AZBusiness Jan/Feb 2019

CONNECT » GUIDE » INSPIRE

JANUARY // FEBRUARY 2019

2019 $4.95

TRENDS TO WATCH ARIZONA CORPORATE COUNSEL AWARDS

46

ARIZONA LODGING AND TOURISM ASSOCIATION

73

GREATER PHOENIX ECONOMIC COUNCIL

89

Table of Contents 6

Trendsetters

12

CEO Series

ECONOMIC GROWTH IS OFF AND RUNNING IN 2019

14 2019 Outlook

41

•

Banking

•

Healthcare

•

Law

•

Wealth management

•

Companies to watch

•

Leaders to watch

•

Millennials to watch

14

Marketing

42 Small Business 44 Dining 46 Arizona Corporate Council Awards

41 44

73 Arizona Lodging & Tourism Association 89 Greater Phoenix Economic Council ON THE COVER: Front row — Leonardo Loo, Quarles & Brady; Steve Purves, Maricopa Integrated Health System. Middle row — Danielle Hazeltine, Gallagher & Kennedy; Sandra Kennedy, Arizona Corporation Commission; Jeff Friesen, Enterprise Bank & Trust. Back row — Leah Brown, Steward Orthopedic and Sports Medicine Center and UrgentlyOrtho; James Goodnow, Fennemore Craig.

(Photo by Mike Mertes, AZ Big Media) 2

AB | January - February 2019

W

hen Forbes announced its list of the Best States for Business, Arizona jumped up six spots and was ranked No. 17 in 2018. The magazine also says, “Arizona’s economy is expected to expand at the second-fastest rate in the U.S. through 2022.”

Expect that news to only get better. More and more businesses are being drawn to Arizona’s open-for-business attitude.

“Under the leadership of Gov. Doug Ducey, Arizona’s business environment has never been so strong,” says Brett W. Johnson, a partner at Snell & Wilmer. “I believe this is due to the relationships and trust established within the business community and economic development organizations, such as GPEC, and the individual cities’ economic development departments.”

There’s that magic word: GPEC — the Greater Phoenix Economic Council, which is showcased in a special section inside this issue of Az Business magazine.

Why do I describe GPEC as magical? Consider this: In 2018, helped attract 42 businesses and three corporate headquarters to Greater Phoenix, which represented $1.18 billion in capital investment and created 8,606 jobs. And these aren’t just any jobs. These are sought-after jobs, many springing from emerging technology sectors, in which GPEC is spearheading growth.

“GPEC has created an atmosphere of hyper-collaboration within the Valley’s companies, nonprofits, and educational institutions,” says Melissa P. Armas, cofounder of Arizona Blockchain Initiative.

“GPEC is a champion in fostering partnerships and is the strongest advocate of economic development when it comes to promoting the benefits of emerging technologies.”

GPEC has helped Greater Phoenix get off to a great start for the new year. Read all about it in this issue.

Michael Gossie Editor in chief michael.gossie@azbigmedia.com

AB | January - February 2019 3

SHOUT-OUTS

BANNER HEALTH FOUNDATION MAKES BIG IMPACT

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb

The Banner Health Foundation recently awarded $4.5 million to 14 programs and services across Banner Health’s medical centers in Arizona. The funds are awarded through the annual Highest and Best Use Awards program, an internal program that invites Banner division leaders to submit funding proposals for a range of programs and services that enhance patient care, expand the reach of Banner’s services, and advance important health initiatives. Since inception, more than $37 million has been awarded through the program.

EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Lurissa Carbajal | Brooke Miller Contributing writers: Alison Bailin Batz | Janelle Brannock Joleen Jansen | Erin Thorburn | Steven G. Zylstra

$1.5M GIFT HELPS SHAPE BIOMEDICAL ENGINEERS OF TOMORROW

MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Patrick Griffin

University of Arizona alumnus Peter Salter and his wife, Nancy Salter, have gifted $1.5 million to fund a new biomedical instrument design studio and corresponding course development at the UA College of Engineering.

Peter Salter “This is an area that is developing very quickly,” says Salter, who founded his global medical device company, Salter Labs, in 1976, and today it is a leading global manufacturer of respiratory products for both hospitals and home care. “I want to see the University of Arizona be a leader in this area of medical device product development in regard to engineering.”

3 ARIZONA COMPANIES MAKE TECHNOLOGY FAST 500 LIST

Three Arizona-based technology companies have earned spots on Deloitte’s Technology Fast 500 list, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences, and energy tech companies in North America. Making this year’s list are: • Tucson-based medical devices company HTG Molecular Diagnostics, Inc. ranked No. 257, with revenue growth of 343 percent from fiscal year 2014 to 2017.

• Scottsdale-based software company SiteLock ranked No. 275, with growth of 306 percent.

• Scottsdale-based software company Nextiva ranked No. 426, with growth of 182 percent.

4

AB | January - February 2019

ART Design director: Bruce Andersen Art director: Mike Mertes

OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts RANKING ARIZONA Director of sales: Sheri King Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2017 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

AB | January - February 2019 5

TRENDSETTERS

How they got their

STARTS

By ALISON BAILIN BATZ

Ever wonder about the how and why Arizona’s emerging and veteran business leaders got into the fields that they did?

We asked a variety of leaders — from industries ranging from construction and law to tourism and nonprofit — to share their stories:

“I was actually born in Venezuela and also lived in Margarita (an island, not the drink) before coming to Arizona as a teen. My dad worked for oil and mining companies, so I always asked how things got done — how homes a rd Leon g were sold, how things were built. As it turned it out, it was i a Cr through finance! I was hooked and have been doing it since college as a result.”

DANIEL LEIDENZ, branch manager, Washington Federal Tucson

y

ssman

C hle

Jo

Gro

en Yu

IN

NN

AB | January - February 2019

CU

6

JOE

JOE CUNNINGHAM, co-founder, Sunny Energy

“In college, I volunteered as a translator for lawyers assisting undocumented immigrant children who came to the United States alone. I saw how knowledge of the law can allow you to make a difference in peoples’ lives and was inspired to attend law school. While I now work primarily with businesses and institutional investors, I still get to spend my time solving problems and helping make others’ lives easier.”

CATHLEEN YU, partner, Quarles & Brady

JOYCE GROSSMAN, executive director, Arizona Association for Economic Development “Four years of hard work for a degree in engineering told me I did not want to be an engineer, but it taught me very valuable skills in critical thinking. I’ve been involved in several different disruptive industries: PC computers displacing mainframes, pre-Internet online services, competitive cable TV against incumbent cable systems, wireless services displacing land-lines, and now, solar PV displacing total reliance on utility companies.”

nz

at

“Colleagues at the City of Phoenix suggested I join AAED. I found the field exciting. It was after taking the Arizona Basic Economic Development Course, providing me not only with basic tools but also the confidence in preparation of attraction presentations, and a lifelong network of colleagues that I was ready to leave a management administrative post to be an economic developer.”

ce

de

i Le

CRAIG LEONARD, vice president, Pioneer Title Agency

Daniel

“Growing up, it was just my mom and I. I watched her grow her career and become a very successful branch manager/commercial escrow officer. Her start from nothing was so inspiring. After school, I decided to follow suit.

After 34 years in this business, I can still say that her hard work and loyalty to those around her still inspires me.”

GH

AM

Photo b

y Brian

Goddard

Creating genuine Italian cuisine with love and care is Franco’s mission. Diners will experience authentic Italian Florentine cooking.

480.481.7614 francosscottsdale.com 4327 N Scottsdale Rd. Scottsdale, AZ 85251

AB | January - February 2019 7

TRENDSETTERS

With the Barrett-Jackson and Russo and Steele collector car auctions racing into the Valley this month, have you ever wondered which Arizona business leaders already have classic cars or vehicles they consider among their most prized possessions? Here are a few:

ARI BAI

JOHN L. CONDREY

shareholder, Polsinelli: “My most prized possession is my 2015 CORVETTE STINGRAY. I’ve always been a gear head at heart and there is nothing quite like driving down the highway in an iconic red sports car with the top down on a Sunday afternoon.”

partner, Gordon Rees Scully Mansukhani: “I bought a junky 1966 PORSCHE 912, put in a 911 motor, fixed everything that was wrong and added all the things I wanted to make it what I wanted … Nobody else has a reverse Gulf Blue 1966 Porsche that will never overheat — even in Arizona.”

WILLIAM DRURY

JOHN GILES

shareholder, Renaud Cook Drury Mesaros: “My 1957 PORSCHE. It belonged to my father and he handed it down to me before he passed away. I am reminded of him every time I get behind the wheel.”

mayor, City of Mesa: “I have a 1956 CHEVY TRUCK that I love because it reminds that things don’t have to be shiny and new to have value. It takes work to keep it running strong just like it takes effort to keep a city or anything valuable in good condition.”

Smartphones used to have their time and place. Now, they follow us everywhere — bathrooms, meetings, even job interviews.

Is smartphone etiquette eroding? According to recent poll by KDM Engineering, most Americans say yes.

92% of Americans believe smartphone addiction is real 70% think it’s wrong to bring smartphones to work meetings, but 53% do it anyway

8% think it’s wrong to check phones during work meetings, but 50% do it anyway 43% of Millennials check their phone every 20 minutes

8

AB | January - February 2019

BEAU LANE CEO, LaneTerralever: “My 1962 CORVETTE CONVERTIBLE has a lot of significance for me.

EB Lane was founded in 1962 and, when I was a kid, this car was a dream of mine at that time. It’s very special for me to own it today as the CEO of Lane Terralever.”

KENNETH VAN WINKLE JR. managing partner, Lewis Roca Rothgerber Christie: “My 1987 PORSCHE 911. I’ve wanted to own this car since law school. It took 30 years of hard work before I finally purchased it. My Porsche is a reminder of everything it took for me to achieve this level of success.”

Leadership profile

MICHELLE SCHWARTZ

Senior vice president and county manager, Old Republic Title, ortc.com Background: Schwartz built her career from the ground up, beginning as a receptionist, and credits her mentors for fostering her servant-leader mentality.

Source of pride: “Creating a culture focused on people. I love providing opportunities for people to grow personally and professionally and watching them realize their fullest potential.”

Professional advice: “To be successful in the real estate business, you need vision. You must be able to see the potential in a property or what a loan can accomplish. My objective as a leader is to help others see the potential in themselves. Don’t let other’s perceptions or expectations guide you. Follow your own vision.”

Surprising fact: “I used to be a competitive ballroom dancer.”

AB | January - February 2019 9

TRENDSETTERS

Arizona Heart Hospital breaks ground with APOLLO

Abrazo Arizona Heart Hospital has been at the forefront of repairing the mitral valve, which enables blood to flow from one chamber of the heart to another. Now, the hospital is one of just 60 hospitals in the world to participate in an investigational study called the APOLLO clinical trial to replace the mitral valve using a new Transcatheter Mitral Valve Replacement therapy called the Intrepid TMVR system.

WHAT COLLEGES PRODUCE THE MOST

FORTUNE 500 CEOS?

Leadership profile

ROB SCHWISTER President, Phoenix Metro Market, Alerus, alerus.com

Background: Schwister joined Alerus in 2010 with more than 15 years of business and banking experience. His career includes past positions as vice president and senior vice president of commercial lending at financial institutions.

Personal strengths: “My ability to persevere has served me well throughout my career. The banking industry is changing rapidly, so I have had to adjust my strategy and lead my organization through change. I have also been able to accept my failures, learn from them and move on.”

Professional advice: “Young professionals in the banking industry should read ferociously, speak boldly and take risks.”

Industry outlook: “The industry is very healthy, so I see expanded investment in new technologies that will make it easier for people to do business with us.”

10

AB | January - February 2019

We all like to read about how successful people got their start, but is there a “secret sauce” to the makings of a CEO or a leader of a nonprofit? Where they went to school can sometimes be a big indicator of their success and many universities will tout their famous and influential alumni to recruit new generations of students. Kittleman took a look at all 500 CEOs of Fortune 500 companies and examined where each earned their undergraduate degree. Did you know that 12.4 percent of CEOs attended Big Ten schools? Here are the schools with the most Fortune 500 CEOs:

1. University of Wisconsin

14

2. Harvard University 12 3. Cornell University 10 4. University of Michigan 5. Stanford University

8

7

6. (tie) University of Pennsylvania University of California, Berkley Purdue University Texas A&M University 6

CARTER’S Men’s Clothing

Samuelsohn ♦ Heritage 34 ♦ Peter Millar ♦ Johnny O ♦ Ballin Reyn Spooner ♦ Gitman Bros ♦ Samuel Hubbard ♦ Alden ♦ Olukai

5045 N 44th St, Phoenix, AZ 85018 602-952-8648 | cartersmensclothing.com Mon-Sat: 9am - 6pm | Sun: 10am - 2pm

EASTSERIES CEO VALLEY UPDATE

CULTURAL SHIFT TruWest CEO cashes in on evolving industry to boost credit union’s business and its employees

ALAN ALTHOUSE: “I am very proud of being a part of my credit union’s record of consistently providing low loan rates, high deposit rates, and low fees, while creating a positive and fun culture for its employees,” says the president and CEO of TruWest Credit Union.

(Photo by Mike Mertes, AZ Big Media)

By MICHAEL GOSSIE

T

he timing for Alan Althouse was perfect when he became president and CEO of TruWest Credit Union three years ago.

“The Great Recession left consumers very skeptical of big banks and has created a great opportunity for member-owned cooperatives, such as TruWest Credit Union, to gain market share,” Althouse says.

Tempe-based TruWest now has more than 88,000 members and assets totaling more than $1 billion. Az Business talked with Althouse about what we can look for in 2019 and beyond.

Az Business: How has TruWest Credit Union been able to grow like it has?

Alan Althouse: We are completely focused on our mission as a member-owned financial cooperative: being someone our members trust to provide sound financial advice and value. We have grown by listening to our members and provided what they need- uncompromising service, value unavailable elsewhere and a focus on what they need to be financially successful. Our recent No. 1 ranking in Arizona by Callahan & Associates on “Return of the Member” is an example of our success. This ranking recognized our great rates and low fees, and the resulting strong growth we experienced in loans, deposits, and in services like financial planning.

AB: How has technology impacted credit unions?

AA: Technology is rewriting how financial products and services are being delivered. Recognizing this ,we emphasized innovation in our mobile app, growing from 17,000 mobile app users to over 40,000 in 2-plus years. We have also added an e-branch to our physical branch system and it has grown in just over two years to 20,000 members strong.

12

AB | January - February 2019

AB: What trend should we watch in 2019?

AA: Consumer expectations are rising, driven by innovators like Amazon.com. Consumers trust their credit union much more than big banks, but to continue to earn and keep that trust we need to remain relevant in a world of rapid technological innovation. Technology is saving consumers time and money, and credit unions need to be at the vanguard of these advances. In 2019 we will review all of our processes, looking for ways to save member and staff time, and will make additional investments in technology, such as artificial intelligence.

AB: What are your goals for TruWest Credit Union?

AA: Our goal is to be the recognized leader in providing great rates, superior service and a culture of caring – caring for our members, our employees, and our community. In the coming years we will fundamentally change how products and services are delivered – becoming faster, easier to use, and at a lower cost.

Today we do a lot in the community and to assist those of modest means, but in the coming years we will take a quantum leap forward in returning resources back to our community.

AB: What gives you the most pride?

AA: We have made major changes to the culture of TruWest Credit Union, cutting our employee turnover in half – from levels typical in the industry to now becoming an industry leader. TruWest makes an important difference in the lives of our members and I want our staff to be passionate about that mission.

The ongoing goal is for our employees to feel excited about coming to work each day as they work in a supportive environment where they are growing professionally. We are doing our job as leaders when our employees go home each day with a feeling of excitement about what they have accomplished.

2019 OUTLOOK

2019 OUTLOOK Here are the business trends, innovations, issues and opportunities to keep an eye on this year

By MICHAEL GOSSIE

I

f economic forecasts are correct and the economic expansion continues throughout this year, we will be witnessing the longest expansion in U.S. history.

“I’m extremely optimistic about the future for Arizona as we move into 2019,” says Sandra Watson, president and CEO of the Arizona Commerce Authority. “The ACA is about to complete our first fiscal year under our new five-year business plan with very strong results and the economic development momentum in our state just continues to build.”

Watson says Arizona has been recognized by State Policy Reports as a Top 5 state for economic development momentum and GDP growth (3.2 percent) and a Top 10 state for personal income growth at 2.6 percent.

14

AB | January - February 2019

“We continue to see a trend in corporate and division headquarters choosing Arizona, as demonstrated by projects including Benchmark Electronics, Kudelski Group, Carlisle Companies, Rogers Corporation, Prenexus Health, Caterpillar Surface Mining & Technology and others,” Watson says. “The ACA is focused on the future and will build upon our success by leveraging Arizona’s strengths in emerging, next-gen tech trends.”

But rewards don’t come without challenges. Elliott Pollack, economist for Elliott D. Pollack & Company, says the biggest challenge the U.S. economy is facing this year is the more than 7 million job openings. Businesses in Arizona are growing and expanding faster than the labor market can support.

“There are some significant workplace trends that will impact 2019 and result in changes in the employment condition as a whole,” says Candice Frazer, vice president of marketing at TTI Success Insights.

Leah Brown

Candice Frazer

Ken Lamneck

Here are just a few of the trends Frazer says employers can expect: A combination of a shrinking talent pool and declining information asymmetry means that candidates will become even more selective about the companies and the people with whom they work.

As employees build a diverse income portfolio (such as side hustles and gig economies), employers can expect their staff to be less fiscally driven and instead driven by the organization’s purpose and their interpersonal relationships with those with whom they work.

