From transportation and water infrastructure to advanced manufacturing facilities, Sundt Construction has helped build Arizona’s economy since 1929. Headquartered in Tempe, the 100% employee-owned company is investing in new facilities, workforce training and technologies to support the state’s next chapter of growth. In this ˿����Ƶ Business News Spotlight, Sundt’s Alex Charland discusses the company’s new Apache Junction manufacturing facility, its commitment to careers in the skilled trades and how employee ownership shapes its approach to building Arizona’s future.

Tell us about Sundt Construction and its footprint in Arizona. 

Alex Charland, president, advanced facilities: Sundt is headquartered in Tempe and has been active in Arizona since 1929. We have built the infrastructure and facilities that help communities and economies grow, from transportation and water treatment systems to mining, advanced manufacturing, data centers and other complex industrial work, just to name a few. 

We are also 100% employee-owned by more than 5,500 employee-owners. That matters because the people planning the work, managing projects and building in the field have a direct stake in Sundt’s long-term success. Our craft professionals, engineers, and support teams are building their own futures alongside the projects they deliver. 

Safety is foundational to that commitment. Sundt is the only company to have earned the Grand Safety Award three times by the Associated General Contractors of America. We see workforce development, employee ownership and safety as connected: We want our people to have the training, opportunity and ownership stake to build a long career and to return home safely every day. 

Sundt recently broke ground on a 65,000-square-foot manufacturing facility in Apache Junction. What should Arizonans and the business community know about this project? What role does off-site manufacturing play in supporting Arizona’s construction growth? 

Our new Apache Junction facility is a meaningful investment in Arizona’s industrial future and in the people who will build it. The 65,000-square-foot facility will include manufacturing and fabrication space, engineering and design offices, and a regional employee training center. It is expected to create approximately 100 new jobs in its first phase, with room to expand as demand grows. 

The facility will allow us to manufacture modular components (especially mechanical, electrical, and process, or MEP, systems) for a wide variety of industrial, manufacturing, and infrastructure projects. Off-site manufacturing and fabrication give teams a more controlled environment to produce components with consistency and precision before they arrive at the jobsite. 

That has several benefits. It can reduce traffic and material movement in and out of jobsites, improve schedule reliability, and create safer, more predictable working conditions for our employee-owners. It also creates quality career opportunities closer to home for people in the Apache Junction community. 

Arizona’s economy is growing because companies are investing in advanced manufacturing and industrial production here. Our job is to help provide the facilities and infrastructure that make that growth possible. This facility strengthens our ability to do that while creating jobs, developing skills, and keeping more of that economic activity in Arizona. 

What does being 100% employee-owned mean for Sundt and its employees? 

Employee ownership means that, after meeting a one-year tenure and minimum-hours-worked threshold, every eligible employee can participate in Sundt’s ESOP. It is not reserved for executives, office roles, or a select group of employees. Craft professionals, skilled-trades workers and administrative team members all can become owners. 

That creates a different kind of workplace. Our people are invested in doing work safely, solving problems early, protecting quality and building strong relationships because they are not just working for the company. 

Employee ownership can also reshape retirement outcomes. We have seen people who spent their careers in the skilled trades or in administrative support roles build real retirement security that you don’t see in other structures. That is one reason we believe construction can offer an exceptional career: It is an opportunity to learn a valuable trade, earn a strong living, support a family, and share in the long-term success of the company. 

As an employee-owned business, we can make decisions with a longer view. We are focused on the health of our people, the success of our clients and the communities where we work, not short-term returns for outside investors. 

Sundt has emphasized semiconductor manufacturing expertise and created a dedicated Advanced Facilities Group. What differentiates your team in advanced manufacturing? 

Advanced manufacturing facilities demand a different level of planning, coordination, and execution. These are highly technical environments where precision, process reliability, schedule and safety all matter at once. 

Our teams, including our Advanced Facilities Group, bring together people with deep experience delivering complex industrial systems. We also have robust self-perform MEP capabilities, which gives us more direct control over critical work and helps our teams coordinate complex systems from preconstruction through installation and startup. 

Beyond the manufacturing facilities themselves, one area where our teams have developed significant capability is industrial water and wastewater treatment with a focus on water reuse and recycling. Those systems are essential to the next generation of sustainable semiconductor and advanced manufacturing facilities, and they require a high degree of technical understanding and disciplined project delivery. 

