail, wholesale, amenities or entertainment.

As you flip through the pages, you will notice the general theme of “evolution.” The articles herein remind us of the origins of marts and encourage us to consider their futures.

STEVE GARDNER Chief Executive Officer

Early on we present you with some “PhoenixMart Facts,” including interesting statistics you may not know. One bit of information that I enjoyed discussing with Rob Kobierowski, Vice President of Construction and Development at AZ Sourcing, has to do with the layering of soil that took place for the footings (see the photo on page four). The pattern reminds me of geological formations that become visible after a massive plate tectonic shift. In this case, PhoenixMart is the cause of a massive tectonic shift in industry.

Our feature article digs into the history of the trade mart. By comparing PhoenixMart with its earlier predecessors, you will better understand how PhoenixMart is a unique and innovative project. PhoenixMart stands apart because it is the first iteration of next-generation marts.

Nowhere else in the world can you find industry convergence functioning on the scale that it is functioning at PhoenixMart.

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The September/October issue also contains the special “PhoenixMart Focus” section, where we spotlight a handful of companies that are either new to PhoenixMart or play a vital role in PhoenixMart operations. In particular, this issue of Converge highlights the talent search specialists at TruPath and the world-class translation services provided by inWhatLanguage. PhoenixMart HR will be powered by TruPath, while inWhatLanguage will bridge the language gap for PhoenixMart tenants and daily visitors.

We are thrilled that TruPath is helping PhoenixMart businesses recruit employees who are a TruFit with their company and embody their values. Equally important is the service of inWhatLanguage ensuring that PhoenixMart transactions are seamless no matter the language they’re conducted in.

We end this issue with a look at foreign-trade zones. Tenants will find numerous advantages associated with these areas and PhoenixMart, in partnership with Supply Chain Solutions, will help them maximize their results.

On behalf of all of us here at PhoenixMart, I invite you to take part in this remarkable and unique project.

Sincerely,

INSIDE featured

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THE EVOLUTION OF THE MART

Since their introduction in the 1930s, marts have consistently grown and changed. A brief genealogy of the mart demonstrates how PhoenixMart evolves the traditional concept and design of marts to create an international industry convergence hub of manufacturing, distribution, wholesaling, retailing, marketing, and communication.

ABOUT PHOENIXMART

in this edition

PhoenixMart is the leading 21st Century

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global convergence center combining retail, wholesale, amenities and entertainment in one convenient location. Manufacturers, distributors, wholesalers and retailers have unparalleled access to thousands of buyers within the U.S. and across the globe.

CONTACT 7047 E. Greenway Parkway Suite #190 Scottsdale, AZ 85254

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602-663-9219

phoenixmart.com

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At over 1.5 million square feet, PhoenixMart is poised to become the largest trade center in the Western hemisphere. With such a massive undertaking, these bits of information can help you better understand the size and scope of the project.

PHOENIXMART Focus: TruPath and inWhatLanguage This issue, Converge is proud to spotlight two new preferred vendors: Arizona-based recruiting firm TruPath and world-class translation services provider inWhatLanguage.

info@phoenixmart.com

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PHOENIXMART in Brief

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Volume 1, Issue 2 September/October 2015 Editor/Publisher: Write Margin Media Designer: Katie VanMeter and Kayla McCarty On the cover: A conceptual rendering of the Office &

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Foreign-Trade Zones: What are they? Why do they matter?

Read about the many benefits associated with foreign-trade zones and how PhoenixMart’s tenants will save time and money.

Recreation entrance to PhoenixMart, set to open midyear 2016. All renderings are conceptual in nature and PHOENIXMART PUBLICATION notAnecessarily final designs.

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//PHOENIXMART in Brief

PHOENIXMART FACTS:

DID YOU KNOW? The perimeter around PhoenixMart is 5,184 linear feet, nearly one mile. To put that into perspective, if one were to lay four Empire State buildings (about 1,250 feet each) end to end, they would still come up a bit short.

35,173 yards of concrete will have been poured by the grand opening in 2016. That’s roughly the amount produced by 3,500 concrete trucks.

CONSTRUCTION REQUIRES 7,334 TONS OF STRUCTURAL STEEL — 14,668,000 POUNDS

THE EQUIVALENT OF 8,149 VOLKSWAGEN BEETLES

One World Trade Center, the tallest building in the Western hemisphere (1,776 feet), would only be about the length of one side of the building.