In 2019, we’ll see the decline of workgroups and rise of selfdirected teams, in which a group of individuals will hyper-collaborate and share leadership roles to tackle projects in the workplace.

But it’s not just in the workplace that we will be seeing new normals.

“With advances in medicine, people are living longer than ever before,” says Dr. Leah Brown, board-certified orthopedic surgeon at Steward Orthopedic & Sports Medicine Center. “And with that comes a greater responsibility for healthcare providers

Elliott Pollack

Sandra Watson

to deliver more specialized and longer-term therapies. To meet this demand, 2019 will be a year of continued innovation and also one of rapid employment growth among licensed medical professionals to meet increasing patient-centric needs.”

But healthcare isn’t the only industry undergoing transformation based on innovation.

“Technology is continuing to grow rapidly, and all companies are realizing they have to be a technology company at heart,” says Ken Lamneck, president and CEO of Insight Enterprises.

“Technology provides the source of innovation, collaboration and source of differentiation throughout industries.”

Keep reading the pages that follow to learn about the trends, innovations and issues that will shape Arizona’s economy in 2019 and beyond.

AB | January - February 2019 15

2019 OUTLOOK BANKING

Rising interest rates are front and center with every bank CEO. Intuitively, one would believe rising interest rates would be desired by banks, but a deeper dive exposes two threats: (1) sustainability of core deposit growth – as deposits tend to leave due to chasing yields; and (2) erosion of credit quality – as rising variable rate debt adversely impacts cash flow of businesses.

Steven Haggard, president and CEO, Metro Phoenix Bank

Hikes will be felt

Rising interest rates will continue upward, according to Kim Dees, senior vice president and Southern Arizona division manager for Washington Federal. Where cash buyers make up about 20 percent of home sales, a majority of buyers are reliant on mortgage financing. Dees says higher interest rates can affect the borrower’s ability to qualify for a higher mortgage.

“Prospective home buyers who are waiting until 2019 to buy should expect higher housing costs,” Dees says.

JOEL JOHNSON, president-East Valley, FirstBank: “The banking industry will continue to strengthen into 2019, and interest rates will match that upward trajectory. As a result, everything that is financed on a variable rate will become more expensive. Though a natural function of the economy, we all need to be cognizant of how rising interest rates will affect consumer buying power.”

DON PEARSON, lead region president, Wells Fargo: “Innovation, technology and personalization will continue to be a focus as we look for new and improved ways to connect with our customers.

Gains in Arizona’s economy prove to be lasting and indicate growth will maintain across nearly all sectors, with a focus on health services and the defense industry.”

STEVE WACKER, Southwest regional director, Chase Consumer Banking: “Technology and innovation continue to impact financial services, giving customers more choice in how they engage with us, including new branch formats equipped with digital, self-service technology designed for speed and simplicity. Branches continue to be destinations offering valuable experiences for customers.”

16

AB | January - February 2019

More consolidations coming?

Nationally, the number of U.S. banks is down from 14,507 30 years ago to just 4,919 today, and many worry that consolidation will reduce options for consumers. “I am hoping for regulatory relief, but not optimistic that it will be significant for community banks,” says Candace Hunter Wiest, president and CEO of West Valley National Bank. “Amazing to me that despite Dodd-Frank, we have bad actors who now control a bigger market share than before the bill. Without some changes, small banks will consolidate, which will hurt small businesses and rural communities.”

2019 OUTLOOK FINANCIAL PLANNING

Alternative investments rev up

Since the Great Recession, putting money into alternative investments such as art, wine or classic cars had risen sharply. So with both Russo and Steele and Barrett-Jackson in our back yards, now may be the perfect time to invest in a classic car. “When investing in collector cars you want to look at Blue Chip vehicles,” says Drew Alcazar, CEO of Russo and Steele. “Avoid getting caught up in ‘what’s hot now’ or the flavor of the month. Cars with a history that have good documentation are what’s most important. Examples include timeless vehicles such as the 300 Mercedes-Benz SL’s, the 1965 Shelby GT350, series Jaguar E-Type or the 250 series Ferraris.”

ARTHUR T. DOGLIONE, president, Alpha Fiduciary: “The investment advice industry is at a crossroads of technology integration competing with human interaction.

Advisors will need to scale their businesses to offer more services to clients, while planning for the wealth transfer to Millennials that is on the horizon.”

MARK FELDMAN, CEO and managing partner, MRA Associates: “The people in our industry continue to fight for talented employees and building closer, more meaningful relationships with our clients. In a rapidly upward trending stock market, we need to be smart and prudent with these two key stakeholders.”

VICKIE L. LARSEN, senior vice president and market director, BOK Financial (Bank of Arizona): “As a provider of comprehensive and customized financial solutions it is incumbent on us that we build relationships and partner with our clients to grow, preserve and transition their wealth by listening to their needs and being accessible and responsive.”

There is too much capacity in financial services. As new technologies are applied, and consumers become more costconscious, value propositions need to be executed. Firms that apply resources to solve client problems will survive. The government changes laws and regulations impacting tax, investment, and benefits, making advice ever more important for advisors willing to keep up.

Thomas Connelly, President and chief investment officer, Versant Capital Management

CHANGING HANDS

“There are new ways to engage with new clients, manage client relationships and manage risk,” says Theresa Chacopulos, senior vice president and private wealth advisor for Morgan Stanley Private Wealth Management.

“Clients value holistic advice on how to achieve multiple, often conflicting goals through a range of investments and funding strategies. But there are changing demographics. Advisors are aging and leaving the industry and wealth is changing hands. Also, we’re facing increasing regulatory burdens and rising costs.”

Theresa Chacopulos

18

AB | January - February 2019

AB | January - February 2019 19

2019 OUTLOOK HEALTHCARE

Pill-sized pacemaker is

SAVING LIVES I believe the healthcare forecast for individual patients and our general community will improve as we move into the next decade specifically with high quality demonstrated through effective outcomes directed by evidence-based practices, satisfying ‘consumer experience’ journeys facilitated by a more coordinated hub of healthcare providers, and effective use of continuously advancing automation and technology that allows care to be more accessible and affordable.

It’s the size of a vitamin. But make no mistake: the world’s smallest pacemaker has a big job: to send electrical impulses to the heart to help patients with a slow or irregular heart rhythm. Abrazo Arizona Heart Hospital and Abrazo Arrowhead Campus began implanting the Micra Transcatheter Pacing System in July and is already seeing the benefits in the form of a quicker recovery and a reduced chance of infection.

Todd LaPorte, CEO, HonorHealth

Using artificial intelligence to improve patient care The non-invasive HeartFlow Analysis uses the latest advances in artificial intelligence and creates a personalized 3D model of the heart to help physicians better identify the most common type of heart disease. Using this model, doctors can evaluate the impact a blockage has on blood flow and determine the best treatment.

Biltmore Cardiology in Phoenix uses the HeartFlow Analysis to help improve patient care, among other clinical and imaging locations worldwide.

20

AB | January - February 2019

LISA D. PARR, vice president and head of research and development, Merz Device Innovation Center:

DAVID JACOFSKY, chairman and CEO of HOPCo and The CORE Institute:

“The use of data tracking systems, “The industry, and claims analytics, medical science, and patient is shifting focus engagement tools and funding to is both in its infancy regenerative medicine, and critically telemedicine and important to very sophisticated success. Industry diagnostic tools. consolidation As these areas get is being driven perfected, we’ll be by the need for able to live longer and investments into healthier lives, and these platforms great success will be as well as scale to made in curing rare manage actuarial and chronic diseases.” risk for outcomes.”

RYAN TAKEUCHI, divisional business leader, W. L. Gore & Associates: “An important trend in medtech will be accountable care. Patients, physicians, providers and payers around the world will require manufacturers to provide more clinical and economic evidence for their devices. The winners in the medtech industry will have to develop truly innovative devices to those demanding evidencebased medicine.”

AB | January - February 2019 21

2019 OUTLOOK LAW

The battle over brick-and-mortar

Andy Abraham, president of Burch & Cracchiolo, says the balance — and tensions — between remote or smart office space and brick-and-mortar will impact the legal industry in 2019. “Maintaining camaraderie among lawyers and staff and brainstorming client matters — actual conversation while sitting together vs e-mail — will take conscious effort. Balancing law firm economics of smaller and ‘smarter’ offices and lawyers working remotely while at the same time delivering best results to clients will take more and more focus and effort. More productive talking among lawyers and clients and less typing will hopefully return to the forefront.”

If the markets stay strong, corporate legal work should also remain strong. Longer term, I think that with technology, the legal profession will become increasingly efficient and thus need fewer lawyers to service clients. So, while the profession will improve its service, growth will slow.

Steven D. Pidgeon, co-managing partner, DLA Piper

Artificial intelligence will transform law The legal sector is going to continue to change at a break-neck pace.

“Technology will continue to transform the law, and artificial intelligence is going to permeate every aspect of how legal services are delivered,” says James Goodnow, president and managing partner of Fennemore Craig. “We’re in the midst of the longest bull market in history and we’ve seen heightened market volatility recently, so the elephant in the room is the potential for a market correction.”

22

AB | January - February 2019

ADAM BAUGH, partner, Withey Morris: “Strong momentum for new land use entitlement should carry into 2019. The key consideration will be whether tightening markets and rising interest rates could affect the ability to finance new development projects, particularly given the length of this current economic run.”

JORGE FRANCO, litigation partner, Jennings Haug Cunningham:

JONATHAN FRUTKIN, principal, Radix Law:

“2019 will see civil litigators adjusting to recent changes to the Arizona Rules of Civil Procedure designed to increase litigation efficiencies.

Parties must now meet, confer and classify cases into one of three tiers defined by value and complexity, to then be governed by ‘proportional’ discovery limits.”

“As the economy heats up, some smart business leaders will begin to focus on the inevitable cycle of slowdown that always appears. The companies that are best prepared for any hiccups will be in the best position to thrive.”

AB | January - February 2019 23

2019 OUTLOOK MARKETING

P

art of working in marketing communications – be it in branding, advertising, web, or even public relations – is being creative. We are paid to think outside the box, and to dream up new, innovative ideas on the regular.

But here’s the thing – sometimes the best ideas don’t Joleen Jansen have to start from ground zero.

Marketing Ideas that have worked in the past – especially base concepts – need not be completely discarded when putting pen to paper on a new campaign or project.

This is something our firm learned firsthand over the past year.

You see, we had it in our minds to develop an interactive marketing campaign for Arizona. Yes, as in a campaign about you, your business, your community, your life, both at work and play. Arizona is a far more connected, technologically advanced, culturally rich community than those beyond our state lines may realize, and it’s time someone told that story.

But, rather than simply look forward and start white boarding idea after idea, we looked to our past. Literally.

Throughout the 1900s – when cattle outnumbered people six to one, citrus groves grew as far as the eye could see, and copper mines served among the largest industry in the state – Arizona’s original five Cs, which are cattle, citrus, copper, cotton and climate, absolutely made sense. And while each of these pillars of Arizona industry is certainly still relevant, over the past hundred years, our state has done so much more, and we thought it was about time someone shined a light on our more progressive attributes.

Arizona’s famous five Cs are a concept people here know and

24

AB | January - February 2019

understand. Therefore, a play on them would be something people here could get to know and understand quite easily – and feel comfortably sharing within their own networks, allowing for the chance of a true movement.

ENTER THE NEW AZ 5 CS: • CULTURE: The diversity, ethnicity, inclusivity and pride of Arizona in everything from the food to the festivals.

• COMMUNITY: The groups that bring us together as a people.

All the things that we do working, playing, uplifting and supporting each other.

• CONNECTIVITY: From start-ups to mom-and-pop shops to big business, Arizonans are competing and winning in when it comes to connecting people with jobs, goods, services and a better quality of life.

• COMMERCE: Arizona is now at the forefront of connecting data, ideas, processes and people in whole new and unpredictable ways—the world’s digitally shared tomorrow is being created in Arizona today.

• CATALYST: What we do and more specifically – why we choose to do it here.

Once we had the concept, we moved on to the execution, which launched in recent weeks and features a combination of old school tactics – campaign video, special events, quirky merchandise, and dozens of written profiles featuring Arizona leaders sharing their stories of success – as well as newer ideas – digital advertising, an SEO campaign, and even guerilla marketing with chalk.

There are always different ways to come up with great ideas. For us, paying homage to a classic – with a twist from today – has paid dividends both for us and for the state we call home.

Visit AZ5C.com for more information.

Joleen Jansen is the director of marketing and operations at Bigfish Creative Group and lead team member on the AZ5C development team.

REAL ESTATE 2019 OUTLOOK

Is cryptocurrency the future?

Scottsdale-based Tru Realty, made the first recorded blockchain real estate transaction in Arizona in late 2018, sees cryptocurrency as a game-changer in residential real estate. “At a high-level, Tru Realty sees blockchain as an opportunity to open Arizona residents to the international real estate market and to improve the overall process of buying and selling,” said Sarah Richardson, designated broker and founder of Tru Realty.

JIM BELFIORE, founder and president, Belfiore Real Estate Consulting: “The housing market is bursting with opportunity today. Demand is growing at a double-digit pace and consumers are open to new home designs and features. Home demand is now at early 2007 levels and it will very likely grow above this over the course of this year.”

WENDY FORSYTHE, COO, HomeSmart: “Technology will continue to shape the future of the real estate industry in 2019. The industry is collectively working to make the home buying and selling process more efficient. New or improved platforms, apps and tools will enhance the consumers’ experience, from digital marketing to communication and the closing process.”

BRIAN NORTH, founder and CEO, North&Co.: “2019 will be the beginning of the new way of brokering real estate. The expectation of the broker will be significantly higher, the compensation structure will be different, higher education will be required and there must be attention put on the value of the human connection as technology becomes more prevalent.”

SECOND HOMES IN ARIZONA Snowbirds flock to Arizona to avoid harsh winters, making the West the secondmost-popular location to buy a second home, according to the National Association of Realtors. “Arizona has always been a desirable location for second-homeowners,” says Crel Vogel, regional sales manager for Optima Kierland. “In the past, this trend was fairly specific to (people from) Illinois, Nebraska and Western Canada. Today, this trend has expanded and includes higher concentrations from New York, New Jersey, Seattle, Wisconsin, Oregon, California and all of Canada. The data points to this trend continuing to accelerate in 2019.”

“In the mortgage and real estate space, there has been major movement toward online services. The computer cannot replace the human interaction, experience and sheer passion for the industry. The computer is useful for gathering information about a potential client or gathering information securely for a potential home loan client. The computer is not able to determine the best program, nor truly have the clients best interest at heart without a thorough human-to-human conversation.”

Greg Gale, vice president and branch manager, Nova Home Loans

AB | January - February 2019 25

2019 OUTLOOK TECHNOLOGY

A

Steven G. Zylstra Technology

26

AB | January - February 2019

rizona’s technology community continued its impressive growth over the course of 2018. Several industries are growing, startups are forming and companies from across the country are relocating to Arizona.

Adding to a highly qualified and knowledgeable workforce are graduates with advanced technology degrees from Arizona State University, ranked the No. 1 school in innovation by U.S. News and World Report for the fourth year in a row. Our state’s technology sector flourished in 2018, leading us into a promising 2019.

FinTech At the heart of Arizona’s technology success are innovation and entrepreneurship, with financial technology (FinTech) companies at the forefront. This can be attributed largely to Arizona’s FinTech sandbox that was officially established earlier in 2018. The sandbox enables new FinTech companies to operate with reduced legal and accounting expenses, allowing them to test their technologies in the real market without the imposition of regulatory costs and burdens. No other state currently has a regulatory FinTech sandbox, giving Arizona a major advantage in this space.

Blockchain FinTech’s hottest application for the upcoming year is expected to be blockchain, most commonly known as the technology that powers cryptocurrency. However, blockchain can be applied to a number of different industries, including cybersecurity and legal. This technology will be increasing in prominence during 2019 due to its high level of transparency and security. Blockchain is virtually incorruptible, making it an ideal solution for transactions, contracts and cloud storage. Because of our regulatory sandbox and the increasing applications of FinTech, we look forward to watching this industry thrive in 2019.

Autonomous vehicles Arizona also has demonstrated leadership in autonomous vehicle technology. In 2016, we were talking about autonomous vehicles. In 2018, autonomous vehicles were a reality. The new year will bring tremendous progress leading us into a new decade marked by autonomous vehicles becoming more prevalent on public roads.

Autonomous vehicle companies are consistently improving and developing their technologies to be more capable and intuitive than ever.

Some major successes in the autonomous vehicle space include Waymo’s recent announcement of service in the East Valley, semi-trucks being driven between Tucson and Phoenix, and companies such as Fry’s beginning to deliver groceries in driverless vehicles. Additionally, Gov. Doug Ducey and Intel recently announced the start of the Institute for Automated Mobility to further research and develop self-driving technology. Electric vehicles also have been making strides, with Lucid and Nikola Motors leading the way.

Aerospace and defense With the emergence of these newer technologies, it is critical to acknowledge the industries that have been long-time assets to Arizona’s landscape. Our aerospace and defense (A&D) industry is the fourth largest in the nation, and we’re paving the way for more advancements in health care, bioscience, MedTech and others. The diversity of our technology sector is key for Arizona’s continued growth. As more technology industries become established here, they will continue to innovate and create more jobs. The Greater Phoenix Economic Council (GPEC) is working diligently to attract advanced manufacturing companies to continue furthering our state’s economy. Add to that the recent genesis of the Arizona Israel Technology Alliance, which is dedicated to fostering pro-business initiatives in partnership with the Arizona Technology Council.