What differentiates Sundt is not simply that we build large facilities. It is that we understand the integrated systems inside them and can bring the right people, processes, and self-perform capability to execute demanding work with fewer handoffs and less uncertainty. Our teams know how to work collaboratively with clients and trade partners to identify issues early, manage risk, and keep projects moving. 

Which innovation tools are having the biggest impact at Sundt, and why is Arizona a strong place for companies to embrace innovation? 

We have embraced AI because construction has many real-world challenges it can help solve when it is supported by clean, reliable data and guided by experienced people. Technology is most useful when it helps our teams make better decisions, improve safety, increase productivity, or see potential problems sooner. 

We are also investing in automation in practical ways. Sundt is partnering with Bedrock Robotics on automated excavators. We have deployed a robotic survey device to regularly walk a major jobsite, and we have piloted semi-autonomous heavy-equipment systems on solar fields. These tools can help improve consistency, capture better jobsite information and allow skilled people to focus their time where their judgment matters most. 

Arizona is a strong place to embrace innovation because it has shown a willingness to welcome and test new technologies. Phoenix was among the cities willing to pilot Waymo alongside San Francisco, and Bedrock Robotics shares roots with that same ecosystem. That openness matters. 

There is a positive feedback loop at work in Arizona. The state’s willingness to support advanced technology companies has helped attract major investment. In turn, those projects have helped cultivate builders, trade partners, and skilled workers capable of delivering some of the country’s most demanding industrial systems. That makes Arizona even more attractive to the next generation of advanced manufacturing and technology companies. There is a reason Semicon is moving permanently to Arizona. 

Why is Arizona a great place to do business, and how does Arizona fit into Sundt’s growth strategy? 

Arizona is home, and it will remain central to our growth strategy. We build across the country, with a focus on fast-growing markets that value collaborative project delivery, but headquarters are here. 

We are active in Arizona across our full range of work, from heavy civil infrastructure to industrial, institutional and commercial projects. We built our training facility and Center for Craft Excellence in Phoenix, we’re underway on our dedicated off-site manufacturing facility in Apache Junction, and we are preparing to expand our headquarters into a full campus in Tempe. 

Those investments reflect confidence in Arizona’s future. The state has a growing economy, an increasingly diverse industrial base and a business community that understands the importance of infrastructure, workforce development, and long-term partnership. Sundt intends to keep investing alongside our fellow Arizonans. 

Recent news has highlighted Sundt’s Apache Junction manufacturing investment, safety recognition, outreach to Pima JTED and ACE Mentor, and acquisition of IPS. What do these milestones say about where Sundt is headed in Arizona? 

Together, these milestones show a future-focused, long-term strategy. We are investing in the capacity, people and partnerships Arizona needs to continue growing. 

Our Apache Junction facility will expand our off-site manufacturing and fabrication capabilities. Our safety recognition reflects a commitment to the wellbeing of the people doing the work. Partnerships with organizations such as Pima JTED and ACE Mentor help introduce young people to construction careers and create pathways into the skilled trades. And our acquisition of IPS strengthens the self-perform electrical and instrumentation capabilities we can bring to increasingly complex work. 

We are also the largest provider of U.S. Department of Labor-registered construction apprenticeships in Arizona, with seven programs offered in English and Spanish through our training campus near downtown Phoenix and community-college partners. Participation has quadrupled over the past two years, and we anticipate that growth to continue. 

That’s the future we are working toward: an Arizona where people can build rewarding careers, businesses can grow with confidence, and the infrastructure and facilities being built today support a thriving state for generations to come. 

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EPA Administrator Lee Zeldin visited Arizona Tuesday to announce proposed approval of Maricopa County Rule 204, an emissions-reduction program intended to help businesses invest and expand while improving air quality.

The announcement followed a roundtable with business leaders and elected officials. Rule 204 would allow qualifying voluntary emissions reductions from nonroad engines and equipment to generate credits that new or expanding major facilities could use to satisfy federal Clean Air Act offset requirements.

Speaking at the announcement, Zeldin praised the county and business community for finding practical ways to support growth while working toward compliance with federal ozone standards.

“They aren’t increasing emissions and they aren’t breaking federal requirements,” he said. “They are finding new innovative ways to work within their circumstances.”