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For the building footprint (the equivalent to 26 football fields), three feet of soil was removed, water was added to bring the soil to the optimum moisture content, all organic material was removed, and the soil was then put back in sixto 10-inch lifts. (See photo.) At each lift, water was added

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PhoenixMart needs over 10,000 light bulbs to remain fully lit.

of dirt was leveled off and graded for a flat building pad and proper sloping to the basins in the off chance it happens to rain in AZ. The Mall of America, by comparison, sits on just 96 acres.

190 Wireless Access Points will provide free wireless Internet access to all visitors and tenants.

and dirt was mechanically compacted to 95% density.

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GIVING RISE TO THE PHOENIX A History of the Mart

For nearly a hundred years, from Chicago to China, the Middle East to France, and now emerging in Phoenix, ‘marts’ have been like giant magnets, pulling thousands of wholesale and retail businesses into gargantuan hubs known as … well … marts.

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And the latest mart – a hub of national and international wholesale, retail, manufacturing and distribution – is rising from the desert south of Phoenix, Arizona. Its name? PhoenixMart.

But we’re getting ahead of ourselves. This is, after all, a story about the history of marts; a story illustrating their inception and growth, adaptations and innovations. In short, to fully understand the vision of the latest mart –

//Feature

First off, marts have a history of being the biggest things around, which makes their size difficult to fathom. They are most often described in terms of square footage, but what does, for example, 5 million square feet look like in terms of real life? We’ll go with football fields, where 1 million square feet is 18 football fields.

So, there’s some context any time square footage pops up.

Now, with the football-field measuring stick, let the mart history begin … a really, really big beginning. Eighty-five years ago, The Merchandise Mart in Chicago kicked things off with a 25-story, 6 million-square-foot (108 football fields) structure that even today is the largest commercial building in the country.

At the time of opening in 1930, though, the mart wasn’t just the largest commercial building, but the largest building in the world. It was so big, in fact, that standard construction practices couldn’t get the job done. The general contractor had to use techniques typically reserved for building large dams.

But the Merchandise Mart did more for innovation and business than just creating a gigantic building. After the first few decades of housing only wholesale space for the furniture industry, they changed the model. Before 1991, marts weren’t terribly exciting to the average shopper, since they weren’t open to the public. But in 1991, this mart saw the vision of how much more it could be. It merged with retail shopping, adding apparel shops, beauty, financial and travel services, specialty food and wine, dry cleaning, a food court and … you get the picture.

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It would take 23 years before we saw another mart exploring the innovation of blending wholesale with retail (DragonMart in Dubai, which we’ll get to in a minute). But that doesn’t mean there weren’t other marts in between.

There were, and to this day they have found great success.

About 30 years after Chicago’s Merchandise Mart came the Dallas Market Center and AmericasMart Atlanta, multi-building monstrosities (100 football fields big) that focused on tradeshows and permanent wholesale showrooms. However, while not open to the public, they still benefit the public by pulling in hundreds of thousands of wholesale buyers a year, adding billions of dollars in revenue to their local economies.

In 1965, though, a new force dominated the wholesale market in the western United States: DenverMart. This mart, like the previous two, limited access to professional wholesale buyers, but this mart stood out by creating the largest exhibition and wholesale facility in the Rocky Mountain region.

And suddenly marts were easy to find all across the nation as the concept continued to take hold.

Marts popped up in North Carolina, California, Michigan and more. So, with the U.S. pretty well covered, it’s time to go overseas: to the Yiwu Market. This market, located in Yiwu, China, is a massive multi-industry mart. It’s so massive, in fact, that even the football-field measurement fails. At 40 million square feet, it’s 800 football fields large, and all of that is filled with the exhibition, warehousing and distribution of Chinese-only wholesale products.

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PhoenixMart – and why they’re so confident in their industry-convergence business model, we must understand where it came from. Rather, we need to go to the birth of marts and work our way forward.

The first of its kind and still the largest in the country, Chicago’s Merchandise Mart is an architecturally and historically significant structure situated along the Chicago river.

Not surprisingly, in 2005 Yiwu Market earned the title of “largest small commodity wholesale market in the world” from both the United Nations and the World Bank. Even without the title, though, its size and reach is evident by the 14 million annual visitors shopping its 62,000

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showroom booths of goods from over 40 industries.

Next we travel to Dubai and the DragonMart mentioned earlier. DragonMart, which is actually shaped like a dragon, stands out as a mart that, like Chicago’s Merchandise Mart, is wholesale with a retail element open to the public. And the public likes it, judging by the 35,000 visitors each day. It makes sense, though. There is an awful lot to see, with nearly 4,000 wholesale and retail showroom shops selling home appliances, office supplies, communication equipment, lighting, building materials, furniture, apparel and a whole lot more. Even though the chief market for these exclusively Chinese goods is the Middle East and North Africa, they attract buyers from all over the world.

trading centers for Chinese products outside of China. One cannot miss the giant sculpture just outside of the main entrance.

