July 2021 Issue of In Business Magazine

JULY 2021

Arizona Commerce Authority Celebrates 10 Years

Greater Expectations The Spotlight Is On Arizona.

Can We Perform?

Fire Safety an Issue as Buildings Reopen

What’s Ahead with

This Month’s Guest Editor

Jerry Colangelo

Partner at JDM Partners

Consumer Privacy Laws Entrepreneurship in the

YOLO Economy $7.95 INBUSINESSPHX.COM

THIS ISSUE Arizona Small Business Association

Arizona: Where innovators turn for what’s next.

2020

TOP 10

GOLD SHOVEL

AWARD WINNER

MOST COMPETITIVE STATE

azcommerce.com

Site Selection Magazine Prosperity Cup, 2021

Bold and exciting advancements are happening in the Grand Canyon state. Cutting-edge companies are launching, testing and scaling new technologies in Arizona.

Our culture of innovation, highly skilled talent, lean regulatory environment, and affordable operating costs provides an ideal platform for business growth and success. The state has announced investment from industry leaders including Intel, TSMC, Zoom Communications, ElectraMeccanica, Amazon, Align Technology and more. Ranked top two for fastest growing state, it’s clear why people are flocking here. Beyond being a place where you can achieve your professional goals, Arizona also provides an unmatched lifestyle that allows you to achieve your personal goals.

It’s this perfect balance that makes life better here.

JULY 2021

13 GUEST COLUMNISTS

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14

SanTan Brewery: Creating Earthly Change through Partnership and Innovation

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Jen Butler continues her series on stress’s impact on health and business.

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18 COVER STORY

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Greater Expectations: New Economic Opportunity in Arizona

Speaking for Greater Phoenix and the State of Arizona, economic development leaders appraise our prospects as we emerge from the pandemic.

FEATURE

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Leading When Times Are Good

According to Zanzibar Vermiglio, strong leadership isn’t just for crises. He shares tips to take business to the next level when things are running smoothly.

ARIZONA COMMERCE AUTHORITY’S 10TH ANNIVERSARY

Arizona Commerce Authority We honor the ACA for its successes — past and future — as we celebrate its 10-year anniversary.

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PARTNER SECTION

DEPARTMENTS

Association (ASBA) fosters and empowers a thriving small business community by advocating for public policies that ensure a pro-business policy and regulatory environment to help small businesses prosper.

ASBA brings relevant and dynamic education and mentoring opportunities to business owners to improve their business knowledge, solve problems and, ultimately, become more successful. We accomplish this by offering our members valuable programs, unparalleled commitment to their success, and the convenience and efficiency of our products and services. ASBA is on the cutting edge of what is happening right

Get ahead of Your Numbers in Order to Thrive in Today’s New Environment!

If you are like most business owners, you are

expectations will help you course-correct much

now in the business community.

probably feeling like your business just went

sooner. It will also help you anticipate any

through 12 months of raging rapids, temporarily

cash flow needs, which is the lifeblood of any

to resources, mentoring and

capsized, and came out the other end with

organization. This type of focus is essential in

meaningful partnerships, we

you wondering where exactly you are. One

helping your business thrive.

engage our members with relevant

thing is for sure, we will not be returning to the

interactions at every touchpoint.

way things used to be. It is a VUCA (Volatile,

Another added benefit of looking ahead is with tax planning. This should be done at minimum

By staying on top of current trends,

Uncertain, Complex, Ambiguous) World out

in the third quarter and ideally throughout the

we ensure the tools we offer, as

there and it will only intensify. As business

entire year. Do not skimp on tax planning! The

well as the extensive breadth of insights delivered, are valuable to

leaders, we must stay ahead.

I have been an advisor to growth-minded

cost of your CPA pales in comparison to the tax you might pay. If your CPA is not proactively

the businesses we represent while

business owners for 28 years. I have spent my

collaborating with you on tax planning, you

significantly boosting the organic

entire career breaking the stereotype of the

should evaluate whether they are the best fit

growth of our membership base.

typical accountant. Accountants are master

Find ASBA on Facebook: www.facebook.com/AZSmallBIZ

historians, bean counters. I have heard it all.

you to make decisions before year end to help

Preparing reports and tax filings on something

mitigate your tax liability and at a minimum it

that happened months ago is of little use in a Central Arizona 11811 N. Tatum Blvd., Suite P-195 Phoenix, AZ 85028 p. 602.306.4000

gives you a “heads up” months before tax filing

fast-paced environment. To me, a month ago

day. This provides much-needed resources for you to put back into your business.

about how we look at our businesses.

For example, consider using other relevant financial reports that allow you to make more balance sheet and profit & loss are useful, the importance of forecasting and projecting your company’s performance based on your

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for your growing business. Tax planning allows

feels like an eternity. We must think differently

informed strategic decisions. While your © 2021 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.

Feedback

Barbara Hagen, Brandon Sammut and Uwe Voss respond to In Business Magazine’s burning business question of the month.

by James N. Chakires, CPA, CVA, Managing Partner of Apex CPAs & Consultants, Inc.

From education and advocacy

Guest Editor

Jerry Colangelo, a partner at JDM Partners, introduces the “Economic Development” issue.

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About ASBA

The Arizona Small Business

Reopening Buildings Safely after COVID-19: Why Fire Safety Systems Maintenance Is Essential

James Tomes offers an eye-opening discussion of how prolonged vacancy or revised use of occupied spaces may have unexpected safety repercussions.

9

James N. Chakires, CPA, CVA is managing partner of Apex CPA’s & Consultants, Inc. with offices in Phoenix and Chicago, specializing in serving growth-minded closely held businesses and their owners. Visit us online at www. apexcpas.com and on LinkedIn and Facebook at Apex CPAs & Consultants.

Briefs

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Arizona Small Business Association

JULY 2021

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INBUSINESSPHX.COM

From the Top

Scaling his Easy Ice to national success, Mark Hangen rewrote the playbook for service-driven business.

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Healthcare

“32 Regional Businesses Continue Their Due Diligence in Prep for the Next Public Health Crisis”

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Technology

“AI-Driven Videobot Personalizes Marketing” and “Why Businesses Shouldn’t Neglect Their Cyber Hygiene”

PRESENTS

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CRE

“The Endurance of the Super Amenity in Multifamily Development,” “Industrial Construction in Mesa’s Elliot Road Technology Corridor,” “Environmental Due Diligence Helps Move Industrial Project Along,” “Medical Office Project Planned in Goodyear,” “Novus Innovation Corridor Achieves National Sustainability Recognition” and “AZ’s First Cross-Laminated Timber Project Breaks Ground in Tempe”

SPECIAL SECTION

CELEBRATION OF SUCCESS

Startups

“YellowBird Bridges the Gap in the Health & Safety Community” and “Once-and-Done Listing for e-Commerce Sellers”

This month spotlighting SanTan Brewing Company, Tyler Butler’s series explores the myriad ways businesses give back and the positive ways their programs impact our community.

How Stress Is Costing You Your Business

By the Numbers

How secure is VPN? IT professionals fear ransomware and other malware has already penetrated their company’s network.

“Purification That’s Light and Lighter,” “Guides and Resources,” “Local Standouts Recognized for Achievements and Philanthropy,” “Marketing a Milestone during the Pandemic” and “Solar-Powered and Portable: CSE Rents Eco-Friendly Generators”

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Books

New releases give fresh insights on business thinking.

53

Economy

Joshua Zahn discusses the impact of empowering employees choices in investments.

52

Legal

Local attorney Scott Bennett gives business a look at what may be ahead for them in consumer privacy laws.

56

Nonprofit

ACF is bringing people and organizations together to address Arizona’s affordable housing shortage.

57

Assets

2021 Ford Mustang Mach-E Plus: Outdoor workplace safety in our summers starts with a top-down approach to keeping cool.

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Power Lunch

Renata’s Hearth – Latin America Meets the Southwest

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Roundtable

Charles Jackson discusses the impact the YOLO economy is having on entrepreneurship

The Arizona Commerce Authority was birthed 10 years ago, when hundreds of stakeholders from the private sector, academia, elected office and more came together to develop a new vision for Arizona’s economy.

We’re Making Our Mark on Medicine OptumCare® believes that great health begins by providing forwardthinking leadership in the discipline of medicine. So we proudly serve Phoenix with advanced health care at 16 clinics with over 40 providers, all dedicated to putting the patient first. We’re here to stay—and to move care in our community in bold new directions.

Find out more at professionals.optumcare.com.

©2020 Optum, Inc. All rights reserved.

July 2021

Hi Phoenix, Let’s spend smarter.

In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jess Roman, Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 www.asba.com

Learn more at getdivvy.com/phx1

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Jean Briese, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities.

The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Equality Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

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INBUSINESSPHX.COM

July 2021

VOL. 12, NO. 7

Publisher Editor En Negocios Editor Graphic Design

Rick McCartney RaeAnne Marsh Edgar Rafael Olivo Benjamin Little

CONTRIBUTING WRITERS Scott Bennett Don Boxley Jr. Jen Butler

Easy. Connected.

Life and business… perfected.

A perfect blend of helpful tools and simple accessibility isn’t just smart — it’s BusinessSmart™.

Tyler Butler Brandon Clarke Mike Hunter Charles Jackson Nicholas Knudsen Anna Maria Maldonado Amy Ross Wendi Stalling Richard Swetonic James Tomes Lisa Urias Zanzibar Vermiglio Joshua Zahn

Explore BusinessSmart™

ADVERTISING

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Operations Louise Ferrari

Business Development Louise Ferrari Cami Shore

Events Amy Corben

More: Visit your one-stop resource for everything business at inbusinessphx.com. For a full monthly calendar of business-related events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessphx.com

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Financial Manager Tom Beyer

Office Manager Allie Schimmel

Accounting Manager Todd Juhl

Corporate Office InMedia Company

45 W. Jefferson Street Phoenix, AZ 85003 T: (480) 588-9505

info@inmediacompany.com

www.inmediacompany.com Vol. 12, No. 7 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope.

InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. ©2021 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by any means without written permission by the publisher.

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JERRY COLANGELO, JDM PARTNERS

Land of Opportunity

Jerry Colangelo moved from Chicago, Illinois, to Arizona in 1968 to assume management of the expansion NBA Phoenix Suns, becoming the youngest general manager in professional sports. He also brought Major League Baseball to the Valley in 1998 and served as managing general partner of the World Champion Arizona Diamondbacks.

Colangelo is the managing director of the USA Olympic Men’s Basketball Team and is well known as one of the most active and respected business and civic leaders in the Valley.

Arizona has been lauded in recent years as one of the fastest-growing states in the country, one of the strongest for entrepreneurial growth, and even its composite cities have been singled out for various economic distinctions. Our natural characteristics — proximity to global markets, ample sunshine, an unbeatable quality of living — have played a role in some of the growth.

But purposeful planning and concerted collaboration are the cornerstone of the state’s current economic success.

The transformation over the last decade has been nothing short of remarkable. Even more significant is what it means for our state and its people. Having a diverse economy, one rooted in technology and innovation, can’t be measured in just jobs or capital investment. In the end, it’s about making our community better and making life better for our kids and grandkids. High-paying, good jobs; the opportunity to get an education and get trained in advanced skills; the ability to make your dream a reality — these are all things that point to a better quality of life for our people, and that’s what matters.

As this month’s cover story explores, the market here is very hot. And while our climate may be a result of nature, our economic development — current and future — owes its strength to the hard work and collaborative planning of our state, regional and local economic development organizations along with the individual cities that comprise the metropolitan areas. With input from many of the architects behind our business momentum as well as leaders of business and community organizations that support our business community, In Business Magazine editor RaeAnne Marsh describes the market now and how we got here and, most importantly, how we are making the most of our potential to sustain opportunity into the future.

The Arizona Commerce Authority is a big part of Arizona’s transition from its old reliance on the famous “5 C’s” and a cyclical economy to a sustainable economy that attracts ever more business growth. As the ACA celebrates its 10th anniversary this year, In Business Magazine presents a special section dedicated to celebrating its achievements.

You will find other valuable information in the feature article “Leading When Times Are Good,” a good reminder to decision makers that strong leadership is not just for crises; in the Legal feature that gives a heads up on consumer privacy laws that are gaining momentum; in the Roundtable feature on the carpe diem mindset with a new acronym — YOLO economy — that is impacting our economy; and in the regular departments of Healthcare, Technology, CRE, Startups and more.

This is an exciting edition of In Business Magazine, a magazine that always presents information focused on strengthening our business community. I’m pleased to be part of bringing this July edition to you. Enjoy the read.

EN NEGOCIOS Manténgase informado sobre temas empresariales en español a través de En Negocios, artículos para los lectores de habla hispana en el área metropolitana de Phoenix.

Visite inbusinessphx.com/ ennegocios para más información.

Stay informed on business topics in Spanish through En Negocios, articles for Spanish-speaking readers in the Phoenix metropolitan area. Visit inbusinessphx.com/ ennegocios for more information.

Sincerely,

Jerry Colangelo Partner, JDM Partners International Sports Executive

CONNECT WITH US: Story Ideas/PR: editor@ inbusinessphx.com

Meeting High Expectations Arizona has been poised to be one of the top economic hubs in America for years. We have, throughout the past decade,

issue of In Business Magazine. We are

truly grown exponentially and had our share of great success.

pleased to celebrate with the ACA their

Now, as we emerge from the pandemic, we are positioned to not

10-year celebration of success through

just rebound to where we were before the pandemic began but

our special section that starts on page 29. I also want to thank Jerry

truly get it right for business opportunity and growth of existing

for his steadfast support of In Business Magazine and for leading

companies and those that see Arizona as their next home.

this particular issue. He was one of our first Guest Editors back in

We want to thank both Sandra Watson of the Arizona Commerce Authority and one of the powers behind creating the ACA, Jerry

Photo courtesy of

Colangelo, for being a big part of this

DON’T MISS OUT!

Get a year of In Business Magazine Subscribe now at inbusinessphx.com

2011 and continues to be an important voice for business in the Greater Phoenix market.

—Rick McCartney, Publisher

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

Business Events/ Connections: businessevents@ inbusinessphx.com Marketing/Exposure: advertise@ inbusinessphx.com Visit us online at www.inbusinessphx.com

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SPEAKING OUT

What were your top reasons for locating here in Greater Phoenix?

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com

For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.

JULY 2021

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BARBARA HAGEN

BRANDON SAMMUT

UWE VOSS

VP, Sales and Marketing ThriftBooks Sector: e-Commerce

Chief People and Culture Officer LiveRamp Sector: Technology

Chief Executive Officer HelloFresh Sector: Food/Technology

Thrift Books Global LLC has been operating in Greater Phoenix since 2011. Over the years, we have found the market conditions to be very advantageous, with its geographic positioning, strong labor market and favorable business community. As our business grew on thriftbooks.com and online marketplaces that include Amazon, eBay, Etsy, AbeBooks and others, we began looking for a location where we could expand our footprint to support current and future growth. Our positive experiences over the past 10 years with Phoenix’s quality workforce and stable business environment made it clear that Phoenix is the best choice for our expansion.

All of us at ThriftBooks are excited to deepen our connection with the region, provide the residents with employment and advancement opportunities, and deliver customers everywhere a best-in-class e-commerce shopping experience.

While exploring potential locations for a new LiveRamp office, we found Phoenix has so many of the things we were seeking in a new hub. We met with the local government, landlords and other businesses in the area to confirm the cost of living was just right for our team members and would present a scalable path to growth for the business. Additionally, the quality, quantity and diversity of talent for the type of highly skilled roles we’re looking for were spot on.

During the pandemic, as we shifted to a work-from-anywhere model, we found many of our employees were already gravitating toward this region, which is in close proximity to our headquarters in San Francisco. We’re thinking beyond work-from-home now and are looking forward to building a highly collaborative, state-of-the-art office for the 300-plus employees we hope to bring on.

As the leading meal kit company, HelloFresh needed warehousing space to support increased demand, allowing us to better serve our customers on the West Coast with fresh and delicious meal deliveries. Later this year, we will begin operating out of the new 440,000-square-foot facility located at 1850 South 71st Avenue, which will be HelloFresh’s largest shipping and fulfillment center globally. Expanding supply chain capacity enables HelloFresh to actively bring new menu features to market, satisfying new and existing customers with more recipe selections and new, convenient meal options.

We selected Phoenix to support the next phase of HelloFresh’s growth plan because it is a highly efficient logistics hub with access to major routes and provides access to the region’s strong and talented labor pool. This new facility will allow HelloFresh to strengthen our West Coast capabilities and will bring as many as 1,200 jobs over time. We also look forward to making a positive impact on the local community.

ThriftBooks thriftbooks.com Barbara Hagen has more than 20 years of experience as a senior marketing executive.

She has an undergraduate degree in marketing from Syracuse University, an MBA in international marketing from NYU’s Stern School of Business, and an MS in data analytics, also from NYU’s Stern School. Hagen has a strong track record of success at Fortune 100 companies spanning retail, consumer packaged goods and tech, including Microsoft, Target, Best Buy and Johnson & Johnson Consumer Products.

LiveRamp liveramp.com/blog/liveramps-center-of-excellence-valley-of-the-sun-phoenix Under Brandon Sammut’s leadership, LiveRamp’s People and Culture team attracts and develops dynamic, curious problemsolvers — and empowers them to do the best work of their lives. Sammut is responsible for the company’s global talent strategy, drawing from prior experience in talent acquisition, talent development, strategy consulting and venture capital. He holds a BA from the University of Michigan, an MBA from Stanford’s Graduate School of Business and a Master’s in Education from Stanford’s Graduate School of Education.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.

HelloFresh hellofresh.com Uwe Voss is currently the CEO at HelloFresh US, where he oversees the company’s U.S. portfolio of brands: HelloFresh, Green Chef, EveryPlate and Factor. Previously, he held positions as COO and MD at HelloFresh and as an associate principal at McKinsey & Company Chicago, where he focused on serving clients across strategy and operations.

QUICK AND TO THE POINT

GUIDES & RESOURCES Find out more in each issue of In Business Magazine as we provide resources and guides that can help businesses get and stay connected to the information they need to build business.

COVID-19 Business Stimulus: With now two phases of the Paycheck Protection Program loans and other Small Business Administration loans and stimulus packages, we include these links for businesses: • Restaurant Revitalization Award Portal: restaurants.sba.gov • PPP Loans: bit.ly/sba-ppp • SBA Stimulus: bit.ly/c19-guide-resources • Get My Check: irs.gov/coronavirus/get-my-payment • Federal Resources for U.S. Small Businesses: covid-sb.org • Vaccine Finder and information: vaccinefinder.org • Testing (Onsite and Mobile): aztestnow.com Vaccine: As vaccines become readily available and businesses begin to go back to the office, we offer these links for more information on where to get vaccinations and who will qualify: • No appointments necessary (but recommended) beginning April 26, 2021.

• Registration: podvaccine.azdhs.gov • General Information: azdhs.gov/index.php

Marking a Milestone during the Pandemic

Photo courtesy of Drybay

This year, Drybar is celebrating 10 years of being in the Valley! We opened our first location at Scottsdale Quarter in 2011 figuring that it was going to be successful because the demographic was similar to the first Drybar location in Brentwood, Calif., and we were right. Clients of Scottsdale Quarter started asking for a location in the Phoenix area. Shortly after, we opened a Drybar at 32nd Street and Camelback Road. Following the first two locations, we took a break to let Drybar grow locally and nationally. Popularity skyrocketed and a couple years later we opened three locations within 12 months: the Phoenician, Lincoln Plaza and San Tan Village.

I’m proud to share that we will also be opening a Tempe location this fall at The Watermark.

Ten years is a major milestone and accomplishment for any business, but it feels especially significant after the year that we all have just faced.

Drybar closed 10 days before Governor Ducey announced that salon businesses

needed to close. As a business owner, I found it a terrifying decision but one that had to be made because of the unknowns. All managers were kept on staff and, after cleaning the shops more than we maybe ever have before (and trust me when I say we had strict cleaning practices before COVID-19!), we provided them with professional development opportunities via modules on Zoom and independent learning. Following protocols, we were able to re-open in May 2020 but chose to close again in July of 2020 as cases began to spike. Drybar re-opened for good in August of 2020 with articulate protocols in place and I’m proud to say there has not been any outbreak of COVID-19.

A big challenge we faced, and still face, is staffing, so Drybar is hiring.

These past 10 years, notably this past year, have taught me so much as a business owner.