The Arizona ˿����Ƶ of Commerce & Industry welcomed the proposal as an important step toward addressing a longstanding shortage of emissions credits that can constrain economic development.

“This is an important win for cleaner air, economic growth and the kind of practical problem-solving Arizona does best,” ˿����Ƶ President and CEO Danny Seiden said.

Rule 204 would create a financial incentive for owners of equipment such as construction machinery and railroad locomotives to upgrade to cleaner technology. Qualifying reductions could then generate credits for facilities seeking to build or expand.

“For more than a decade, Arizona’s business community has worked to expand the tools available to reduce emissions while giving companies a workable path to invest, expand and create jobs,” Seiden said. “Rule 204 does exactly that: when businesses voluntarily replace older equipment with cleaner technology and achieve real, measurable emissions reductions, those reductions can help make continued economic growth possible.”

Parts of Maricopa County are designated as being in moderate nonattainment of federal ozone standards. Major facilities seeking to build or expand in the affected area must obtain permits and offset increases in emissions.

Under the proposed program, equipment owners that permanently reduce nitrogen oxide or volatile organic compound emissions could trade qualifying reductions as credits to those facilities. EPA said the approach could support industries including high-tech manufacturing and power generation, and that it does not expect the rule to increase emissions in the area.

Maricopa County Board of Supervisors Chair Kate Brophy McGee greeted the announcement with enthusiasm.

“I have been in public service for over 25 years and my dream has come true,” she said, drawing laughter from the audience.

Brophy McGee praised regulators for listening and using incentives, saying Rule 204 could help preserve the county’s quality of life while supporting its economic expansion.

“This plan demonstrates how a healthy environment and growing economy can work together,” she said. “By incentivizing rather than punishing job creators, implementing Maricopa County’s Rule 204 will improve the quality of the air we breathe while enabling key industries to continue investing in our community.”

Supervisor Thomas Galvin called the announcement “a victory for our environment, the economy, and common-sense regulation reform.”

Arizona Commerce Authority President and CEO Sandra Watson said the proposal would strengthen Arizona’s competitiveness and support responsible growth. She credited Gov. Katie Hobbs, Maricopa County and other partners, and recognized Seiden and the ˿����Ƶ for their leadership in advancing the measure.

Seiden also thanked county officials, the governor and federal and state lawmakers from both parties for helping bring the proposal to this point.

“Protecting air quality and maintaining a strong economy do not have to be competing goals, and once again Arizona is showing the rest of the country how smart policy can advance both,” he said.

EPA’s announcement represents proposed approval. The agency said it will hold a 30-day public comment period before taking final action.

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The Arizona Court of Appeals, Division Two has upheld the rejection of two referendum petitions challenging zoning approvals for a proposed Marana data center project, ruling that the petitions failed to meet Arizona’s strict legal requirements for referenda. 

affirms an earlier Pima County Superior Court ruling and leaves the Marana Town Council’s January zoning approvals in place. 

The dispute centered on referendum petitions that were circulated with incomplete copies of the zoning ordinances. 

Arizona law requires referendum petitions challenging zoning decisions to include the full and correct text of the ordinance, along with a legal description of the affected property. Courts have long required strict compliance and construction with those requirements.  

In this case, although still publicly available, the Marana town clerk initially provided referendum organizers with copies of the ordinances that were missing required exhibits containing additional legal descriptions of the properties. Those versions were then used to collect signatures. The town later corrected the omission, but the clerk ultimately rejected the petitions because the documents circulated to voters were incomplete.  

Referendum supporters argued that they had relied on the official documents provided by the town. The Court of Appeals acknowledged the town’s mistake but reiterated that under Arizona law, responsibility for complying with referendum requirements ultimately rests with the proponents circulating the petitions. 

“Regardless of whose mistake leads to a lack of strict compliance with the referendum petition statutes, a referendum petition may not move forward if its proponent fails to strictly comply with the statutory and constitutional provisions,” the court wrote. 

The court also found that the missing exhibits were expressly part of the ordinances themselves and included information about the property rights affected by the zoning changes, including water rights.  

The Arizona ˿����Ƶ of Commerce & Industry participated in the case as an amicus curiae, or friend of the court.  