1930

MARTS THROUGH TIME The Merchandise Mart opens in Chicago. Today it is the largest commercial building in the United States.

The Mart, as it was affectionately called, caters to wholesale buyers but is also open to the public.

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Buyers come to PhoenixMart because it’s a onestop shop, and PhoenixMart makes sure they keep coming through almost weekly tradeshows and events, bringing a constant flow of

Dallas Market Center is founded. The center is not open to the public but still attracts more than 200,000 buyers annually. AmericasMart opens in Atlanta. Similar to Dallas Market Center, AmericasMart is not open to the public.

1965

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one of the largest

And now we’re back to the U.S. with the next innovative step up on the hugely successful multi-industry mart formula: PhoenixMart, and their innovative take on industry convergence.

It’s true that industry convergence is already taking hold across the U.S. Until recently, many marts were single-industry endeavors, but several marts have now begun to see the benefits of branching out. They are evolving, adding additional industries to give their buyers a greater selection.

Except there is a problem: the need is for orange, square-shaped lighting fixtures with large, globe bulbs. The lighting vendor has the bulbs, but not the square-shaped orange fixtures. He does know of a vendor across the aisle, though, who works in custom metal products, and another one a few rows down who provides custom finishes. Together, the four walk up to a sitting area on the mezzanine, discuss prices, draw up orders, arrange manufacturing and distribution, and the exact product the restaurateur wanted is shipped right to him.

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DragonMart remains

But PhoenixMart just skips the whole evolving process completely, jumping right to “evolved” instead. It isn’t “adding” additional industries; it’s already added them. At PhoenixMart, a restaurateur can source new tables and chairs as well as industrial cleaning supplies. He can discover new international products and flavors, then move to apparel to pick up new uniforms for employees. If the chef calls with a request for new knives, the restaurateur can grab them as well. Say the restaurateur remembers the store windows need new lighting. That’s not a problem, either.

DenverMart is launched as the Western region’s premier wholesale marketplace, creating the largest trade show in the Rocky Mountain region.

It’s personal. PhoenixMart may focus on business, but the larger development cultivates community. In the summer of 2016, PhoenixMart is expected to open, and while it is all business, it isn’t. Instead, it’s part of the community; a place where tenants and businesses can feel like a part of something other than just a showroom in a business center; an environment of business, collaboration and fun. A place where people and families can meet and stroll and shop; and at the end of the day, PhoenixMart is neither daunting nor intimidating. It’s open. It’s welcoming. It’s business. It’s fun.

So PhoenixMart is truly a hub; a 30-footballfield large hub of international industry; a hub of manufacturing and distribution; a hub of wholesale and retail, marketing and communication; a hub, actually, that expands even beyond the mart structure itself with the addition of e-commerce. And all around PhoenixMart is a planned development that includes hotels, restaurants, a 4-star resort community, apartments, luxury condos and single-family homes.

Based in Casa Grande, Ariz., PhoenixMart stands apart from its precursors with its industry convergence model.

Tenant suites are now leasing in each of the six main product categories. Space is limited. To receive leasing information, please visit www.phoenixmart.com or call 602-663-9219.

Actually, the planned development is more than an innovative developmental structure.

The world’s largest small commodity wholesale

2016

1982

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consumers from around the world. PhoenixMart ups the exposure by opening everything to the public and not just trade professionals buying wholesale. Everyone is welcome to shop here.

market and warehouse space opens in Yiwu, China.

Open to the public, growth of this marketplace was organic and relatively unplanned.

PhoenixMart is the crown jewel of the North American Logistics, Trade and E-Commerce City (NALTEC). Learning from its predecessors, PhoenixMart is one part of a planned city that is

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open to the public, retail and wholesale buyers.

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DragonMart opens in Dubai, United Arab Emirates. The dragon-shaped building is a major trade center for Chinese products in the region.

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PHOENIXMART FOCUS Each issue Converge features exciting companies and influential people that keep PhoenixMart running.

//PHOENIXMART Focus

PhoenixMart will create nearly 10,000 jobs in the state of Arizona.

While this is a welcome change from the slow job growth of the recent recession, the thousands of businesses leasing suites in the new sourcing center are faced with several human resources (HR) questions: Are the right employees available in the local workforce? Who will find them? Who will recruit them for specific business needs? Because the human element drives the success of any business, PhoenixMart HR is now powered by TruPath, an Arizonabased recruiting and search firm that has deep roots in the Arizona community dating back to 2001. TruPath not only assists with HR needs, but TruPath does so with a unique “cultural DNA” approach.