I’m grateful to have been, and continue to be, a part of a franchise I can rely on.

—Amy Ross, Arizona operating partner of Drybar (drybarshops.com)

SMALL BUSINESS Assistance and Guidance: Many businesses are looking for information that will improve business through programs to enhance services, resources that can assist in day-to-day business or simply connecting businesses with opportunities. Here are this month’s resources: • Small Business Financial Resources: azcommerce.com/covid-19/financial-resources • Arizona Small Business Association: asba.com • CPLC Women’s Business Center: prestamosloans.org/womens-business-center • Small Business Development Center: maricopa-sbdc.com IN BUSINESS MAGAZINE In Business Magazine creates many resources throughout the year. Here are our most recent: • WESTMARC: The West Valley Connected: nbusinessphx.com/department/westmarc • In Business In the Firm Guide: inbusinessphx.com/2021-in-the-firm MORE Each month we will include other added resources and guides. Here is what we have for our readers this month: Free In Business Digital Subscription: • Get all of the pertinent news and information as it relates to COVID and your business though the In Business Dailies. Sign up today at inbusinessphx.com/subscribe.

GDP TAKES A HIT There’s a travel ban to the U.S. from various European countries (unrelated to the rate of incidences of COVID-19). According to a recent report by WalletHub, Arizona will be the seventh-worst hit among the 50 states, potentially losing 1.94% of its GDP this year due to the lack of European tourists. wallethub.com/edu/states-impact-european-travel-ban/93384

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QUICK AND TO THE POINT

LOOKING GOOD

Local Standouts Recognized for Philanthropy PHILANTHROPY

TruWest Climbs to Support the American Lung Association TruWest® Credit Union raised $10,000 for the American Lung Association through this year’s Fight For Air Climb in Phoenix. Through the team’s support, more than $70,500 was raised through the event.

The 15-member TruWest team joined 18 other teams at Chase Field to climb the stadium stairs to raise awareness and funds for the cure of lung disease.

Through TruWest donation and efforts, it emerged as the top corporate fundraising team for the event. lung.org • truwest.org/lung

BCBSAZ Grants Address Substance Use Disorders Blue Cross Blue Shield of Arizona (BCBSAZ), through its Mobile AZ Initiative, has granted $565,000 to seven community organizations throughout the state that

Solar-Powered and Portable: CSE Rents Eco-Friendly Generators Canyon State Electric, a family-owned business headquartered in Phoenix that has served Arizona and the Southwest Region as the premier electrical contractor since 1978, is now offering a sustainable and eco-friendly energy option through its new Solar Rental service. These trailer-mounted, solar-powered generators can provide a cost-effective and environmentally friendly alternative to meet the needs of construction sites, vendor trailers, vaccine sites, events and more.

The solar-powered generators are often used for temporary power and lighting at construction sites; vendor trailers at sporting events, concerts and festivals; and healthcare drive-thru facilities for testing and vaccination distribution. The generators also serve as the go-to emergency power source with unmatched reliability of solar energy, ensuring projects and events will remain on schedule.

provide programs and services to address substance use disorders with at least one of three complicating factors: COVID-19, social determinants of health and/or co-occurring mental health conditions. Between 2017 and 2021, Arizona has seen an estimated 65,982 opioid overdoses resulting in 9,053 deaths. azblue.com

Cannon & Wendt Hosts Supporting Our Heroes Event Cannon & Wendt Electric Co., one of the leading electrical service firms in the Valley, recently hosted its third annual Supporting Our Heroes event, raising $41,508 to benefit the 100 Club of Arizona. Proceeds from this year’s event will help send children to the 100 Club of Arizona’s Survivor Children’s Camp in Prescott, Arizona, along with purchase more wash-down kits and PPE to make sure families are taken care of and public safety servants remain healthy.

100club.org • cannon-wendt.com

Gila River Hotels & Casinos and Arizona Coyotes ‘Pay It Forward’ In the spirit of “Pay It Forward Day,” Gila River Cares, the philanthropic arm of Gila River Hotels & Casinos - Wild Horse Pass, Lone Butte & Vee Quiva, and the Arizona Coyotes Foundation joined forces to present a $50,000 check to Human Services Campus, Inc., (HSC), a 501(c)3 nonprofit agency dedicated to helping people experiencing homelessness. Gila River also donated 4,000 towels to assist with daily shower services. hsc-az.org • nhl.com/coyotes/community/foundation playatgila.com

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CSE Solar is the newest addition to the family of companies and service lines that CSE offers. With more than 40 years in the electrical contracting industry, the company has a strong understanding of the need for mobile power, so, rather than adding diesel-powered generators, CSE opted to invest in a more eco-friendly and efficient solution that offers clean energy.

“Introducing a new service that’s energyefficient, cost-effective and supports sustainability within the electrical space, and one that further supports our value of innovation, is something we’re extremely proud of,” says CEO Stephanie Hughes. “We’re eager to continue to integrate these trailers into our own construction sites, as well as provide this service to more organizations throughout the Valley.”

—Mike Hunter CSE Solar Rental LLC csesolarrentals.com Canyon State Electric canyonstateelectric.com

Purification That’s Light and Lighter Purification LLC, a Tempe-based sanitation company, is now offering an affordable, portable sanitation device for small-business owners and consumers — allowing them to feel safer in their space by minimizing the risk of airborne virus transmission.

The Vader 10 uses UVC light technology and a carbon filter to sanitize air in a 400-squarefoot space within just 30 seconds. Not only is the device able to sanitize a home where someone has an illness like COVID-19 or the flu, it also aides in alleviating allergies and other airborne diseases. The Vader 10 is the most powerful device in the UVC sanitation space, with a much stronger UVC light than its competitors. Many devices on the market — such as handheld UVC light wands — do not have strong enough lights to effectively kill harmful pathogens.

The Vader 10 is also completely safe and does not any emit any damaging radiation. It works by using a powerful fan on the top of the device to pull in the air and circulate it through the UVC lights — killing 99.9% of pathogens before the air even reaches a carbon filter located at the bottom of the Vader 10. This helps make the

device safer, as many similar devices have filters with harmful germs that can be exposed during the replacement process.

The device was created with this carbon filter to capture any lingering pathogens. Carbon was selected because the filter is light enough ensure the UVC light penetrates all the way through the pathogens in the filter — making the filter safe to replace.

The device weighs less than eight pounds for easy use and transportability, which makes it perfect for a variety of settings, from doctors' offices to social events.

— Nicholas Knudsen, founder of Purification LLC (purificationllc.com), an innovative UVC technology company that uses state-ofthe-art methods to disinfect air and surface contaminants, reduce spore activation and kill airborne pathogens by using CDC-approved UVC light bulbs

Cannon & Wendt’s support of first responders began when Albert Wendt, one of the firm’s founders, invited the Phoenix Police Department to use Cannon & Wendt’s office as a facility for training narcotic-detecting K-9s. This connection led the company to support the 100 Club, which provides immediate financial assistance to families of public safety officers and first responders who are seriously injured or killed in the line of duty.

METRICS & MEASUREMENTS

The Rising Concern around Inadequate Virtual Private Network Security IT professionals fear ransomware and other malware has already penetrated their companies' network

by Don Boxley

Well before the COVID-19 pandemic, IT teams faced a common challenge: how to ensure employees and other approved users could easily and securely access organizational resources, whether they were hosted locally or in the cloud.

This was a challenge that was painfully exacerbated when millions of workers around the world were sent to work from home (WFH), virtually overnight.

Prior to the start of the pandemic, DH2i commissioned a research study to learn more about challenges being faced

by IT professionals responsible for their network security, specifically those using virtual private networks, “The Pre-Pandemic State of Virtual Private Networks (VPNs).”

The study was also intended to solicit their feedback on what improvements, features, functionality and capabilities they viewed as ideal in a next-gen VPN or competitive solution. To qualify, the respondent had to be using a VPN for network access and/or a security measure. While some of the responses were somewhat expected, others were real eye-openers.

It was indeed surprising to have 39% of those responsible for keeping ransomware and other malware from penetrating their network believe that, in fact, it already had. And, while this survey was completely anonymous, we believe this number is actually even higher, as some respondents would likely prefer not to admit it — even to themselves. We expect this number to grow during the next research phase given the rise in bad actors during the past year that were looking to exploit data security vulnerabilities as a result of the pandemic.

It is interesting to note that at the end of the day, recognizing the limitations of current VPNs, 86% of respondents were inclined to consider an alternative if the other solution could prove superiority across several factors, including security, configuration and management, cost, performance and availability.

VPN Use Cases

It is important to note that while we were analyzing the results of the initial research, the COVID-19 pandemic hit, forcing millions of people into a WFH scenario. Simply gaining access was the priority for most employees. However, for IT, ensuring not only that their people had uninterrupted access but that it was secure on both ends and everywhere in between pushed other alternative remote access IT initiatives much lower down the priority list. And, while it provided deep and immediately actionable insight, we recognized this research would need to be considered a first phase, given the cataclysmic shift that was taking place. We look forward to sharing the results of the second phase of our research soon.

The full report deeply analyzes each of the topics presented here, details the survey methodology and presents an analysis on the future of VPNs. DH2i dh2i.com

VPN Pain Points

Inclination to Explore VPN Alternatives

Remote Users

83%

Security

62%

Extremely/very inclined

45%

Site to Site

57%

Availability/DR

48%

Somewhat inclined

41%

Site to Cloud & Multicloud

48%

Cost

46%

Not too inclined

15%

Microservices & Containers

7%

Performance

45%

Configuration Management

44%

VPN Brands in Use Cisco

63%

Palo Alto Networks

22%

Check Point

12%

Other

50%

Is someone on your network who shouldn’t be?

Yes Unlikely

39% 61%

Preference for Remote Connections without “Attackable” Network Presence Highly preferable

68%

Somewhat preferable

21%

No preference

12%

Don Boxley Jr is a DH2i co-founder and CEO. Prior to DH2i, Boxley held senior marketing roles at Hewlett-Packard, where he was instrumental in sales and marketing strategies that resulted in significant revenue growth in the scale-out NAS business.

Boxley spent more than 20 years in management positions for leading technology companies, including Hewlett-Packard, CoCreate Software, Iomega, TapeWorks Data Storage Systems and Colorado Memory Systems.

Boxley earned his MBA from the Johnson School of Management, Cornell University. dh2i.com

Source: https://dh2i.com/the-pre-pandemic-state-of-virtual-private-networks-survey-report

Thirty-nine percent of those responsible for keeping ransomware and other malware from penetrating their network believe that, in fact, it already has.

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ENTREPRENEURS & INNOVATORS

Once-and-Done Listing for e-Commerce Sellers

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List Perfectly listperfectly.com

YellowBird Bridges the Gap in the Health & Safety Community A chance encounter at an accelerator event brought the co-founders of YellowBird together and it was only a matter of months before their idea for a two-way marketplace between environmental health and safety (EHS) professionals and the companies that need their services started to take off.

“YellowBird was inspired by a culmination of my experience and a very opportunistic Uber ride,” relates Michael Zalle, co-founder and CEO. Working in satellite communications, he saw a tremendous need for connecting qualified safety professionals with organizations that needed their expertise. But it wasn’t until an Uber ride with a driver who he thought was way overqualified to be driving that the idea clicked.

Seeing the potential in Zalle’s vision, Michelle Tinsely, now COO, joined on as co-founder and the duo officially

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products one by one on each selling platform was not only time consuming but physically painful. Morse taught herself to code the solution, and List Perfectly was born.

Says Morse, “E-commerce is big enough for all of us. It is the great equalizer. Anyone can become a seller and ‘level the playing field’ in their own lives, make money from home with very little startup cost, and become a success. It is this truth and advice that motivated us to grow this company and bring List Perfectly services – which help everyone achieve success – first nationwide and eventually worldwide.”

The average American throws away 82 lbs. of clothing each year.

launched with a minimal viable product in November 2019.

Though growth has been steady, they’ve encountered a few challenges along the way — namely, finding investors and navigating the pandemic.

Fortunately, they did find investors who believed in YellowBird and were able to turn an initial pandemic-related setback into a win.

“One thing we used to our advantage was the fact that more people were suddenly caring about workplace safety,” Tinsley says.

Due to layoffs, they also had an explosion of professionals joining their platform and they were able to immediately put them to work. While they’re still battling other challenges that come with scaling a fast-growth company, as well disrupting an oldschool industry, one thing they credit to helping overcome those is the support

they get from other local founders through the StartupAZ Collective.

“The Startup Collective has provided us a way to continue to develop new ideas and provide coaching at exactly the right time you need it,” Tinsley says.

As for what’s ahead, Tinsley says they set some audacious goals for 2021, with a focus on forming partnerships and supporting the evolving demands of businesses as the pandemic continues.

—Brandon Clarke, co-founder and CEO of StartupAZ Foundation (www. startupaz.org) YellowBird goyellowbird.com

Photos courtesy of List Perfectly (top and far left)

In addition to being a time-saving solution for sellers everywhere, List Perfectly is also dedicated to contributing to a healthier planet by promoting and encouraging the idea of shopping “resale, not retail.” Each sale made

by List Perfectly users reduces that item’s carbon footprint and saves it from ending up in a landfill. List Perfectly works for sellers of all types of products, from clothing to electronics to vintage goods and everything in between. listperfectly.com

Seeking a solution to the frustrating and laborious process of listing merchandise on multiple channels, Amanda Morse and Clara Albornoz founded List Perfectly in 2019. Created by sellers for sellers, the versatile e-commerce solution enables sellers to efficiently list and cross-post products on multiple major marketplaces and channels – at no additional charge, and cutting listing time by an average of 80%. Delisting and relisting, inventory management, and templates for faster listing are among List Perfectly’s suite of diverse tools.

In the past year, its member base has grown more than 600% and sellers have cross-posted more than 15 million products using its software. List Perfectly’s unlimited crossposting saves thousands of sellers an average of 80 hours per month, enabling them to reach new customers and make more sales, while also fulfilling the company’s sustainabilitydriven vision to promote shopping resale, not retail. Morse and Albornoz note the average American throws away 82 pounds of clothing each year. “By reselling it, we are able to keep it out of landfills and reduce each item’s carbon impact by 79% with each sale,” Morse says.

Morse and Albornoz were motivated to create this solution when Albornoz’s arthritis threatened their ability to continue their own online selling at their needed volume, since listing

PROPERTY, GROWTH AND LOCATION

GET REAL

Photos courtesy of Private Label International (top), Marwest Enterprises and Wentworth Property Acquisitions (far right, top and bottom)

The Endurance of the Super Amenity in Multifamily Development One challenge that has been on the forefront of our multifamily clients’ minds over the last year is amenity occupancy and programming. During this time of uncertainty and change, it is vital to take a step back and truly understand community needs and expectations for communal spaces, allowing for thoughtful, strategic design.

Prior to the pandemic, amenities were all about shared spaces, promoting togetherness and creating social interaction. Amenities were the active pulse points of the communities. We’ve heard a bit of buzz about indoor amenities being a thing of the past. While we wholly support the need for outdoor connection and open spaces, eliminating indoor amenities seems too reactionary and, frankly, impossible, in areas where climate does not allow people to be outside year-round.

A recent study done by Assurant showed that the most important feature for residents in 2021 is larger living spaces because they are adapting to more time spent at home. This was a change from pre-pandemic times when lower-density areas or communities were more important. This tells us that people are wanting to spread out in their living space, not necessarily spend more time outside. In multifamily communities, we consider shared amenities an extension of residents’ living spaces. Extra care will be needed to make these indoor spaces possible by creating more indoor/outdoor connections, improving air circulation, incorporating biophilic design and utilizing strategic space planning.

All that being said, we are very much still focusing on indoor amenities, and specifically “super amenities” — spaces that add unique activities and support a broad range of lifestyles. Spaces such as recording studios, art studios, bowling allies, virtual reality lounges, maker spaces and demonstration kitchens allow for social interaction in our new state of extra caution. It’s important to note that middle market properties will be the most sought after, so being strategic about the unique amenities to offer, while not pricing rent out of attainability, will be a key factor.

In our previous article, we spoke of the idea of the “third place,” a place that isn’t home or work. The easiest way to decide which amenities will be important to one’s consumer is to look at the surrounding neighborhood and supplement key features that are lacking.

Additionally, always consider the shared living spaces as extensions of residents’ units and offer something they can’t get in the same way behind their unit doors.

Depending on the market and its eagerness to bounce back from lock downs, supplementing the local neighborhoods may be more successful when tenants are unwilling or unable to leave the property. Communities have a responsibility but it’s also a huge asset to be able to instill trust and comfort for a tenant who does not feel that same comfort in completely public places. This will hold true beyond the pandemic, as well.

Knowing that, we should feel confident in not eliminating indoor amenity offerings, but strategically giving them the thoughtfulness they need to be an asset to both the property and the resident.

—Wendi Stallings, principal of Phoenix- and San Francisco-based Private Label International (privatelabelintl.com), a full-service interior design studio that develops hospitality environments and lifestyle brand experiences for clients worldwide

by Mike Hunter

Environmental Due Diligence Helps Move Industrial Project Along Transforming into an 83-acre industrial park on the former site of a cement plant, Merit Sky Harbor Industrial Park will span nearly 1 million square feet and will include new light rail routes and hiking trails along the Salt River in addition to the industrial space.

To help Phoenix-based Merit Partners transform the property into a vibrant business park, award-winning environmental consulting firm SCS Engineers provided environmental due diligence and risk management support for the $100 million project. In addition, SCS Engineers performed the environmental investigation, remediation, and regulatory compliance services in prior years while the site was under previous ownership. meritpartnersinc.com/property/merit-sky-harbor-industrial scsengineers.com

Industrial Construction in Mesa’s Elliot Road Technology Corridor Marwest Enterprises, LLC, owner and developer, recently broke ground on Elliot 202, a new, 1,080,240-square-foot speculative industrial development along the 202 Freeway in Southeast Mesa.

The planned industrial buildings are located on the freewayfronting northeast corner of S. Hawes and Elliot Rd. and are scheduled to be completed in December this year.

Calling it the largest speculative development under construction in Mesa on an industrial level, Marwest principal David Martens says, “The completion of this project will continue to reposition Mesa as a City with the infrastructure to support large manufacturers and distributors who haven’t had opportunities like this in the Southeast Valley before.” properties.cbre.us/elliot-202

Medical Office Project Planned in Goodyear Wentworth Property Acquisitions, LLC plans to start construction in Q4 this year on a new Class A medical office project near W. McDowell and Bullard avenues at 1830 N.E. Bullard Ave. in Goodyear, with completion planned for Q4 of next year. Goodyear Medical will be a two-story, medical office building totaling 57,000 square feet of space situated in close proximity to the Abrazo West Campus hospital and Interstate 10.

“This will be the first new medical office building developed in the Goodyear area since 2004,” says Alexandra Loye of Colliers International in Arizona. Loye and colleague Phil Wurth serve as exclusive leasing agents for the property. colliers.com

According to Yardi.com’s latest report on the best cities for amenity-rich communities, Metro Phoenix is represented by five cities in the top 20 places with the most amenity-rich communities: Gilbert (No. 1, with a mix of amenities at 59%), Chandler (No. 2, at 57.9%), Scottsdale (No. 6, at 50.6%), Mesa (No. 8, at 49.3%) and Phoenix (No. 18, at 44.5%); with Glendale coming in close at No. 22 (at 43%). storagecafe.com/blog/best-cities-for-lifestyle-amenities

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PROPERTY, GROWTH AND LOCATION

BY MIKE HUNTER

AZ’s First Cross-Laminated Timber Project Breaks Ground in Tempe Leading U.S. developer and builder Mortenson, in partnership with PGIM Real Estate and Urban Development Partners, has broken ground on its anticipated The Beam on Farmer Class A office building in the heart of downtown Tempe, and named the Phoenix office of JLL as the building’s exclusive leasing broker.

From project architect RSP Architects, the five-story, 184,000-squarefoot office building is the first in the state to feature exposed crosslaminated timber (CLT) construction as the primary structural system. The CLT process utilizes young trees and combines layers of natural timber for an eco-friendly building approach. Cross-laminated timber creates zero waste and will capture 3.5 tons of carbon dioxide. Scrap material from CLT production is also used to create other products or biofuel.