“This is an important decision for the consistent application of Arizona’s referendum laws,” said Vanessa Pomeroy, chief counsel of the Arizona ˿����Ƶ Legal Center. “The court made clear that strict compliance means strict compliance for referendum petition proponents. Clear, predictable statutory and constitutional requirements are important for voters, communities and businesses alike.” 

The court separately addressed an attempt by the referendum committee to withdraw the petitions after they had been filed. It held that the power to withdraw a petition signature belongs to the individual voter who signed it, not to the committee that collected the signatures.  

For developers and local governments, the ruling adds clarity around the referendum process at a point when land-use challenges can create uncertainty for major development and investment decisions. 

The three-judge panel unanimously affirmed the Superior Court’s judgment in favor of the Town of Marana.  

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Arizona’s small business owners know that the health of our economy depends on more than hard work — it depends on the strength of the institutions that support our communities. That’s why Banner Health’s continued investment in Arizona’s small business ecosystem deserves recognition, and why it should serve as a model for how anchor institutions and local entrepreneurs can grow together.

As Arizona’s largest private employer and a locally governed nonprofit health system with hospitals and clinics serving urban and rural communities across the state, Banner Health supports billions of dollars in annual economic activity while reinvesting in the people and communities it serves.

Health systems like Banner are often thought of purely in clinical terms — as places we go when we’re sick or when a loved one needs care. But in communities across Arizona, Banner functions as something more. It is the state’s largest private employer, a major purchaser of local goods and services, and a steady source of demand for everything from construction and facilities management to catering, technology, and professional services. When a health system chooses to build local supplier relationships, mentor small vendors, and invest in workforce pipelines, the ripple effects reach far beyond its hospital walls.

This matters because small businesses are the backbone of Arizona’s economy. They make up the vast majority of employers in this state, and they are disproportionately vulnerable to the ups and downs of local demand. A single new contract with an institution the size of Banner can be the difference between a small business surviving its first five years and closing its doors. Multiply that across dozens of vendors, contractors, and service providers, and you start to see how one institution’s purchasing decisions can shape the trajectory of entire local economies — from Phoenix to rural and border communities that don’t always have easy access to large-scale opportunity.

Supporting small business isn’t charity for a health system like Banner — it’s smart economics. Local vendors tend to be more responsive, more invested in the community’s outcomes, and more likely to reinvest their earnings close to home. Every dollar spent with an Arizona small business tends to circulate further within the state than a dollar spent with an out-of-state vendor. That’s the kind of multiplier effect that policymakers spend years trying to engineer through incentive programs. Banner is achieving it simply by choosing to prioritize local partnerships.

We should also recognize what this means for the resilience of our health care infrastructure itself. A hospital system that is embedded in its local business community — one that understands the needs of its small vendors and invests in their success — is a system that is more connected to the economic realities of the people it serves. That connection matters when it comes to workforce recruitment, community trust, and long-term sustainability, especially as Arizona’s population continues to grow and diversify.

None of this means the work is finished. Arizona’s small businesses continue to face real challenges: rising costs, workforce shortages, and uneven access to capital and contracting opportunities, particularly for businesses owned by women, veterans, and entrepreneurs of color. We would encourage Banner, and other large institutions across the state, to continue expanding transparent pathways for small and diverse suppliers to compete for contracts, and to treat local economic development as a core part of their mission rather than a side initiative.

That commitment matters. As a locally governed nonprofit health system, it reinvests in Arizona — supporting local businesses, strengthening communities, and improving the health of the people who live here.

Arizona’s small businesses are ready to be that kind of partner. We hope more of the state’s largest institutions follow Banner’s lead.

Steve Kaiser is CEO of the Arizona Small Business Association, a nonpartisan advocate for small businesses across the state.

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A national competition launched by Philip Morris International’s U.S. businesses is offering $250,000 to help locally developed ideas grow into scalable solutions for communities across the country.

The Community Futures Challenge will award $250,000 across five grants of $50,000 each to eligible nonprofit organizations. Applications are open through Nov. 30.

Arizona State University is serving as the program’s official judging partner, while an independent panel will evaluate submissions based on community impact, feasibility, innovation, sustainability and the strength of the project team. Pacheco Ventures operates the challenge.

Eligible projects can range from early-stage concepts to pilot programs and initiatives already beginning to scale. Organizers point to workforce development, economic mobility, public infrastructure, civic technology and entrepreneurship among the types of community challenges the competition is designed to address.

