More than a year ago, officials with U.S. Bank started examining how they could expand their footprint in the southwestern United States. After months of analysis and review, the conclusion reached by the company in October was that downtown Phoenix was the right spot to locate a regional headquarters.
The company announced that it would expand into two floors in a downtown Phoenix office building. U.S. Bank was scheduled to open the facility this month, employing 200 workers.
“Traditionally, our focus has been on community banking,” said Hope Levin, president of the Arizona Market for U.S. Bank. “And that will certainly continue to be important for us. But we started looking at the economic and growth data for Arizona and Phoenix.”
U.S. Bank employees at the regional headquarters will work in a variety of roles. Workers will manage corporate trusts, commercial real estate and commercial lending, as well as provide administrative support.
The company worked with the Greater Phoenix Economic Council (GPEC) and Arizona State University to make the project a reality, Levin said.
“We’re excited about the opportunity to be in the Phoenix area,” she said. “The entire business community and the city have been great to work with.”
The positive attitude U.S. Bank encountered when meeting with state and local officials isn’t uncommon for businesses expanding to Arizona. A good business climate includes more than just tax breaks and financial incentives; it also means having local leaders that will help companies to move their projects forward.
“The city of Phoenix has been wonderful to work with,” Levin said. “The mayor offered any assistance we might need. The city has helped us expedite approvals for zoning and signs. That is important in keeping something moving forward.”
What this means for U.S. Bank is that it will be able to continue to grow its markets and business, which is all any company wants from a location.
“We found there’s a huge market of small to medium-sized companies in the $10 to $100 million [annual revenue] range,” Levin said. “We really want to be able to service that market. We’re No. 1 or 2 in nearly every market we serve, and we think we can do the same thing here.”
Meanwhile, Cambridge Filter Corp. will site its southwestern U.S. operations headquarters in Gilbert in a $10 million investment.
At build out, the headquarters will be more than 131,000 square feet and generate as many as 120 jobs. The company will hire about 40 employees within the first year of operations.
Lydian, Intel Invest in Arizona
Another company is expected to open an office in Phoenix this month. Lydian Data Services, which reviews mortgage documents, expects to open its doors with 150 employees and add up to 300 more by the end of 2006.
Lydian reviews loan documents that Wall Street firms are planning to buy, looking for errors, as well as the viability of the loan. Lydian, based in Palm Beach, Fla., will hire mortgage underwriters, closers, processors, funders and client advocates for the office.
Intel Corp., one of the world’s dominant technology companies in the area of silicon chips and other high technology, recently announced that it would be growing its facilities in Chandler.
The $2 billion expansion will convert an 8-inch (200-millimeter) silicon wafer fabrication facility into a new 12-inch (300-millimeter) manufacturing facility. The new site is scheduled to open late this year.
Once converted, the facility will churn out chips based on wafers and will be Intel’s largest plant to use the emerging technology.
“We’re putting $2 billion in the ground in Chandler,” said Craig Barrett, president and CEO of the Santa Clara, Calif.,-based company. “This will allow us to maintain a work force that we have there because that work force is valuable, efficient and well-trained. It contributes to our bottom line.”
Otto Industries Group Worldwide will locate a plastic injection-molding facility in Eloy.
Maastricht, Holland-based Otto Industries plans an initial $10 million investment in a 35,000 square foot facility on an 18-acre parcel in the Eloy Industrial Park.
The plant, currently under construction, will produce two-wheeled waste and recycling containers and custom molding for distribution, primarily to clients in the western and central United States.
Regional cooperation involving public and private organizations was key to the company’s decision to locate the facility in Arizona.
“A high degree of professionalism combined with proximity to markets, good interstate and rail access, the availability of labor and a stable supply of services, especially electricity, made Arizona the most appealing site for this plant,” said Phillip Trussell, vice president of Otto Industries.
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