Located at 401 S. Farmer Ave. in what JLL managing director Ryan Timpani describes as the most sought-after office submarket in the Valley, The Beam on Farmer will deliver a unique office product to downtown Tempe, with a modern-meets-vintage mix of solid timber, concrete, steel and glass. Interiors will feature 13-foot exposed wood ceilings, 40,000-square-foot open floorplates and an Under Floor Air Distribution system providing best-in-class air quality and energy efficiency. The

building is served by an adjacent parking garage with a 4/1,000 parking ratio. The Beam on Farmer embodies an active design and will uniquely offer users a healthy building experience, with contactless features from “car to cube.” Completion of The Beam is anticipated in May 2022.

The Beam on Farmer thebeamtempe.com JLL jll.com Mortenson mortenson.com PGIM Real Estate pgimrealestate.com Urban Development Partners udpartners.com

In a first for Arizona, the Novus Innovation Corridor earned LEED-ND Gold certification last month from the U.S. Green Building Council. Novus, the 355acre mixed-use, public-private partnership between Arizona State University and Catellus Development Corporation adjacent to the ASU Tempe campus, is the first LEED-ND community certified at any level in Arizona. “This is a remarkable achievement to earn certification at this level so early into a long-term development,” says Brian Kearney, first vice president of Catellus, master developer of the multi-phased Novus community.

The Gold certification is the second-highest certification awarded by USGBC on its scale of Certified, Silver, Gold and Platinum designations. The 62 points awarded to Novus qualifies it nationally among the top ten bestscoring LEED-ND projects of all time. The LEED-ND program is designed to combat urban sprawl by inspiring and helping to create better, more sustainable, well-connected communities.

Novus is one of the largest urban commercial developments in the country, incorporating a theme of live, work, learn and play by integrating retail districts, residential spaces, high-rise office space, shaded sidewalks, bike baths and urban parks into a fully “walkable” community. When fully developed, Novus will contain more than 10 million square feet of offices, residences, hotels, retail and entertainment uses. Certified green buildings, compact development, walkable streets, and proximity to transit facilities are key sustainable components of the development.

Novus’ first phase was the development of the 2.1 million square foot Marina Heights regional hub for State Farm, followed shortly by the $307 million reinvention of Sun Devil Stadium. Novus is currently in Phase III of development, a 19-acre area at the northwest corner of University Drive and Rural Road that includes a hotel and a multifamily residential project —

JULY 2021

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and its 777 Tower, a six-story 160,000-square-foot office building built by Ryan Companies U.S. and joint venture partner University Realty that was completed one year ago, recently became the first building in Novus to earn LEED Gold certification.

“The evolution of the Novus Innovation Corridor as an exemplar of what can be accomplished through a strong partnership between an innovative global research university and the private sector is truly exciting,” says Morgan R. Olsen, ASU executive vice president, treasurer and chief financial officer.

Catellus catellus.com Novus Innovation Corridor novusasu.com Ryan Companies US ryancompanies.com

ASU has a long history of focusing on sustainability under the guidance of its president, Dr. Michael M. Crow. ASU is currently rated 5th in the world and 1st in the U.S. by the Times Higher Education Impact Ratings, the only global performance measures that assess universities against the United Nations Sustainable Development Goals.

Photos courtesy of Mortenson (top) and Kevin Korczyk (bottom)

Novus Innovation Corridor Achieves National Sustainability Recognition

MINDING THEIR BUSINESS

Mark Hangen: Scaling a Company to National Success Easy Ice rewrote the playbook for service-driven business

by Kassidy McDonald

… and Changing During the pandemic, Easy Ice added a variety of touchless ice dispensers to its national leasing program inventory. The new machines are fully automated and dispense ice and water without the user having to touch the surface of the machine, thereby reducing the risk of accidental contamination to the ice supply. Hands-free ice machines eliminate the possibility of transferring pathogens to a surface, where they can make their way onto drinkware.

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Ice machines are the worst performing piece of equipment in a kitchen. The average life cycle is only seven years.

service partners maximize the money they make when you do not have problems,’” says Hangen.

To address the challenges of receivable collections that industry veterans predicted, Easy Ice required a nonrefundable setup fee equal to twice the monthly rent. This reduced the number of financially unviable firms from signing up for services.

Additionally, Easy Ice required all customers to pay electronically.

“Electronic payments are increasingly the norm in today’s world, but it takes infrastructure to do it,” says Hangen. “Our industry was late to see this as they had been doing it more traditionally for 50 years.”

To overcome the predicted inventory management issues, Easy Ice formed a close partnership with the largest ice machine manufacturer in the world, Hoshizaki.

“We convinced a couple of key players in the Hoshizaki America organization that our approach had the potential to change how businesses procured ice machines forever,” says Hangen. “They were savvy enough to realize the benefits of a first mover advantage and gave us terms and access to inventory around the country that solved potential inventory management issues.”

Hangen and his leadership team had many successes building businesses in other industries before starting the company.

“Compared to everyone else in the industry, we started ‘topdown,’ meaning we didn’t start as ice machine salespeople and service techs,” says Hangen. “We identified a market space that was popular but where no national provider existed.”

Most companies in the ice machine industry spent 50 years building a base of 3,000 to 5,000 machines, while Easy Ice built a base of 25,000 machines in just 10 years and plans to triple that in just the next five years.

For budding entrepreneurs, Hangen says it is important to note that Easy Ice did not invent a whole new industry. “This is not space exploration, crypto currency or internet search,” says Hangen. “We found a way to do something that incumbents in an established, old-school industry did not think was possible.

That spells success no matter the industry.”

Easy Ice easyice.com Photo courtesy of Easy Ice

GROWING …

“We were able to raise large amounts of capital on increasingly better terms that allowed us to expand our footprint through both organic growth and acquisitions,” says Hangen, relating that Easy Ice has spent $100 million over the last 12 years buying companies in this space.

“We learned how to value these smaller companies and integrate them into our national network quickly and efficiently,” said Hangen. “We love the experience and local knowledge that the employees bring to our business.”

Starting a national service-driven company is no easy feat, but that’s what Easy Ice, LLC accomplished while becoming the largest full-service leasing ice machine company. Founded in 2009 by Mark Hangen, Easy Ice (now headquartered in Arizona) is a national ice machine subscription company with 25,000 ice makers deployed in various industries across 47 states.

Building a national company is particularly challenging as it needs people, infrastructure and product to generate revenue.

This was a key reason why no national players existed in this space prior to Easy Ice. The most common refrain Hangen heard while researching the idea was that it was not possible.

Specifically, 1) sales required a direct sales force, 2) reliance on third-party service providers would be an economic disaster as they would overcharge and underperform, 3) collections had to be done in person if you wanted to get paid, and 4) inventory management would be a nightmare.

The prevailing thinking was that not having hundreds of employees and associated infrastructure nationwide in advance of sales and revenue would spell doom. Yet, deploying those resources pre-revenue would be financially unviable.

“It was a classic case of the old cliché, ‘You can’t get there from where you are,’” says Hangen. “People were convinced this dilemma was unsolvable.”

The Easy Ice team felt sales could be generated through the internet but existing players in the industry did not know how to do it.

“No one was doing ice machine rentals at the national level and the majority of our competition were small mom-and-pop shops that had no idea what it took to scale their company outside the local area,” says Hangen. “Businesses don’t care about the ice machine until it breaks, and the minute it does, many search Google. Through our effective digital marketing and search engine optimization, Easy Ice comes up at the top of the page.”

Easy Ice also drove traffic to its website through a partnership with Robert Irvine, the host of “Restaurant Impossible” on The Food Network.

Installation and service of new machines was initially accomplished through a home-grown network of existing service contractors. To control costs and quality issues that others in the industry predicted, Easy Ice paid the service provider a percentage of the fixed monthly fee from each machine they serviced. This approach aligned the interest of the service provider and Easy Ice such that they both wanted to minimize the amount of cost to support the machine.

“Our elevator pitch was, ‘When you own an ice machine, every supplier in your supply chain only makes money when you have a problem. With a subscription, Easy Ice and its

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Meet Uncertain Times with Confidence.

Quarles & Brady understands your COVID -19 business issues and provides advice and solutions to your challenges.

VISIT OUR COVID-19 MICROSITE AT WWW.QUARLES.COM for current information on how legislation and announcements resulting from the pandemic impact your employees and business operations.

FOR INFORMATION, PLEASE CONTACT Leonardo Loo, Phoenix Office Managing Partner, at 602.229.5638 or leonardo.loo@quarles.com.

quarles.com

YOUR BENEFIT IN BUSINESS

32 Regional Businesses Continue Their Due Diligence in Prep for the Next Public Health Crisis

WELL WELL WELL

The Arizona Consortium is comprised of local and regional businesses in bio-defense, health and safety. Members include: • AmSafe • AP and Associates-herozona • AZ Chapter National Safety Council • Cirq+ • Dircks Moving and Logistics • Eco Safety Products • eHealth Nexus • GCU Canyon Ventures for Innovation • Global Chamber-Hermosillo • iatrixAir (southernocean air) • i-calQ • Jordan Manufacturing • LITTLE TALLER • Lution Labs, LLC • Med Wheels • Next Level Products • Noral Holding Company • Pantheon • Phoenix International Consultants • Radius AI • ServRTW • Squire Patton Boggs • Tintoria Piana US - Piana Nonwovens • Twinvay Products, Inc. • University of AZ • US POWER AZ PPE and POWER Hotel Group • YellowBird azconsortium.com

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As COVID-19 cases continue to decrease and we slowly begin to feel more confident getting back to some semblance of life as we knew it, business and government continue diligent conversations around the new and ever-innovating standards of public health and safety. Supporting that diligence, a coalition of 32 local and regional bio-defense, health and safety business leaders and stakeholders, known as the Arizona Consortium, work together to ensure the state and region are equipped to see the tail end of the pandemic and ensure we are prepared for future public health crises.

The AZ Consortium was created in July of 2020 by a group of like-minded companies with a shared desire to serve and improve the resiliency of our community and economy in the face of a stark biological threat. The Consortium launched in August 2020 with a shared mission to provide and improve domestic innovative and effective health, safety and bio-defense solutions.

Well into its first year of coming together, the collaboration continued as the group shared its time, knowledge, technologies, interventions and best practice experience to protect public health and support business and government with an allinclusive solution for reopening and public health safety needs. Areas of expertise include protocols and procedures to help gathering spaces fully reopen and remain open safely. The Consortium’s long-term mission is to deploy local and regional life-saving services and technologies by becoming the conduit through which companies, customers and government seamlessly interact as the total solution to this and any future public health crisis.

In a larger effort to support the community and share our knowledge, experience and resources, the Consortium hosted a showcase and discussion titled “Return to Hospitality.” The event brought hospitality, small-business leaders, government stakeholders and consortium partners together to converse about best practices specific to reopening while maintaining the health, safety and well-being specific to one of Arizona’s largest economic engines.

Also discussed was the U.S.’s reliance on outside sources for life-saving products and supply chain, and our delayed ability to mobilize to scale.

Meanwhile, the U.S. and Arizona stood at port waiting for substandard products or interventions awaiting regulatory approvals from the EPA and

FDA, along with the rest of the globe. Compounded by domestic demands skyrocketing, many business and local leaders were unaware of regional solutions mobilizing in our own backyard.

Now, via the Consortium’s efforts, local needs are connected to guide and share effective public health expertise, solutions and regional supply chains to overcome the obstacles experienced at the peak of the crisis. In addition, partner members strategically work together to educate and influence regulators and government leaders to prioritize utilizing and supporting domestic solutions and investing in innovations and modernizing the regulatory approval process — most especially in the wake of a public emergency.

Although the pandemic’s original grip on the country may be loosening, We the People have learned various difficult lessons and, by continuing our work, the Consortium is building the necessary local infrastructure needed to help businesses, local economies and one another to find our footing following this disaster and in preparation for the future.

We are eager to hear from businesses or government entities needing guidance, support or resources to support safe reopening, as well as entities in accord with our shared mission and innovative public health, biodefense interventions interested in joining the Consortium’s collaborative.

—Anna Maria Maldonado, vice president of strategic partnerships of Phoenix International Consultants and founding member of the Arizona Consortium (www.azconsortium.com)

The Consortium originally banded together during the peak of the pandemic to help businesses get back to work safely, keeping employee and customer health top of mind. The businesses that make up the Consortium offer a variety of services including testing, treatment and other forms of support to help eliminate the spread of COVID-19.

INNOVATIONS FOR BUSINESS

Why Businesses Shouldn’t Neglect Their Cyber Hygiene Risk of cyberattacks is nothing new but, since the onset of the COVID-19 pandemic, cybercrime is on the rise — both in prevalence and magnitude — underscoring the importance for companies to maintain proper cyber hygiene to protect their data, operations and bottom lines.

CYBERCRIME ON THE RISE

In 2020, the global average cost of a data breach was $3.86 million, according to a study by IBM and Ponemon Institute. In the United States, the average cost was even more, at $8.64 million — the highest in the world. Last year, cybercrime victims paid $350 million in ransomware payments, according to a report by the Institute for Security and Technology, representing a 311% increase over the previous year.

Even as we return to some semblance of prepandemic normal in the coming months, the risk of cyberattacks is expected to keep growing. Costs of cyberattacks are projected to reach $6 trillion in 2021 alone, according to Cybersecurity Ventures, and expected to balloon to $10.5 trillion by 2025.

So far this year, the rate of cyberattacks has accelerated, with nearly daily reports of another high-profile breach or attack, including the recent hacks on oil pipeline operator Colonial Pipeline and meat processor JBS.

IMPACT ON CYBER RISK COVERAGE

Photo courtesy of TheVideoBot

Considering these alarming trends, cyber risk insurance has never been more essential to protect businesses, their sensitive data and critical operations.

However, due to the rising incidence of cyberattacks and correlating claims, coverage has become pricier for companies to secure. Rates for cybersecurity insurance coverage climbed 30% by the end of 2020, with premiums potentially rising another 50% through 2021, according to Marsh.

But businesses aren’t simply having to pay more for cyber coverage. Because of the greater risk posed by more prevalent attacks, particularly ransomware, carriers have begun to tighten coverage limits, even restricting or placing sublimits in ransomware coverage. Some carriers also have implemented co-insurance on coverage to share the cost of any ransomware payments.

Additionally, insurers are exercising more scrutiny in terms of companies’ overall cyber hygiene. In other words, insurer requirements for cyber coverage are driving companies to tighten

TECH NOTES

by Mike Hunter

up gaps in their cyber protections, policies and procedures. With increasing risk, businesses are required to create robust preparedness and response plans as a requirement for coverage.

IMPROVING CYBER HYGIENE

As expectations continue to climb for businesses’ cyber hygiene, here are several key changes companies can implement to fill those critical risk gaps, better protect themselves from cyberattacks and ensure they meet insurers’ requirements for coverage: • Penetration testing: Such testing is a simulated cyberattack performed to evaluate a business’s computer systems. It helps identify risks and any security gaps.

• Cyber incident response plan: Also known as an IR plan, this is a set of instructions that lays out how a company prepares for, detects, responds to and recovers from cyberattacks.

• Employee awareness training: These trainings help educate a company’s employees about cybersecurity issues, including how to identify phishing attempts and best practices with securing data.

• Security controls: Network security controls are a must. At a minimum, these should include endpoint detection and response (EDR) solutions that monitor the devices that connect to a company’s network, as well as tested backups and multi-factor authentication (MFA) login methods requiring employees to login using additional credentials beyond their username and password.

Due to our reliance on digital devices and networks, as well as changes brought on by the pandemic, it no longer is a matter of if a business will experience a cyberattack, but increasingly when.

No business, regardless of size or industry, is immune to the dangers of cyberattacks. But with the increase in cyberattacks pushing up insurance costs, proper cyber hygiene that ensures businesses’ computer networks and sensitive data are properly protected from potential cyber threats is more critical than ever.

—Richard Swetonic, of Lovitt & Touché, A Marsh & McLennan Agency LLC Company (www.lovitttouche.com), which offers business insurance, risk management solutions, alternative risk financing, bonds and surety, and employee benefits

Costs of cyberattacks are projected to reach $6 trillion in 2021 alone, according to Cybersecurity Ventures, and expected to balloon to $10.5 trillion by 2025.

AI-Driven Videobot Personalizes Marketing It is estimated that in 2021, the average person watches more than 100 minutes of online video every day. The vast bulk of this video consumption, says Maury Rogow, CMO of TheVideoBot and CEO of Hollywood’s Rip Media Group, is marketing content.

Big-budget marketers are trying to out-shout each other, Rogow says, which does not work. It particularly fails to work, he notes, in the businessto-business sector, where the marketing targets are professionals already being bombarded by cold calls.

Rather than ramping up the volume, Rogow suggests that ROI-conscious B2B marketers combine microtargeting with personalized video.

“The object,” he says, “is to reach a given person with a given message. A personalized video message is currently the best and most costeffective way to do that.”

Users of this new technology, says Rogow, report that it is significantly more effective than conventional email campaigns. According to Rogow, a recent user in the apparel industry, for example, sent personalized messages to an aging and unproductive prospect email list and had a 400% response increase and four new sales. A B2B company in the service industry reported a more than 300% increase in both reply rates and actionable leads. A nonprofit female empowerment group that sent out 20,000 personalized videos reported a 400% increase in engagement.

According to Rogow, the key to a video’s effectiveness is its specificity. With TheVideoBot, one can choose the outgoing message according to the recipient’s stats (job function, area of specialization, etc.) and positions the messaging to set up the next contact level: order placement, a scheduled appointment, a website demo page, whatever the desired action might be. “Taking topof-funnel leads all the way to a closed deal with the use of personalized video also goes a long way to establish loyalty amongst your base and beyond,” says Rogow. “Not to mention, it allows SMBs and SMEs to do the same thing the larger companies are doing—and with the same results—for a fraction of the price.” thevideobot.com

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Greater Expectations

The Spotlight is On Arizona.

Can We Perform?

Appraising our prospects as we emerge from the pandemic

by RaeAnne Marsh There is tremendous opportunity in Greater Phoenix to grow business and continue diversifying our economic and employment base that will bring opportunity for our residents and move our innovationcentered economy forward. Supporting this assessment, Chris Camacho, president and CEO of Greater Phoenix Economic Council, says, “To meet the increasing demand, buildings continue to go vertical in every corner of the region. From class A office to industrial space, investors and construction leaders know the opportunity in Greater Phoenix is abundant.”

THE MARKET NOW – SURGING

Business growth and population growth go hand in hand, observes Micah Miranda, economic director for the City of Chandler, and notes, “People are moving here because of great job opportunities that promise a better quality of life.” On the business side, he notes access to talent is one of the top factors in most corporate location decisions, and “businesses choose Metropolitan Phoenix knowing they can draw from a large labor pool that will grow with them.”

“While the pandemic augmented inequities in our communities, it also brought new opportunities as industries needing skilled labor continued to move into Arizona,” says Steve Seleznow, president and CEO of Arizona Community Foundation. With global corporations announcing new facilities in our region every day, from the expansion of Intel to CIS Global, along with immense growth for businesses with local roots like Carvana and Banner Health, “opportunity is around every corner,” he observes, noting, “While small, service-oriented business across our state had an extremely challenging year, they, too, are beginning to see signs of recovery, since more people means more services will be needed.”

Camacho cites figures that support this view: In Fiscal Year 2021 alone, GPEC and its partners led the attraction of 34 companies, resulting in the creation of nearly 8,000 jobs and $12.8 billion in capital investment. There are currently more than 253 companies from around the world in GPEC’s pipeline that are actively evaluating the region for expansion or relocation. These projects represent more than 40,000 jobs and $30.7 billion in capital investment potential.

Of those projects, more than 20 have job totals exceeding 500 and $100 million in capital expenditures. “COVID shined a light on the shortcomings of high-cost, coastal markets like California and that’s why GPEC launched the #AZFreeToBe campaign as part of our larger omni-channel business and talent attraction strategy,” he says. “Our emphasis is on the attraction of California manufacturing and tech companies and knowledge-workers with increased professional mobility as a result of the pandemic. At its core, the hashtag and campaign encapsulate the region’s advantageous business climate and the quality-of-life attributes that make Greater Phoenix, and the state as a whole, the best place to live, work and explore.”

Lori Collins, president-elect of the Arizona Association for Economic Development and deputy director of economic development at the City of Mesa, notes that, while companies relocating to Arizona get a lot of attention, some of the most exciting economic development news this year has come from the expansion of businesses that have operated here for quite some time — a change from a decade ago. “Greater Phoenix is seeing growth in every industry sector from semiconductors to life sciences to logistics and distribution,” she says. “That is happening because the labor pool is strong, our infrastructure is modern and expanding, and the stable operating environment encourages investment.”