The effort recognizes that many promising solutions are already being developed in communities across the country but need additional capital and partnerships to have broader impact.

The competition is being paired with a five-city Innovator Series Tour bringing together business, government, nonprofit and community leaders to discuss how locally developed ideas can move from concept to broader impact.

The tour recently stopped in Stamford, Connecticut, where participants included Stamford Mayor Caroline Simmons, University of Connecticut President Radenka Maric and Daniel O’Keefe, commissioner of the Connecticut Department of Economic and Community Development. 

Stamford is one of five stops on the tour alongside Nashville, Pittsburgh, Jacksonville and Phoenix.

The Stamford discussion focused on the role local leadership, entrepreneurship and investment can play in turning community-based ideas into scalable solutions. The event was held at PMI U.S.’s headquarters wither representatives from government, business, media and non-profit organizations as part of the company’s broader America250 initiative.

The Community Futures Challenge is open to eligible 501(c)(3) organizations serving defined communities anywhere in the United States. Finalists are expected to be notified in January, with winners announced in early 2027.

Applications are open through Nov. 30 at america250cfc.org.

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The Arizona Manufacturers Council has announced the recipients of the 2026 Manufacturer of the Year Awards, recognizing companies and leaders making an impact across Arizona’s manufacturing sector.

The annual awards recognize excellence across seven categories, from manufacturing growth and innovation to sustainability and industry leadership. This year’s honorees will be recognized Oct. 13 at the Manufacturer of the Year Awards Luncheon presented by APS.

“Arizona manufacturers continue to grow, invest and innovate in ways that strengthen the state’s economy and expand what gets made here,” said Grace Appelbe, executive director of the Arizona Manufacturers Council. “This year’s honorees reflect the depth of that work, from longstanding Arizona companies to major industrial operations and emerging technologies.”

2026 Award Recipients

Small Manufacturer of the Year — Valley Forge & Bolt: The Phoenix-based manufacturer makes industrial bolts and fasteners used in demanding environments such as mining, steel and oil and gas. The company is also known for patented technology that allows operators to monitor bolt tension in real time, helping improve safety, reliability, and maintenance.

Medium Manufacturer of the Year — Nucor Steel Kingman: Nucor’s Kingman mill produces reinforcing bar and wire rod used in roads, buildings, bridges and other infrastructure. In 2025, the facility brought a new $100 million melt shop online, allowing Nucor to recycle scrap metal into new steel products directly in Kingman and expand production for customers across the West.

Large Manufacturer of the Year — Shamrock Foods Company: Founded in Tucson in 1922, Shamrock has grown from a small dairy operation into one of the nation’s largest family-owned food companies. The Arizona-based company’s operations include Shamrock Farms, foodservice distribution, dairy manufacturing and a portfolio of food and beverage businesses serving customers across the West and nationwide.

Arizona Success Story — Pivot Manufacturing: Phoenix-based Pivot Manufacturing is a locally grown manufacturer specializing in precision machining, assembly and production work for complex industries, including aerospace and defense. Over more than two decades, the company has expanded its capabilities while building a team of engineers, machinists and quality specialists.

Excellence in Innovation — Florence Copper: Florence Copper began commercial copper production in 2026, using a process that recovers copper from underground without the large open pit, blasting and hauling associated with conventional mining. The operation is currently ramping up and is expected to produce up to 85 million pounds of copper annually at full capacity.

Excellence in Sustainability — Swire Coca-Cola: The Coca-Cola bottler has made water conservation and replenishment a major part of its sustainability work, reducing the amount of water used in manufacturing while supporting projects designed to return water to communities and nature. Swire Coca-Cola also operates throughout Arizona as part of its 13-state western U.S. footprint.

Champion of the Year — Rep. Michael Carbone: Carbone is recognized for his work on policies supporting Arizona manufacturing, including sponsoring HB 4026, legislation backed by the Arizona ˿����Ƶ and Arizona Manufacturers Council to strengthen the state’s public infrastructure program for major manufacturing projects. The program helps communities fund roads, water and other infrastructure needed to support large-scale manufacturing investment.

The 2026 honorees will be recognized at the Arizona Manufacturers Council’s Manufacturer of the Year Awards Luncheon on Oct. 13.

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Public voting is now open for the top three finalists in the 2026 Hottest Thing Made in Arizona competition.