TruPath has a proven track record of filling thousands of roles in numerous industries across the country. TruPath originally made its mark by assisting large manufacturers in achieving their goals in finding the best talent for all of their staffing needs. In particular, TruPath has seen the most success hiring for sales and marketing roles. “PhoenixMart is excited to leverage TruPath’s experience in identifying candidates for the wide array of manufacturers, wholesalers, distributors, and retailers that are doing business at PhoenixMart. They have coupled local experience and knowledge with national reach,” says PhoenixMart CEO Steve Gardner.

But how do they do this?

TruPath focuses on matching employees to companies so there is a TruFit. Based on years of experience and research, TruPath has refined their observational methods, questions, and matching process for the best possible outcomes.

TruPath begins not only by understanding the details of the open position, but also by examining the purpose, values, and culture of A PHOENIXMART PUBLICATION

a particular business. This involves meeting with executives, visiting facilities, and asking timetested search questions. In other words, TruPath examines a company’s “cultural DNA.” By assessing what both the company and the applicant value, TruPath is able to match an employee to a company based on qualifications as well as whether or not the two are culturally aligned.

While a TruFit between an employee and a company may sound like an exception rather than the rule, TruPath has been doing this for years. TruPath provides staffing and recruiting services on a contract, contract-to-hire, and direct-hire basis.

Their wide range of services provide PhoenixMart occupants with the needed support to hire the right employees who can sell their products to domestic and international markets successfully. TruPath is an innovator in the staffing and search space and has equipped its recruiters to go beyond the résumé by digging much deeper into a candidate’s personality and motivating factors that you just can’t see on a piece of paper. In fact, over three years ago TruPath launched successfully the first purpose- and values-based leadership search firm called YScouts. While this search process is not a one-size-fits-all, it has helped TruPath become a well-rounded staffing and recruiting firm. These innovations and business practices enable TruPath to match employees based on much deeper attributes than skill-set alone. With TruPath leading the way, PhoenixMart tenants will never have to worry about finding the right employees.

Filling thousands of jobs is undoubtedly a challenge.

TruPath not only uses its in-house recruiting team to address the need for talent, but also leans on its robust Arizona network to build a flexible and responsive consortium of recruiting partners.

“Gone are the days of looking at all the other good staffing and search companies as competitors or enemies. I believe collaboration where the sum is greater than all the parts is the world we live in today. We will steward the employment brand of PhoenixMart with this essence,” says TruPath CEO Max Hansen.

For more information about working with TruPath in a TruPartnership, visit trupathsearch.com, or contact PhoenixMart directly.

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With tenants and visitors from across the globe visiting PhoenixMart daily, the ability to communicate effectively in any language is critical. inWhatLanguage provides language translation services in over 180+ languages for PhoenixMart.

“Of course we can help you … in what language?”

As a business expands overseas, language barriers that may have been an occasional inconvenience can often erupt into a major hurdle, an impenetrable barrier blocking transactions with the inability to communicate.

Enter inWhatLanguage, a company with translation abilities in 180+ languages. They have broken down the impenetrable language

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barrier for an impressive list of businesses, such as McGraw-Hill Education, Apple, FIFA, Johnson & Johnson, LEGO, Motorola, The Walt Disney Company, Boeing, and the list goes on … and on and on.

And now they’re adding PhoenixMart to that list. inWhatLanguage CEO Cody Broderick says that with PhoenixMart set to pull in thousands of people from all over the world, there is a crucial question: “What will that experience be like for them?” Broderick says their experience must be

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//PHOENIXMART Focus “seamless, comfortable and well-supported,” and that’s the inWhatLanguage specialty.

For example, Broderick says they’re considering an onsite kiosk at PhoenixMart with live people speaking different languages, making sure whoever visits on any given day is fully supported on an international level, whether they need translation for a document, a phone call, a sales meeting, or a presentation.

The service is much more than straight text translation, though. One of inWhatLanguage’s philosophies is that “A good translator must be able to get a text in any format and deliver it back translated with no changes in the format.”

The material submitted will not only come back translated into a different language, it will look and feel the way it did when submitted - a major critique of lesser quality translations.

We’re not talking just simple text translations either, but also language for more complex formats like software, web sites, apps, and online courses. inWhatLanguage even has the technical expertise to provide dubbing and voiceover translations for podcasts, video content, radio work, and much more.