“Having lived in Arizona through the deep recession of 2007– 2008, there are two main things I see that are different for the

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better,” says Doug Bruhnke, founder and CEO of Global Chamber.

“First there are many more global businesses operating in Phoenix and the region now, and that has several advantages, including stable funding and management, diversity of businesses and strength of a portfolio of companies. Second the cities and GPEC have done a good job of collaborating and focusing on attracting solid companies in tech, manufacturing and more to avoid what happened last time when the economy dropped like a rock when construction fell. We learned and got balanced.”

WHAT THE OPPORTUNITY IS FOR BUSINESS

“For me one of the most encouraging signs is the ‘Phoenix Global Rising’ initiative which dares to claim Phoenix as a leading global city,” Bruhnke says, contrasting now to the last deep recession and sharing that Global Chamber recently prepared an “Invest in Arizona” presentation for Japanese companies that highlights the dynamics in economics, logistics and technology that are making Phoenix a global place to be.

And Mignonne Hollis, president of AAED and executive director of the Arizona Regional Economic Development Foundation, points to Arizona’s low cost of entry for entrepreneurs wanting to start a business. “The regulations and red tape are minimum, and many barriers have been removed,” she says.

Speaking for Chandler, for instance, Miranda says, “Locally, our Chandler City Council is committed to a vision of long-term, sustainable economic development. City Council recently adopted a Strategic Framework to guide growth in Chandler over the next few years.” Economic Vitality is one of five focus areas, which, according to Miranda, calls for the city to offer “a supportive business environment for global industry leaders, exciting startups and entrepreneurs through every stage of business development.” Noting that having a consistent “pro-business” message from the state level on down is critical to economic development, he says, “Businesses feel secure investing in Chandler because they know there is political support and stability.”

Mesa has also seen noteworthy economic activity throughout the city this past year. Companies such as Amazon, Boeing, Banner Health, Dexcom, ElectraMeccanica, CMC Steel, NTT, Comarch, Bonelli Doors & Windows, Rosendin Electric, Mechnano and many others are locating or expanding significant operations in Mesa. “This activity,” says Mayor John Giles, “is creating myriad jobs and large capital investments in our community.”

To make room for these and other forthcoming employers, commercial development is booming. “Today, we estimate more than nine million square feet of Class A industrial space is planned or under construction in Mesa,” says Mesa economic development director Bill Jabjiniak. “Furthermore, hundreds of thousands of square feet of new industrial aviation and hangar space is under construction at both Falcon Field Airport and Phoenix-Mesa Gateway Airport.”

In the City of Phoenix, Mayor Kate Gallego points to the Taiwan Semiconductor Manufacturing Company that recently announced

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it will open a fabrication plant in north Phoenix. TSMC will create thousands of jobs, with thousands more to come as their suppliers begin to co-locate near the facility. “With the arrival of TSMC, Phoenix and Arizona are positioned to become global leaders in this sector,” she says.

Along with this, Phoenix is also demonstrating business and economic development leadership in bioscience R & D, advanced manufacturing, and electric vehicles and infrastructure. “Our portfolio continues to expand because these businesses appreciate Phoenix for its highly trained workforce, its livability, and its affordability,” says Mayor Gallego, pointing out that even with the recent explosion of residential real estate activity, it is still less expensive to live here than in many other large American cities.

HOW WE GOT HERE

With more than two decades’ experience in her field, Phoenix’s community and economic development director Christine Mackay says, “I’ve never seen a market like today.

“We’re reaping the benefit of all the work our development community put in, in the time that was the Great Recession,” she adds, explaining that universities, community colleges and the development community partnered together to create a sustainable economy.

Previously, the economy had been built on growth — resulting in a very cyclical economy. “We’d build things — houses, buildings, industrial buildings. Government made money and they could supply their parks and their streets. We’d have a recession and go down a little bit, then we’d hockey stick back out again and then go right back to growth. And everything was fine.

“Except our graduates our of our community colleges and universities were leaving the market because they couldn’t find the jobs they wanted in this market.”

Mackay acknowledges that we did have some great industries in semiconductors, aerospace, and aviation and defense. But she notes they were legacy sectors from ‘40s through the ‘70s, and the new sectors from the ‘90s and early 2000s had not followed that earlier manufacturing trend. “So in the Great Recession, we all got together and said we can’t do this anymore. We have to create Arizona, the Metropolitan Phoenix area, as a place where the knowledge economy wants to come. We have to be competitive.”

She credits the universities and community colleges for taking the lead in that effort by ensuring their educational programs, graduate programs and undergrad, matched the needs of these new, leadingedge sectors.

“Beyond talent,” Mackay says, “companies know that we offer a very supportive business climate. Our state and local leadership understand the importance of economic development. Unlike some other states, Arizona looks to remove unnecessary regulatory barriers to business growth. The state has also established programs to encourage capital investment and job creation, like the Qualified Facility and Quality Jobs programs. These things signal that here in Arizona, we value the investments businesses make in our communities.”

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And in 2014, she says, we really started to move forward, reaping the rewards of the collaborative efforts. “What you see today in these great manufacturing companies, in these great knowledge economy companies, in these electric vehicle companies, autonomous vehicle companies, cybersecurity and info tech — it’s the outcome of all the work that we did together. And we are not going back.”

Says Carrie Kelly, executive director of the Arizona Association for Economic Development, “You can’t throw a stick and not hit a new development or business opening in Greater Phoenix.” She points out economic developers have been working overtime, especially over the past year, as Greater Phoenix has attracted many new businesses, but also notes, “What is often missed is the work that was done this past year to retain businesses.” While many states have experienced vacancies and loss, Arizona businesses have been able to sustain themselves with federal, state and local support.

Kelly also points out, “Outside of Greater Phoenix, Arizona has a lot of land and many wonderful communities to welcome businesses.”

For example, Mohave County has experienced new industries like Progressive Pipe Fabricators locating in the area and other companies expanding. “One of the strengths of Arizona’s rural communities is our community college system.” She credits Mohave Community College for working hand-in-hand with the community to create a workforce development plan and educational programs to address workforce pipeline deficiencies. Additionally, the recent legislation allowing community colleges to offer four-year degrees to address workforce shortages will have a lasting impact on rural communities in attracting and retaining a workforce.

HOW WE MAKE THE MOST OF OUR POTENTIAL — WHAT WE’RE DOING NOW

“We are making the most of our potential by continuing to court, in a systematic way, the organizations that fit best with the business ecosystems that are thriving in Phoenix,” says Mayor Gallego, naming semiconductors, advanced manufacturing, biosciences, electric vehicles, healthcare professions, financial services and construction.

“Phoenix is the fifth largest city in the nation; we are also the fastest growing,” Mayor Gallego says. “By continuing smart management of that growth, we are making Phoenix even more attractive.” One example is the way we Phoenix investing in workforce development, helping its residents upskill into the jobs that are most in demand. Another is support of education, including early childhood programs, as well as programs that support lifelong learning and the ability to gain new skills.

“We are constantly finding new ways to enhance the quality of life in Phoenix, something that is quite attractive to businesses interested in developing a presence here,” Mayor Gallego continues.

This year, Phoenix will create the nation’s first-of-its-kind Heat Mitigation Office, charged with finding and implementing innovative programs like its Cool Pavement pilot that is expected to show temperature reductions of 5 to 10 degrees in the areas that have been treated with this special street surface.

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She further notes, “Because we live in a desert environment, we’ve spent decades carefully planning for a secure water future.” Noting that Phoenix has a robust and diverse water portfolio that employs dozens of strategies that keep us in good shape even during an extended drought, she says, “The city, its businesses and residents have embraced a culture of water conservation.” Evidence of its effectiveness is the fact that residential homes in Phoenix use less water today than they did in 1990. “We also work to bring businesses that use water carefully, with an emphasis on re-use and recycling.”

Emphasizing the need to prioritize economic development and target the right type of growth, Miranda shares, “Here in Chandler, our city council is looking to maintain the viability of employment corridors and plan for the use of remaining unbuilt properties.” With the population surging, he says there is pressure from the housing industry to rezone land designated for employment. “Communities should be strategic regarding which properties they are willing to rezone to residential and which should be preserved for employment.

“Because talent is so important to business growth, we also must communicate with our higher education and workforce development partners,” Miranda continues. Chandler has, therefore, facilitated conversations with human resources representatives from area businesses. “This helps ensure that Arizona students and residents have opportunities to develop the skills needed for the types of jobs we hope to attract.”

Mesa’s efforts were recognized in a Small Business Recovery Report released by QuickBooks, where the City of Mesa was ranked No. 4 for post-pandemic small-business recovery in the U.S. The city’s Mesa CARES programs provided businesses with strong support through rent and utility assistance grants, technical training and education, personal protective equipment and marketing programs. Jabjiniak and Mayor Giles point to new businesses filling long-vacant spaces, especially in Downtown Mesa. “Our investment in infrastructure such as light rail and the attraction of ASU to Downtown Mesa has been pivotal in our recovery efforts,” says Jabjiniak. “And we are seeing large mixed-use and market-rate residential development projects under construction or in the planning process for Downtown.”

The City of Phoenix is also cultivating its transportation and transit options. Phoenix Sky Harbor Airport is a city-owned major airport — Mayor Gallego points out that it is, essentially, Arizona’s airport — and a huge asset to companies that do business here. “We are committing to ensuring this economic engine has the resources it needs to support our business community,” says Mayor Gallego, noting that there is support from the federal government for transit and transportation as the city continues to expand light rail; improve its streets and bus systems; and make the streets safer for vehicles, pedestrians and cyclists. “You can enjoy our city best when it is easy to get around. We are creating that reality right now, throughout Phoenix.”

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The city is also working with small businesses to not only ensure their post-pandemic survival but to help them thrive in the new business environment. For instance, the Phoenix Small Business Toolbox is a suite of services specifically aimed at helping small business owners find everything from human resources support to networking resources to employee training. And the city has simplified and streamlined the permitting process to make small business success even more attainable. Additionally, says Mayor Gallego, “Since access to capital is critical, especially to small and micro businesses, we created the Kiva Hub in partnership with the BBB and Go Daddy. Through Kiva, owners can obtain loans of $1,000 to $15,000 with no interest.”

And Bruhnke notes the City of Phoenix is sponsoring the Global Chamber “Export League” — which will soon start its second cohort to help regional firms reach ideal clients in foreign markets, bringing back export dollars to support more growth.

Looking beyond Greater Phoenix, Kelly credits the ACA for taking the lead on broadband investment, holding workshops for rural and tribal communities. “There have been funds allocated through the CARES Act for broadband funding, and it is anticipated the state legislature will allocate more funds for broadband.” She emphasized, however, that even if funds are available, infrastructure planning is a critical piece to funding.

And Hollis points to economic development activity in Cochise County, where the Arizona Economic Development Foundation operates two business incubators and just finished the first cohort of Co-Starters. In conjunction with the Small Business Development Center, regular business hours are held for counselling. “Communities of all sizes — rural and urban — must work together to strengthen the Arizona economy,” she says.

This is, in fact, what is happening. Says Camacho, “GPEC, our 22 member communities and Maricopa County, more than 180 private investors, and through our work with state leadership, are all working toward a common goal: to make Arizona and Greater Phoenix the best place to live and work.”

But it’s a complex set of initiatives that will be critical to our long-term growth and ability to compete for what Camacho dubs “mega projects” and those within advanced technology-focused sectors. He adds, “We also have to ensure that we’re investing in the entrepreneurial ecosystem and providing the requisite level of support to the companies and founders here in Greater Phoenix.”

Camacho reports an influx in venture capital activity to the tune of $1.6 billion in funds was raised by local companies in the last decade, with 33% of it ($546.5 million) raised in 2020 alone. He believes the region’s collaborative and innovation-centered approach coupled with recent policy initiatives enacted at the state level to support Fintech and Proptech — where startups and entrepreneurs can develop, test and deploy innovations without overregulation - are

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helping grow business locally. Recently, Sonoran Founders Fund announced they will invest $10 million in venture capital in Arizona and regional startups. “This type of support and funds choosing to setup shop locally is important as we move our modern economy forward with the vision of cultivating IP, building homegrown companies that turn into name brands, and reinvesting in the ecosystem to foster long-term growth,” he says.

Referring to the adage, “It takes a village to raise a child,” Mackay says it took an entire state — at the state level and all the cities - to really birth a solid economic development strategy for the State of Arizona. She makes a distinction between cities competing with each other for locates — “That’s our job,” she says — and fighting each other. “We’re fighting against Asia, Texas, Salt Lake City …”

She explains, “There’s a bird on my paycheck, so it’s my job to win the project for the City of Phoenix. But if I can’t win it for Phoenix, my next job is to win it for the region. And if I can’t win it for the region, my next job is to win it for the State of Arizona.” After all, she points out, even if Phoenix loses the project, its citizens are getting jobs.

And the business’s employees will shop in Phoenix. It’s an economic development ecosystem that’s created. Says Mackay, “All economic development directors are always working in close collaboration to build the Arizona we know it can be.”

HOW WE MAKE THE MOST OF OUR POTENTIAL — WHAT’S NEXT

“Statewide, we have many opportunities and momentum, but we need to come together to plan for the future,” says Kelly, emphasizing the need for collaboration on a united, long-term economic development vision and goals. “We need all Arizona residents to be covered by regional visioning processes, and we need regional economic development plans to be aligned with statewide goals.”

These long-term visioning processes need to include economic development, land use, infrastructure and broadband, community planning, and sustainability.

Focused on Greater Phoenix meeting the demands of current and future industry, Camacho says, “As business leaders place higher emphasis on talent and labor availability, cost containment, grid stability, pro-business policies and the advancement of diversity, equity and inclusion strategies, the region must continue to lead in these areas and make the requisite decisions that positively impact our regional competitive position and brand.” He sees long-term, equitable growth being achieved through advantageous tax and economic development polices as well as significant investment in our region’s education system, infrastructure, and use of clean and renewable energy.

Actions he feels will be critical are advancing pro-business tax and regulatory policies, strategic investment in statewide infrastructure and transportation networks, promoting policies that encourage the use of clean and renewable energy, supporting the growth of univ

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research programs and grads through efforts like the New Economy Initiative, and aiding the alignment of Maricopa Community Colleges and local school districts with industries of the future.

“Cities also should make sure that business attraction efforts are aligned with their economic development goals,” Miranda says.

Sharing that Chandler has a number of target industries it focuses on because they fit the city’s workforce, create quality jobs and will continue to be relevant in an increasingly technology-based economy, he says, “We want the development of our remaining land to support the growth of these target industries.”

Being resource-conscious is also important, Miranda notes, observing that land and water are finite resources, and water especially has been getting a lot of attention lately. “In Chandler, we look to our Council-adopted water allocation policy when considering business projects,” he says. For example, a high-volume user is expected to generate an economic impact that justifies its resource use. “Adhering to this policy allows Chandler to grow while maintaining a sustainable water supply for existing and future users.” He believes water supply is a key issue for every community throughout Arizona.

Don Henninger, executive director of SCOTT, puts it more bluntly: “We also need to get our collective heads out of the sand and get serious about dealing with potential water shortages, as we are in a long-term drought that may continue for years to come.” He believes we have become complacent over this issue due to having been lucky up to now in not having to deal with the negative effects. “We like to promote that fact that we don’t get earthquakes or tornadoes in Arizona,” he says. “That’s nice, but I sure wouldn’t want to say in 10 years that we don’t have enough water to sustain our economic growth.”

Water is one of five types of infrastructure Mackay names as most important — the others being streets, sewer, telecommunications and gas. Investing in infrastructure is key to making the most of our potential, she emphasizes, noting that infrastructure and sites have to be shovel-ready “because we’re competing in a global economy now, and that global economy has the infrastructure.”

“Businesses in Arizona’s rural communities also play a vital role in the economic development ecosystem,” says Hollis. Many of these rural communities operate incubators, hold classes and offer counselling for business owners and entrepreneurs.

But Kelly notes that investment in broadband and education will be critical for future rural success. “Arizona can have the lowest tax rate and the best incentives or tax credits, but if Arizona does not have the infrastructure or a qualified workforce to sustain growth and investment, companies will look elsewhere,” she says. Also coming to the forefront of economic development issues for cities and town is affordable workforce housing, especially as construction supply chains have been disrupted and costs are increasing for development.

Says Kelly, “Affordable housing is an issue that all Arizona communities will need to address to sustain growth, and it will likely take policy intervention to solve, like an affordable housing tax credit.”

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Past or even current success cannot be the end of the story. Says Collins, “We must continually evaluate Arizona’s competitiveness and not grow complacent with the successes we have had.” Priorities for which AAED advocates are a tool kit to advance Arizona’s strong business climate that is modern and flexible, enabling legislation that encourages the creation and testing of new products as well as the scalable growth of innovative companies, and policies that aim to increase small business creation and ownership. “Finally,” she says, “we need to recognize that sustainable spending on education is an investment, not a cost.”

Mackay also emphasizes the importance of continued support of universities and colleges. “Because they’re spinning out the thing that a city can’t create: the workforce,” she says, observing that cities can create a place where the workforce wants to live, create a great place for their families, but can’t create the workforce. “That’s the job of our educational institutions.” And they do, in fact, work very closely with the business community on a daily basis, according to Mackay, getting guidance and feedback. “For instance, for TSMC, ASU went with me to Taiwan to hear first-hand what they were looking for.”

Seleznow believes that investing in talent within our communities is critical for us to live up to our full economic potential, no longer relying on bringing in talent from elsewhere but investing in education for students from Pre-K through postsecondary in every Arizona community. “An educated workforce brings in businesses that provide living wages and flexibility to those who need it,” he says, “and that talent pool attracts more businesses in a self-perpetuating cycle.”

To that end, ACF provides more than $5 million annually in scholarships for college and technical training to Arizona students, and invests in Arizona’s future through grants to nonprofits that support P-12 education in communities across our state. But he notes that, as with any big challenge, the philanthropic sector can only do so much on its own. “Public-private partnerships and policy changes are needed to keep momentum going in a big way,” he says.

“If Arizona hopes to continue growing the business sector, it needs to show a commitment to local talent and promote inclusion for all who contribute to our collective success.”

Henninger points also to the need for more creative partnerships at all levels of education, from universities and community colleges to K-12 schools, as he notes, “Right now, the state, and Metro Phoenix in particular, is creating more jobs than there is talent to fill them.” He believes the state’s community colleges, especially, can be effective life-long learning centers for the technology and manufacturing jobs that will be the foundation of the state’s economic growth. But first, the state needs to get serious about funding all levels of education.

Says Henninger, “If Arizona is to fill the talent pipeline then it better start investing more to develop it, and that’s all about the educational system. The state has yet to face up to that.”

Affirming the need for long-term economic development strategies at the state, regional and local levels to guide policy decisions, how we invest in human capital to drive economic growth

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and how we allocate our finite natural resources, Miranda says, “Vision and cooperation are needed to achieve our potential.”

Cooperation may, in fact, be our greatest strength, at least as Mackay describes our business environment. She credits the business community overall with being helpful to economic developers by providing an accurate overview of what’s going on in the market; what it’s like to be in the market; and being really welcoming to new business coming in, to help them get the lay of the land. Regarding new businesses locating in this market, she says, “It’s hard to be the last one in the door. But there’s not anyone in our business community that I don’t call and say, ‘Can you go grab a beer with this company and tell them what it’s really like to be here, or could they come pick your brain on what it was like to hire your work force,’ who won’t take my call and take my request immediately.”

She acknowledges that outsiders might expect established business to shut out new ones because, for example, they would be fighting for the same workforce. “But Arizona is just different,” she says. “We have a different mentality. I think it goes back to our DNA. We built a city where a city should never have been able to be built in the middle of a desert. So we had to work together to survive.” She points also to the overwhelming sense that everybody comes from someplace else, so there’s none of the exclusionary “we’ll lock you out if you don’t have roots here” or legacy companies that have been here for 200 years and tell everybody what to do.

“Our secret weapon in Arizona is how easy it is for companies to be new,” Mackay says. Other places can’t copy it in any sustainable way; it’s not in their nature. “For us, it works organically.”

Says Camacho, “By making the right policy and investment decisions, we’ll continue to bolster our position and remain the most attractive place for businesses and residents to operate and live, while ensuring equity is at the forefront of everything we do from an economic standpoint.”