The Arizona ˿����Ƶ of Commerce & Industry and Arizona Manufacturers Council on Monday announced the top three finalists in the fourth annual statewide competition, presented by Grand Canyon University.

This year’s contenders span medical technology, industrial manufacturing and craft brewing:

SynCardia Total Artificial Heart

Manufactured in Tucson, the is the world’s first FDA-approved total artificial heart. The device is used as a bridge to transplant for eligible patients facing life-threatening biventricular heart failure, replacing the heart’s pumping chambers and keeping blood circulating while a patient awaits a donor heart.

Wireless SPC4® Load Indicating System

Made by Valley Forge & Bolt in Phoenix, the allows users to measure and monitor fastener tension locally or remotely, helping identify bolts or studs that have lost clamp load.

The technology is used in demanding industrial applications including mining, oil and gas, steel and other heavy industries.

Hatch Chile Gatos Golden Ale

Brewed by Fate Brewing Company in Scottsdale, is made with roasted Hatch chiles, giving the beer a pronounced chile aroma with mild flavor and very little heat. The beer has become one of Fate’s longstanding signature brews.

“This year’s top three reflect the diversity of Arizona manufacturing, from lifesaving medical devices and precision industrial technology to Arizona-brewed craft beer,” said Grace Appelbe, executive director of the Arizona Manufacturers Council. “That diversity is exactly what this competition is meant to highlight, along with the companies and skilled teams behind the products made here.”

The Hottest Thing Made in Arizona competition launched in 2023 as a way to highlight the range and strength of Arizona’s manufacturing sector. Past winners include Boeing’s AH-64 Apache helicopter, the Dexcom G7 continuous glucose monitor, and Honeywell Aerospace’s 131-9 auxiliary power unit.

Public voting is open through Oct. 13, with one vote allowed per day per device.

The winner will be announced Oct. 13 at the Arizona Manufacturers Council’s Manufacturer of the Year Awards Luncheon.

Cast your vote at

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Manufacturers are growing more optimistic about sales and production over the coming year, but rising input costs, transportation expenses and continued global uncertainty are keeping pressure on the sector, according to a .

NAM’s Q3 2026 Manufacturers’ Outlook Survey found that manufacturers expect raw material and other input costs to increase 5% over the next 12 months. Increased raw material costs ranked as manufacturers’ top business challenge for the second consecutive quarter, followed by rising health care costs and trade uncertainty.

The results illustrate a manufacturing economy in which stronger expectations for demand are colliding with persistent cost pressures.

“Arizona manufacturers are ready to grow, invest and compete, but the cost of doing business remains a significant challenge,” Arizona Manufacturers Council Executive Director Grace Appelbe said. “Whether it’s raw materials, energy, transportation or health care, rising costs ultimately affect manufacturers’ ability to invest in their operations and their workforce. And the uncertainty surrounding tariffs isn’t helping. Tariffs are import taxes, and manufacturers pay them when they source key inputs from abroad, putting additional pressure on costs that can ultimately be passed along to consumers. The encouraging news is that manufacturers remain optimistic about what lies ahead, and policymakers can help sustain that momentum by advancing policies that provide greater certainty and keep Arizona and the United States competitive.”

That optimism is reflected in manufacturers’ expectations for the coming year. Survey respondents projected sales, production, capital investment and exports to grow at their fastest rates in more than four years.

Manufacturers expect sales to increase 4.3% over the next 12 months and production to rise 3.8%, the highest projected growth rates for both measures since the second quarter of 2022.

“Strong demand is fueling a notable increase in anticipated sales and production growth, both projected to rise 4.3% and 3.8%, respectively, the highest growth rates for both indexes since Q2 2022,” NAM Chief Economist Victoria Bloom said. “Because of a strengthening sales forecast, manufacturers remain optimistic, though growth in the industry would likely be stronger if cost pressures eased.”

Global disruptions continue to complicate that outlook.

Among manufacturers surveyed about the conflict in the Middle East, 60.6% said conditions related to the conflict had not improved from the previous quarter, while 33.2% said challenges had worsened.

Transportation expenses are adding to those pressures. More than three-quarters of manufacturers, 77.3%, identified freight rates as a challenge, while 74.1% cited fuel costs. Trucks are especially important to the sector, with 98.6% of respondents reporting that they rely on trucking to move goods.

Manufacturers also appear prepared to make significant investments in their operations.

Nearly two-thirds of respondents, 63%, said they plan to import industrial machinery, parts or components during the next year to support existing or planned manufacturing operations. Among those companies, 69.2% expect to use the equipment to upgrade or replace existing machinery, while 63.6% said the machinery would support new or expanded operations.

NAM said the findings demonstrate the importance of policies that allow manufacturers to secure the equipment needed to expand and modernize their facilities. The organization is advocating for a U.S. Manufacturing Investment Accelerator Program designed to improve manufacturers’ access to industrial machinery.

“Manufacturers are seeing encouraging signs for growth, but they are also facing some strong headwinds such as rising costs and global uncertainty that continue to place pressure on global supply chains,” NAM President and CEO Jay Timmons said.

Timmons called for action on several priorities important to manufacturers, including surface transportation reauthorization, permitting reform, health care costs and greater trade certainty.

The quarterly results come as Arizona continues to expand its advanced manufacturing footprint, with semiconductor, aerospace and defense, electronics and other manufacturers playing an increasingly prominent role in the state’s economy.

NAM conducted its Q3 Manufacturers’ Outlook Survey from Aug. 11 through Aug. 27.

Photo: Pete unseth, , via Wikimedia Commons

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A group of bills introduced during Arizona’s 2026 legislative session could have imposed more than $31 billion in new annual costs on the state’s economy if enacted, according to a new analysis from Common Sense Institute Arizona and the Arizona ˿����Ƶ Foundation. 

The annual identified 119 bills involving taxes, labor policy, energy and environmental regulations and other requirements affecting businesses. Researchers were able to quantify the potential costs of 88 of those measures, estimating a combined impact of at least $31.5 billion annually. 

If the bills had taken effect together, the report estimates Arizona could have lost 424,400 jobs, seen per-capita income fall by as much as $4,100 annually and experienced a $48 billion reduction in state gross domestic product. 

None of the 119 bills included in the report became law. 

“Arizona’s economic success is not an accident. It reflects years of policy choices that have kept taxes competitive, preserved a flexible labor environment, cut red tape, and given businesses the confidence to invest and hire here,” Arizona ˿����Ƶ of Commerce & Industry President and CEO Danny Seiden said. “We’re fortunate none of these bills became law. If they had, Arizona’s competitive advantages could have been dramatically undermined. Arizona’s competitive position is strong, but we can’t take it for granted.” 

Among the measures analyzed was an effort to repeal Arizona’s right-to-work protections, which CSI identified as the single proposal with the largest estimated economic impact. The report projected repeal could cost the state between 30,000 and 40,000 jobs and reduce annual economic growth by 21%. 

The analysis also identified nearly $3.8 billion in potential new taxes, including proposals for an additional 3.5% tax on personal income above $250,000 and an 8% tax on income above $1 million. Other measures would have changed corporate tax policy or imposed new payroll taxes on employers. 

Labor-related proposals accounted for more than $17.5 billion in estimated costs. Those bills included mandatory paid-leave programs, changes to scheduling and overtime requirements, minimum wage increases, and additional workplace mandates. 

Another 20 bills related to energy and environmental policy carried an estimated $7.1 billion in costs. Among them were proposals requiring electric utilities to generate at least half of their electricity from renewable sources and imposing new renewable energy and battery storage requirements on data centers. 

Legal and administrative proposals accounted for another estimated $3.3 billion. The measures included rent-control policies, requirements that retailers accept cash, restrictions on pharmacy benefit managers, and other business regulations. 

Katie Ratlief, executive director of CSI Arizona, said the report is intended to examine the cumulative effect of policy decisions rather than any one proposal in isolation. 

“No single policy determines the entire direction of an economy, but policy choices compound over time,” Ratlief said. “That’s exactly why we do this analysis every year. A tax here, a new mandate there, another regulatory requirement somewhere else may not seem significant on its own. But put them all together, and the economic picture can change dramatically.” 

The report also compares Arizona’s recent economic performance with Colorado, pointing to differences in the policy approaches taken by the two states. 

According to the analysis, Arizona’s inflation-adjusted GDP has grown 20% faster than Colorado’s since 2016, reversing the relationship seen during the previous decade. Arizona’s net interstate migration since 2020 is also up 18.5% compared with its average during the 2010s, while Colorado’s has declined by more than 90%. 

CSI estimates Arizona would have about 154,405 fewer workers and $26.4 billion less in real GDP today if the state had followed Colorado’s economic growth trajectory since 2019. 

The report says Colorado has enacted at least 50 measures in recent years that CSI considers detrimental to economic growth, while legislation appearing on Arizona’s annual “Job Killers” lists has not been enacted. 

Arizona ˿����Ƶ Executive Vice President Courtney Coolidge said maintaining the state’s competitiveness will remain important as policymakers address issues including affordability, workforce, energy and water. 

“Arizona’s competitive advantage is something we have built over decades, but it is not permanent,” Coolidge said. “As lawmakers tackle real challenges around affordability, workforce, energy and water, the answer cannot be to make it more expensive to hire people, build projects and grow businesses. We need to solve problems without sacrificing the policies that have made Arizona one of the best states in the country to invest and create jobs.” 

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Arizona State University is partnering with Philip Morris International’s U.S. businesses on a new national initiative aimed at finding and funding innovative, community-driven solutions to some of the challenges facing communities across the country.

The , announced this week by PMI U.S., will award five $50,000 grants to nonprofit organizations developing practical ideas to strengthen their communities.

ASU will serve as a key partner in administering the competition and its judging process, bringing the university’s expertise in innovation and entrepreneurship to an initiative that will reach all 50 states.

“Innovation is most impactful when rooted in the needs and strengths of communities,” said Dr. Sethuraman “Panch” Panchanathan, University Professor of Technology and Innovation and Foundation Chair in Computing and Augmented Intelligence at ASU. “The Community Futures Challenge reflects a shared commitment to identifying those ideas, advancing innovation with purpose, and supporting efforts that can deliver meaningful impact across the country.”

Panchanathan, who previously served as director of the National Science Foundation, will chair the Challenge’s judging panel.

The competition is open to eligible U.S.-based 501(c)(3) nonprofit organizations with projects serving adults age 21 and older. Projects may be in the early-stage, pilot or scaling phase.

The Challenge will also include a four-city “innovation hub” tour intended to highlight local problem-solvers and bring together business, civic and community leaders. Phoenix will serve as one of the four stops, along with Stamford, Connecticut; Pittsburgh; and Jacksonville, Florida.

“At PMI U.S., we believe America’s next chapter will be shaped by the people not afraid to tackle difficult problems, turn bold ideas into action, and open up new routes to progress for their communities,” PMI U.S. CEO Stacey Kennedy said. “As our businesses continue to invest in American jobs, manufacturing, and innovation, the Community Futures Challenge extends that commitment by backing the people and ideas helping build what comes next.”

The initiative comes as the United States approaches its 250th anniversary and is part of PMI U.S.’s broader “Invested in America” effort. The company says it has invested more than $1 billion in U.S. operations, workforce expansion and innovation capabilities since 2022.

The Challenge is built around the premise that some of the most promising solutions to community challenges originate with the people and organizations closest to them.

A recent nationwide survey commissioned by PMI U.S. and conducted by The Harris Poll found that 86% of U.S. adults believe the most meaningful innovation solves real-world problems people encounter in their daily lives. The survey also found that 87% believe communities understand their own challenges better than outside experts, while 90% believe companies should act as community partners rather than assume they have all the answers.

ASU will help oversee a selection process designed to identify ideas with the potential to produce meaningful and scalable results.

Joining Panchanathan on the judging panel are retired Chief Master Sergeant of the Air Force JoAnne S. Bass; journalist Steve Clemons; longtime SXSW executive Hugh Forrest; University of Silicon Valley President and CEO Dr. Mark Naufel, who founded ASU’s Luminosity Lab; Atlantic Council Nonresident Senior Fellow Leah Pisar; Black ˿����Ƶ of Arizona President and CEO Dr. Velma Trayham; entrepreneur Ted Yang; and Neuro co-founder and CEO Kent Yoshimura.

The inclusion of both Panchanathan and Trayham on the panel, along with Phoenix’s selection as an innovation hub, gives Arizona a prominent role in the national initiative.

For ASU, the partnership is also consistent with the university’s longstanding emphasis on entrepreneurship, applied research and using innovation to address real-world challenges.

Eligible nonprofits can apply for one of the five $50,000 grants at .

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