Aside from language fluency and technical expertise, inWhatLanguage provides localization: a service designed to include vernacular and phrasing common to the culture

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that it’s being translated into.

Take a mobile app, for example. If the language on a mobile app is casual and welcoming in English, Broderick says “you can’t simply translate content or it’s robotic.” Instead, he says a foreign-language visitor to PhoenixMart should open the app and say, “It’s warm and inviting and really well written and makes me feel like I’m at home.” That’s what inWhatLanguage means when they say localization, the ability to give a business global reach and simultaneously localize needs.

“It’s very complex,” says Broderick, “but it’s in place … and it’s working.”

In short, inWhatLanguage is striving to meet all your needs, promising that “Whenever and wherever you need one of our capable interpreters, they will be there for you….”

And really, that’s a perfect overall description of this leading service provider inWhatLanguage; wherever you are and whatever you need translated, the expertise to communicate it correctly will be there for you.

Now, how do I say all of that in Russian?

To learn more about inWhatLanguage translation services, visit www.inwhatlanguage.com.

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FOREIGN TRADE ZONES What are they?

Why do they matter?

When it comes to importing and exporting, few places in the United States can offer the competitive advantages found at PhoenixMart.

While there are many reasons this holds true, ranging from PhoenixMart’s unique business model to its ideal location for transportation, one that stands out is PhoenixMart’s connection to foreign-trade zones and subzones through its official onsite logistics provider, Supply Chain Solutions. But what is a foreigntrade zone (FTZ) and why does it matter?

A foreign-trade zone is a designated geographical area, often near a country’s ports of entry, where imported materials may be sorted, stored, or processed using special customs procedures. The U.S. foreign-trade zone program was created by the Foreign-Trade

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Zone Act of 1934 to “expedite and encourage foreign commerce.”

Today there are thousands of foreign-trade zones and subzones in the United States, including Zone 75 for the greater Phoenix area. While the phrase “foreign-trade zone” is often used domestically, these areas are sometimes called “free trade zones.” FTZ is used to refer to both of these phrases. A government-designated site, an FTZ is a place where goods sit in “international commerce limbo.” Not until imported materials or processed goods are moved out of the FTZ do they become subject to U.S. Customs and Border Protection (CBP) duties and taxes. PhoenixMart is pleased to work with Supply Chain Solutions in delivering several tenant benefits that stem from Zone 75 involvement.

FTZs provide several financial benefits to businesses operating within the area’s borders.

One in particular involves the nature of

//Foreign Trade Zones

“consolidated entry.” In 2000, the Trade and Development Act provided a mechanism for listing several bills of landing with one entry.

In other words, rather than having to pay a processing fee for each shipment, several shipments received during a single week could be received while paying only one processing fee. Today, large importers who make use of this benefit save hundreds of thousands, if not millions, of dollars every year.

FTZs also provide savings through “inverted tariff relief” or “duty reduction.” For industries where duties on raw materials are higher than duties on the finished products that use those very materials, manufacturing within an FTZ permits companies to pay duties on the finished products only once they have shipped. Thus companies save a significant amount of money by assembling products within an FTZ. Several companies, such as those in the appliance, solar

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equipment, auto, and machinery industries, already take advantage of this benefit.

There are additional FTZ benefits in terms of storage and time savings. For example, goods and materials may be stored within the area duty free for an indefinite period of time. FTZs also remove 1-2 days of transit time by allowing for “direct delivery.” In other words, a company benefits because delivery does not have to first go to an intermediary location for a signature.

With direct delivery, these procedures take place in one location.

With so much to gain, it is no wonder so many businesses large and small want to become PhoenixMart tenants.

Questions about what PhoenixMart and foreign-trade zones can do for your business?

Contact PhoenixMart at 602-663-9219 or www.PhoenixMart.com.

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7047 E. Greenway Parkway Suite #190 Scottsdale, AZ 85254 602-663-9219 info@phoenixmart.com phoenixmart.com Volume 1, Issue 2 September/October 2015

NOW LEASING PhoenixMart is currently under construction just 28 miles south of Phoenix, Arizona.

Once complete, this wholesale, retail and entertainment destination will have over 2,000 tenant companies spanning six major product categories and dozens of on-site service providers - all under one roof.

Particular care has been taken to select the optimal tenant mix for PhoenixMart, acquiring an equal mix of small, medium and large tenant companies as well as a vibrant mix of domestic and international tenants.

Spaces in each product and service category are extremely limited and will be leased on a first-come, first-served basis.

Leasing agents are currently screening applications and accepting tenants for all categories and services. For more information on leasing a space at PhoenixMart, please visit www.phoenixmart.com.

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