Mesa’s Jabjiniak shares figures that support optimistic expectations: The 2020 Census population count for Arizona was 7,151,502, an 11.9% increase over the previous decade, landing Arizona among the 10 fastest-growing states. “Although the pandemic is still influencing Arizona’s economic recovery, we expect to see continued recovery and growth,” he says. According to a University of Arizona report, Arizona has generated 236,700 new jobs over the last year, seeing a 71.4% replacement rate of jobs in our labor market compared to the U.S. replacement rate of 63.3%. The report goes on to say we will reach pre-pandemic numbers sometime around Q4 of 2021 and then create as many as 778,000 new jobs over the next decade.

Arizona Association for Economic Development aaed.com Arizona Community Foundation azfoundation.org City of Chandler chandleraz.gov Global Chamber globalchamber.org Greater Phoenix Economic Council gpec.org City of Mesa mesaaz.gov City of Phoenix phoenix.gov SCOTT scottnow.com

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PRESENTS

CELEBRATION OF SUCCESS ARIZONA COMMERCE AUTHORITY’S 10TH ANNIVERSARY

IT’S BEEN THE HOTTEST DECADE ON RECORD. Thank you Sandra Watson and the Arizona Commerce Authority for creating a business climate that’s sparked healthy economic growth and promoted entrepreneurship, making Arizona one of the nation’s hotbeds of innovation.

Here’s to another 10 years of unprecedented success!

azblue.com

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Do Business.

Message from President & CEO

Sandra Watson In 2011, Arizona faced a true “crossroads” moment.

Our economy slumped under the weight of the great recession. State revenue had plummeted.

Families and businesses were suffering.

What came next was unprecedented in our state’s history. Hundreds of stakeholders from the private sector, academia, elected office and more came together to develop a new vision for Arizona’s economy. Thought was given to the long-term. How do we grow high-value industries, attract better-paying jobs, and insulate against future downturns? In short, how do we make an economy built to last?

Many individuals put in countless hours to

given their time and energy serving with the

construct a blueprint for a new economic approach,

Arizona Commerce Authority, as board members

one that would have Arizona leading, not reacting.

or staff or alongside as partners in economic

The signing of the Arizona Competitiveness

development. The work of the last decade has

Package was a watershed movement for our state

truly been a team effort.

and, today, its impact is undeniable.

Today, Arizona’s diversified, high-tech

In 2021 — 10 years after the launch of the

economy is a resilient economy. Under Governor

Arizona Commerce Authority — our economy is

Ducey’s leadership, our state has weathered the

diversified across several high-tech industries, with

storm of the past year and opportunity abounds

more jobs in manufacturing than construction; our

at every turn.

startup ecosystem is attracting global attention;

At the ACA, we remain grounded in our mission

and our state is competing, and winning, at the

to grow and strengthen Arizona’s economy for all

highest level for economic development projects.

Arizonans, while keeping our focus on the future.

My sincere gratitude goes out to all the business and community leaders who have

We know there’s still plenty of work to do. We take on that work with energy, optimism and gratitude.

Sandra Watson President & CEO

“Arizona is leading the way when it comes to economic growth and new opportunities. We’ve got people moving here in droves, more manufacturing jobs, new businesses choosing our state, record exports and wages on the rise. Any way you look at it, the Arizona Commerce Authority is hitting it out of the park. My thanks go to ACA President and CEO Sandra Watson and her team for their dedicated leadership and success in welcoming new jobs, businesses and opportunities to our state.”

PRESENTS

In Business Magazine is pleased to be the official publisher of the

Governor Doug Ducey

Arizona Commerce Authority 10th Anniversary Celebration. We, along with countless other businesses in Arizona wish to congratulate Sandra Watson and the Arizona Commerce Authority on all the important accomplishments over the past 10 years. Please enjoy this special section.

CELEBRATION OF SUCCESS ARIZONA COMMER

CE AUTHORIT Y’S

10TH ANNIVERSARY

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Governor Doug Ducey, Governor Jan Brewer, Jerry Colangelo, Michael Bidwill,

With

Gratitude From its inception, the Arizona Commerce Authority

has been guided by some of the best minds in private industry, the legislature and our state universities.

This unique collaboration has been one of the chief strengths of the ACA, and the work of the last 10 years would not be possible without the time, leadership and dedication of all the individuals who have served on our board of directors.

The ACA extends our heartfelt gratitude to each and every board member, past and present:

Craig Barrett, Gary Abrams, Richard Adkerson, Paul Bonavia, Drew Brown, Philip Francis, Mike Ingram, Tim Jeffries, Steve Macias, Michael Manson, Mary Peters, Doug Pruitt, Victor Smith, Candace Hunter Wiest, Roy Vallee, Hon. Senate President Russell Pearce, Hon. Speaker Andy Tobin, Vicki Panhuise, David Tenney, Eugene Sander, Mayor Robert Walkup, Tom Anderes, Dr. Michael Crow, Dr. Rufus Glasper, Dr. John Haeger, Dr. Ann Hart, Sherman Jennings, Hon. Senate President Steve Pierce, Mayor Doug Van Gausig, Sandra Watson, Max Wilson, Judith Wood, Richard Boals, John Kaites, Jim Keeley, Brian Mueller, Hon. Senate President Andy Biggs, Mark Dobbins, Eileen Klein, Julie Pastrick, Dr. Rita Cheng, Hon. Speaker David Gowan, Mayor Mark Mitchell, Mark Bonsall, Dr. Wyatt Decker, David Goldstein, Mignonne Hollis, Dr. Taylor Lawrence, William “Wick” Pilcher, Kimberly Smith, Dawn Grove, Tommie Martin, Hon. Speaker JD Mesnard, Don Slager, Dr. Jean Swarthout, Mayor Jay Tibshraeny, Hon. President Steve Yarbrough, Dr. Maria Harper-Marinick, Anthony Smith, Dr.

Governor Ducey, Sandra Watson and Michael Bidwill join Raytheon and local officials for a 2,000-job expansion announcement in Tucson in May 2018

Robert Robbins, John Arnold, Hon. Speaker Rusty Bowers, Hon. President Karen Fann, Supervisor Steve Gallardo, Nancy Ham, Duff Hearon, Lee Lambert, Richard Luebke, Clate Mask, Quinn Palomino, Mayor Christian Price, Girish Rishi, Jack Selby, Barry Smith, John Wolfe and Mayor Cathy Carlat.

32

It Takes a

Team

Arizona is recognized for our streamlined approach

Arizona BioIndustry Association; Arizona Board

to economic development, with state, regional and

of Regents; Arizona Chamber of Commerce and

local partners all working closely together to ensure an excellent, seamless experience for companies doing business here. Each organization brings key resources to the table to highlight a region’s strengths and assets. The ACA is grateful for our many partners that we have been fortunate to work with to advance Arizona’s economy over the past 10 years.

In addition to elected leaders and our partner economic development teams at the municipal, regional and county levels, our tribal partners, federal and international partners, Arizona utilities,

Industry; Arizona Department of Transportation; Arizona Geographic Information Council; Arizona Mexico Commission; Arizona Manufacturers Council; Arizona Office of Tourism; Arizona State Land Department; Arizona State University; Arizona Technology Council; Arizona Western; Arizona@Work; Central Arizona College; Central Arizona Governments; Cochise

collaborators across state government and local and

College; Coconino Community College; East

regional chambers of commerce, we’d like to recognize:

Valley Partnership; Eastern Arizona College; Economic Collaborative of Northern Arizona; Embry-Riddle Aeronautical University; Federal Highways Administration – Arizona Division; Grand Canyon University; Greater Phoenix Economic Council; Greater Phoenix Leadership; Greater Yuma Economic Development Corp.; Institute of Digital Progress; Local First Arizona; Maricopa Association of Governments; Maricopa County Department of Transportation; Maricopa Community Colleges; Mohave Community College; Northern Arizona Leadership Alliance; Northern Arizona University; Northland Pioneer College; Pima Community College; Pima Association of Governments; Prescott Valley Economic Development Foundation; Science Foundation Arizona; Southeast Arizona Economic Development Group; Southern Arizona Leadership Council; Sun Corridor, Inc.; The SciTech Institute; University of Arizona; Valley Partnership; WESTMARC; and Yavapai College.

33

Congratulations to the Arizona Commerce Authority for 10 Years of Unique & Meaningful Work in Arizona

Distinctive Solutions RCAlaw.com

Phoenix Office | 3200 North Central Avenue, Suite 1600 | Phoenix, AZ 85012 | 602.440.4800 | www.rcalaw.com

35

Growth Reimagined How the Arizona Commerce Authority Got Its Start

Arizonans are no strangers to hard times, and few times tested the state and its leaders like the Great Recession.

In the years leading up to the 2008 financial collapse, Arizona’s economy blossomed, at least on the surface. A flood of new home and construction projects boosted job and revenue numbers to new heights. But these peaks would prove unsustainable.

The boom in Arizona’s “growth” industries distracted from deeper flaws in

ACA RESULTS (5-year projections) TOTAL PROJECTS COMPLETED:

MORE THAN 975 TOTAL PROJECTED CAPITAL EXPENDITURE:

MORE THAN $55 BILLION

TOTAL PROJECTED JOBS:

MORE THAN 191,000

the state’s economic makeup, namely, a lack of industry diversification and higher-end jobs. This would prove costly. Due to an overreliance on just a few sectors, when the global financial meltdown hit, it hit Arizona households particularly hard.

In 2009, Arizona residents experienced more than 160,000 foreclosures, the third highest in the nation, as reported in an article in The Atlantic (“Which States Had the Most Foreclosures in 2009”; Jan. 14, 2010). Over the next few years, the stalled economy would see the loss of more than 300,000 jobs and $3 billion in state revenue.

“Every week, the job projections were worse, the job losses were mounting.

And we were in the middle of just a true firestorm,” said Kirk Adams, who served as Speaker of the Arizona House of Representatives from 2008 to 2011.

As state and local leaders acted to stem the fallout, some around the state gave thought to addressing the fundamental deficiencies in Arizona’s economic approach.

“We had an economy that was too reliant on real estate, too reliant on growth, too reliant on back-of-house jobs that were eliminated,” said Michael

36

Governor Jan Brewer signs HB 2001 on February 17, 2011, legislation establishing the Arizona Commerce Authority and implementing key economic development initiatives

Bidwill, owner of the Arizona Cardinals. “What we really needed to do was pivot and have a strategy.”

At the urging of Governor Jan Brewer, individuals from

Over a period of four months, the Council along with Dial engaged more than 320 Arizona leaders through focus groups and stakeholder meetings. These individuals

government, business, universities and more convened to

represented 180 public and private sector organizations

develop a long-term strategy that would enable Arizona to

from rural and urban areas throughout the state.

lead and prepare against future downtowns, not just react to them.

The effort was spearheaded by a group of business and government leaders — appointed by Governor

Through this process, the Council and Dial developed a blueprint for a new economic agency that is unique to Arizona.

“Governor Brewer and others at the time took a very

Brewer — who would make up the Governor’s

thoughtful and deliberate approach,” said Roy Vallee,

Commerce Advisory Council (the Council). Governor

former chairman and CEO of Avnet and a member of

Brewer tapped JDM Partner and international sports

the eight-member council. “And through this iterative

executive Jerry Colangelo to lead the Council.

process, we came up with a recommendation to the

“We started looking at what existed, first of all, and when we did that, the conclusion was we need to basically start over again,” he said. “I’ll use the expression ‘blow it up.’”

The Council got to work, studying best practices

governor, which was to create what is now the Arizona Commerce Authority.”

The new Arizona Commerce Authority would be designed to excel where the previous department fell short. Instead of being weighed down by unwieldy

around the country and world, speaking with Arizona

mandates, the new agency would be equipped with

thought leaders from around the state, and reviewing

the flexibility and resources to respond quickly to job

the current economic model then represented by the

creation opportunities. Instead of a focus diluted with

Arizona Department of Commerce. The group also

unrelated responsibilities, the agency would be infused

brought on the work of Sara Dial, herself a former

with a clear, forward-thinking mission to improve the

Arizona Commerce director.

state for business and innovation. And it would be 37

overseen by the best minds in the private sector.

“One of the most powerful words in business is ‘focus,’” Vallee added. “So, we took talented people, the resources, and put that into an organization that was solely dedicated to economic development.”

Governor Brewer signed the Arizona Commerce Authority (ACA) into law on February 17th, 2011. She appointed Don Cardon, a businessman with a long record serving in both the public and private sectors, as the agency’s first president and CEO.

dealings. There are no special favors

ACA and broad tax reforms that

for special people. It is transparent

would enable the state to compete

and performance-based.”

nationally.

In addition, the legislation

“Arizonans and Arizona

enacted a suite of economic and financial tools, known as the Arizona Competitiveness Package, that included targeted business

incentives to be overseen by the

Armed with both public- and private-sector leadership and a clear

policymakers wanted a level playing

mission focused on the quality as

field. So, we created an incentives

well as quantity of new jobs, the ACA

structure that is just that,” said

set out to fundamentally change

Adams. “There’s no backroom

Arizona’s economic landscape.

Congratulations on 10 great years!

Arizona Commerce Authority

Inspired People. Inspired Work. goodmans.com PHOENIX | TUCSON

38

Congratulations on 10 years of strengthening Arizona’s economy!

C

M

Y

CM

MY

CY

CMY

K

Arizona Commerce Authority has been an important part of our state’s growth for 10 years, working with the Arizona Technology Council and others to build an economy centered around technology and innovation. We join in the celebration of this success and look forward to the important work ahead!

Congratulations

ACA on 10 Great Years of Bringing Business to Arizona.

Thank you.

Generate more leads and sales with the KEO Marketing B2B Success System KEOMarketing.com | 480-413-2090

39

A Trans

Governor Doug Ducey and Sonora Governor Claudia Pavlovic join Lucid Motors CEO Peter Rawlinson in December 2019 at a groundbreaking 40 for the company’s factory in Casa Grande

formative Decade The passage of the Arizona Competitiveness

“It was critical that we build on Arizona’s

Package in 2011 represented a groundbreaking

strengths to enhance business opportunities

shift in how Arizona pursues economic

and better position us to successfully compete

development and was the culmination of

in the global economy,” said Sandra Watson,

countless hours of collaboration among the

who began as executive vice president

legislature, Governor’s office and private sector.

and chief operating officer at the ACA and

Of course, it was also just the beginning.

was appointed president and CEO in 2012.

“The work of creating a new Arizona

“Our focus was on export-based industries

Commerce Authority didn’t end with the

— aerospace and defense, renewable

passage of the legislation,” said Eileen Klein,

energy, semiconductor and electronics

former state treasurer and president emeritus

and the bioscience industry — as well as

of the Arizona Board of Regents. “From there,

advanced business and financial services and

there was an effort by business leaders to

headquarters operations.”

make sure that we put together a very strong business plan.”

Early on, the agency also took new steps to prioritize rural economic growth and support

That plan encompassed three distinct

local entrepreneurs through programs such as

parts: 1) growing and maintaining business

the Arizona Innovation Challenge, the Venture

already in Arizona; 2) attracting new businesses

Ready Accelerator and Venture Madness — all

to relocate or expand; and 3) engaging

of which provide resources and mentorship to

international companies to locate their

help early-stage ventures commercialize new

operations in the state.

technologies and scale.

41

Success would come quickly, and, by 2015, new

It did not take long for that approach to show results.

leadership at the state capitol catapulted the state’s

Just weeks into the governor’s tenure, Arizona was grabbing

economic development efforts into overdrive.

international headlines. Apple, one of America’s largest and

“As the organization grew up, particularly since 2015

most iconic brands, committed in February 2015 to building

when Governor Ducey took over, having a businessperson

a “global command center” in Mesa. At $2 billion, the

chair that organization has really been a game-changer

investment represented one of Apple’s largest ever.

for us,” said Michael Bidwill, owner of the Arizona Cardinals and a founding ACA board member.

“Our ability through the ACA to land that facility here in Arizona sent a signal to the business community across

A former businessman and CEO, Ducey brought his

the country,” said Kirk Adams, former Speaker of the

executive-minded approach to both state government and

Arizona House of Representatives and chief of staff to

the ACA, where he chairs the board of directors.

Governor Ducey. “You don’t just land Apple for no reason.”

“The number one change that I saw at the ACA is that

Pretty soon the word was out about Arizona, and

I was going to be intimately involved,” he said. “I wanted

the announcements came flooding in: Lucid Motors,

to sit across the table with CEOs, decision makers and

Benchmark Electronics, Nikola, Zoom, Silicon Valley Bank,

influencers and let them hear directly from the governor

Raytheon, Infosys, Opendoor Labs, Carvana, Caterpillar,

— the chief executive officer of the state — of what was

TuSimple, Zovio, Orbital ATK, Cognizant, ElectraMeccanica,

going to happen in terms of our taxes being lowered, our

Intel, TSMC and many more.

regulations being reduced and that we would be a more

Not to be outdone, Arizona startups have also made a big splash of their own with names such as

business-friendly place.”

scottnow.com www.scottnow.com

A POSITIVE VOICE FOR SCOTTSDALE The Scottsdale Coalition of Today & Tomorrow is dedicated to promoting, enhancing and constantly improving Scottsdale’s quality of life and economic vitality through community education and involvement in public policy issues.

Thanks ACA for all you do for Arizona.

Community forums: SCOTT organizes a roundtable of 60 community, civic and education leaders to work on issues to benefit the city. It includes leaders from diverse groups that realize collaboration and consensus building is key to solving problems.

SCOTT educates through newsletters, social media, traditional media, podcasts and events.

AN INVITATION: If you have interests in Scottsdale and care about the future of the city, I invite you to learn more about how you can be involved in SCOTT and its activities.

—Don Henninger, executive director, donh@scottsdale.com

Learn more today at www.scottnow.com 42

MORE THAN

315

COMPANIES

CampusLogic, Paradox, GT Medical Technologies, Trainual and RevolutionParts drawing global attention.

Each company is a previous winner of the Arizona Innovation Challenge, a startup business plan and pitch competition hosted by the ACA. “What’s really been rewarding is watching our earlystage technology companies develop these new worldchanging technologies and competing with companies out of Silicon Valley, New York City and Boston,” added Watson.

The ACA has improved Arizona’s economic environment in other ways, too. These efforts include enhancing the availability of skilled workers through workforce initiatives like the Arizona Advanced Technology Network, boosting broadband infrastructure in rural communities, optimizing export opportunities with trade offices in Mexico and Israel, and accelerating industry-university partnerships essential to research and development.

In total since 2011, the ACA has successfully won more than 975 competitive projects from companies that have committed to creating more than 191,500 projected

HAVE ESTABLISHED HEADQUARTERS IN ARIZONA IN THE LAST 10 YEARS new Arizona jobs and investing more than $55 billion in our state.

Even more noteworthy, Arizona’s old, boom-bust economy is a distant memory. In its place is a vibrant, expanding ecosystem rooted in innovation and technology — and one that’s turning heads around the world.

As former chairman and CEO of Avnet and founding ACA board member Roy Vallee stated: “The team of Sandra Watson and Governor Ducey I think has taken the ACA to levels of achievement that many people thought were never possible.”

Greater Phoenix Leadership Board Chair Michael Bidwill and the entire organization of 140 CEO’s congratulate and thank Sandra Watson and the Arizona Commerce Authority on a successful first decade strengthening Arizona by strengthening our vibrant business sector. www.gplinc.org 43

Welcome to Arizona,

Lucid VP of Manufacturing Peter Hochholdinger, Bryan Kuster of McCarthy Building Companies, Casa Grande Mayor Crag McFarland, Governor Doug Ducey, President of Central Arizona College 44

Dr. Jackie Elliot, and ACA President and CEO Sandra Watson at the launch of Drive48

Where the Future Is Now

ElectraMeccanica breaks

ground on the company’s new manufacturing facility in Mesa

Ask any visitor to the state in 2011 what drives Arizona’s economy and you’d likely hear about retirees, real estate and red rocks.

Today, Arizona is making a name for itself for entirely different reasons.

Recently, national publications have labeled the state “U.S. Semiconductor Central,” “a modern-day salon of (electric vehicle) innovators,” and “the place where autonomous vehicles go to learn.”

The economic transformation has been called the most important story of the last decade, and it’s no accident.

“We knew that we had a real opportunity with technology, and it started right from the get-go,” said Governor Doug Ducey, who took office in 2015.

In one of his first executive orders, an action facilitating the development of automated vehicle testing, Ducey stated, “The state has a shared vision that the future of transportation and commerce relies on innovative technologies.”

That vision has paid off. Today, the list of companies that have operated automated vehicle testing here include TuSimple, Mobileye, Nuro, Imagery, Waymo, Uber, Lunewave, Udelv, Cruise and Local Motors.

45

Dr. Randhir Thakur, president of Intel Foundry Services; Governor Doug Ducey; and Keyvan Esfarjani, Intel senior vice president in Manufacturing & Operations, celebrate Intel’s $20 billion investment for two new factories on the company’s Ocotillo campus in Chandler

“There’s been a tremendous amount of policy work that has happened over the course of the last 10 years, with Governor Ducey launching

new high-tech, high-wage jobs.

Ten months prior, Taiwan Semiconductor

first-in-the-nation reforms around the fintech

Manufacturing Company (TSMC), the largest

and proptech sandboxes, automated vehicles,

producer of computer chips in the world,

creating the Institute for Automated Mobility,

announced a $12 billion investment of its own

the focus on the Internet of Things and these

to build a chip fab in Phoenix. The project will

new technologies that will really advance our

create more than 1,600 new high-tech jobs and

economies,” said Sandra Watson, president and

generate thousands of additional jobs in the state

CEO of the Arizona Commerce Authority.

for suppliers and other companies within the

According to technology reporting firm CompTIA, since 2015, Arizona has added more

semiconductor industry.

“We are increasingly seeing that technology

than 38,000 tech jobs, bringing total employment

and industrial sectors are converging,” said Girish

in the tech industry to 255,998. The firm predicts

Rishi, CEO of software firm Blue Yonder. The

Arizona will be a top 10 state for tech jobs added

Scottsdale-based company, which was recently

by the end of the decade, with more than 22,000

acquired by electronics giant Panasonic, worked

jobs to come.

with the ACA on a 2015 expansion project.

Already, it appears that forecast may be

“For Blue Yonder to anchor our headquarters

an underestimate. Arizona is experiencing

in Arizona, the ACA played a defining role,” Rishi

a surge of historic proportions in high-tech

added. “ACA brings a degree of empathy, a

manufacturing projects.

degree of understanding, a time investment to

In March, Intel announced a $20-billion expansion, representing the largest private

46

in Chandler, leading to the direct creation of 3,000

understand our business and our requirements.”

The high-tech announcements represented

investment in Arizona history. The technology

by Intel and TSMC are of the type any state

company plans to build two new advanced

dreams of landing. For Arizona, they are part

semiconductor fabrication facilities at its campus

of a robust, diverse and thriving innovation

ecosystem that includes emerging technologies such as

opportunities in the community for services such as

artificial intelligence, automated vehicles, the Internet

banking, restaurants and retail — lifting up all of Arizona.”

of Things, freshwater science, renewable energy,

One way that’s experienced is in higher incomes. Last

quantum computing, smart materials, nanosatellites and

year, Arizona led the nation in personal income growth.

electric vehicles.

Since 2011, median household income in Arizona has

Take Pinal County, for example, where electric vehicle manufacturers Lucid Motors and Nikola have built stateof-the-art assembly plants. The facilities will support thousands of high-tech jobs in the years to come.

Helping fill these positions with ready talent is the advanced manufacturing training center known as

grown from $46,709 to $62,055, faster than inflation and the U.S. as a whole.

State and local governments have also experienced record revenue growth, leading to billions in increased funding for schools, public safety, infrastructure and more.

With high-quality jobs in abundance and advanced

“Drive48,” located in Coolidge, Arizona. The training facility,

industries thriving, Arizona finds itself light years away

which offers students instruction in advanced automotive

from its old self. According to Governor Ducey, that

assembly, is the product of a unique collaboration of the

means great things for today’s residents as well as future

ACA, Central Arizona College, the City of Casa Grande and

generations.

Lucid Motors.

“The future of Arizona is super bright because when the

“What it means is no matter where you are on the spectrum, whether you’re entry level, whether you work

manufacturers locate here, all their suppliers want to come

with your hands, whether you’re a knowledge worker, you

locate near them,” said Dawn Grove, corporate counsel for

can make this your home, you can build your career, you

Karsten Manufacturing and an ACA board member. “The

can pursue your version of the American dream right here

multiplier effect from these businesses creates further

in Arizona,” he added.

47

Congratulations Arizona Commerce Authority!

Like you, we are here to support great business.

In Business Magazine is proud to be the official publication for the Arizona Commerce Authority’s 10th Anniversary Celebration.

GROW WITH US

In Business Magazine | inbusinessphx.com | In Business Dailies

BUSINESS GIVES BACK

Social Impact

SanTan Brewery: Creating Earthly Change through Partnership and Innovation This leading advocate for the ‘craft beer revolution’ shows its community care

Photo courtesy of SanTan Brewing Company

by Tyler Butler

Since 2007, Arizona’s craft can pioneers have been an agent for positive change. Originally launched in the heart of Historic Downtown Chandler, SanTan Brewery’s operations grew quickly. And, through its continued dedication to innovation and partnership, the SanTan Brewing Company has been able to revolutionize its industry while keeping community at the forefront of its business.

SanTan has been a leading advocate for the “craft beer revolution.” Starting in 2009, the company recognized that there was an opportunity to aid humanity while growing and diversifying its business. This approach brought the company to begin packaging its beers in cans. “We care about everything that goes into making our beer and spirits, from the ingredients to the packaging,” shares Anthony Canecchia, founder and brewmaster of SanTan Brewing Company. With an annual production rate of 50,000 barrels, this change made a big impact for our environment.

In 2015, SanTan shifted its focus to reimagine what spirits could be. Recognizing an untapped opportunity, the company launched a distillery to create whiskeys, vodkas and gins. The brewery prides itself on being different from other distilleries in Arizona. Through its SanTan Tours, which are an immersive, educational look at the science and similarities of the brewing and distilling process, the company has continued to evolve and differentiate itself from other similar businesses.

In fact, the company is the only combined brewery and distillery in the state.

Rooted in an ethos centered on merging craft with science to create uncommon quality and flavor, the organization has also been a valuable partner to the community during some of the most trying times. During the pandemic, SanTan Brewery was the first local brewery to pivot its product to convert more than 16,000 gallons of draft beer into 400 gallons of medicalgrade hand sanitizer — called SanTanitizer.

“SanTan beers are best served fresh, so this idea struck me as a great way to repurpose and give back to our Arizona community. We wanted to do our part to help flatten the curve, save lives and get Arizona back to work,” says Canecchia.

Recognizing that its beer had a shelf life and that the community had needs which they could serve, the company quickly moved to pull the beer from their taps at local bars and restaurants and instead brought them to SanTan, where they converted the distilling equipment to process sanitizer. Most of this was donated to HonorHealth and the City of Chandler to aid the community when they needed it most.

It is, however, SanTan’s latest endeavor that is its most ambitious. Joining countless good corporate citizens, the team at SanTan has taken on a rather lofty goal. SanTan Brewery’s newest mission is to reduce its carbon dioxide emissions for

RECYCLING CO2?

a cleaner Earth and better beer. Through a partnership with Earthly Labs, SanTan is once again innovating for a brighter future. “Pioneering climate technology only works if leaders invest in it.” says Amy George, CEO of Earthly Labs.

Through SanTan’s investment in an Earthly Labs system, the company is now able to recapture the carbon dioxide that is naturally produced by the fermentation of its beers. The CO2 is then stored as a liquid and repurposed to carbonate SanTan beers. Additionally, SanTan has installed a nitrogen generator that will purify the ambient air and eliminate the use of CO2 for purging aluminum cans, kegs and tanks at its production facility.

The combined use of these two new pieces of equipment will reduce SanTan Brewing’s CO2 emissions by more than 50% per year — eliminating 500 metric tons of CO2 that would otherwise be added to Earth’s greenhouse gas emissions.

“I’m really proud to be able to take this step toward creating a more hopeful future by doing our part to reduce carbon emissions and create a cleaner environment. Earthly Labs is changing the game for our industry by giving us control over key ingredients that are good for the planet,” says Canecchia.

With such a rich history of giving back and in some cases paying it forward, it’s no wonder that the company continues to be recognized for its superior products. Having won numerous accolades for its creations, SanTan continues to lead through innovation and dedication to excellence.

Since the global pandemic, Earthly Labs has witnessed the effect of carbon dioxide supply chain risk in some regions, resulting in shortages, CO2 price spikes and surge or force majeure pricing.

Earthly Labs technology allows breweries to supplement CO2 supply by capturing and using their own natural CO2, which has fewer hydrocarbons and other impurities. earthlylabs.com

Tyler Butler is the head of Corporate Responsibility for Aventiv Technologies, where she leads programs that positively impact society. She is also founder and principal of 11Eleven Consulting and is often cited as a subjectmatter expert by Forbes, SHRM, Entrepreneur, U.S. News and World Report and more.

11elevenconsulting.com

SanTan Brewing Company santanbrewing.com

SanTan Brewing Company’s innovative new equipment will reduce its CO2 emissions by more than 50% per year — eliminating 500 metric tons of CO2 that would otherwise be added to Earth’s greenhouse gas emissions.

JULY 49 2021 INBUSINESSPHX.COM

A PATH TO FOLLOW

Leading When Times Are Good

5 tips to take business to the next level when things are running smoothly

by Zanzibar Vermiglio

Zanzibar Vermiglio is an author, corporate trainer, time management expert and the founder of Zanzibar Enterprises.

After skipping college at age 18 to manage companies, he has since led training programs for more than 20,000 people in hundreds of businesses. He has also doubled the size of more than 100 companies.

The three aspects of business he focuses on are value proposition design and execution, operation scalability (including management architectures) and sales planning. zanzibarenterprises.com

JULY 2021

50

INBUSINESSPHX.COM

It’s almost second nature for business leaders to lean in and help their team weather a storm. The pandemic was a perfect example, as many companies were trying to figure out new and creative ways to make sales to keep from closing their doors. On the other hand, these trying times turned into a pot of gold for many companies that were able to pivot quickly.

The stream of new customers opened the floodgates to unparalleled success.

But instead of laying off daily disciplines and going with the flow when things are going well, strong business leaders should put just as much energy into new processes, alternative methods and growth as they do when times are tough.

CREATING A GAP: EXQUISITE VALUE TO CUSTOMER

When experiencing success, leaders should always create a gap between where their teams are now and what they’re striving for. A business only exists to create value in a market. When times are good, businesses have room to get experimental in how they are going to approach the marketplace in new ways and elevate delivery to potential customers. For example, when businesses are overrun with business, often what happens is team members scramble to get everything done. Details can be missed. Instead, encourage team members to focus their attention on ways of elevating value delivery both technically and experientially to the client.

When experiencing success, leaders should always create a gap between where their teams are now and what they’re striving for.

Two things will happen. First, switching the culture from frenetic defense to cognitive and careful offense will leave the team grounded and having more space around them.

Second, the value delivery of their operations will be more dialed in, resulting in more client referrals. Rather than just a groundswell, elevate to another level of performance. The first thing great leaders do in good times is create a gap between where we are now, and how good they can possibly be at executing for their clients.

DEVELOP PEOPLE

Next, leaders should always be developing their people.

When a business is running smoothly, leaders should have room around them both emotionally and contextually to dig in and help people become the next iteration of themselves professionally. Team members shouldn’t go on autopilot. They should stay busy and hungry.

One of the most important things leaders can do is to make sure to know where each one of their people wants to be in the next three years in their career. It is a manager’s job to get them where they want to be. Find out what that future is for them and get behind it. Challenge programs are an amazing way to develop people into the next best version of themselves. Having employees switch positions for a week, allowing them to walk a mile in someone else’s shoes, builds empathy for other departments and triggers them to

STRATEGIES FOR WORKING REMOTELY want to do their job better when they return. Challenge programs can be done between executives or teams, and have proven to be extremely developmental because growth is inevitable.

The Science of Dream Teams

CAPITALIZE ON INCREASED RESULTS

succeed while others — made up of equally talented people

Capitalizing on increased results is critical to maximize opportunity. If sales have started to flow, change processes to capitalize on the increase in flow. Leaders might not do certain things they were once doing to garner success; breaking into a different mode of management could be an option. For example, I worked with a large mortgage broker team. We had structures in place to manage each broker around generating relationships with real estate agents. They had daily and weekly reporting structures in place. These architectures were wonderful in garnering expansion of results. However, when the refinance industry exploded, it didn’t make sense to spend all this time cultivating referral partners for homebuyers.

We quickly instituted new sets of actions for automated touches through email and text to keep those relationships simmering, but not directly driven so we could free ourselves up to capitalize on the influx in lowhanging fruit. (Notice, however, we figured out a way to keep a bit of momentum in those relationships in preparation for the inevitable turn back the other direction.)

Something that is important in these times of flooding results is, leaders should take away a bit of the reporting mechanisms and allow people to run more freely. The burden of scrutiny when creating any reporting mechanism is, “What do I need to see, and how often do I need to see it to guarantee the result will be produced?” This principle doesn’t change when things start going impressively well. However, “What do I need to see?” and “How often do I need to see it?” should be significantly less.

LOOK AROUND THE CORNER

A great leader is always looking around the corner for what’s next. When times are good, it’s the appropriate move to focus intensely on what could possibly go wrong. When everyone is focusing on how great everything is, it is incumbent on our leaders to have the maturity to see where things could possibly go wrong, and either prepare for them or prevent them. This takes a discerning eye and a bit of intuition, but when intelligent people look, they will find good answers to answer or prepare for. In the example above, we knew that the refinance market wouldn’t last forever and made certain to not only keep the relationships in place, but also instituted cultivation long before anyone else did. The result was that we didn’t get hit at all with the pain other brokerage houses felt when the market shifted.

How does an employer find the perfect person for the job in a stack of hundreds of resumes? Why do some teams — stumble? If the quality of a business’s workforce is the business’s most important asset, then why are its managers still basing these critical decisions primarily on interviews and their gut instincts? In The Science of Dream Teams, Mike Zani details a data-driven approach to talent optimization that makes hiring, motivating and managing people more efficient and effective than ever. Whatever the business or industry, this game-changing approach has the power to unlock an unbeatable competitive advantage.

The Science of Dream Teams: How Talent Optimization Can Drive Engagement, Productivity, and Happiness Mike Zani

One of the most important things leaders can do is to make sure to know where each one of their people wants to be in the next three years in their career. It is a manager’s job to get them where they want to be.

Available 7/6/2021

$30

Scaling for Success Managing a high-growth organization requires both strategy and adaptability. Unfortunately, startup founders and executives seeking to scale up to the next level find all too frequently that growth turns into chaos. Rather than laying the groundwork for the future, organizations get stuck by covering up complex problems with unsustainable band-aids and duct-tape fixes, implementing anecdote-based solutions from the latest tech-industry unicorns or leadership books, and relying on too much on-the-fly learning from inexperienced managers.

Practical, actionable, and supplemented with numerous diagnostic tools and illustrative examples, Scaling for Success helps readers identify the core people-management programs and practices that are best for an organization at its current stage and size while also supporting a foundation for continued development and the capacity to adapt to inevitable surprises.

Scaling for Success: People Priorities for High-Growth Organizations Dr. T. Brad Harris and Andrew C. Bartlow Columbia Business School Publishing

208 pages

Available 7/6/2021

TRUE DIVERSITY Pie Graphs are commonly used by corporations to illustrate

RAISE EMOTIONAL INTELLIGENCE

Lastly, when times are good, elevating the emotional intelligence (EQ) of team members is a must to keep functions within a company from stagnating.

An easy way to build EQ is through team building. For instance, with a team of 12, ask three people on the team at the beginning of each meeting to highlight one person and acknowledge what that individual brings to the table and what’s truly unique about how that person operates — making sure to be creative about it. Another key for elevating EQ is for people to self-identify weaknesses in their own development or what weaknesses they have for the next job they want to obtain within the company.

When times are good and the floodgates of productivity are open, leaders should always be pointing in a direction and taking their group of people there. Leaders should never be happy with where things are or how things are running. Something can always be created. I’d recommend sitting with leaders to come up with where they are going to point next and make sure there is a designated plan for how they will get there.

240 pages

McGraw-Hill Education

their diversity. Improvements in pie graph analytics have been accepted as progress by corporate standards. True Diversity challenges this conventional wisdom, exposes the inherent weaknesses of pie graphs and challenges companies to “Go Beyond the Pie Graph.”

Is it possible that these individuals who would occupy the same slice of a pie graph may actually be more dissimilar than they are similar? Is it even remotely possible that the only reason we group them in the same slice of the pie graph is to make ourselves feel better? How can we harness the power of their True Diversity that is not captured on a pie graph?

TRUE DIVERSITY: Going Beyond The Pie Graph Jesus Leal and Nathan Williams BookBaby

242 pages Available 7/22/2021

$16.95

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LAW MATTERS TO BUSINESS

Proactively Plan for Consumer Privacy Laws Planning ahead can help Arizona businesses avoid severe consequences

by Scott Bennett

Coppersmith Brockelman’s Scott Bennett is among the state’s leading attorneys representing hospitals and healthcare providers. His knowledge about data privacy and security, especially where it comes to HIPAA and protecting sensitive healthcare information, helps companies comply with the complex web of federal and state laws and regulations. cblawyers.com

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When the European Parliament and the Council of the European Union implemented the comprehensive General Data Protection Regulation law to improve data protection and privacy throughout Europe in 2018, many Arizona business owners didn’t think it applied to them.

But if they do any business in Europe, it does; and with California and Virginia passing similar laws and consumer privacy laws proposed in Arizona and many other states, businesses can no longer afford not to examine their data privacy practices and prepare for a potential federal privacy law.

To avoid severe consequences, companies must take the following actions to reassure customers that their information is kept secure: Create and/or update privacy policies. Required by law to keep information about consumers located in California, Virginia and European countries secure, organizations must have a privacy policy that outlines how they do so. Policies must address what information they collect, how they collect it (whether a consumer enters it directly on a website or it is indirectly captured through Google Analytics, location data, microphones and cameras or other sources), what they do with it (including when they disclose and to whom) and how long they keep it.

The template policies many companies use are fine as a starting point, but companies must ensure what they say matches what they actually do. Failure to do so can result in lawsuits or FTC enforcement actions, including large fines and burdensome settlement agreements.

Companies following best practices make their privacy policies easy to access through a footer on their home page.

Establish data mapping protocols. Data mapping examines all the data a company collects, where it is located and what is needed. What types of information does the company have? Where does it live and who has access to it?

Contrary to popular belief, responsibility for data mapping does not rest solely on the IT department; in fact, it’s important to include representatives from compliance, security and, especially, marketing. Effective marketing departments gather tremendous amounts of data from direct marketing campaigns and ads — information that, although beneficial, definitely needs to be addressed. Because each of these departments has a different slice of the information and uses it in different ways, it’s imperative that they all be involved in developing the company’s protocols.

The data-mapping team needs to consider information from any source, including websites, apps, phone calls, in-person conversations and lists purchased from third parties. Likewise, data mapping needs to account for the many types of devices collecting information. For example, medical companies

According to IBM, the average data breach costs businesses $3.92 million and takes almost a year to detect and contain. ibm.com/security/digital-assets/cost-data-breach-report

need to include MRI machines, insulin pumps, IV pumps and more. Healthcare companies and others with especially complex data-mapping needs may wish to bring in an outside consultant to ensure they address everything properly.

Minimize data collected and keep only what is needed. The privacy laws already in effect in California, Virginia and Europe give consumers the right to see what information a company has about them, including getting a copy of the information. Additionally, consumers have the rights of deletion and correction, requiring companies to delete or make changes to inaccuracies when requested.

Doing so is complicated, especially when data is spread out over numerous systems and backups, not to mention vendors like cloud-storage providers and accountants.

Because consumer information is everywhere, and collected in so many ways, companies can reduce fallout from breaches by collecting and keeping the minimum necessary information for the least amount of time possible. Too often, when breaches are discovered, companies find the information that was compromised was old and unnecessary. Establishing and following a document-retention policy helps companies improve data minimization.

Business needs and legal requirements vary, but all companies can enact measures to review and delete old information. For electronic data, they can set up systems to report and delete files older than what they are legally required to keep. Physical data requires a manual review, but those responsible for conducting them can set calendar notices for periodic review and deletion.

WHERE THE MOMENTUM IS HEADED

Although existing consumer privacy laws grant exceptions to industries like healthcare and finance and to other companies based on their revenue, passage of additional laws — including a federal one — is on the horizon. The movement is gaining critical mass and Arizona companies serving consumers in California, Virginia and Europe are already vulnerable. Knowing that Arizona and federal laws are coming, companies must start preparing privacy policies, mapping data and practicing data minimization to protect themselves.

DEVELOPING & GROWING BUSINESS DYNAMICS

Economy

Engaged with Purpose: Who’s Driving the CAR? The impact of empowering employees choices in investments

by Joshua Zahn

It’s not enough to know something; a person must engage to see results. And what drives anyone’s engagement will significantly impact whether they stay engaged for the long run.

According to Gallup (2021), only 35% of employees in the United States are engaged in their jobs. For business leaders, that means that, statistically, six out of 10 U.S. employees are not engaged. That hits the top and bottom line of any organization. For example, organizations for which employee engagement is higher experience significantly lower absenteeism, less turnover, fewer quality defects, higher customer loyalty, higher sales and higher profitability.

And here’s the good news: Gallup also found that 70% of the variance in engagement can be explained by the quality of a leader. Leadership style makes a significant difference for both the employee and the organization when employees stay engaged.

So, let’s dig into the science of staying engaged; in other words, staying motivated.

There are several types of motivation, but intrinsic motivation is the most persistent and originates from within the individual, as E.L. Deci and R.M. Ryan discuss in their 2000 article in Psychological Inquiry, “The ‘what’ and ‘why’ of goal pursuits: Human needs and the self-determination of behavior.” And here’s the good news: There’s kind of a formula to it. Deci and Ryan explain that, when a person’s psychological needs of competence, autonomy and relatedness (CAR) are met, they are more likely to stay intrinsically motivated.

And E.J. Boezeman and N. Ellemers, in their 2009 article “Intrinsic need satisfaction and the job attitudes of volunteers versus employees working in a charitable volunteer organization” in Journal Of Occupational & Organizational Psychology, point out that competence is one’s ability to complete tasks or achieve the mastery to do so; autonomy is having a choice in one’s actions and outcome, and relatedness is developing and maintaining secure and respectful relationships. To continue to engage in something, all three are necessary because, when one of the needs is unmet, the structure of intrinsic motivation becomes unstable.

For a business leader, here’s what the CAR formula may entail: • Competence: The business leader provides team members with opportunities to increase their skills and ability to engage meaningfully at work.

• Autonomy: The business leader provides options for team members where they can influence what they do and own their future.

• Relatedness: The business leader uses empathy in relating to the team, helping them understand their leader has their long-term best interests at heart.

As it related to empowering employees with choices around investments, the CAR formula can be translated this way: • Competence: Individuals may not understand all the ins and outs of investing, but when presented with resources, they can develop their competence to the degree they desire. Part of this competence includes determining goals, understanding the wealth strategies to meet them and creating a plan to execute.

• Autonomy: An individual gets to create a plan that will allow him or her to take control of his or her future. If part of that plan includes working for a set amount of time to fulfill those aspirations, individuals more willingly engage in work because they have decided to do so.

• Relatedness: Building a relationship with a trusted financial advisor is always a good practice, especially when that advisor has no other agenda than to help clients achieve the best future possible.

Joshua Zahn launched his career in financial services in 2014 and joined Desert Financial Wealth Management in 2019. He helps clients obtain financial success while educating and empowering them to make good decisions. desertfinancial.com

Most people go to work to pay for needs and wants. Goalsbased planning is a proactive strategy to cover those costs.

Whether that goal is education, a new home or retirement, when individuals work with a trusted advisor there is a dual benefit of helping them own their future and engage in their work in a meaningful way. And when business leaders provide opportunities for their team members to develop those types of key relationships, everyone wins.

According to Gallup (2021), only 35% of employees in the United States are engaged in their jobs. For business leaders, that means that, statistically, six out of 10 U.S. employees are not engaged.

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OUR SUBJECT IN-DEPTH

How Stress Is Costing You Your Business

Crises aggravate it, but it’s there in good times, too

by Jen Butler

Business owners make stressful decisions for the sake of their company — work longer hours, placate toxic but irreplaceable employees, take on more responsibility, delegate less. They do what they have to do.

These leaders expend time, resources and money because they get a return on their investment, but often that ROI ignores one vital factor: the overwhelming cost of stress.

According to the American Psychological Association, at a minimum stress causes U.S. businesses $300 billion a year, a figure that would certainly be revised upward during crises like the Boeing 737 Max airplane failure or the pandemic.

COMPANY STRESS

Jen Butler, CEO of JB Partners, is the creator of Get SMaRT – Stress Management and Resilience Training for the workplace. The SMaRT Club learning platform is the leading self-guided tool for all companies looking to reduce stress and increase profits.

Butler also travels throughout the United States to provide business leaders with one-onone, onsite guidance in managing stress, turning around their business, and achieving real, longlasting results. jbpartners.com

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Stress has physiological, psychological and situational components, such as headaches that make work difficult and slow decision making, fears that cause hesitation and limit innovation, day-to-day changes in staffing that impact productivity and KPIs. The results of stress are measurable in terms of: • Low productivity: Although employees show up to work despite being stressed, their performance plummets. A Gallup poll found that 51% of stressed employees are disengaged; and a Colonial Life poll found that 41% are less productive.

• Compromised image: Stress reveals itself to customers in part as an unwillingness to help and a poor attitude. This behavior alone can reduce revenue and provide and edge to competitors. A 2016 study at Harvard Business School showed that a a one-star increase in Yelp rating led to a 5% to 9% increase in revenue. Businesses can’t get there with stressed employees.

• Financial losses: A business leader’s job is making profits, and a stressed workforce spells losses. With 92% of current human capital claiming so much stress it impacts their work and 53% of those actively requesting help with managing their stress, CEOs do not have the luxury of sticking their head in the sand or believing people just need to “just do their jobs.” Post-pandemic stress and anxiety is real and must be addressed to maintain profitability.

• Lawsuits: Stress causes mistakes and errors in judgment due to the many biological and physiological consequences.

This opens up irreversible damage to the business and its customers. Mistakes and errors lead to expensive lawsuits that take a huge toll, both personally and financially. In a business

where stress levels are high, carelessness and mistakes accumulate exponentially.

• Absenteeism: The team member simply doesn’t show up, piling more stress on team members who do show up.

Unplanned absences cost about 14% more in loss productivity than planned absences, according to research by the Society of Human Resource Management. That cost includes the lower productivity of those called in to cover for the absent team member.

• Presenteeism: Absenteeism is a common data point in evaluating the health of a company’s human capital. This is a very small number compared to presenteeism. That is the true indicator of the stability and productivity of a team. Workers feeling obligated to show up to work ill, stressed or less than their peak only means poor outputs.

PRACTICAL RESPONSES TO STRESS

Executives recognize the impact of stress on their company.

However, in the midst of stressful situations, solutions are difficult to envision, let alone put in practice. What’s worse is the lack of simple, cost-effective tools that focus on workplace stress and are universally compatible with all departments. The following four actions attack some of the root causes of stress: • Stop tolerating. When a business leader sees a problem, it’s important to find a way to confront it so it does not add to the stress, sending the team spiraling into burnout.

• Involve employees in decision making. A 2018 survey found that in both small and large companies, the major contributor to stress was poor communication, according to 40% of respondents. Group Decision Making practices increase transparency and turn compliant workers into commented teams.

• Make health a priority. If people aren’t healthy, they don’t work. No work equals no profits and a constant focus on surviving instead of innovating.

• Encourage learning. Schools don’t teach stress management. It’s a skill that people, especially employers, leave up to their staff to get on their own. That’s a high risk considering the impact stress has on profits. Business leaders should take the lead and regularly offer stress management programs, workshops and resources. Building a culture around working with less stress enables loyal employees to make room for what they’re expected to focus on.

A 2016 study at Harvard Business School showed that a a one-star increase in a business’s Yelp rating led to a 5% to 9% increase in revenue. Businesses can’t get there with stressed employees.

OUR SUBJECT IN-DEPTH

Reopening Buildings Safely after COVID-19: Why Fire Safety Systems Maintenance Is Essential Prolonged vacancy or revised use of occupied spaces may have unexpected safety repercussions

by James Tomes

Over the course of the past year, the COVID-19 pandemic has created an unpredictable landscape for businesses of all types. Closures of restaurants, retail locations, entertainment venues and office buildings frequently occurred with little, or sometimes no, advance notice. Since the pandemic response has not been a linear process, but rather a series of rapidly unfolding events, business owners and facility managers have been challenged to adapt and pivot as the rules change, all while continuing to meet the needs of their businesses, employees, customers and communities.

While closing doors to protect employees and customers alike from the virus, equally important safety issues may have gone unnoticed during the past year. This includes the maintenance of essential fire protection equipment and fire safety systems, from fire alarm notification systems to fire extinguishers.

Due to a lack of consistent occupancy, facility managers were often unable to conduct internal inspections or act as early identifiers of any potential damage or issues. This put unoccupied or severely reduced occupancy buildings at an increased risk for fire. According to the National Fire Protection Association, for example, in the years 2011-2015, U.S. fire departments responded to an estimated average of 30,200 structure fires per year in vacant properties. These fires resulted in an average of 60 civilian deaths and 160 civilian injuries, as well as approximately $710 million in direct property damage annually.

Now that long-awaited business re-openings are rapidly occurring in Arizona and across the country, facility managers must address crucial fire protection inspection, testing and maintenance. This includes evaluating the conditions of: • fire sprinkler systems, • fire pumps, • fire alarm systems, • fire extinguishers, • fire doors, • emergency lighting, and • exit signs.

All fire safety equipment and systems should be active, functional and in good working condition before welcoming back employees and customers.

In addition, while responding to the social distancing challenges of the pandemic, businesses may have become

creative in their use of available space. Changing the use of a specific room (converting a space from office into classroom, for example) may have serious, unintended consequences for egress, fire suppression and emergency notification. Change to storage space is another example. It is essential to have a qualified review of a space’s change in use and to work with jurisdictional authorities for approval. Even if an area was traditionally used for storage, introducing new and potentially hazardous products, such as large quantities of flammable and combustible hand sanitizer, may require re-evaluation of the current fire protection.

As businesses reopen, ingress or egress paths and patterns may have also been modified in order to provide for appropriate social distancing. When changing aisle size, space configurations, egress pathways or queue lines, it is imperative that fire protection professionals evaluate and confirm that sufficient egress is provided in the case of fire or other emergency. Configurations designed to encourage social distancing and control occupant flow may have the unintended result of blocked or even locked emergency exits.

New building alterations, such as the installation of physical barriers, Plexiglass partitions or automatic door openers designed to adhere to public health guidelines will need to be evaluated as well to ensure there is no negative impact to fire protection and life safety systems. If modifications have been made to interior space, it is more important than ever that emergency egress drills be conducted as prescribed.

Employees may need to accommodate social distancing during emergency evacuation drills as well.

Finally, facilities may now want to keep doors (exit and internal) open in order to encourage fresh air flow and circulation. It is essential, however, to ensure that fire doors are not prevented from closing automatically in the event of an incident, as they are intended to reduce the spread of fire and smoke during an emergency.

As we continue to reopen businesses, moving forward safely will require a myriad of adjustments for both owners and facility managers. While remaining safe from the COVID-19 virus has been at the center of our efforts since the pandemic began, fire safety cannot be forgotten. As we return to our offices, stores, restaurants and theaters, it is essential that we keep our communities safe.

Fires that start in vacant buildings can pose a significant danger to an entire street, neighborhood or business park.

According to the U.S. Fire Administration National Fire Data Center, of vacant (residential) building fires, 53% spread to involve the entire building. An additional 11% extended beyond the building to adjacent properties.

James Tomes is the president and CEO of Telgian, an industryleading provider of fire protection, life safety and security services. Tomes specializes in tailoring solutions that meet clients’ needs, always with a focus on their bottom line. As a force for positive change within the industry, he has served on National Fire Protection Association global code development committees, including NFPA 30 and NFPA 30B. telgian.com

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INVESTING IN COMMUNITY

Affordable Homes within Reach ACF leverages affordable housing investments

by Lisa Urias

BUILDING CONNECTIVITY ACF believes that stable, affordable housing will help foster a thriving region of shared prosperity and belonging.

Strategic partnerships are required to bring this work to life. With that in mind, ACF is expanding relationships with leaders in the affordable housing space, including: •V italyst Health Foundation •P hoenix Community Alliance •A rizona Housing Coalition •L ocal Initiatives Support Coalition •H ome Matters to Arizona •G reater Phoenix Leadership •a nd more

Lisa Urias is the chief program and community engagement officer at the Arizona Community Foundation, a statewide family of charitable funds supported by thousands of Arizonans. azfoundation.org

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As our state confronts the third most severe affordable housing shortage in the nation, it’s clear that the status quo won’t cut it for average Arizonans. Compounded with rising rental rates, soaring overall demand and a high percentage of households at risk of eviction, the number of people experiencing homelessness has risen steadily in recent years.

As a community-centric organization that focuses on the broad needs of citizens in every corner of the state, the Arizona Community Foundation has made it a priority to use all the tools in its toolbox to address housing insecurity.

At its core, ACF houses more than 1,900 charitable funds created by individuals, families and organizations to benefit our communities. ACF manages these funds and distributes grants to qualified nonprofit organizations and projects that align with the fund founders’ charitable interests. Since 1978, ACF funds have distributed more than $1 billion in grants to causes that include such broad categories as health innovations, quality education, community improvement and development, arts and culture, and environment and sustainability.

While continuing to ensure all funds are granted with the donors’ intent in mind, ACF has created and supported funds that bring affordable housing projects to life. Two innovative impact loan programs, the Affordable Housing Predevelopment Loan Fund and the Community Impact Loan Fund, began as collaborations with community partners and have together supported the building of more than 3,300 affordable housing units while recycling $20 million in capital for use on these projects. ACF is also home to the Arizona Housing Fund and Northern Arizona Housing Fund, both of which receive funding from real estate transactions and individual contributions to develop affordable housing projects across the state.

With more than 40 years of leadership in Arizona through our staff and board of directors, ACF is also a respected convener and has been involved in public policy work at the state and national level. Launched in 2017, ACF’s Courage to Listen, Learn, and Act series brings diverse voices to the table to discuss social justice issues starting from their roots and building toward an exploration of potential solutions. This series is currently focused on affordable housing issues in our state. ACF is actively working to increase awareness among policymakers about the need for and benefits of affordable housing. It is also working with other partners to restore full funding to the AZ Housing Trust Fund.

ACF has also used unrestricted and discretionary grant dollars to fund a wide range of programs that increase public awareness around the issue of affordable housing. This includes grants to the Arizona Republic for investigative journalism into the affordable housing crisis and to ASU’s Morrison Institute for Public Policy for needed research on the breadth and depth of this challenge for our communities.

In order to leverage these affordable housing investments, ACF also encourages the strategic use of philanthropic dollars to decrease duplication of effort and increase the number of organizations working together toward shared goals. One example of this call for collaboration is the Housing Security Challenge, the fourth philanthropic prize competition housed under the New Arizona Prize banner.

The Housing Security Challenge was designed to inspire collaborative, cross-sector ideas that addressed the lack of affordable housing in Arizona. Launched in the fall of 2020, 13 applicant teams submitted proposals that addressed supportive services related to racial inequality, economic and physical mobility, social work, public health, education, safe neighborhoods and more. In May of 2021, five finalist teams pitched their projects to a selection committee comprised of industry leaders.

The winning project, The East Valley Senior Home Sharing Program, received a $250,000 grant to begin implementing their solution to address the housing crisis. Led by Tempe Community Action Agency, the group brings together resources from AZCEND, Aster Aging, ASU’s Watts College of Public Service/Action Nexus on Homelessness and Valley of the Sun United Way to interrupt the crisis of elderly homelessness in Maricopa County. Their array of wrap-around services will foster housing permanency, independent living and saved lives for older adults at risk of homelessness by matching them with roommates to share housing costs, companionship and responsibilities.

These are some of the ways that ACF is bringing people and organizations together to address Arizona’s affordable housing shortage by following the guiding light of its mission to lead, serve and collaborate to mobilize enduring philanthropy for a better Arizona.

On a single night in January, the Maricopa County Association of Governments identified 7,419 people experiencing homelessness. Seniors are making up a larger portion of the Arizona homeless population than ever before. On any given night, seniors take up about 43% of the shelter beds at Central Arizona Shelter Services, the largest shelter in the state.

WE VALUE WHAT WE OWN

2021 Ford Mustang Mach-E Built from all the passion of its iconic heritage, Mustang Mach-E is the new all-electric crossover. Get ready for 0–60 thrills, expansive range, zero vehicle emissions and more from the 2021 North American Utility Vehicle of the Year.

The Mustang Mach-E GT model offers pure torque-drenched exhilaration with a performance-inspired design. With 480 horsepower and 600 lb.-ft. of torque, this pony earns every inch of its GT badge. An upgrade to the GT Performance Edition let’s the driver achieve 0-60 mph in 3.5 seconds and 634 lb.-ft. of torque.

Additional features for this Mustang Mach-E include SYNC® 4A with enhanced voice recognition and connected navigation

and entertainment system with AM/FM stereo, B&O Sound System by Bang & Olufsen (nine speakers plus subwoofer), media bin, MP3 capability, speed-compensated volume and SiriusXM with 360L. The interior is futuristic with design and materials to demonstrate the unique thinking behind the experience for passengers. The uber-comfortable ActiveTM Seating Material with Miko® Inserts and Copper Metallic Accents look great but feel even better. They hug occupants as corners and torque take effect. The liftgate is hands-free and foot-activated for ease of use.

The exterior is something to revel in. While it is hardly similar to the famed Mustang body enthusiasts are accustomed to, it features some iconic curves and features. The 20-inch machined-face aluminum with high gloss black-painted pockets and aero cover on the GT model makes one question if this is a sports car or a crossover SUV. Each model replaces the usual engine space under the hood with a front trunk for additional space. The illuminated Front Pony Badge is a standard feature on the GT model as well.

—Mike Hunter

2021 FORD MUSTANG MACH-E MSRP: $42,895 EPA Estimated Range: 250-305 miles 0-60: 3.5 sec.

Ford ford.com

Cooling Gadget for Hot Summer Workplace Safety A report in Yale Climate Connections indicates that, according to

cooling experience or flip it over and

NCEI’s annual temperature outlook, “the year 2021 is 96% likely

use the “Extreme Chill” side for a much

to rank among the 10 warmest years on record and 85% likely to

higher cooling intensity. Reusable and

rank among the eight warmest years on record” and the CDC tells

easy to put in place and remove, this

us there are more than 600 deaths attributed to extreme heat

hat insert is comfortable, lightweight

conditions in the United States every year.

and flexible so it molds to any head

Photos courtesy of Ford (top), www.ChillerBody.com (bottom)

Potentially of interest for OSHA-minded businesses and

shape and size. Plus, it’s sealed so it

professionals seeking out those heat-busting solutions that can

isn’t damp or wet, which can lead to

keep outdoor workers calm, cool and collected as the mercury rises

bacteria and malodors, and it allows

is a gadget now entering the market: the Chiller Body Freezing

for maximum air flow to prolong the

Gel Pad for Headwear. This custom freezing gel pad insert tucks

cooling experience. Sold as a 2-pack, one insert can be worn while the

invisibly inside most headwear. It’s an easy way to ward off heat

other is being re-cooled for an all-day cooling experience. —Merilee

exhaustion and stress to stay comfortable, healthy and productive

A. Kern, MBA, Forbes Business Council member and founder,

at work (and at play during off hours).

executive editor and producer of “The Luxe List” as well as host of

The Chiller Body cooling gel insert proffers a dual-sided cooling experience. Use the “Cool Chill” side for a soft fabric feel and gentle

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Get a year of In Business Magazine. Subscribe now at inbusinessphx.com

the nationally syndicated “Savvy Living” TV show Chiller Body chillerbody.com

AUTO-CO-PILOT The new Ford Co-Pilot360TM 2.0 auto co-pilot system is extensive and reliable with auto high-beam headlamps, BLIS® (blind spot information system) with cross-traffic alert, lane-keeping system, pre-collision assist with automatic emergency braking (AEB), post-collision braking, rear view camera, reverse brake assist and reverse sensing system.

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MEALS THAT MATTER

Renata’s Hearth: Latin America Meets the Southwest This is where ‘Power Lunch’ goes to dinner Served on the half shell with Jalapeño aguachile and watermelon radish $22

Los Muertos Serrano-infused El Tosorro Reposado, activated charcoal, agave, lime juice, black lava salt, smoke $18

44-oz OaxacaSpiced Wagyu Tomahawk Steak Served with warm tortillas and verde, roja and mango-pineapple salsas $155

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by Mike Hunter

No, it’s not open for lunch, so really Renata’s Hearth is not a “Power Lunch” location. But it is a powerful experience.

The Biltmore’s storied Frank Lloyd Wright architecture provides a dramatic setting, with the dining room furnished in aged leather and woven textures and brightened by colorfully rendered portraits that punctuate a few of the dividing walls.

Opened in May, the restaurant (and its outdoor Spire Bar) has its own valet and corridor entry separate from the resort’s entrance — part of the resort’s renovation that now allows guests to begin their restaurant experience with a short stroll through landscaped grounds.

Translating ancient Latin recipes into the modern era, Renata’s Hearth connects authentic Southwest ingredients with Old World preparations in an array of intriguing Central and South American-inspired flavors. Chef Jesus Figueroa Ortega designed a menu that honors his Hispanic heritage, creating a range of seafood and hearty meat dishes balanced with the distinct aura of smoke and char.

There is an undeniable “wow” factor to the exotic presentations, starting with the signature tequila cocktail Los Muertos. Made with serrano-infused El Tosorro Reposado, it is served in a black salt-encrusted glass and swirled in smoke – which wafts delicately away as the waiter lifts off the glass display cloche.

Varied appetizer selections include Charred Spanish Octopus a la Veracruz, made with spicy potatoes, tomato, olives and onion; Argentinian Red Shrimp Ceviche, flavored with smoked paprika; and a unique version of chimichangas with smoked chicken, mole negro and charred corn blended inside a crispy tortilla and served as bites on a bed of black beans tastily seasoned. A seasonal offering is the Grilled Spanish Watermelon Salad, a light choice that is at the same time perhaps unexpectedly satisfying with pieces of ripe watermelon, baby arugula and queso fresco dressed in a sherry vinaigrette.

Preparation for the entrées emphasizes charring and smoking. Bounty of the Garden is an assortment of grilled and/ or charred vegetables with a sprinkling of cotija cheese. A smoked ham hock is the central ingredient in Renata’s Pozole Blanco, surrounded by chicharrones along with hominy, radish and avocado. Roasted Chilean Seabass is served with Peruvian rice, pickled Fresno peppers and a mole verde whose creaminess and flavors of chiles and cilantro complement the char finish on the seabass. And for steak lovers, the 10-ounce Wagyu Steak is an almost impossibly tender New York cut to which salsa verde and avocado add a Latin American flavor.

Entrée choices also include some intended for the dinner group to share, such Mesquite-Smoked Whole Jidori Chicken and Mole Negro-Rubbed Smoked Wagyu Brisket.

Guests can enjoy tableside preparations from a craft cocktail cart as well as a fresh guacamole and Spanish charcuterie cart.

And the char-style extends all the way to the desserts with the Charred Pineapple Crème Caramel, which shares the “Sweet & Smoky Conclusion” menu with Renata’s Churros and Abuelita Chocolate Mousse.

Renata’s Hearth at the Arizona Biltmore, A Waldorf Astoria Resort 2400 E. Missouri Ave., Phoenix (602) 955-6600 renatashearth.com

The Arizona Biltmore’s architect of record is Albert Chase McArthur (whose brothers owned the hotel), yet the design is often mistakenly attributed to Frank Lloyd Wright, for whom McArthur had been a draftsman. This is due to Wright’s on-site consulting for four months in 1928 relating to the “Textile Block” construction used in the hotel and which has been a signature element of the hotel’s appearance.

Photos courtesy of Renata’s Hearth

Kumiai Oysters

About ASBA

The Arizona Small Business Association (ASBA) fosters and empowers a thriving small business community by advocating for public policies that ensure a pro-business policy and regulatory environment to help small businesses prosper.

ASBA brings relevant and dynamic education and mentoring opportunities to business owners to improve their business knowledge, solve problems and, ultimately, become more successful. We accomplish this by offering our members valuable programs, unparalleled commitment to their success, and the convenience and efficiency of our products and services. ASBA is on the cutting

Get ahead of Your Numbers in Order to Thrive in Today’s New Environment!

by James N. Chakires, CPA, CVA, Managing Partner of Apex CPAs & Consultants, Inc.

edge of what is happening right

If you are like most business owners, you are

expectations will help you course-correct much

now in the business community.

probably feeling like your business just went

sooner. It will also help you anticipate any

From education and advocacy

through 12 months of raging rapids, temporarily

cash flow needs, which is the lifeblood of any

to resources, mentoring and

capsized, and came out the other end with

organization. This type of focus is essential in

meaningful partnerships, we

you wondering where exactly you are. One

helping your business thrive.

engage our members with relevant

thing is for sure, we will not be returning to the

interactions at every touchpoint.

way things used to be. It is a VUCA (Volatile,

tax planning. This should be done at minimum

By staying on top of current trends,

Uncertain, Complex, Ambiguous) World out

in the third quarter and ideally throughout the

we ensure the tools we offer, as

there and it will only intensify. As business

entire year. Do not skimp on tax planning! The

well as the extensive breadth of

leaders, we must stay ahead.

cost of your CPA pales in comparison to the tax

Another added benefit of looking ahead is with

insights delivered, are valuable to

I have been an advisor to growth-minded

you might pay. If your CPA is not proactively

the businesses we represent while

business owners for 28 years. I have spent my

collaborating with you on tax planning, you

significantly boosting the organic

entire career breaking the stereotype of the

should evaluate whether they are the best fit

growth of our membership base.

typical accountant. Accountants are master

for your growing business. Tax planning allows

historians, bean counters. I have heard it all.

you to make decisions before year end to help

Preparing reports and tax filings on something

mitigate your tax liability and at a minimum it

that happened months ago is of little use in a

gives you a “heads up” months before tax filing

fast-paced environment. To me, a month ago

day. This provides much-needed resources for

feels like an eternity. We must think differently

you to put back into your business.

Find ASBA on Facebook: www.facebook.com/AZSmallBIZ

Central Arizona 11811 N. Tatum Blvd., Suite P-195 Phoenix, AZ 85028 p. 602.306.4000

about how we look at our businesses.

For example, consider using other relevant financial reports that allow you to make more informed strategic decisions. While your

© 2021 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.

balance sheet and profit & loss are useful, the importance of forecasting and projecting your company’s performance based on your

James N. Chakires, CPA, CVA is managing partner of Apex CPA’s & Consultants, Inc. with offices in Phoenix and Chicago, specializing in serving growth-minded closely held businesses and their owners. Visit us online at www. apexcpas.com and on LinkedIn and Facebook at Apex CPAs & Consultants.

1

ASBA Equipping Small Business Owners with Tools to Thrive

by Arizona Toastmasters (District 3)

Arizona Toastmasters (District 3) has been around since 1938 and we are very proud to serve our communities across the state.

Our new partnership with the Arizona Small Business Association, brings a renewed sense of change where we can combine working with our local business owners to improve their communication and leadership skills along with the advocacy and training from ASBA. Arizona Toastmasters helps members improve their communication and leadership skills through self-paced programs, speech writing and presenting, leadership roles, and affordable dues. These skills teach members how to overcome public speaking fears, develop effective presentation delivery, keen listening skills, be able to provide constructive feedback, self-confidence and so much more. Once they have learned and applied these skills, business owners have seen their businesses grow. They use their public speaking to effectively communicate with potential clients and secure more. They also approach business meetings and negotiations more confidently within their presentations.

The communications skills also enable them to more effectively communicate with

and communication style. These skills and

in presentation and in person. ASBA

their employees. Many people still associate

talents will be useful in both business and

is an amazing networking organization

Toastmasters with strictly public speaking,

personal settings.

that is designed to bring the best to their

but they soon discover the leadership and

Karen Hewitt, Arizona Toastmasters,

members and we are honored that they

communication training that helps the most

District 3 Club growth director and

saw the benefits we bring and are excited

effective leaders and entrepreneurs stand

program quality director-elect as well as

about this collaboration.”

out. With different pathways that focus on

Distinguished Toastmaster, stated about

different goals, business owners have the

the partnership, “As a small business

has clubs that meet just about every day and

ability to learn and grow as leaders in their

owner myself, one of the keys to success

at various times. Find a local Toastmaster

fields. Toastmasters is an organization that

is great communication skills. Toastmasters

club in Arizona and attend as a guest.

helps you grow in your own leadership

has helped me hone those skills both

www.toastmasters.org/find-a-club

Arizona Toastmasters (aztoastmasters.org)

About Toastmasters International Toastmasters International is a worldwide nonprofit educational organization that empowers individuals to become more effective communicators and leaders. Headquartered in Englewood, Colo., the organization’s membership exceeds 358,000 in more than 16,800 clubs in 143 countries. Since 1924, Toastmasters International has helped people from diverse backgrounds become more confident speakers, communicators and leaders. For information about local Toastmasters clubs, please visit www.toastmasters.org. Follow @Toastmasters on Twitter.

2

Business Travel with Heart

by Brittany Campbell, Communications Specialist, Southwest Business

Small businesses are important to our families, friends and

In addition to growing our network, we’ve also grown our

communities, and they are important to Southwest Airlines. When

Southwest® Business Team to take care of our business customers

you think “small business,” a few things may come to mind: family-

and their travelers. Our Southwest Business Team is equipped with

owned, a friendly smile and hospitality. While Southwest® is not

amazing tools to tailor our product to the needs of each company

a small business, we share those key characteristics. We treat

and make corporate travel easy. We know time is money, especially

our people and customers like family, give out friendly smiles, and

for small businesses, so we offer SWABIZ®, a free, self-service

provide the warm hospitality our travelers expect.

booking tool that is easy to use and includes a variety of features

For more than 39 of our 50 years, Southwest Airlines has had the

to help manage business travel and save time. Through our Rapid

opportunity to not only connect customers to what’s important in their

Rewards Business® program, companies can earn Rapid Rewards®

lives through friendly, reliable and low-cost air travel, but also provide

Points for their business to use on future flights. Don’t worry,

secure job opportunities in Arizona. We are incredibly thankful for our

travelers still earn for their personal accounts, too. It’s a win-win-win!

people and customers in both Phoenix and Tucson.

You might have heard that Southwest® is growing to many new

Southwest Business has a team of dedicated account managers to work with you based on what’s most important to your company

destinations. It’s exciting that we were able to pursue opportunities to

travel policy. These programs, exclusive promotions and travel

expand even in a year like 2020 — first connecting leisure travelers

incentives will help stretch your Company’s budget further. The

to even more destinations, and now bringing business travelers back

Southwest Business Team is here to serve as your trusted business

to our skies as the economy continues to recover.

travel advisor — an extension of your team.

For those business travelers taking on the West Coast routes, you

You can learn more about Southwest Business and connect with

can now experience the Southwest® Heart in Fresno and Colorado

the Southwest Business Team by visiting www.southwestbusiness.

Springs. We know that “all work and no play” isn’t fun, so those

com. When your company is ready to travel, we’re ready to take

needing a break from the grind can unwind in spots like Steamboat

you where you need to go with ease, reliability and that famous

Springs, Telluride/Crested Butte, Bozeman and Santa Barbara. And

Southwest® Hospitality.

if that isn’t exciting enough, we’re also expanding our service to Hawaii! Additionally, Phoenix travelers will have three new nonstop routes to Chicago (O’Hare); Colorado Springs, Colo.; and Palm Springs, Calif., serving both business and leisure needs.

For more information on our route expansions, visit: www.southwest.com/destinations/route-expansion For more information on our Hawaii expansion, visit: www.southwest.com/destinations/hawaii

3

What is that Lender Thinking?

by Lesli Pintor, Executive Director, Growth Partners Arizona

Borrowing money can seem complicated, but lending is really a fairly

between purchasing raw materials and collecting sales revenue) and

simple business. Lenders are in the risk business so they constantly

why you need to bridge that time gap.

juggle the desire to invest in businesses’ success and the need to the process and be better prepared to apply for a loan.

If that doesn’t work, how are you going to pay the loan back?

Why Are You Requesting a Loan?

work and your primary source of repayment is compromised. Let’s

limit risk of loss. Knowing how lenders think will help you navigate

Lenders know that sometimes the best laid plans don’t always This seems obvious, but it can be surprisingly hard to answer.

say the revenue you anticipated doesn’t pan out (perhaps because

Lenders are looking for “productive” borrowing uses, meaning

of something entirely out of your control) and you aren’t generating

something that will generate more revenue or create efficiencies and

enough cash flow to pay the loan back. At this point, lenders will look

cost savings. Examples include purchasing new equipment to create

to a secondary source of repayment, or fallback position. That could

more widgets faster or bridging cash flow gaps between when you

be the business’s cash on hand or the sale of a company asset.

start making a product and when you collect cash from selling it. Be sure you can clearly articulate how the money will be spent, how it will improve your business and, ultimately, how you will repay the loan.

Borrowing isn’t just about money, though. Having a clear

What if the collateral or other assets still aren’t enough to repay

understanding of your business and the ability to explain it also

the loan? Lenders will now look to the owners’ outside income and

reflects strong management, another factor lenders look at when

assets to repay the loan (through personal guarantees). Nobody

making decisions.

ever wants to get to this point, but sometimes it happens. Don’t be

How are you going to pay the loan back?

When lenders review loan applications, they look for three ways

afraid to tell your lender when you run into trouble. Hard as it is for both parties, lenders would rather know early. They’ve seen almost every situation and can provide guidance, and they look favorably

to get paid back. The main way you expect to repay the loan is the

at borrowers who are willing to work toward repayment even in hard

primary source of repayment. Again, this seems obvious but can

times. If they’re involved early enough, reworking the loan to help

sometimes be tricky. If you’re purchasing a new piece of equipment,

you repay is the best solution for everyone.

for example, explain how that machine will create more widgets

4

And if that doesn’t work, how are you going to pay the loan back?

Consider your lender a trusted advisor and expert like your

faster and how that translates to higher sales and, ultimately, more

accountant or lawyer. If you are prepared with the answers to a few

free cash flow. If you need bridge or gap financing (aka working

key questions and are willing to share the good, the bad and the

capital), explain your cash conversion cycle (number of days

ugly, you will build a stronger relationship with your lender.

Exposing the Mental Health Crisis Caused by the Pandemic

by Rick Murray, President and Chief Executive Officer, Arizona Chapter National Safety Council

More than 40% of Americans report increases in mental distress due to the COVID-19 pandemic, leaving employers with their own crisis, resulting in increased absenteeism, negative impacts on productivity and profits, and an increase in healthcare costs.

Encouragingly, employers that support mental health see a return of $4 for every dollar invested in mental health treatment, according to new research released May 13 from the National Safety Council and NORC (National Opinion Research Center) at the University of Chicago. When employees receive effective treatment for mental distress, organizations realize reduced total medical costs, increased productivity, lower absenteeism and decreased disability costs.

The analysis also revealed organizations spend more than $15,000 annually, on average, on each employee experiencing

driven insight about the costs of employee

mental health issues. This data highlights

mental distress in their workplaces and

distress in the past year are more likely to

the costs pre-COVID-19 and likely

identifies the specific ways untreated

have reported driving under the influence

underrepresents the current cost to

distress impacts employers’ costs. These

of alcohol, marijuana or other drugs.

employers due to the increase in Americans

costs include an estimate of the dollars lost

experiencing mental distress.

in days of work missed, excess turnover

times more likely to have substance

and replacement costs, and greater

use disorders. Learn more about

hidden issue in the workplace, with 85%

healthcare use by distressed workers and

the costs of employee substance

of workers reporting the workplace itself

family members. The calculator also offers

use to the workplace with NSC and

affects their mental health and wellbeing.

research-proven steps employers can take

One risk factor for mental distress is

to help employees and their family members

experiencing stress, which can be caused

recover, while increasing the safety, health

Employers combines results from the

by workplace conditions. Chronic exposure

and productivity of their workplaces.

2015 to 2018 National Surveys on Drug

Mental distress has long been a

to stressful workplace conditions can lead to a variety of mental health conditions,

• Employees who have experienced mental

• Mentally distressed workers are 3.5

NORC’s Substance Use Cost Calculator.

• The Mental Health Cost Calculator for

Other findings from the analysis include:

Use and Health with the latest research

• Employees experiencing mental distress

on the costs of mental health problems

including depression, anxiety, an inability to

use, on average, nearly $3,000 more

for employers. The cost calculator is

concentrate and emotional exhaustion. Add

in healthcare services per year than

available at nsc.org/mentalhealthatwork.

this to stressful conditions in the home, and

their peers. are entertainment, sports, media and

About Arizona Chapter National Safety Council

role they play in supporting employee

communications, technicians and

Our purpose Is to educate and motivate

mental health and safety, NSC and NORC

related support occupations, while

people to live safer and healthier lives,

at the University of Chicago created

low prevalence occupations include

whether at home, work, school, play or

the Mental Health Cost Calculator, funded by

executive, administrative, managerial,

on the highway. We offer a wide variety of

Nationwide. This authoritative, easy-to-use

financial, protective services and

safety programs that include first-aid/CPR,

tool provides business leaders with data-

construction.

defensive driving and work place safety.

the problem can quickly grow.

To help employers understand the pivotal

• Occupations with high levels of distress

5

Ever Wonder if There’s a Better Way to Store Data for Your Business?

by QNAP

ASBA STAFF Debbie Hann Chief Operating Officer Katie Prendergast Senior Vice President, Public Affairs Robin Duncan Senior Vice President, Business Development

When you’re strategizing how your business is going to navigate the next season, data storage

Emma Lenihan Senior Business Relations Manager

probably isn’t the first thing that comes to mind; but although we may not often think of it, the

Genesis Garcia Senior Marketing Manager

role of data storage is indispensable to the overall health of a business. To meet this need, I’ll introduce you to a storage solution you may not have heard of, called “network attached storage.”

Network attached storage (NAS) is a

There are numerous backup tools that can be utilized with a QNAP NAS for data backup.

storage device that plugs into your local

One of these is called Hybrid Backup Sync 3;

network. Typically you’ll connect the NAS

this is an app designed for numerous types

into your router. From here, you can choose

of backup tasks. From one central backup

to connect it to the internet so that it can

app, you can sync jobs to and from the cloud,

be accessed from anywhere, kind of like

and set up backup jobs to the cloud, external

your own personal cloud, or you can limit

drive backups and Time Machine backups of

the access to within your network. This still

your Mac. Additionally for Google Workspace

provides much greater flexibility in terms of

and Microsoft 365, an app called Boxafe can

access than, say, an external drive, because

be installed to back up users’ data, including

any compatible network connected device

emails, docs, sheets, slides and more.

will be able to access it, assuming they have proper credentials.

Additionally, NAS will typically be set up in a

How Do You Secure Your Data?

There is always some degree of inherent

RAID, which arranges a set of drives together

risk to our data anytime we are open to the

so that if a drive fails, there is redundancy and

outside world via the internet. So it’s important

you don’t lose any data. RAID also combines

to consider how we can mitigate any potential

the performance of the drives to provide

issues that could come along. For starters,

quicker performance.

being vigilant in maintaining up to date firmware

One of the leading NAS companies in this

can be one of the best lines of defense against

type of storage is QNAP, which manufactures

attacks on your data, as vulnerabilities are

numerous models for a wide variety of

frequently patched on up-to-date firmware.

use cases.

QNAPs can also be scanned to detect and remove malware with the Malware Remover

Is One Copy Enough?

From emails to spreadsheets, and from records to marketing content, chances are

app. Other useful tools include two-step authentication, volume encryption, snapshots and system logs, among other things.

you’re creating data that you need on a regular basis. And having this data stored only on your computer or your SaaS account can be a

6

Your Next Storage Solution If your business is growing, there’s no

dangerous practice. Drives fail and documents

time like the present to get your data storage

are sometimes accidentally deleted, but if you

plan in place. For more information on QNAP

have sufficient backup copies, you can mitigate

NAS, you can take a look at their website,

potential data loss.

qnap.com/en-us.

BOARD OF DIRECTORS Eric Knott | