Arizona is undoubtedly an easy sell when it comes to expanding and relocating business prospects. After all, the state is, well, sunny, and of course warm, mountainous, full of natural parks, and home to a host of professional sports teams.

And who could forget that Arizona is overflowing with fairways? The golf course is widely regarded as an optimum location for conducting business - mixed with some pleasure.

Rest assured that Arizona's quality of life is not its only asset. Companies score a package deal when they set up shop in the state. Businesses there benefit from a high influx of new residents each year, as well as graduates from a wealth of local schools and universities - nearly 250 post-secondary institutions to be exact. The cost of living is reasonable and the economy is bustling, branching out in all directions.

Home to such agreeable advantages, the state continues its trend of positive growth as companies journey into the ever-popular Grand Canyon State.

Operations at Intel's Fab 22 take off

The current national economy may not be what it once was, but it hasn't deterred microchip-maker Intel from preparing for better days ahead.

In October 2001, the company's $2 billion investment project came to life in Chandler, Ariz., where production began on Intel's fastest and most sophisticated chip. After 18 months of construction, Fab 22, one of the world's most advanced high-volume computer chip factories, is garnering plenty of attention.

More than 1,000 engineers, technicians, and support people have already been hired to work at the facility, which contains about 133,000 square feet of clean room space. Nearly 360,000 square feet make up Fab 22, and a new four-story 320,000 square foot manufacturing support building and 123,000 square foot utility building were also completed as part of the project.

Intel is Arizona's seventh-largest employer, and maintains approximately 10,000 workers in the state.

Greater Phoenix welcomes innovative companies

In the southeastern section of the Greater Phoenix metro, Catalytica Energy Systems is in the process of making its contribution to cleaner air.

The company benefits from the expertise of Chief Technology Officer Ralph Dalla Betta, the engineer known as the father of the catalytic converter for his pioneering work at Ford Motor Co., and for helping American automakers build cleaner cars. Along with CEO Craig Kitchen, Dalla Betta moved to Gilbert, Ariz., where they are embarking upon a new mission of helping power plants generate cleaner electricity.

Catalytica will soon be producing its pollution-control devices, which is good news to local utilities and power producers, which are under pressure to lower their power plant emissions. The cool combustion technology developed by Dalla Betta practically eliminates nitrogen oxide emissions by natural gas-fired power plants.

The company is relocating from the West Coast and will bring 150 jobs to Gilbert. Catalytica will pay, on average, nearly $80,000 per year to each employee.

DEMOGRAPHY AND ECONOMY

Population: 5.1 million

Capital: Phoenix

Three Largest Cities: Phoenix, 1,211,466; Tucson, 466,591; Mesa, 368,811

GSP: $134 billion

Per Capita Income: $25,189

Percentage of Private Manufacturing Labor Force Organized: 3.1%

Right to Work State: yes

Unemployment Rate: 5.6% (Dec. 2001)

Average Hourly Manufacturing Wage: $12.74

Population Age 25 and Over With Bachelor's Degree or More: Phoenix, 19.9%; Tucson, 20.7%; Mesa 21.0%

Corporate Income Tax Rate: 8.0%, minimum tax is $50

Percentage Employment by Sector: construction, 7.0%; manufacturing, 9.5%; mining, 0.4%; service industries, 32.2%; transportation/public utilities, 4.9%; wholesale/retail, 23.5%

Primary Industries: services, retail trade, manufacturing, agriculture

Targeted Industries: bio-industry, environmental technology, food, fiber and natural products, high technology, optics, plastics and advanced composite materials, metal fabrication, transportation and distribution, software

BUSINESS ASSISTANCE

Major Financial Incentives: Commerce and Economic Development Commission, offers low interest loans and grants to businesses expanding in Arizona; Private Activity Bonds; Enterprise Zones

Worker Training Programs: Job Training Program

Technology Transfer Programs: Governor's Strategic Plan for Economic Development; Arizona Technology Incubator; Arizona's university system; Small Business Innovative Research Loan Program; Williams Gateway Airport

Enterprise Zones: 20; Apache County, Bullhead City/Mohave County; cities of Benson, Chandler, Flagstaff, Phoenix, Prescott, Tempe, Tucson, Cochise County, Coconino County, Colorado City, Gila County, La Paz County, Navajo County, Pima County, Santa Cruz County, Western Maricopa County, Yuma County

Foreign Trade Zones: 7; Tucson, Nogales, Phoenix, Sierra Vista, Tucson, Yuma, Mesa

International Trade Offices and Locations: London, England; Munich, Germany; Hermosillo, Mexico; Mexico City; Tokyo, Japan; Taipei, Taiwan

Environmental Permit Assistance: Arizona Department of Environmental Quality provides assistance to businesses in dealing with regulations, permits and approvals. The Department of Commerce will assist in obtaining more information.

QUALITY OF LIFE

Price for a New 2,400-sq.-ft. Home: Phoenix, $201,293; Tucson, $187,794; Scottsdale, $313,432

Cost of Living Index: Phoenix, 99.0; Tucson, 98.8; Scottsdale, 110.8

FOR MORE INFORMATION CONTACT

Sandra Watson, Director of Business Development, Arizona Department of Commerce, 3800 North Central Ave. #1500, Phoenix, AZ 85012, (602) 280-1394, fax (602) 280-1338, Web: www.azcommerce.com