To assist in the effort, organizations such as the Arizona Commerce Authority, the Council and GPEC are working to ensure companies have the resources necessary to foster innovation and the economy overall. ACA has been a critical player in the Institute for Automated Mobility, committing $1.5 million initially to further its success. GPEC has been key for advancing companies looking to relocate and grow in Greater Phoenix while the Council continues to advocate for pro-business legislation and serve as the top technology networking association in Arizona.

The success of Arizona’s technology sector in 2018 provided the foundation for an incredible year in 2019. This era of innovation is made possible through a combination of pro-business legislation, organizations and jobs created by preeminent companies, and a talented workforce. Next year will bring further evolution of the employee base through massive hiring as Intel continues its effort to attract 3,000 new workers, and USAA and Lucid bring in 2,000 each. And that’s only the beginning. Arizona is a leader in innovation and should be in this position for years to come.

Internet of things The internet of things (IoT) is another sector where Arizona will continue to innovate in 2019. IoT offers a near limitless number of applications, including autonomous vehicles. It is responsible for smart cities and homes, connected health care and other uses that will become more prominent and continue to develop in Arizona. Avnet already has become a leader in IoT services as it creates massive networks upon which new technologies can be built. The company is helping companies all over the world innovate IoT applications and integrate them into existing hardware and software.

Steven G. Zylstra is president and CEO of the Arizona Technology Council.

AB | January - February 2019 27

2019 OUTLOOK COMPANIES TO WATCH

In 2019, businesses will be looking to combine the best banking technologies with even more personalized service.

They will not only be looking at financial institutions with the best products and services to grow their business, but also for relationships with financial experts who understand and are in tune with their industries.”

Robyn Young, Chief Marketing Officer, Western Alliance Bank

AXOLOTL BIOLOGIX / Phillip Larson “Regenerative medicine is on the cusp of going mainstream,” says Phillip Larson, president of Axolotl Biologix.

“We see the trend happening through the increase in providers using our products and the increased demand those providers are telling us they’re getting from their patients. These products will help restore and repair tissues such as tendons, ligaments, cartilage, skin and a variety of other tissues.”

28

AB | January - February 2019

DEPCOM POWER / Jim Lamon Scottsdale-based DEPCOM Power, which offers turnkey development support services and engineering solutions for utility-scale solar, was the highest-ranked Arizona company on this year’s Inc. 5000, boasting an astonishing three-year revenue growth of 38,963 percent.

“We’re in this to drive the cost down to be as competitive, or more competitive, than gas,” says Jim Lamon, DEPCOM’s CEO.

SPOTRX / Will Misloski “Traditional pharmacy is over,” says Will Misloski, chief marketing officer for next-gen pharmacy SpotRx. “In 2019, innovative companies will do to the pharmacy model what Netflix did to Blockbuster. With start-ups on the rise, these pharmacies will give consumers 100-percent control over their experiences, providing mobileenablement, 24/7 access, prescription kiosks, and near-realtime delivery for their prescription and drugstore needs.”

CampusLogic

Founded in 2011, Chandler-based CampusLogic is a market leader in student financial services software with nearly 500 higher education customers that serve more than 3 million students. CampusLogic, which reported a three-year revenue growth of 2,375 percent, plans to utilize $55 million in funding led by JMI Equity to make investments across the company in product, customer success, sales and marketing to increase the scope and power of its platform, according to CEO Gregg Scoresby.

Gregg Scoresby

Assisted Living Locators

Angela Olea

Scottsdale-based Assisted Living Locators was named one of the top 100 Game-Changer Franchises of 2018 by Franchise Directory Magazine. Assisted Living Locators has achieved a decade of consecutive growth and the company exceeded the 100-franchise mark in 2018. “We have a proven business model and are committed to expanding into new markets across the U.S.,” said Angela Olea, RN, CEO of Assisted Living Locators. “The growth rate in the elder care market is unprecedented. Revenues are currently at $12-15 billion per year and are expected to increase. Our aim is to recruit business-minded franchisees who have a passion for helping this growing senior population.”

Maricopa Integrated Health System “MIHS has been actively engaged in system-wide redesign activities since 2014,” says Steve Purves, president and CEO of MIHS, which will change its name to Valleywise Health this year. “This involves not only fundamentally redesigning our healthcare facilities, but also redesigning our entire care process. We call this system overhaul, to be completed by 2023, ‘Care Reimagined.’ Our goals are to improve access to health care, enhance the patients’ experience, create better learning and working environments and leveraging the amazing technologies available today to improve clinical care and community health.”

Steve Purves AB | January - February 2019 29

2019 OUTLOOK BUSINESS LEADERS

Pam Kehaly

Without a doubt, integrity is the most important characteristic every leader should possess. There are many decisions, many choices, many forks in the road. It is only by staying true to what you know is right and just, that your legacy will have real meaning.

Cathy Carlat, mayor, City of Peoria

T

he economy is humming.

Employment is at record highs.

So what does it take for business leaders to distinguish themselves in an optimistic economy?

“Every leader should have respect for people,” says Pam Kehaly, president and CEO of Blue Cross Blue Shield of Arizona.

“A company is not defined by a building, computers, or desks. It is the people.

Recognizing and respecting the value that employees bring to a business is crucial to making the organization stronger.”

Not only should business leaders honor those that make them look good, one of Az Business magazine’s Most Influential Women in Arizona Business says it’s important to remain humble while respecting others.

30

AB | January - February 2019

Stephanie Fierro

“Every leader should possess the leadership characteristic of humility,” says Stephanie Fierro, partner at Jaburg Wilk. “Though often overlooked, humility, begets most other admirable leadership traits such as responsibility, empowerment, and inspiration. A leader who is humble enough to listen, delegate, and empower those around them will build a great team that can achieve outstanding results.”

These business leaders to watch in 2019 have shown such superior leadership, they are in new positions of influence that will allow them to impact Arizona’s business community like never before. Not only do these leaders have great teams around them, but they are innovative, engaging and are changing the landscape and best practices of their respective industries.

Cathy Carlat

JEFF FRIESEN

President of the Arizona Region Enterprise Bank & Trust

LORRY BOTTRILL President and CEO Mercy Care

BACKGROUND: Bottrill is responsible for Mercy Care’s financial and operational results.

Mercy Care serves more than 450,000 AHCCCS-eligible Arizonans. Mercy Care’s contracts include the Regional Behavioral Health Authority for Maricopa County, AHCCCS Complete Care, Arizona Long Term Care System, Developmentally Disabled and Medicare Dual SNP. WHAT TO WATCH IN 2019: “One opportunity is transforming the care delivery system to increase quality and effectively manage costs.

Mercy Care does this through innovative value-based provider contracts, along with our work through the Practice Innovation Institute.

PII provides data-sharing tools, processes and other support to provider practices. The impact: a healthier community.”

BACKGROUND: Enterprise Bank named Friesen president of the Arizona region in 2017. Friesen is responsible for growing client relationships resulting in increasing loans, deposits and non-interest income. As such, Friesen oversees the commercial team of the bank, including the C&I, CRE and Treasury Management divisions.

WHAT TO WATCH IN 2019: “As a nationally ranked organization, we have all the capabilities of the largest financial companies but with the unique lens of a community bank.

Last year, our Phoenix market grew by 56 percent and we are on track to continue this growth with more privately-held companies especially in the healthcare, aerospace and industrial real estate distribution centers.”

JULIE GIESE President ISM Raceway

BACKGROUND: Giese oversees promotion and operation of the facility that is a top motorsports and entertainment destination in the Phoenix market. She previously served as the managing director of business operations for ISC Design & Development, leading the coordination between ISC’s 13 race tracks, internal corporate departments and the design and development team.

WHAT TO WATCH IN 2019: “We want to position ourselves as a premier motorsports and entertainment destination. The completed $178 million modernization project provides a significant amount of opportunity and it’s important that we host a variety of events. The idea is to get more people here to showcase the first-class facility we’ve built.”

AB | January - February 2019 31

2019 OUTLOOK BUSINESS LEADERS MIKE HUMMEL

General manager and CEO | SRP

BACKGROUND: Hummel leads the nation’s third-largest public power utility. Hummel serves on the Board of Trustees for the Arizona Science Center and The University of Arizona Foundation.

WHAT TO WATCH IN 2019: “It is a time of positive change and economic growth for the Valley and SRP. SRP is leading efforts to discover new and better ways to deliver reliable and affordable water and energy to our customers, while seeking their increased participation. Advances in renewable energy, energy storage, energy efficiency and communications technologies are providing innovative ways for SRP to expand its offerings to meet customers’ needs and important corporate sustainability goals.”

SANDRA KENNEDY

Commissioner Arizona Corporation Commission

BACKGROUND: Kennedy was first elected to the Arizona Corporation in 2008 on a platform of promoting solar energy in Arizona and as a fierce consumer advocate. She served on the commission until 2012, but returned in 2018 and earned a spot as the only Democrat on the Commission.

WHAT TO WATCH IN 2019: “We have an opportunity to create some jobs. During my last stint on the Commission, we created nearly 3,000 jobs within the first six to nine months. I would like to see us double that or even triple that in the next four years. I have some high expectations.”

LEONARDO LOO

Phoenix office managing partner Quarles & Brady

BACKGROUND: In October 2018, Quarles & Brady and its firm chair, Kimberly Leach Johnson, named Loo its Phoenix office managing partner.

WHAT TO WATCH IN 2019: “As we expand our services to meet the changing needs of our clients’ business realities, I want to continue to attract amazing attorneys to our fold.

Each member of our team is vital to our success and it is our responsibility that they have the resources to succeed and provide quality services to clients with whom we partner. At the same time, I want to carry on our firm’s tradition of being an active and responsible partner in our community.”

32

AB | January - February 2019

COMING NEXT ISSUE March/April 2019



The Top 100 Lawyers in Arizona



The trends that are redefining residential real estate



PHX East Valley becomes an economic juggernaut



How hospitality is driving Arizona’s economy



The best things to do in San Diego this summer

602.277.6045 azBIGmedia.com AB | January - February 2019 33

2019 OUTLOOK MILLENNIALS

YOUNG BUSINESS LEADERS TO WATCH Meet the Millennials who are changing Arizona’s landscape and the way we approach business

By MICHAEL GOSSIE

T

here’s no doubt about it: Millennials get a bad rap.

Baby Boomers and Gen Xers think of Millennials — roughly defined as those individuals born between 1980 and 1994 — as having poor work ethic compared with previous generations. They are labeled as entitled, lazy, self-absorbed.

But those labels couldn’t be further from the truth. Consider this: A survey of University of Pennsylvania business students found that 2012 graduates expected to work 72 hours per week after graduation. Guess how many hours 1992 graduates expected to work a week? Try 58 hours a week.

A survey by Ernst & Young found that 47 percent of Millennials in management positions have increased the number of hours they’ve worked in the last five years, compared with 38 percent for Gen Xers and just 28 percent for Baby Boomers.

It’s not just young professionals and recent college graduates who show impressive work ethic. A survey from Seventeen magazine found that 80 percent of college and high school students take at least a part-time job during the school year, which is the highest rate in history.

So even though the average tenure of Millennial employees is just two years, it seems data indicates that they’re going to work hard for you while you have them.

And it’s a good thing because more than one-in-three American workers today are Millennials and in 2015, Millennials surpassed Generation X to become the largest share of the American workforce.

So meet tomorrow’s leaders who are making an impact today. Over the next several pages, you’re going to meet 12 Millennials who are staying put long enough to have a big impact on Arizona’s economic landscape, changing the way their companies do business and redefining workplace culture all at the same time.

34

AB | January - February 2019

AB | January - February 2019 35

2019 OUTLOOK MILLENNIALS

JESSICA CRAWFORD, 26 LEIB BOLEL STEPHANIE BARNHART

JESSICA CRAWFORD

MARIA FERNANDA HUBBARD

STEPHANIE BARNHART, 32 Vice president and commercial relationship manager Washington Federal

BACKGROUND: Barnhart is a member of the Arizona Tech Council, where she has served as an ambassador and is now the co-chair of the Ambassador Committee. In her spare time, Barnhart is a volunteer for the Cancer Support Community.

WHAT TO WATCH IN 2019: “Digital disruption will continue to affect all industries in 2019. For banks, continuing the adoption of FinTech and blockchain technologies will create unique opportunities to establish competitive environments that offer clients enhanced quality, speed and accuracy. Those that integrate and innovate will be the future industry leaders.”

36

AB | January - February 2019

LEIB BOLEL, 31

President and CEO Arizona Israel Technology Alliance

BACKGROUND: Bolel has built a reputation as a leader that can develop and manage organizations with both a domestic and worldwide presence. His volunteer engagements include World Vision, Smile Train and the Jewish Federation.

WHAT TO WATCH IN 2019: “Trends are often short-lived. Technology and Innovation are not slowing down and the realization of ideas we may have only thought were fiction are quickly evolving into reality. Most people only see the physical hardware breakthroughs, however, much more is happening on the software side with the likes of Cyber, AI, Blockchain and others. The impact means a rapidly changing world, one where adaption and embracement is a necessity.”

Director of development Focus On Lyme

BACKGROUND: Crawford has experience in nonprofit management, global communications, sales and marketing. She now works for Focus On Lyme managing all events, marketing and general business operations. She uses her battle with Lyme disease to connect and engage with the community through public speaking.

WHAT TO WATCH IN 2019: “An accurate diagnostic tool for Lyme disease would have the biggest impact on our industry. The tests are currently unreliable and an accurate test would give the ability to diagnose more patients and work towards a cure. This would make a global impact on this growing epidemic and give people answers to their pain and suffering.”

MARIA FERNANDA HUBBARD, 30 Associate Polsinelli

BACKGROUND: Hubbard serves on the Arizona Supreme Court’s Attorney Regulation Advisory Committee and Attorney Ethics Advisory Committee. She is active in Los Abogados and the Hispanic National Bar Association. She was recently named one of Arizona’s Top 50 pro bono attorneys.

WHAT TO WATCH IN 2019: “In a word: cybercrime. More companies are trying to mitigate risk by purchasing cyber insurance, but these policies are expensive, relatively new, not standard, and have gaps in coverage.

As cybercrime increases, expect an increase in coverage denials, disputes, and litigation as insurance carriers become concerned about their exposure.”

AB | January - February 2019 37

2019 OUTLOOK MILLENNIALS TRENT HANCOCK

ERIN ITKOE, 38

Director of client experience and senior wealth counselor Versant Capital Management

DANIELLE HAZELTINE

ERIN ITKOE

TRENT HANCOCK, 34

Vice president of sales and marketing Camelot Homes

WHAT TO WATCH IN 2019: “The exponential curve in the advancement of technology will have a big impact on the homebuilding industry in the coming year. We are seeing more automation within the home, and now have the ability to create ‘scenes’ within the home with systems like Control 4 and Savant.

For instance, I can pull into the garage of the Cheval model at White Horse and the second the garage door opens, the security system is disarmed, lights are turned on in specific hallways and rooms, my favorite Spotify station starts playing music and my window shades are lowered throughout the home.”

38

AB | January - February 2019

BACKGROUND: Itkoe provides wealth management to high net worth individuals and families, including investments, estate and tax planning, family governance, and philanthropy.

She enhances the advisor-client relationship by advancing efforts anywhere Versant interacts with its clients. Erin is president of the Financial Planning Association of Greater Phoenix and volunteers at Fresh Start Women’s Foundation.

WHAT TO WATCH IN 2019: “Trends come and go. The focus should remain on longerterm goals and objectives. As advisors, it’s essential to remind our clients that markets and economies have cycles and not to get caught up in the short-term noise. Customized wealth plans must be continually monitored, so adjustments can be made as needed.”

DEEPA PRASAD, MD, 39 DEEPA PRASAD

DANIELLE HAZELTINE, 38 Associate Gallagher & Kennedy

BACKGROUND: Hazeltine, an environmental attorney, has specialized in air quality permitting and compliance for the past two years. She acquired previous legal experience at the Arizona Department of Environmental Quality and now serves on the Board of Ballet Arizona as member-at-large on the State Bar’s Environmental and Natural Resources Law Section Committee.

WHAT TO WATCH IN 2019: “In the environmental arena, one of the most important topics for 2019 will be EPA’s continued effort to evaluate existing regulations and guidance under the Regulatory Reform Agenda in accordance with E.O. 13777. Many different industries can benefit from enhanced regulatory certainty.”

Pediatric cardiologist Cardon Children’s Medical Center

BACKGROUND: Dr. Prasad has a special interest in 3-D printing of the heart to assist in planning of complex heart surgeries.

She completed her cardiology fellowship at Rainbow Babies and Children’s Hospital in Ohio and completed her advanced cardiac imaging fellowship at Boston Children’s Hospital. Her research has been showcased in several national and international conferences as well as top journals of cardiology.

WHAT TO WATCH IN 2019: “3-D imaging and printing, and virtual reality technology will have the greatest impact in our industry.

This will enable cardiac physicians to assess every detail of the heart problem accurately and also perform virtual surgeries to assess if the planned surgical procedure works for that patient. It may potentially significantly improve outcomes of heart surgeries in children.”

AB | January - February 2019 39

2019 OUTLOOK MILLENNIALS

KEVIN WALSH, 34 DAVID RICHARDSON JENNIFER PRESTON

KEVIN WALSH STEPHANIE WHITLOW

JENNIFER PRESTON, MD, 36

40

AB | January - February 2019

BACKGROUND: Walsh is a partner in the business law practice at Quarles & Brady and an elected governing board member of the Kyrene School District. He is also chair of Jobs for Arizona’s Graduates, president of the Phoenix One Foundation and a member of Valley Leadership Class 40.

WHAT TO WATCH IN 2019: “The diversification of Arizona’s economy will continue, fueled by growth from businesses focused on new and disruptive technologies.

The legal market needs to be equally dynamic and demonstrate expertise in emerging industries. As efforts to attract and develop a talented workforce persist, expect education to remain an important issue.”

STEPHANIE WHITLOW, 36

Program director Banner University Digestive Institute

BACKGROUND: Dr. Preston is the youngest and first female program director for the University of Arizona College of Medicine – Phoenix Integrated Surgical Residency at Banner – University Medical Center Phoenix.

She is part of the surgical team at the Banner – University Medicine Digestive Institute.

WHAT TO WATCH IN 2019: “Robotic assisted surgery is increasingly being utilized as a minimally invasive surgical technique for general surgery and will increase next year into more service lines. As I continue to incorporate it into my practice, the residents that I train will gain exposure and will require additional training.”

Partner Quarles & Brady

DAVID RICHARDSON, 29 CEO bioSyntagma

BACKGROUND: Richardson is the co-founder of bioSyntagma, a precision medicine company focused on eliminating drug resistance in cancer treatment. Prior to this, he performed research, designed orthopedic implants, and developed software as an engineer. He holds a PSM in nanoscience and BSE in mechanical engineering from Arizona State University.

WHAT TO WATCH IN 2019: “The cure to cancer won’t be a drug – its data. We’ve never had more data about patients than today, but the question is how do we get the right data and what do we do with it? It’s a frontier that will mark the beginning of the end in the war on cancer.”

Vice president and marketing director Western Alliance Bank

BACKGROUND: Whitlow has 13 years of experience in public relations and marketing strategy for successful companies in banking and real estate. Prior to joining Western Alliance Bank (Member FDIC) in 2017, Whitlow was director of marketing and communications for RED Development, a mixed-use real estate company.

WHAT TO WATCH IN 2019: “From our perspective as a leading business banking organization, the biggest factor that could impact our industry is the overall state of the economy. As the economy continues to remain generally buoyant, businesses are likely to continue seeking resources to grow, even if they face more headwinds in 2019 than they do today.”

MARKETING

INFLUENCER MARKETING will be even bigger in 2019 and here’s how it works

Janelle Brannock Marketing

I

nfluence is the new currency.

Think of all the times you’ve heard about a company, product or service from someone you know and trust. That exposure later grew into consideration, and then eventually conversion.

That’s influence.

Today, the circle of influence has widened beyond just friends and family to now include your peers and even people you have never met. They may be bloggers or celebrities, YouTubers or Instagram stars.

Whoever they are, they have a hold on you for a reason. They create content that’s interesting, captivating and helpful. Their followers — from the hundreds to the millions — hang on to their every word, craving that next post or video about an experience they had with a brand.

It’s no wonder, then, that the influencer category has catapulted into a must-have for brands that deliver an experience in any shape or form. Naturally, marketers are starting to shift more of their marketing budget to social channels than ever before.

What is influencer marketing, anyway?

Simply put, influencer marketing is when a brand develops partnerships with relevant

influencers who create and share content about that brand’s product or service that influences their followers to take some kind of action—like to go somewhere or purchase something. Finding and engaging with the right influencer takes time (if you want some tips on how to start, I wrote about it previously here: https://bit.ly/2PMjb2k), because your communication needs to be personalized and thoughtful. As you engage with that influencer, you’ll settle on specifics like the total investment, how many posts will be created and on which platforms.

How prevalent are influencers?

Just plug “social media influencers” into your Google search bar and you’ll get about 5 million results. That says a lot.

While Instagram continues to be the preferred platform for influencer marketing, brands regularly execute similar engagements on other channels like Facebook, Pinterest and YouTube.

On Instagram alone, an estimated 14.5 million sponsored posts (using hashtags like #sponsored and #ad) were shared in 2017 and was expected to hit 21.7 million by the end of 2018, according to Mediakix and Instagram.

And just how much is being spent on these sponsored Instagram posts? A little

over $1 billion was spent in 2017, which was expected to reach $1.63 billion by the end of 2018.

What’s in store for 2019?

Looking ahead, influencer marketing budgets will continue to increase (some experts predict this category will top $5 billion globally by 2020), which equates to more opportunities for brands to engage with influencers in more creative ways.

Authenticity will continue to be key as marketers engage with legitimate influencers and promote content using rules set forth by the FTC. The evolution—and influence—of the micro- and nano-influencer category will continue to grow by leaps and bounds as more marketers acknowledge this group as a powerful niche that creates authentic content that resonates with their audience.

With an average return of $7.65 for every dollar spent, you might just consider adding this powerhouse category to your marketing mix to build your brand’s influence.

Janelle Brannock is the senior director of influence at Commit Agency in Chandler, where she leads all social media, content marketing and influencer engagement efforts for the agency’s clients.

AB | January - February 2019 41

SMALL BUSINESS

Sophisticated

threads Carter’s Men’s Clothing retains generations of loyal customers with personalized service and quality brands

By ALYSSA TUFTS

M

ost men’s main objective when shopping is to know what they need, find it and leave. Although shopping isn’t a favorite pastime for men, there are many individuallyowned, local stores with friendly and knowledgeable staff that help customers find what they need and what brands fit them best. Carter’s Men’s Clothing in Phoenix is one of those stores.

Founded in 1984 by Mike Carter, the owner brought years of retail experience and enthusiasm for men’s clothing to Carter’s Men’s Clothing, which carries an array of quality brands and has an approachable staff ready to assist customers.

Located in what Carter describes as the “golden corner” of Phoenix, Carter’s is located between Arcadia and Paradise Valley, within a short drive to the Phoenician and Biltmore Fashion Park.

Carter, who was born and raised in Arizona, says having repeat customers who learned about Carter’s through word of mouth has made the business successful for more than 30 years.

“People count on us for quality products and customer service,” Carter says. “Customers come in for all kinds of special occasions, including weddings, proms and other formal events.”

Carter says customers can find everything they need in one place. The 2,400-square-foot store carries shirts, sport coats, pants, shoes, neckwear and suits in brands such as Samuelsohn, Robert Talbott, Baldon shoes, Ballin pants, Gitman Bros. shirts, Peter Millar, Polo Ralph Lauren, 34 Heritage denim and Reyn Spooner.

“We’re definitely transitioning into a dressier time period in America to more updated, refreshing sportswear that fits today’s business climate,” Carter says. “Men can still look nice when they go into the office and not necessarily put a shirt and tie or suit on, so we’ve moved into a very sophisticated sportswear that men are wearing today, from their jeans to their sport shirts, to jackets and socks and shoes. Sportswear is a big part of our business.”

Carter says it’s important to have a staff that can not only interact with various customers, but can make recommendations as to what pairs well together, suits the occasion, or complements an individual’s sense of personal style.

“The staff is the heart and soul of the business, “ Carter says. “I have very experienced salesmen and we do everything together — from buying the products to setting up displays. Our staff is very well educated in our products, the times we live in and our customer base.”

42

AB | January - February 2019

SHARP-DRESSED MAN: Mike Carter is the owner of Carter’s Men’s Clothing, which is located at 5045 N. 44th St., Phoenix. For more information, call 602-952-8646 or visit cartersmensclothing.com.

(Photo by Mike Mertes, AZ Big Media) Carter says part of what makes his store unique is the local shop experience and atmosphere, where the owner and staff knows the customers and can build meaningful relationships to create loyal and lifelong customers, some of whom span several generations.

“Anybody can put clothing in a clothing store, but it’s how you present it and how you treat your customers that’s most important,” Carter says. “The two things set us apart from competitors is our product knowledge and our service to our customers.”

Carter is confident the store will continue to provide quality service to customers for years to come.

“I’m encouraged because we’ve been here for 35 years and we’ve weathered some ups and downs in the economy, but we continue to grow and find new customers who like our product, so I don’t see us going anywhere but continuing the business we have today,” Carter says.

AWAR DS

SAVE THE DATE MAY 2, 2019

J W M A R R IOT T CA MELBACK IN N

Industry Leaders of Arizona celebrates top professionals in key industries throughout Arizona.

All companies are Arizona-based or have a significant presence in the state. Industries are weighted and judged by industry standards for revenue, growth, employee count and financial health. All award winners and honorable mentions will be celebrated at an annual awards ceremony in May.

2 019 I L OA F E AT U R E D INDUSTRIES

Healthcare Hospitality Logistics/Distribution Retail Software

DINING

DAHLICIOUS Chef Lisa Dahl helps Sedona become a natural wonder as a foodie destination

By MICHAEL GOSSIE

F

or lovers of Italian food, heaven lies in Sedona and it’s called Dahl & DiLuca Ristorante Italiano.

Growing up in an Italian family in New York, it’s very hard to find anything that compares with the homemade Italian deliciousness created by the loving hands of my grandmother and greatgrandmother.

Then I walked into Dahl & DiLuca. From the moment I bit into Chef Lisa Dahl’s Arancini appetizer — Grandma called them “risotto balls” — it felt like home.

Only better.

Chef Dahl, one of Az Business magazine’s Most Influential Women of 2018, is a self-taught chef who was the first to introduce fine dining to Sedona in the late 1990s. Since then, Chef Dahl has built the largest restaurant group in the area and has been featured on The Food Network, Travel + Leisure, USA Today, The New York Times, Travel Channel, Huffington Post, Marie Claire and many more.

What differentiates Chef Dahl’s restaurants is that she makes sure every detail — the decor, the accents, the tables, the staff, the lighting, the live jazz piano, the intimate garden patio — blend together to not only create the perfect dining experience, but to exceed expectations.

That’s why dining at one of Chef Dahl’s restaurants has become more than an experience. It’s an event, a treasured memory, no matter how many times you go back to delve into Dahl’s deliciousness.

Chef Dahl, who entered the restaurant industry after a successful career in fashion, brings that stylish flair to the menu at Dahl & DiLuca. She takes classic Italian dishes and redefines, refines and makes them her own, creating angelic pastas that are as light and delicate as they are satisfying, decadent vegetable-based

44

AB | January - February 2019

dishes and hard-to-find Italian seafood classics. But the secret sauce that makes repeated trips to Dahl & DiLuca a must for every foodie is the dynamic Dahl.

“I don’t see myself any different now than when I first started working in the kitchen at Dahl & Di Luca Italiano more than 23 years ago,” Dahl says. “I want to create memorable dining experiences for the people who visit my restaurants. I’m a perfectionist. So I want each experience to be perfect.”

Dahl & DiLuca Ristorante Italiano Location: 2321 W. Highway 89A, Sedona, AZ Reservations: 928-282-5219 Website: dahlanddiluca.com

Mariposa Latin Inspired Grill Location: 700 AZ-89A, Sedona, AZ Reservations: 928-862-4444 Website: mariposasedona.com

MARIPOSA LATIN INSPIRED GRILL

Words cannot adequately capture the Mariposa experience.

Nestled on a scenic bluff overlooking panoramic views of Sedona’s red rocks, it’s easy to see why Mariposa Latin Inspired Grill made OpenTable’s list of the “100 Most Scenic Restaurants” in the world. It feels like you’re sitting at the best table at the best restaurant in heaven. The views are miraculous.

And when you bite into one of Chef Lisa Dahl’s innovative dishes, it’s easy to see why the Travel Channel featured Mariposa on its “Food Paradise” show. Mariposa is a foodie’s paradise come to life.

The cuisine is inspired by Dahl’s interactions with chefs in Argentina, Chile and Uruguay. Dahl focuses on premium ingredients and many of the flavors come from the herb gardens in the restaurant’s courtyard.

And although it may sound cliché, there isn’t a miss on the menu. Each dish is vibrant, innovative and a cascade of flavors.

The only bad thing is that Mariposa is SO good, you need to make a reservation before visiting.

TRAILBLAZER: Chef Lisa Dahl, shown here inside Mariposa, was among the first to introduce fine dining to Sedona in the late 1990s and she is now the largest restaurateur in the area and is credited for Sedona’s emergence as a national foodie destination.

CELEBRATING ANOTHER YEAR OFYEAR A CELEBRATING ANOTHER OF A CELEBRATING ANOTHER YEAR OF A FRESH TWIST THE ON CLASSICS FRESHON TWIST THE CLASSICS FRESH TWIST ON THE CLASSICS

FOOD, FLORAL & FURNISHINGS

602.579.5327 THEMARKETBYJENNIFERS.COM

602.579.5327 602.579.5327 THEMARKETBYJENNIFERS.COM THEMARKETBYJENNIFERS.COM

FOOD, FOOD, FLORALFLORAL & & FOOD, FURNISHINGS FURNISHINGS FLORAL &

602.579.5327 THEMARKETBYJENNIFERS.COM

FURNISHINGS

AB | January - February 2019 45

ACC AWARDS 2019 finalists

HONORING EXCELLENCE IN

CORPORATE COUNSEL

ACC Awards showcase Arizona’s most accomplished in-house attorneys and legal teams

By MICHAEL GOSSIE

E

ffective corporate counsel has never been more important than it is in today’s new and ever-evolving knowledge-based economy.

Az Business magazine is recognizing the important and vital role that inhouse counsel plays in the success of a business with the Arizona Corporate Counsel (ACC) Awards.

“The diverse personalities and skill sets of the finalists for the ACC Awards show how much the role of the corporate counsel has evolved over the last few years,” says AZ Big Media Publisher Cheryl Green. “While maintaining a firm handle on the traditional functions of the legal department, the roles of these in-house attorneys are expanding to handle complex issues such as regulation and compliance, data privacy and cybersecurity issues. It’s a difficult, yet vital role that has a direct impact on every organization’s bottom line.”

Candidates in several categories will be recognized for their extraordinary legal skills and achievements across a full range of in-house responsibility, exemplary leadership and for contributions to Arizona’s communities. The 27 finalists and winners will be honored during a ceremony and dinner on Thursday, January 17 at the Pointe Hilton Tapatio Cliffs Resort. Visit azbigmedia.com for more information on the event.

Over the next several pages, you will meet the finalists, in alphabetical order.

46

AB | January - February 2019

AB | January - February 2019 47

ACC AWARDS 2019 finalists WILLIAM R. BLACK

VICE PRESIDENT AND GENERAL COUNSEL MD HELICOPTERS BACKGROUND: Black helps lead MD Helicopters, Inc., an Arizona defense contractor supplying military helicopters to the US Government and allied armed forces. He has spent over 28-years as in-house counsel for multinational companies, including BAE Systems, Lantronix, Thales, the L. L. Knickerbocker Co. and AMCOR.

SOURCE OF PRIDE: “MD Helicopters’ products increase our military’s effectiveness and protect the lives of our men and women in uniform. Under CEO Lynn Tilton, MD has transformed from a small commercial company into a world-class defense contractor with over $1.5 billion in military contracts. The company employs 531 Arizonans, over 30 percent veterans.”

CARVANA LEGAL DEPARTMENT BACKGROUND: Carvana created its legal department in 2015, shortly after securing outside investment capital to fund rapid expansion. Beginning as a oneperson group, the legal department has matured into a 25-person team covering legal, compliance and risk issues across nearly 30 states for a publicly traded company with more than 3,500 employees operating in heavily regulated logistics, remanufacturing, retail, consumer lending, structured finance and technology fields.

SOURCE OF PRIDE: Since Carvana’s legal department was created less than four years ago, the company has grown from 200 employees and $45 million in annual revenue to more than 3,500 employees and $2 billion in annual revenue.

MARINA CARPENTER

GENERAL COUNSEL | ARIZONA COYOTES BACKGROUND: Carpenter touches nearly every aspect of the Coyotes and Roadrunners operations, including player contract drafting, immigration matters, sponsor and other contract negotiations, matters of compliance in various areas including promotional contest activities, human resources and various governmental issues. In addition, she oversees the organization’s risk management programs.

SOURCE OF PRIDE: “A mentor once told me to ‘find my voice.’

I have created the habit of vigorously preparing, which has allowed me to advocate for the best interests of my organization with confidence and pride. Finding my voice has allowed me to contribute to fulfilling the mission and vision set out by the Coyotes’ executive team.”

48

AB | January - February 2019

AB | January - February 2019 49

50

AB | January - February 2019

AB | January - February 2019 51

ACC AWARDS 2019 finalists JOSE CARRILLO

VICE PRESIDENT, EMPLOYMENT COUNSEL WESTERN ALLIANCE BANCORPORATION BACKGROUND: Carrillo advises the bank on employment issues, compliance with applicable employment laws and legal risks associated with various business strategies. Before law school, Carrillo worked as an investigator with the U.S. Equal Employment Opportunity Commission and the Arizona Civil Rights Division.

SOURCE OF PRIDE: “I am proud of being named one of the 2018 Top 50 Pro Bono Attorneys in Arizona because of my work with the Florence Immigrant and Refugee Rights Project. I first served the Florence Project as a pro bono attorney representing unaccompanied children in immigration proceedings for several years before being named to its board of directors.”

SONNY CAVE

GENERAL COUNSEL | ON SEMICONDUCTOR BACKGROUND: Cave is the founder of ON Semiconductor’s law department, where he serves as executive vice president, general counsel, chief compliance and ethics officer, chief risk officer and secretary to the board of directors. Prior to ON Semiconductor, he worked for Motorola. More recently, he received the 2018 University of Colorado Law Alumni Award for Distinguished Achievement as Corporate Counsel.

SOURCE OF PRIDE: “Having the privilege to lead ON Semiconductor’s Global Compliance and Ethics Program from its inception to its current honor of being named a World’s Most Ethical Company for three years in a row by the prestigious Ethisphere Institute.”

COPPERPOINT INSURANCE COMPANIES LEGAL DEPARTMENT BACKGROUND: The Legal and Regulatory Affairs Division of CopperPoint provides in-house legal services to support its growing workers’ compensation and commercial insurance business. Services include contract review and administration, employment law, corporate governance, insurance regulatory compliance, and workers’ compensation claim litigation services.

The team includes 11 lawyers in Arizona, 11 attorneys in California and support staff.

SOURCE OF PRIDE: “Our attorneys frequently meet with our agents and policyholders to explain the nuances of workers compensation claim litigation and to share their subject matter expertise on a variety of business topics. This is one of many ways that Legal contributes to the achievement of CopperPoint’s strategic goals and objectives.”

52

AB | January - February 2019

AB | January - February 2019 53

ACC AWARDS 2019 finalists MARTIN DEMOS

GENERAL COUNSEL MARICOPA INTEGRATED HEALTH SYSTEM BACKGROUND: Demos has more than 20 years of healthcare, regulatory and leadership experience. He is the principal legal officer for MIHS, providing advice and counsel to the CEO, senior management, the district board of directors and all MIHS departments. He also leads the legal, risk management and security departments.

SOURCE OF PRIDE: “It was a true honor to serve as part of the team that helped win passage of Proposition 480 in 2014. The measure, approved by Maricopa County voters by an overwhelming margin, provides nearly $1 billion in funding to transform our community’s public teaching hospital and safety net system of healthcare.”

MARY DE RANITZ CORPORATE COUNSEL CANYON RANCH

BACKGROUND: De Ranitz previously served as associate general counsel at the University of Arizona for more than 10 years and earlier in her career worked as in-house corporate counsel at several health plans. De Ranitz obtained dual law and MBA degrees from the University of Arizona.

SOURCE OF PRIDE: “I build trust among executives and senior management through sound advice and working together with business professionals to achieve goals, not only as an advisor but as a team member. I effectively help get clients to ‘yes,’ while balancing the myriad risk management and compliance issues present in the wellness environment.”

JASON ENGLUND

SENIOR ATTORNEY PINNACLE WEST CAPITAL CORPORATION BACKGROUND: Englund is a labor and employment attorney for APS, responsible for employment matters at Palo Verde Generating Station. Prior to joining APS, he practiced as a management-side employment litigator at Sidley Austin and Seyfarth Shaw in Chicago. Englund graduated magna cum laude from Boston University School of Law in 2008.

SOURCE OF PRIDE: “Nothing is more gratifying as in-house counsel than gaining the trust and confidence of business partners and an executive leadership team that have high standards. I have found it immensely rewarding to navigate difficult situations at APS and be trusted as a steady hand under fire.”

54

AB | January - February 2019

AB | January - February 2019 55

56

AB | January - February 2019

AB | January - February 2019 57

ACC AWARDS 2019 finalists MARTIN FELLI

EXECUTIVE VICE PRESIDENT, CHIEF LEGAL OFFICER, CHIEF COMPLIANCE OFFICER AND CORPORATE SECRETARY JDA SOFTWARE BACKGROUND: Felli is responsible for providing leadership on all legal matters, including corporate governance, compliance, litigation and risk management, acquisition activity and commercial transactions. In addition, Felli is also responsible for JDA’s Information Technology Group, procurement, real estate/facilities and the global office administrations group.

TOUGHEST PROFESSIONAL CHALLENGE: “When I joined JDA, the company had just merged with RedPrairie to become the largest software company in the supply chain space globally. I was faced with a full reorganization of company structure. I approached this by tripling our team, fortifying company culture and ensuring the team’s continued excellence and high engagement.”

PETER GENTALA

GENERAL COUNSEL AND VICE PRESIDENT OF GOVERNMENT AFFAIRS AND PUBLIC POLICY CHILDHELP BACKGROUND: Gentala serves on a variety of boards and commissions focusing on child safety, with agencies including the Arizona Department of Child Safety, the ASU Morrison Institute, and the City of Phoenix. He is also an adjunct professor at Arizona State University and Arizona Christian University.

SOURCE OF PRIDE: “Taking on operations this year has given me a new appreciation for the business functions of the organization. I am also proud of the role my team and I played in negotiating, structuring, and finalizing a significant banking transaction that has improved Childhelp’s ability to serve children.”

JEFF HANSEN

SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL TROON BACKGROUND: Troon has grown during Hansen’s tenure and he has been an important part of the growth.

His ability to turn management agreements quickly is unsurpassed and also his creativity in landing on solutions to complete an agreement are unmatched. He works tirelessly to improve the processes and legal systems for the company.

TOUGHEST PROFESSIONAL CHALLENGE: “The transition from a law firm environment to the corporate environment. I was an equal shareholder in the law firm and participated in all major decisions and fortunately, over time, I have been able to advance to a senior role at Troon by establishing trust and credibility with the executives and demonstrating value.”

58

AB | January - February 2019

AB | January - February 2019 59

60

AB | January - February 2019

AB | January - February 2019 61

ACC AWARDS 2019 finalists IJANA M. HARRIS

ASSISTANT GENERAL COUNSEL MARICOPA INTEGRATED HEALTH SYSTEM BACKGROUND: Harris provides legal advice on matters relating to the operation of a public healthcare system, including advising on state and federal regulations, employment law, medical malpractice defense, contracts and public procurement. Harris was given the Sandra Day O’Connor College of Law’s Class of 2013 Dean’s Award for exemplary contributions to the law school.

SOURCE OF PRIDE: “What gives me the most pride is working for a public health care system that is dedicated to improving the lives of the people in our community. At MIHS, my job is both intellectually challenging and socially rewarding. It is truly the best of both worlds.”

RYAN LIEBENGOOD

DIRECTOR OF GLOBAL INTELLECTUAL PROPERTY AND LICENSING ASM AMERICA BACKGROUND: Liebengood is the director of global intellectual property and licensing at ASM International N.V., a publicly traded Dutch company that supplies semiconductor capital equipment across the globe. The IP and licensing team spans three continents and is responsible for all aspects of ASM’s intellectual property from idea generation to licensing and litigation.

SOURCE OF PRIDE: “I am most proud of leading initiatives that allow companies to monetize their intellectual property. IP litigation and licensing are complex endeavors that require significant business and financial resources. At ASM, I have the support of key stakeholders to pursue appropriate cases in spite of the risks.”

LANCE LUCEY

SENIOR VICE PRESIDENT AND GENERAL COUNSEL INTERNATIONAL CRUISE & EXCURSIONS, INC. (ICE) BACKGROUND: Lucey joined ICE in May of 2015 and is not only the organization’s general counsel, he also brings a stellar 20-year track record of professional success from both the legal and corporate industries along with him.

TOUGHEST PROFESSIONAL CHALLENGE: “When I arrived at ICE, the legal department was viewed by many as nonresponsive, myopic and as an inhibitor to business operations.

I have worked hard since my arrival to change the company’s perception of the legal department and have established a legal culture of responsiveness, creative problem solving, flexibility and business partnering.”

62

AB | January - February 2019

AB | January - February 2019 63

ACC AWARDS 2019 finalists BRENDAN MAHONEY GENERAL COUNSEL BBK TOBACCO & FOODS

BACKGROUND: Mahoney has more than 20 years’ experience in private practice, as well as policy and legal development in government.

He has served on many nonprofit boards and has received numerous awards reflecting his commitment to social justice and LGBTQ rights.

SOURCE OF PRIDE: “Many others and I labored unsuccessfully for 20 years to enact an LGBT non-discrimination ordinance in Phoenix.

In 2012, I left my law firm and joined the mayor of Phoenix’s staff to finally accomplish this. I drafted the ordinance and helped secure passage in 2013. The ordinance also has positively influenced many companies in selecting Phoenix as a place to do business.”

MATTHEW MEAKER ASSISTANT GENERAL COUNSEL SUNDT CONSTRUCTION

BACKGROUND: Meaker provides primary legal support for Sundt’s Transportation Group, Industrial Group and its human resources team.

He is past chair of the State Bar of Arizona Construction Law Section and has co-authored a number of publications related to construction, including the “Green Building Construction: A Practical Guide to Transactional and Litigation Issues.”

TOUGHEST PROFESSIONAL CHALLENGE: “Days after I joined Sundt, I was tasked with leading the effort to resolve one of the most significant disputes in the company’s history. The agreed-upon process allowed presentation only through percipient witnesses. Through collaboration and thorough preparation, our team was able to resolve the matter in the company’s favor.”

MICROCHIP TECHNOLOGY LEGAL DEPARTMENT BACKGROUND: With the leadership of Vice President and General Counsel Kim van Herk and Director and Assistant General Counsel Mari Valenzuela, the Microchip legal team supports all aspects of Microchip’s business. As a $3.9 billion publicly-traded international company headquartered in Chandler, Microchip is an active consolidator in the semiconductor industry, recently logging its 112th consecutive quarter of profitability. Microchip has grown substantially in size, geographic footprint, and complexity, both organically and through acquisitions.

The legal team puts a tremendous focus on learning the new businesses and developing collaborative relationships with business leaders. The team consistently receives positive feedback from internal clients about their understanding of issues and practical business approach.

64

AB | January - February 2019

AB | January - February 2019 65

ACC AWARDS 2019 finalists MICHAEL J. MINNAUGH GENERAL COUNSEL VALLEY METRO

BACKGROUND: Minnaugh is responsible for all aspects of the agency’s legal affairs. He provides counsel on all significant business issues involving the planning, developing, operation, safety and maintenance of bus, vanpool, and light rail systems, paratransit, Dial-a Ride, and rural and neighborhood circulators throughout Maricopa County.

TOUGHEST PROFESSIONAL CHALLENGE: “I have a passion for doing whatever is best for Arizona. I left a successful private law practice to take on the multi-faceted opportunity of serving at Valley Metro. It was a risk and a challenge, but one that has allowed me to be instrumental in the transformational change and revitalization of this critical public service agency.”

DAVID MULVIHILL

VICE PRESIDENT AND GENERAL COUNSEL MAKE-A-WISH FOUNDATION OF AMERICA BACKGROUND: Responsible for overseeing all of the foundation’s legal affairs, Mulvihill spends a substantial portion of his time protecting the Make-A-Wish name and trademarks from infringement by unscrupulous sound-alike organizations and others. Mulvihill has worked closely with various federal and state charity regulators over the years.

SOURCE OF PRIDE: “I am particularly proud of the fact that — working closely with federal and state charity regulators, pro bono counsel and the media when appropriate — we were able to put some of the worst offenders out of business, which has had a deterrent effect on the few remaining ‘fake-a-wish’ organizations.”

MICHAEL O’NEILL

GENERAL COUNSEL AND CHIEF LEGAL OFFICER AVNET BACKGROUND: O’Neill has held leadership roles at Canadian Helicopter Corporation, Lenovo and Honeywell. He received his B.A. in business administration and economics from Belmont Abbey College, and his J.D. and MBA in finance from University of Baltimore Law School.

TOUGHEST PROFESSIONAL CHALLENGE: “To meet the goals of the organization, I realized that I had to reach out to all levels of the business and listen and learn. By doing so, I was able to understand the way the business actually operated which helped me provide more useful and tangible legal advice that custom fit the needs of the business.”

66

AB | January - February 2019

AB | January - February 2019 67

ACC AWARDS 2019 finalists PINNACLE WEST CAPITAL CORPORATION (APS) LEGAL DEPARTMENT SOURCE OF PRIDE: The APS legal team provides free estate planning services to Valley veterans through its Wills for Arizona Veteran Heroes Clinic. Legal documents ranging from basic wills, personal financial or durable power of attorney and advanced medical directive documents are prepared for veterans who served in the Army, Marines, Navy and Air Force. “Hearing some of these veterans’ stories was inspirational to all of us who had the opportunity to volunteer for this clinic,” says Diane Wood, associate general counsel at APS. “It was an honor to assist in preparing these documents to ensure that these veterans’ affairs are in order and their loved ones are taken care of.”

JUSTIN POWELL

CHIEF LEGAL OFFICER AND GENERAL COUNSEL ISAGENIX BACKGROUND: Powell advises Isagenix on legal and business matters and strives to help the company lead the industry with its responsible business practices. In addition to managing the legal, compliance, human resources, and corporate affairs departments, he supports various operational aspects of the business, including international expansion.

SOURCE OF PRIDE: “I’m proud of my role in helping Isagenix establish the Isagenix Legacy Foundation, a charitable organization focused on providing nutrition for underserved children, wellness education for all, and relief for those affected by natural disasters. We raised $2.3 million when the foundation launched earlier this year, and will soon select our first grant recipients.”

MIKE RAFFORD

SENIOR VICE PRESIDENT, GENERAL COUNSEL AND CORPORATE SECRETARY ISOLA GROUP BACKGROUND: Rafford is responsible for managing Isola’s worldwide legal matters, along with its global compliance and environmental, health and safety groups.

TOUGHEST PROFESSIONAL CHALLENGE: “One of my most significant challenges was the transition from private practice to in-house practice. I was initially overwhelmed with all of the different issues that an in-house lawyer faces and how quickly my clients wanted answers. I overcame this challenge by learning about the business and working with my clients to understand their goals. I also learned to trust my own judgment — there isn’t always time to have perfect information to make a decision.”

68

AB | January - February 2019

AB | January - February 2019 69

ACC AWARDS 2019 finalists WILLIAM SAWKIW

ASSISTANT GENERAL COUNSEL BAR S FOODS BACKGROUND: Sawkiw has worked in various positions in his career — public service, in big and small firms, in solo practice and now in house.

TOUGHEST PROFESSIONAL CHALLENGE: “Maintaining a sense of balance in my legal career. I have always tried to ensure that regardless of my professional demands, my primary driving force is to be a present and attentive father to my three daughters.

That often means working late at night after they’re asleep so that I can spend time with them during the day. But making the time for them and devoting myself to that role has been a worthwhile struggle.”

MONA STONE

SENIOR VICE PRESIDENT, GENERAL COUNSEL AND CHIEF COMPLIANCE OFFICER GOODWILL OF CENTRAL AND NORTHERN ARIZONA BACKGROUND: Stone graduated from Bradley University (1994) and earned her J.D. from Tulane University School of Law (1997). She was named the first Indian-American equity partner at Locke Lord before moving to Phoenix in 2010.

TOUGHEST PROFESSIONAL CHALLENGE: “As a new GC, I have had to build Goodwill’s legal department from the ground up, meaning implementing training, guidelines, and best practices. I worked hard to educate team members and get them invested in ensuring compliance. With the support and help of an amazing team, we have built a best-in-class program.”

MARCEL VALENTA

GENERAL COUNSEL AND VICE PRESIDENT, ENTERPRISE DEVELOPMENT ASU ENTERPRISE PARTNERS BACKGROUND: Valenta joined ASU Enterprise Partners as general counsel and head of corporate development in September of 2013. Valenta manages all legal matters related to ASU Enterprise Partners, including governance, transactional, compliance, human resources, and policy matters. Prior to that he worked with Bryan Cave, Hewlett-Packard, Wilson Sonsini Goodrich and Rosati, and Baker & McKenzie.

PERSONAL STRENGTHS: Valenta navigates a very complex organization and university and provides effective legal leadership for multiple lines ranging from philanthropy to real estate to technology licensing, all in the hundreds of millions of dollars.

70

AB | January - February 2019

Congratulations!

AZ Business magazine would like to congratulate each of the 2019 Arizona Corporate Counsel Awards finalists! Congratulations on a well-deserved accomplishment.

Here’s to You!

AB | January - February 2019 71

Make Riding More Fun! How Fast?

How Far?

All Pedego Electric Bikes are governed at 20 MPH in accordance with federal and state regulations.

Range varies between 15-60 mi. depending on the battery, rider weight, terrain, weather, speed, and level of pedaling.

Like A Regular Bike, Only Better

Sales Service Accessories

of Scottsdale

Rentals Corporate Tours Group Rides

PedegoScottsdale.com | 480.994.4447 72

6945 E. 5th Ave., Scottsdale, AZ 85251 (Old Town Scottsdale)

AB | January - February 2019

2019

Fairmont Scottsdale Princess

73

AB | January - February 2019

AZLTA

THE RIGHT STUFF: Hilton Pointe Squaw Peak has implemented several green initiatives and sustainable solutions, including harvesting fresh, organic vegetables from a garden that is grown on-site. (Provided photo)

74

AB | January - February 2019

GREEN WITH ENVY AzLTA, ADEQ team up to help Arizona hotels and restaurants capitalize on the eco-friendly tourism boom

By ERIN THORBURN

A

rizona’s lodging and tourism industry is looking a lot greener (and cleaner).

The Arizona Department of Environmental Quality (ADEQ) and the Arizona Hotel & Lodging Association (AzLTA) recently launched a comprehensive update to the Certified Green Lodging Program. Together, with the help of Arizona State University sustainability interns, ADEQ and AzLTA gathered data to expand even more green initiatives in the areas of conservation, waste reduction and overall improvement in sustainability.

From application to verification and certification, the process to become a Certified Green Lodging facility typically takes a mere 30 days to complete. And the benefits? There are plenty to be had by all — program members, visitors and residents of Arizona.

AB | January - February 2019 75

AZLTA “As a locally-owned hotel with owners and employees active in the community, it’s important to us that we do our part to protect the natural environment,” says Rita Dorsey Boutwell, director of training and development at Hotel Congress, which has been practicing sustainability and conservation for well over a decade.

“Plus, we want to show other hotels how these efforts can benefit their business. By first reducing usage in some areas and creating a sustainability spending account with the savings, we can apply the funds to larger capital projects, which will save even more money over time and continue to reduce our impact on the environment.”

Through the program, hotels, resorts, bed & breakfasts and more can reduce their impact on the environment, while also increasing their ability to attract the growing number of environmentally-friendly travelers.

Az Business magazine talked with Erin Jordan, public information officer for ADEQ, and David Drennon, executive vice President of the AzLTA, to learn more about the exciting additions to the Certified Green Lodging program.

Az Business: Can you share a bit of background on how AzLTA and ADEQ came together to provide expanded Certified Green Lodging program offerings for AzLTA members?

Erin Jordan: In 2015, the Environmental Protection Association awarded ADEQ with a pollution prevention grant to update the Green Lodging Program in partnership with the Arizona Lodging and Tourism Association. The original program was established in 2010. Students from the ASU Sustainability Internship Program helped to create the collateral for the program, such as the checklist and resource summaries under green lodging and tourism.

David Drennon: In partnership with the Arizona Department of Environmental Quality, the program will be enhanced to allow

AzLTA member properties to measure and monitor performance, as well as benefit from a sharing of sustainability best practices.

This ultimately results in important operational budget savings.

The AzLTA team, several interns and the ADEQ staff worked collaboratively over the past year to reach this milestone. The elements of the program will now be built out and incorporated into an online database. Members can track and chart their progress and receive valuable feedback on budget-friendly, environmental solutions.

AB: How do you feel the relationship between AzLTA and ADEQ is mutually beneficial for both organizations?

EJ: ADEQ’s mission is to protect and enhance public health and the environment of Arizona. Voluntary sustainable efforts adopted by businesses help ADEQ do more mission good.

DD: Our primary goal is to gain a better understanding of what hotels in Arizona are currently doing to be sustainable, eco-friendly and environmentally conscious. Then, we work with AzLTA member properties in the Green Lodging Program to adopt best practices, which ultimately strengthens the bottom line of the business. We really want to emphasize that our work with ADEQ is not intended to be an audit or compliance verification of any kind. They truly want to improve the environment for all Arizonans through this effort.

AB: There are a number of strategies and ideas involving waste reduction and conservation as part of the expanded Certified Green Lodging program offerings. Can you share a few?

EJ: There are quite a few examples on the Arizona Lodging and Tourism Association’s Certified Green Program Self-Certification Workbook checklist. Categories include general, kitchen and dining, guest room, and landscape and maintenance waste

BENEFITS OF GOING GREEN In addition to elevating Arizona’s sustainability contributions on behalf of our desert state, when AzLTA members are approved for the Certified Green Lodging Program, they receive multiple benefits, which include: • Approved use of AzLTA’s Certified Green Lodging certification stickers for marketing (website, literature, decals, etc.)

David Drennon

• A listing on the AzLTA and AZ Office of Tourism websites • Complimentary listing and highlight for Green Certification in the next available printing of the Official State Visitors Guide • Driving positive business brand reputation by demonstrating environmental sustainability within your community • Inviting AzLTA and its associates’ transparency in letting guests know that your business is committed to protecting the environment INFORMATION: For more benefits and details about the Certified Green Lodging Program, please visit https://azlta.com/education/certified-green-program/

Erin Jordan 76

AB | January - February 2019

AB | January - February 2019 77

AZLTA reduction and diversion strategies. Member properties can implement numerous strategies, from recycling ink and toner cartridges and regularly installing and emptying grease traps to requiring laundry service to use reusable bags or baskets to transport dirty and clean linen to the implementation of “grasscycling” of grass clippings rather than having them disposed.

across Arizona. Hilton Pointe Squaw Peak is one example, serving as a tour site for our interns. During their observation, our interns witnessed several green initiatives and sustainable solutions implemented by the resort. Hilton Pointe Squaw Peak harvests fresh, organic vegetables from a garden that is grown onsite — talk about locally-sourced, sustainable food.

AB: Hotel Congress in Tucson is one example of a local lodging facility participating in sustainability and conservation measures as part of the Certified Green Lodging program. Are there other local lodging establishments that have taken advantage of the newly expanded offerings or serve as a positive staple of sustainability?

DD: We have a strong list of participating hotels and resorts

AB: What are some incentives that members can look forward to when becoming part of the Certified Green Lodging Program?

DD: For today’s eco-friendly and environment-focused travelers, we market statewide hotels and resorts which have been Certified Green. A list appears each year in the Arizona Office of Tourism’s annual Visit Arizona Guide which is distributed globally.

10 CERTIFIED GREEN HOTELS Arizona Grand Resort

Are you an environmentally-friendly traveler looking for a certified green place to stay in Arizona? Here are 10 to get you started, in alphabetical order:

ARIZONA BILTMORE, A WALDORF ASTORIA RESORT: Since 1929, the Arizona Biltmore, a Waldorf Astoria Resort has been a destination of inspiration and unforgettable memories. arizonabiltmore.com ARIZONA GRAND RESORT: Nestled at the base of South Mountain Preserve,

visitors enjoy lush resort grounds and stunning perspectives. arizonagrandresort.com

ARROYO PINION HOTEL: This boutique Arizona hotel on Highway 89A is less than 3 miles from downtown Sedona and minutes from Red Rock Crossing. arroyohotel.com

CASINO DEL SOL RESORT: The 161,000-square-foot hotel and convention center features 215 luxury hotel rooms, an exercise facility and full-service spa. casinodelsol.com ENCHANTMENT RESORT: Enchantment Resort effortlessly combines Hotel Valley Ho

luxury and Native American culture to create experiences beyond comparison. enchantmentresort.com

Arizona Biltmore

FAIRMONT SCOTTSDALE PRINCESS: The AAA Five Diamond Fairmont Scottsdale Princess provides the perfect setting to enjoy al fresco living in the blooming Sonoran Desert. fairmont.com/scottsdale

GRAND CANYON NATIONAL PARK LODGES - BRIGHT ANGEL LODGE: Bright Angel Lodge, designed in 1935 by famed Southwest architect Mary Jane Colter has a natural rustic character, and is a Registered National Historic Landmark. grandcanyonlodges.com

Pointe Hilton Tapatio Cliffs Resort

HOTEL VALLEY HO: Originally opened in 1956 and recently restored to its former splendor, this urban retreat blends mid-century-modern style with contemporary amenities. hotelvalleyho.com POINTE HILTON TAPATIO CLIFFS RESORT: Pointe Hilton Tapatio Cliffs Resort is a Spanish-Mediterranean-designed, all-suite resort located in the granite bluffs of the Phoenix Mountain Reserve. tapatiocliffshilton.com

THE PHOENICIAN: Located at the base of Camelback Mountain on 250 spectacular acres, The Phoenician’s 60-room Canyon Suites is Arizona’s only Forbes Five-Star boutique hotel. thephoenician.com

78

AB | January - February 2019

AB | January - February 2019 79

ARIZONA LODGING & TOURISM ASSOCIATION

BREWING UP INTEREST Arizona’s emerging craft beer sector benefits economy and tourism

By ALYSSA TUFTS

T

raveling from Arizona brewery to brewery is an experience in of itself. And whether you’re a resident or just passing through, one of the state’s 96 breweries — and counting — will be able to satisfy not only your taste buds, but leave you wanting to try another unique brew. Ranging from Flagstaff to Tucson and Mesa to Phoenix, craft breweries are continuing to increase their presence in Arizona, each with their own unique brews and complementary menus.

“Arizona has always enjoyed a wide variety of styles,” says Rob Fullmer, executive director, Arizona Craft Brewer’s Guild. “I think what’s really sold it here is having more of these breweries in your neighborhood that can offer that personal connection. I think now breweries are in the hyperlocal phase and they have to have good beer, but they have to celebrate being good business people, being accessible, providing hospitality and being responsive. I think that’s what’s made them successful.”

According to 2017 statistics from the Brewers Association, Arizona ranks 19th in the country for the number of craft breweries and 33rd with 1.9 breweries per 100,000 adults aged 21-plus. In Arizona, 147,728 barrels of craft beer are produced per year, and the craft brews sold in Arizona generate $1 billion in economic revenue.

80

AB | January - February 2019

“I think checking out breweries and the local beer scene is one of the last great reasons to travel in terms of providing an experience,” Fullmer says. “Most of our breweries are experiential.”

TASTY TOURISM “Craft beer and tourism go hand in hand these days,” says Ken Wilson, director of sales at Lumberyard Brewing Company in Flagstaff. “For example, Grand Canyon National park is just 80 miles north of the brewery. When people travel, they take the local beer experience home with them. A beer story seems to always attach itself to travel experiences these days and with all of the great local breweries in Arizona, it’s no doubt part of the visitor experience and something they seek out as a complementary piece of their trip.”

Since it was established in 2010, the award-winning Lumberyard Brewing Company has contributed to the growing craft beer presence in Northern Arizona. With seven breweries in Flagstaff alone, Wilson says the city has become a craft beer destination.

“We are proud to be a part of the great beer that is being produced in Flagstaff,” Wilson says. “We package and keg our beer for distribution and send that statewide via our distributor,

ECON OMIC D I S T Beer d RIBUT is value tributors d ION e to Ari zona. liver treme He n

34: Dis

dous ec t the n onomic umbe ilities rs: $237.

2,986 1 mill : E mploy ion: W ees $3.9 m ages a n d salari comm illion: E es c local unities — onomic im event s p u act o ppo s and econo rt of charit n ie mic d evelop s, $283. ment 7 Feder al, sta MILLIO te and N: local t a xes $1.5 B I L Total econo LION: mic im pact tribut

or fac

re’s a

look a

AB | January - February 2019 81

AZLTA

Rob F u

llmer

an d Ware d k c i r t Pa u f or h an B J o nat

Hensley Beverage. They are an Arizona-based, family-owned company and they are a great partner in helping us get our beer out statewide to promote our brewery and the great beer coming from Northern Arizona.”

Lumberyard Brewery is part of the Historic Railroad District in Flagstaff. Wilson says the front half of its building was built in 1890 and the back — where the brewery is located — was built in 1910. As Beaver Street is one of the original brewpubs in Arizona, Wilson says the Hanseth family helped establish brewing in Arizona when they built Lumberyard and began packaging and distributing beer via the Hensley, which Wilson says increased the presence of Arizona beer in stores and led to a larger distribution footprint for several Arizona beers.

“Beer has provenance and it matters that we are brewed at 7,000 feet and in the cool pines of Northern Arizona,” Wilson says. “Our building was a huge part of the community when it opened in 1890 and it is again today.”

Wilson says the charm of the old brick building shines through.

You can sit on the patio and watch the trains roll by, see weary hikers getting off of the Grand Canyon shuttle and walk to the bar for a celebratory pint or enjoy a great conversation over awardwinning beers.

STATEWIDE TREND In addition to the growth in Northern Arizona, Metro Phoenix has seen an increase in breweries across the Valley.

“Arizona Wilderness is proud to be a part of Arizona’s emerging craft beer sector because we feel inspired to tell the stories through each beer that we craft to represent our state’s agricultural community, while striving to highlight conservation efforts,” say Jonathan Buford and Patrick Ware, owners and founders of Arizona Wilderness Brewing Company in Gilbert.

The brewery utilizes local ingredients with inventive recipes, say Arizona Wilderness’ owners and founders. Menu items include the Peanut Butter & Jalapeno Jelly Burger, Pork Belly Sliders and Bacon and Beer Cheese Covered Duck Fat Fries.

“The union between our beer and food derives from Arizona and its agriculture, as well as utilizing our brewing resources — like including the local Sonora white wheat berries in our salads and the excess wort to craft our gravy for the Poutine fries,” Buford and Ware says.

Buford and Ware emphasize the local first philosophy of the brewery, showcasing Arizona ingredients throughout their menus.

82

AB | January - February 2019

Trista n

W hi t e

Ken W

ilson

“We elevate our crafts by incorporating Arizona-grown and malted barley into each beer we brew, while finding overall inspiration from the true love we have for our state.”

One of their special projects is a Sonoran Prince Sour Ale, which is fermented in French oak with the combination of Arizona-grown and malted barley, mixed culture and locally grown peaches.

“We recommend all to visit Arizona Wilderness to experience the high level of pride we have for our product and state and more importantly to meet our educated and enthusiastic staff members who make it all happen,” they say. “We offer a boutique style encountering to control each individual’s visit to ensure you are leaving with the highest satisfaction.”

SOUTHERN CHARM Tristan White, general manager at Dragoon Brewing Company in Tucson, wears many hats. His responsibilities include sales, marketing, and retail operation of the taproom. White says when Dragoon Brewing opened in 2012, there were five other breweries in Tucson. Now there are more than 20.

“When we opened, we self-distributed, meaning we made and sold our beer, then delivered and serviced all of our retail partners,” White says. “It’s a lot of very hard work and it allowed us to make some really strong relationships with bars and restaurants — and also gave us some street cred.”

Since Dragoon signed with wholesale partners in 2015 due to restrictions in volume to self-distribute, White says Dragoon Brewing has been able to continually grow and add more wholesalers around the state.

“We are constantly involved with other brewers in both technical brewing and workplace safety,” he says. “We also brew with brewers around the state, share ingredients and processes.

Beer is a pretty fun industry, full of great people.”

White says Arizona has come a long way in regards to beer’s economic impact on the state.

“Arizona has a lot of ground to cover,” Fullmer says. “The Phoenix market itself has different character areas, so I think it’s important for our breweries to capture that,” Fullmer says.

“Tucson is different from Phoenix. Flagstaff and Havasu have a certain character. I think because we’re small and hospitality focused and customers appreciate knowing the people at the brewery, those are where our strengths lie and breweries will continue to be successful if they understand what they do well and they take advantage of it.”

Many Places To Go, One Place To

Stay

Enjoy luxury at an unmatched value with all-suite accommodations featuring a separate living area with sofa sleeper & private balcony, mountain views, nearby hiking trails, numerous pools, a water slide, cabana rentals, tennis courts, seasonal kid’s poolside activities, Troon golf course, full-service spa & salon and convenient on-site dining options. We’re your perfect, hassle-free destination.

For reservations, please visit tapatiocliffshilton.com or call 1-800-HILTONS

1 1 1 1 1 North 7th Street | Phoenix, Arizona 85020 © 2017 Hilton Worldwide

pointehiltontapatiocliffs

@pointehiltontap

pointetapatio AB | January - February 2019 83

AZLTA

THE LATEST DISH The maturing culinary scene helps Arizona’s tourism industry taste more success

By ERIN THORBURN

A

ttention, foodies: Arizona’s restaurant concepts, resort dining offerings and standalone eateries are your culinary playground — open and ready for palette-primed discoveries.

And the culinary world has noticed.

Cafe Monarch and Steak 44 recently made OpenTable’s list of the 100 Best Restaurants in America. The Royal Palms Resort and Spa’s Mix Up Bar was named one of “The Coziest Restaurants in America” by Food & Wine Magazine. And Different Pointe of View, Elements at Sanctuary Camelback Mountain Resort, Mariposa in Sedona, and Vivace Restaurant is Tucson are all among the 100 Most Scenic Restaurants in America, according to OpenTable.

84

AB | January - February 2019

HOME GROWN: “We

have several local partners for produce, grains, beef and cheese,” says Melanie Volkers, director of sales and marketing for LON’s at the Hermosa Inn, which has been a Valley favorite for many years.

(Provided photo)

Not only that, places like Joyride, Culinary Dropout, Farm & Craft, LON’s at Hermosa Inn and Blue Hound Kitchen & Cocktails have become known for their diverse and unique menu offerings, revitalizing Valley neighborhoods along the way.

Valley restaurateurs are aiming to bring communities together through food – celebrating a vibrant and sustainable Arizona while collaborating with local purveyors. In the process, the Valley has been transformed into a food mecca. These authentic dining experiences, elevated ambiance and creative environments have not only given rise to some of the best food you’ll find, they are driving Arizona’s economy and tourism industry. Grab a napkin, it’s time to eat.

COMMUNITY ROOTS Typically, when it comes to foodie-oriented cities that excel in sustainable, community-based dining, Portland, Seattle, Salt Lake City and Austin are among the front-runners. As attention shifts toward our neck of the desert for its multi-award-winning chefs (and other local and national accolades), Arizona’s restaurant community’s effort at sustainability is becoming more transparent.

“We have several local partners for produce, grains, beef and cheese,” says Melanie Volkers, director of sales and marketing for LON’s at the Hermosa Inn. “We have been working with Crow’s Dairy and Hayden Flour Mills since 2010. We recently started working with Rovey Dairy — a 100-year-old farm that is starting to raise lamb, which we have on our dinner, lunch and brunch menus.”

LON’s also collaborates with Bob McClendon of McClendon’s Select, and is the first in line to receive the certified organic farm’s squash blossoms in the spring, as well as many other seasonal produce items.

“We pride ourselves on always offering a seasonal-inspired menu,” says Blue Hound Kitchen & Cocktails Chef Dushyant Singh.

“Our goal is to be the local resident of Phoenix’s ‘home away from home.’ It’s our priority to use locally based ingredients and produce whenever possible. We buy pretty much exclusively from local purveyors we trust and who provide quality ingredients.”

Riot Hospitality Group exclusively sources sustainable and locally grown products for its five local restaurants: Dierks Bentley’s Whiskey Row, El Hefe, Hand Cut, Farm & Craft and Riot House, as do many other midtown and downtown restaurateurs.

RAISING THE BAR Foodies want more than simply a good meal. They want an experience. Yes, Arizona organically provides a spectacular desertscape backdrop, but the historic areas that have been revived — such as the one that houses LON’s — offer even more experience for the dining buck.

“When dining outside on the award-winning patio, guests enjoy the beautiful gardens and Camelback Mountain,” Volkers says. “If dining inside, guests can see the exposed adobe bricks inside the main dining room. All of the western artifacts coupled with the (Lon) Megargee artwork throughout, immerse diners in a truly authentic Arizona ambiance.”

AB | January - February 2019 85

AZLTA

86

AB | January - February 2019

Upwards Projects strategically dotted its Postino, Windsor, Churn, Federal Pizza and Joyride eateries in historically relevant buildings they deemed as integral to the Midtown Phoenix neighborhood that houses them. Not only does this community-oriented spirit appeal to residents, but it also attracts foodies looking for an elevated dining experience. Postino, for example, was purposely designed to expel the haughtiness that often accompanies wine bar atmospheres and invite a broader demographic to a more relaxed experience.

“Downtown Phoenix is the Valley’s epicenter for dining, shopping, entertainment, employment, education, living, professional sports, arts and culture — and continues to grow,” Singh says. “The Blue Hound, within the Kimpton Hotel, is situated right in the heart of downtown and across the street from Talking Stick Resort Arena and Chase Field — placing it in an appealing position for anyone frequenting the area. Plus, the comfortable, local and homey atmosphere and ambiance make it welcoming to all walks of life and visitors far and wide.”

UNIQUE OFFERINGS Alongside down-to-earth, yet elevated ambiance and delicious menus that get their inspiration from places ranging from the Mediterranean to the Middle East (and everywhere in-between), many of the downtown and midtown Phoenix foodie attractions offer unique happenings beyond those on the daily menu.

Ocotillo Restaurant, that describes itself as New American seasonal cuisine with a touch of local Arizona iInfluence, has an onsite sommelier, coursed luncheons and Santa Maria-style barbeques as part of its additional offerings.

“LON’s award-winning wine list adds to the dining experience as the expertise of our sommeliers help diners identify the perfect wine pairing for their meal,” Volkers says. “We feature nearly 7,000 varietals from Arizona and around the world. LON’s wine program has been awarded the Best of Award of Excellence from Wine Spectator every year since 2015.”

Wine lovers can also try out Café Monarch, Mariposa, Steak 44 and Vivace Restaurant, which were all recently named to the list of the 100 Best Restaurants for Wine Lovers in America.

Several additional restaurants in the area focus on farm-totable events and classes for community members and visitors to enjoy.2018 Sam Fox of Fox Restaurant Concepts “Outstanding Restaurateur” (for the 11th year in a row)

AB | January - February 2019 87

2019

EMERGING TECHNOLOGIES DRIVE

ECONOMIC GROWTH

89

AB | January - February 2019

90

AB | January - February 2019

AB | January - February 2019 91

GREATER PHOENIX ECONOMIC COUNCIL

LET IT

GROW More and more companies are capitalizing on the business-friendly environment in Metro Phoenix and setting up offices or coming to scale

By MICHAEL GOSSIE

A

rizona is a hot spot. And it has nothing to do with our scorching summers.

The state’s job and economic growth forecasts over the next five years are among the best in the nation.

Population growth through 2022 is expected to be the third-fastest in the country and employment growth is expected to be equally strong.

“Arizona continues to foster a welcoming pro-business environment for new and existing companies,” says Goodyear Mayor Georgia Lord. “We focus on areas that are important to businesses — such as reducing regulatory burdens, creating a competitive tax environment and growing a talented workforce, particularly in high-demand industries. The excellent connectivity to major markets along with a low cost operating environment make Arizona a competitive place to grow a business.”

And the business community has taken notice. In 2018, Greater Phoenix welcomed 42 businesses and three corporate headquarters, which represented $1.18 billion in capital investment and created 8,606 total jobs. Much of the credit for those jaw-dropping economic development numbers can be attributed to the Greater Phoenix Economic Council (GPEC).

92

AB | January - February 2019

“If you are a company looking to move into this market, GPEC provides analysis that will help you,” says Brad Vynalek, a partner at Quarles & Brady and a board member at GPEC. “GPEC will analyze your workforce needs, space needs, specialty needs and they have experts within the organization and analytics that are deeply tuned into what is happening and are able to identify the optimal synergy so that the path to this market is one that doesn’t have any friction and is one that is lasting.”

OPEN FOR BUSINESS: “Recent headlines out of Arizona — like the ‘FinTech sandbox’ and autonomous vehicle legislation — showcase that elected officials are supportive of business initiatives,” says says Brad Vynalek, a partner at Quarles & Brady. “Those headlines tell site selection companies, CEOs and directors that Arizona is serious about innovation and growth and they want to be a part of that.” (Photo by Bruce Andersen, AZ Big Media)

ALL ABOUT THE DATA Lord says the average person needs to understand that attracting a company to an area in 2019 is a data driven process.

“The more we, as leaders, can communicate the process to the public, the more they will understand the many variables considered by companies such as the importance of a quality workforce, readily available buildings and shovel-ready sites, and market connectivity,” Lord says.

Because of those changing demands, Vynalek says GPEC has evolved from being an organization that was focused on business attraction to becoming an organization that produces data and analytics that show where the market is going, where we want the market to be going, and what we can do to keep the market going in the direction we want it to go.

“That is all built around real data” Vynalek says, “not just the visceral, ‘We want more of these kinds of companies here.’ GPEC has used analytics to create core areas where we think we can compete and then rigorously focusing on that, rather than just focusing on bringing in any business we can bring in.”

Because GPEC’s data has improved that ease to market, an increasing number of companies are moving to Metro Phoenix or setting up office here to help them grow. Experts say Metro Phoenix is fast-paced and possesses an unapologetic willingness to get things done, making it one of the top cities to do business.

The region has a pioneering spirit and welcoming attitude – toward people and business — and that spirit is becoming contagious in the business world.

“Arizona is one of the fastest growing places to cultivate a company for multiple reasons,” says Brett Johnson, a partner at Snell & Wilmer who represents businesses and individuals in government relations matters.

Here are the top three qualities that are attracting businesses to Metro Phoenix, according to Johnson: • A rizona prides itself on hard work, innovation, and AB | January - February 2019 93

GPEC

Brett Johnson

Georgia Lord

Vynalek says Phoenix’s narrative has been changed in large part through the leadership of Chris Camacho, GPEC’s president and CEO. “He is an amazing ambassador for the city,” Vynalek says.

“After business leaders from other markets meet with Chris Camacho, they walk away thinking Phoenix is the center of technology, Phoenix is the center of growth, Phoenix is the center of opportunity and Phoenix is the center of optimism.

GPEC’s ability to be an effective ambassador for Metro Phoenix is phenomenal.”

READY TO WORK One criticism Arizona has historically faced has been in regards to education. What business leaders say GPEC has done very effectively is to change that narrative by stressing Arizona’s strengths. Experts say Greater Phoenix has built a skilled, entrepreneurship. Although still a competitive environment, diverse workforce that is prepared for in-demand disciplines in there is a collective desire for everyone to succeed. emerging industries. Graduates from the state’s forward-thinking • The friendly regulatory environment and cooperative universities and community colleges are being prepared to excel government agencies make it easy to grow a business. in the jobs of today and jobs that don’t even exist yet.

• Due to Arizona’s higher education capabilities and quality of “This market rises when we create high-quality jobs, more life, companies are able to attract top talent to Arizona. educational opportunities and a skilled workforce,” Vynalek says. “That’s what is happening here and that raises the tide for UNIFYING FORCE everybody.”

Tying those elements together and marketing them to The skilled workforce piece of that equation and how it fits the world has been GPEC, which works with its 22 member into Arizona’s success in attracting and growing new businesses communities, Maricopa County and more than 150 private cannot be overstated, experts say. investors to attract quality businesses and is credited with helping “If you look at the amazing research that comes out of the turn Metro Phoenix into one of the best tech relocation cities.

University of Arizona, Arizona State University and Northern “GPEC concentrates on strategic efforts to promote the region Arizona University and the kind of talent that is being produced, by leveraging public and private sector partnerships, which proves that narrative is extraordinary,” Vynalek says. “It’s a mindto be a core strength of the organization,” Lord says. “GPEC blowing change.” understands developing trends in the business community and According to GPEC: remains a resource for our rising companies. Their business From nationally-ranked schools to globally renowned connections and knowledge of trends often present opportunities universities, Greater Phoenix offers a wide array of educational and outlets for emerging companies to share technology and opportunities. applications to advance their operations.”

The region has an extremely competitive workforce while Experts say GPEC has been able to effectively market the region maintaining one of the lowest costs for labor in the nation. thanks to a favorable tax structure and legislative ease, especially Maricopa Community Colleges is the largest community college compared with markets like California, where there is a lot of system in the U.S., educating and training more than 200,000 regulation, taxes are higher and there are more challenges to individuals annually. doing business.

More than 40 universities and other institutions prepare the “Arizona offers a pipeline of opportunities,” Vynalek says. “I’ve market’s workforce across a variety of industries. observed over the past two decades that the connectivity between With a median age of 35.4, the region’s population is one of the Seattle and Phoenix, Silicon Valley and Phoenix and even New youngest in the nation.

York and Phoenix offer pipeline opportunities. People are now “There is more talent here today than there has ever been,” seeing Phoenix as a destination for opportunity and not just as a Vynalek says. “Business leaders from others markets are seeing low-cost provider. What we don’t want to be is just a place where how companies like GoDaddy and the education technology it’s cheap to live. Leaders in other markets are now seeing that companies that were founded have turned Greater Phoenix into Arizona is a great place to do business and there is real innovation an innovative growth market and they are asking themselves, happening there. That hasn’t always been the case.”

‘Why aren’t we a part of that?’”

94

AB | January - February 2019

AB | January - February 2019 95

96

AB | January - February 2019

AB | January - February 2019 97

GPEC

2018

HIGHLIGHTS FROM

GPEC

o Airobotics, a leading Israeli automated drone startup, launched its North American headquarters in Scottsdale, Arizona, where they will run all North America, South America and Central America operations. Airobotics plans to grow the Scottsdale team to 80 employees by the end of 2019.

o Deloitte announced an expansion of its

o Andersen Corporation, a window and

o EdgeCore Internet Real Estate invested

door manufacturer, plans to build a new manufacturing and distribution campus in Goodyear. Andersen plans to invest more than $105 million and create more than 415 jobs during the first phase of this expansion.

more than $150 million in its Mesa Data Center Campus, which broke ground in March and will help EdgeCore offer cloud-connected data center solutions to the world’s most demanding customers. EdgeCore’s Mesa Data Center Campus is part of the City’s Elliot Road Technology Corridor.

o Bull Moose Pipe Company announced

plans to grow its Casa Grande manufacturing operation with a $5.3 million capital investment and plans to create 16 new jobs. o Cambridge Senior Living will construct

a new facility, creating 88 new jobs with a capital investment of $20 million. o Cives Steel, one of the largest structural steel

Arizona footprint with a new U.S. delivery center for technology solutions in Gilbert. The initial $34 million investment will result in the occupancy of 102,000-square-feet of space at The Commons at Rivulon. The project is expected to generate 2,500 jobs over multiple phases.

o Gorbel, a leading manufacturer of

overhead material handling cranes and fall protection products, expanded into Greater Phoenix with the addition of a manufacturing facility in Goodyear, which will add more than 20 projected jobs during the first phase in addition to a sizable capital investment.

and plate fabricators in North America, is expanding o King Koil opened a new 90,000-squareits presence in El Mirage and creating 50 new jobs foot factory in Avondale. The company plans with a capital investment of $19 million. initially to employ 50 people at the site, which will service retail partners in Arizona, Alaska, o Creighton University is constructing California, Colorado, Hawaii, Idaho, Montana, a new, nearly $100 million health sciences Nevada, Oregon, Utah, Washington and Wyoming. campus at Park Central in midtown Phoenix, which will eventually house nearly 800 o Nationwide Insurance announced it Creighton health sciences students in Arizona. will establish a regional headquarters in 98

AB | January - February 2019

Scottsdale, creating more than 500 new jobs and investing $139 million. o Nikola Motor Company’s hydrogen-

electric semi-truck manufacturing headquarters facility will bring more than $1 billion in capital investment and 2,500 jobs to the region by 2024. o Oscar, one of the country’s fastest growing

health insurance startups offering consumerfocused, technology-driven healthcare, announced that it will expand its presence in Tempe, leasing an additional 46,000 square feet of space at The Circuit. This new contract will enable Oscar’s creation of 400 new jobs in Tempe by 2020. o Prenexus Health announced Gilbert

as the location for its prebiotic ingredient manufacturing and corporate headquarters. The facility will occupy 39,000-square-feet at AZ|60 in Gilbert’s Northwest Corridor and will create 45-50 new jobs created over the next two years. o SeaCa Packaging announced its

expansion to Greater Phoenix with the groundbreaking of a manufacturing plant in Surprise, creating 65 phase one jobs and bringing a $17 million capital investment. o Scheidt & Bachmann USA, Inc. picked

Phoenix as the site for its Western Region Innovation & Testing Center of Excellence,

BIG IMPACT: In June, Deloitte announced

an expansion of its Arizona footprint with a new U.S. Delivery Center for technology solutions in Gilbert. The initial $34 million investment will result in the occupancy of 102,000-squarefeet of space at The Commons at Rivulon. The project is expected to generate 2,500 jobs in the Gilbert community over multiple phases.

(Provided rendering)

Gorbel

Creighton University SeaCa Packaging

CHANGING LANDSCAPE: which will create an estimated 20 new hightech jobs. o Sendoso announced that it is expanding its company’s presence with a new office in Scottsdale. Sendoso creates the technology that leading companies use to personalize moments at scale using direct mail. o Voya Financial, Inc. announced it will

open a new office in the metro Phoenix area, creating more than 1,000 jobs and making a capital investment of $60 million.

Deloitte

In December, the City of Mesa approved a plan for a 20-acre, multi-use, campus-style community at Crismon Road and Hampton Avenue. The $200 million project, called GrandeVita, a Biocity Enterprise by Khangura Development will allow seniors to “age in place” in a high tech and innovative environment. When completed, GrandeVita will create an estimated 326 jobs with an average wage of $45.25 an hour and generate $28.6 million in wages. (Provided rendering)

AB | January - February 2019 99

100

AB | January - February 2019

AB | January - February 2019 101

GPEC

BUILT TO Emerging technology companies are flocking to Phoenix and changing the game

By MICHAEL GOSSIE

W

hen we talk Arizona business in 2019, we can forget about the five Cs of the state’s original economy — cattle, citrus, climate, copper and cotton.

Today, the talk is tech. Blockchain. FinTech.

EdTech. Autonomous vehicles.

“The excitement behind the Phoenix technology scene is contagious,” says Anthony Kennada, chief marketing officer at Gainsight.

Besides “contagious,” the most important C-word in today’s conversations about Arizona’s economy is “connectivity.”

“We’ve reinforced the brand identity of ‘The Connected Place’ most importantly,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council (GPEC). “Our business development and research teams work hand-in-hand with companies exploring Greater Phoenix to showcase the positive business environment, which has resulted in about 35 percent of GPEC’s pipeline coming from high-cost and highly regulated markets like Seattle and the Bay Area. Aggressive 102

AB | January - February 2019

marketing campaigns have also played a role, but we’ve seen a transition of legacy industry, which has allowed us to attract more companies from emerging sectors.”

GPEC is on a relentless pursuit to attract innovative companies from those emerging technology sectors and attracting and growing companies that are committed to being game-changers.

“To us, connectivity is about our region’s legacy businesses joining forces with emerging disruptors,” Camacho says. “It’s about our educational institutions working together to produce talent that is job ready and entrepreneurial in spirit.”

NO LABOR PAINS One of Metro Phoenix’s strengths in becoming a hotbed for emerging technology companies is the presence of a skilled pool of talent. According to GPEC, there are 290,000 graduates from Arizona State University that reside in Arizona and 24,000 earned a degree in a technology-related field. In fact, 72 percent

of engineering undergraduates accepted job offers and stayed in Arizona.

“I see Greater Phoenix having its greatest potential for growth in technologies that come from electrical engineering and computer science,” says Brad Vynalek, a partner at Quarles & Brady and a board member at GPEC. “Software. FinTech.

Everything that takes deep-knowledge software and applies it to a very specific business purpose to drive innovation is where we are going to compete really well moving forward.”

Getting back to that important C-word, one of GPEC’s strengths in building the emerging technologies sector in Greater Phoenix is the economic development organization’s connections.

“As a small nonprofit building a scalable blockchain that becomes faster and more secure as people use our network, it’s important for Nexus to meet like-minded people in the Valley,” says Brian Vena, director of business development for Nexus.

“GPEC introduced us to like-minded business

SCALE Chris Camacho

Anthony Kennada Matthew Marquez Brian Vena

innovators who collaborated to help us identify new use cases for our technology.”

And with those connections, Nexus is looking to be the exact type of company that GPEC and Arizona covet: A game-changer.

“In 2019, Nexus will be the first blockchain to release smart contracts that can be written in any coding language,” Vena says. “This advancement — along with real-world use cases in music and supply chain — should set a new standard in blockchain technology. We are proud to call Arizona the home and future launch pad for our transformative technology.”

MAKING CONNECTIONS Those that work in the emerging technology sectors say GPEC has been an instrumental partner in helping them connect with other companies and organizations that have a similar mission, building dynamic clusters and organizations that drive innovation, even when most people don’t realize the innovation is happening in our backyards.

“I think that blockchain is one of those technologies that will fly under the public radar,” says Matthew Marquez, chief strategy officer for the Arizona Blockchain Initiative. “I believe there is great potential for various uses of blockchain. Also, the ‘FinTech sandbox’ helps show that state lawmakers are ready to see new technology and innovation come to our state. Our organization — Arizona Blockchain Initiative — hopes to help drive the growth of blockchain in Arizona by focusing on how much of a positive impact it can have on people’s lives.”

As for GPEC, Camacho says his No. 1 goal is to continue to reinforce a global brand identity and sharing The Connected Place story that embodies Greater Phoenix.

“We want to continue to attract and grow technology-centered companies, so the region is looked at as a place where organizations can scale,” Camacho says.

“Equally as important, we will continue our work with higher education and career-based institutions to ensure Greater

Brad Vynalek Phoenix produces talent unlike any other, which will help us advance our competitive market position.”

GAINING AN ADVANTAGE The incredible talent pool coming out of the state’s universities and colleges and Arizona’s “open for business” attitude is what experts say will give Greater Phoenix an advantage over the competition when it comes to growing our economy.

“We are never going to be Silicon Valley,” says Vynalek. “But what Silicon Valley doesn’t have is the ability to scale. The ideas can still incubate in Silicon Valley, but companies are going to come here to scale and focus on their growth. We are going to be a great place for those companies to come and grow for a very long time.”

So what are some of the emerging technology sectors that are building and growing in Greater Phoenix? Consider these growth industries: Autonomous vehicles, blockchain, cybersecurity, Industry 4.0 (the Internet of Things) and wearable technology.

AB | January - February 2019 103

GPEC Driverless vehicles: A thriving ecosystem PROVING GROUNDS ∙ Chrysler ∙ Ford ∙ General Motors ∙ Komatsu ∙ Nissan ∙ Toyota

BREAKING GROUND:

The Downtown Chandler Community Partnership and Waymo helped Chandler become the first city to offer subsidized rides to thousands of eligible Waymo passengers when their destination of choice is Downtown Chandler. (Provided photo)

AUTONOMOUS VEHICLES

F

rom driverless cars and aircraft, innovation is happening in Greater Phoenix faster than you can imagine, according to GPEC. Companies in Metro Phoenix include those in manufacturing as well as the components, software, and communications systems that power and operate them.

“I was with Steve Wozniak five years ago,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council. “I asked him what he was spending his time on. He said, ‘By 2018 you’ll see autonomous vehicles on the road.’ And at the time, we didn’t know what that term was. But here we are today, seeing very wide-scale deployment right here in Arizona.”

Since 2015, when Gov. Doug Ducey signed an executive order to reduce barriers to testing driverless vehicles in Arizona, autonomous vehicles have been a hot topic in Metro Phoenix.

Driverless vehicles are changing the world we live in, and Greater Phoenix is leading the way in supporting the development and testing of this transformative technology. Enabling programs and policy have made Arizona a top destination for driverless vehicle testing — including Waymo, which was founded by Google — and a supportive

104

AB | January - February 2019

supply chain and electronics cluster make it ideal for new software and hardware system development and innovation.

Consider this: • More than 4,000 local graduates fueled the driverless vehicle talent pipeline in 2015-2016.

• There are six automotive proving grounds in Greater Phoenix.

• Metro Phoenix is the second-fastest growing market for electric vehicles in the United States.

• The Valley boasts an excellent infrastructure and weather for testing vehicles.

Metro Phoenix has utilized its advantageous weather to help drive Waymo, which has driven 10 million miles on public roads — many of them in Arizona — since it began testing in 2009 “While we’ve made great strides thanks to these 10 million miles, the next 10 million will focus on turning our advanced technology into a service that people will use and love,” says Waymo CEO John Krafcik.

The company’s engineers and scientists are applying advanced artificial intelligence and new in-house designed sensing systems to help the vehicles navigate complex weather conditions, which are difficult even for human drivers.

AUTOMAKERS ∙ Local Motors ∙ Lucid Motors INNOVATION ∙ GM AZ IT Innovation Center ∙ Intertek Phoenix Auto Lab AUTONOMOUS ∙ Cruise Automation ∙ Ford ∙ General Motors ∙ Intel ∙ Uber ∙ Waymo SUPPLY CHAIN ∙ Amsafe Aviation ∙ Atsco Remanufacturing ∙ Special Devices ∙ TRW Vehicle Safety Systems TALENT DISPOSITION ∙ Density of workers ∙ Ease of hiring FUTURE PIPELINE ∙ Arizona Advanced Manufacturing Institute ∙ Arizona State University ∙ East Valley Institute of Technology ∙ Embry-Riddle ∙ Grand Canyon University ∙ Maricopa Community College ∙ University of Advancing Technology ∙ University of Arizona ∙ University of Phoenix ∙ West-MEC OPERATING ENVIRONMENT ∙ Economic development programs ∙ Fiber capacity ∙ Low disaster risk ∙ Low taxes/open regulatory environment ∙ Robust electrical redundancy rates Source: GPEC

AB | January - February 2019 105

GPEC

CYBERSECURITY

G

reater Phoenix is the hub for software and services used to protect and secure information.

Growth in the Internet of Things (IoT) sector places an increased emphasis on cybersecurity due to the growth in data collected from devices equipped with sensor capabilities.

“Cybersecurity has become the sixth ‘C’ of Arizona beyond the traditional five Cs of industry: copper, cattle, cotton, citrus and climate,” says Rachel Harpley, founder of Recruit Bit Security and chair of the Cybersecurity Council of Arizona. “There are many spokes in the wheel of cybersecurity in Arizona. It is a natural choice as a global hub for data centers and technology innovation with nearly no natural disasters. We host seven military bases, including the Army Intelligence Center and the Network Enterprise Technology Command Rachel Harpley at Fort Huachuca, the United States Army hub for communications technology and training. All of our major universities and colleges have cybersecurity programs. We have a large, active cybersecurity community sharing skills and

NEXT GENERATION: “We produce a wide variety of technical talent,

and with this ecosystem we build a unique InfoSec talent base,” says Rachel Harpley, chair of the Cybersecurity Council of Arizona.

“Companies offering access to innovative technologies and a securityfocused culture will enjoy competitive access to our cybersecurity talent landscape.” (Provided photo)

threat intelligence. Once a year we host Cactus Con, the largest annual hacker and security conference in Arizona.”

Cybersecurity is recognized by state and local government leaders and industry pioneers as an important cornerstone for the Arizona economy. Recently ranked in the Top 10 by Forbes for information jobs, Greater Phoenix is well-positioned to support both legacy companies and the expansion of emerging disruptors. This is just part of the reason why so many businesses here are at the cutting edge of cybersecurity innovation and why our educational institutions are committed to preparing cyber warriors of tomorrow.

CYBERSECURITY: A thriving ecosystem LEGACY COMPANIES • Bechtel • Charles Schwab • Chase • Wells Fargo CRITICAL INFRASTRUCTURE • Cyber Warfare Range • ASU Cyber Security Institute • AZLabs EMERGING DISRUPTORS • Emailage • Intellispyre • Kudelski • Trusona

106

AB | January - February 2019

FUTURE PIPELINE • Arizona State University • Embry-Riddle • Grand Canyon University • Maricopa County Community College • University of Advancing Technology • University of Arizona • University of Phoenix INDUSTRY RESOURCES • ACA Arizona Innovation Challenge • AZ Start up Foundation • AZ Tech Council Cyber Subcommittee • Cyber Security Canyon • #yesphx

Consider the numbers supporting cybersecurity growth in Metro Phoenix: • More than 4,000 local graduates fueled the cybersecurity talent pipeline in 2015-2016.

• There has been a 17 percent growth of the cybersecurity cluster in Greater Phoenix.

• There are more than 25 security operations centers and global security operations centers in Arizona.

“Given the various cross-sector efforts, Arizona’s cybersecurity outlook is booming,” Harpley says. “We have in place the community infrastructure, both public and private industry combined with educational resources, to serve our growing business community. The cybersecurity eco-system in Arizona is an advantage to any business, regardless of industry, doing business in Arizona.”

OPERATING ENVIRONMENT • Economic development programs • Fiber capacity • Low disaster risk • Low taxes/open regulatory environment • Robust electrical redundancy rates TALENT DISPOSITION • Density of workers • Ease of hiring Source: GPEC

I MEDTECH

HEALTHY BOOST: Programming stemming from a $750,000

grant to accelerate wearable and medical technology entrepreneurship in Greater Phoenix will be anchored around the 30-acre Phoenix Biomedical Campus. (Provided photo)

GPEC

n late 2018, GPEC was awarded a $750,000 grant from the U.S. Department of Commerce under the Economic Development Administration’s 2018 Regional Innovation Strategies program competition to accelerate wearable and medical technology entrepreneurship in Greater Phoenix. The grant is expected to help 45 ventures and create more than 220 jobs throughout the threeyear program.

The grant deliverables will be led by GPEC, the Center for Entrepreneurial Innovation (CEI) at Maricopa County Community College District, Arizona State University (ASU), the Partnership for Economic Innovation (PEI) and StartupAZ Foundation. The partners will promote and assist the translation of research for commercial applications, formation of new ventures and acceleration of startup growth by providing market validation services and mentor networks in the wearable and medical technology cluster.

“We’re here to help entrepreneurs develop better products, faster,” says Chris Camacho, president and CEO of GPEC. “We have an emerging technology ecosystem here that is increasingly recognized for introducing exciting new solutions to the market and this funding will allow us to better leverage our regional assets to help companies validate their products and position our region as a center of innovation excellence.”

AB | January - February 2019 107

GPEC

BLOCKCHAIN B

lockchain technology is software that relies on multiple computers to create a tamper-proof ledger of transactions.

But it’s also attracting enormous interest from major industries like shipping and finance, which see its record-keeping system as a means of creating more secure and efficient supply chains.

“In 2018, Arizona passed legislation that allowed the creation of a FinTech, blockchain, and cryptocurrencies sandbox,” says Melissa P. Armas, co-founder of the Arizona Blockchain Initiative.

“In January of 2018, the State House of Representatives’ Commerce Committee held a special session, discussing how blockchain technology intersects with government, business and citizen interests. There are several organizations in the tech space looking to combine efforts, educate individuals and explore the benefits that decentralized technologies can bring to Arizona.”

Because of the legislate support of innovation, companies in Greater Phoenix have found success and security while innovating in this emerging technology sector and Arizona’s educational institutions are taking a proactive approach to blockchain and training the workforce of tomorrow.

“2019 will be a bright year for technology in Arizona,” Armas says. “As big companies and new start-ups continue to explore the uses of blockchain, Arizona will only benefit from the development of new projects, and the need for creating a workforce that will empower all Arizonans into creating a diverse and sustainable future.”

NEW KID ON THE BLOCKCHAIN: “We

have a great opportunity to create the right environment so everyone in Arizona can adopt, understand, and benefit from new technologies,” says Melissa P. Armas, co-founder of the Arizona Blockchain Initiative. “The current atmosphere in the state is promoting the raise of tech startups, and we are also seeing interest of local officials starting to embrace decentralized technologies.”

(Provided photo)

108

AB | January - February 2019

BLOCKCHAIN COMPANIES CURRENTLY GROWING IN METRO PHOENIX DASH: Phoenix-based cryptocurrency that is a fully-

incentivized peer-to-peer network. Miners are rewarded for securing the blockchain and masternodes are rewarded for validating storing and serving the blockchain to users.

SWEETBRIDGE: Local blockchain startup looking to use

cryptocurrency to reduce supply chain costs. They do this by allowing for easy tokenization of assets, allowing companies to be more liquid.

ARENA: Music platform that is free, claims to pay artists the highest royalties in the industry, and does it using cryptocurrency. Its on-demand merchandise storefront is designed to encourage musicians to promote merchandise sales while listeners stream exclusive content.

NEXUS: A decentralized and worldwide network that utilizes three channels of security — prime mining, hash mining, and nexus Proof of Stake (nPOS). Consensus in Nexus combines votes across three channels, which discourages one network from becoming too powerful.

COLDTI: Coldti is a titanium wallet-like storage device for cryptocurrency seeds. Users of the device engrave their seeds onto ColdTi using a hammer and an included punch tool.

ColdTi contains 24 fields to enter seeds into, and is contained in an aluminum fire-resistant enclosure. ColdTi is currently a kickstarter campaign.

CAMP BX: Atlanta-based bitcoin trading platform with data centers in Arizona and Georgia. Buy or sell orders are matched against a parameterized database of other orders. If a perfect match is found, a Bitcoin-to-U.S. dollars trade is instantly executed.

AB | January - February 2019 109

GPEC

INDUSTRY 4.0

I

TECH TRAILBLAZER: In June, PADT announced its new

on-demand manufacturing service, creating a “3-D printing factory” here in the Valley. (Provided photo)

Industry 4.0 companies in Phoenix Intel JDA Software Microchip shelvspace SAP PADT ON Semiconductor

110

AB | January - February 2019

Titan Industries Boeing Orbital ATK NXP Semiconductors Industrial Knowledge

ndustry 4.0, otherwise known as the Internet of Things, or IoT, brings it all back to that C word: Connectivity. With Intel investing $7 billion to make its semiconductor plant in Chandler the epicenter of a world of connected devices, Greater Phoenix is breaking ground every day as an IoT leader.

The Internet of Things is the concept of connecting normal devices to each other, cloud platforms and the Internet itself.

Internet of Things is a broad concept that spans from sensor technology to the cloud. We’re familiar with many of these IoT devices — cellphones, televisions, wrist watches and thermostats.

There are projected to be almost 30 billion Internet-connected devices by 2030. The business application of the IoT is this: The IoT will offer sensors and data that businesses can use to create new experiences, or even create new businesses.

“That data is valuable and it gives you different insights you didn’t have before,” says David Formisano, the strategic business director for Intel. “Across a variety of use cases — from retail to industrial to healthcare to transportation — we’re going to see the Internet of Things transform how those businesses operate today.”

The other piece of Industry 4.0 that will impact Arizona’s economy comes in manufacturing. Industrial activities have been a cornerstone of the Arizona economy for decades, with a number of advanced manufacturing facilities in the state. New technologies representing industry 4.0 are allowing manufacturers to produce with lower costs and increased efficiency making Arizona one of the fastest growing manufacturing states in the country. Greater Phoenix is leading the way in adoption and advancement of these innovations that represent the fourth industrial revolution.

Consider this data from GPEC: • 72 percent of manufacturing enterprises predict their use of data will improve customer relations.

• 35 percent of manufacturing companies adopting new technology expect revenue gains of more than 20 percent.

• 86 percent of manufacturers surveyed expect to secure simultaneous gains — lower costs and added revenue.

Tempe-based Phoenix Analysis and Design Technologies (PADT) became an Rey Chu Industry 4.0 innovator by opening the Southwest’s first true 3-D printing factory in 2018. This on-demand manufacturing can allow companies to design and receive parts that require no tooling. The need to create molds is also eliminated and parts can be created in shapes that other methods could not replicate. PADT can also deliver 3-D printed parts within a week, instead of the three week to three month timeline injection molding may take.

“Since we started in 3-D Printing almost 25 years ago, we have dreamed of the day that we could use additive manufacturing to move beyond prototyping and deliver production parts to our customers when they need them, the way they need them,” said Rey Chu, co-founder and principal of PADT.

GPEC GAME-CHANGER: Tom Sugar, a professor in the Ira A. Fulton Schools of Engineering at ASU’s Polytechnic Campus, demonstrates his exoskeleton device in the lab. (Provided photo)

WEARABLES

G

reater Phoenix has a long history of developing advanced sensors and electronics, these technologies have recently found their way into medical device applications. Over the past 50 years, Greater Phoenix has become one of the top wearables cities to do business for developing and manufacturing microelectronics and semiconductor devices, with a high concentration of firms in the semiconductor supply chain and integrated circuit design and manufacturing.

And Arizona innovators are thinking beyond the Fitbit. Tom Sugar, a professor in the Ira A. Fulton Schools of Engineering at ASU’s Polytechnic Campus, and ASU researchers are undertaking the task of developing wearable robotic devices in hopes of assisting humans recreationally, professionally and medically. Wearable robotics are devices that are created specifically to augment the wearers motion and psychical capabilities, and they can also be used to restore a person’s loss of motion.

“I see wearable robotics growing exponentially in the next 3-4 years,” says Sugar. “We see Phoenix being a leader in this area by hosting Wearable Robotics Association, and also hosting companies that can build and make devices to improve quality of life and quality of work.”

Because of its robust supply chain and workforce, Greater Phoenix is well positioned to support both new-to-market wearable companies and the expansion of its existing cluster.

“Greater Phoenix offers opportunities to partner with industry, government and consumers,” says Stephane Frijia, GPEC’s senior vice president of strategy and research, “which means your company can go to scale and be successful, efficient and competitive. This is what our region is all about.”

Frijia also cites the Phoenix Biomedical Campus expansion and a go-to place where those looking to expand and develop can find a mix of talented doctors, researchers, innovators, educators and health professionals all under one roof. This campus has become a premier and dynamic location for biomedical activities.

“We started developing exoskeletons for the military, more specifically for ankle and hip movement to help with lifting heavy objects or overall movement,” Sugar says. “Lately, we started to move more towards designing exoskeletons for industry, for helping people perform tasks in logistics such as construction or automobile companies.”

Wearable companies in Greater Phoenix Benchmark Electronics DataSoft Garmin Life365 LivaNova Medi Clinic Medtron Technology Mediserve Information Systems Neolight Orion Health SpringActive Sxc Health Solutions Theraspecs UnisLink Virmedice MEDICAL COMPANIES Abrazo Healthcare Banner Health Cancer Treatment Centers of America Dignity Health Equality Health HealthTell HonorHealth

Maricopa Integrated Health System Mayo Clinic Tgen TriWest Healthcare Alliance MANUFACTURING OPERATIONS Ability Dynamics Avnet Benchmark Bioconcepts Inc Biomet Southwest Cayenne Medical Cranial Technologies Cymedica Orthopedics Dexcom GE healthcare Intel Luther Medapps Medtronic Neural Micro Devices Neuromechanical Innovations NXP On Semiconductor Regenesis Biomedical Rightbio Metrics Rogers Corporation St. Jude Medical Sumco Source: GPEC

AB | January - February 2019 111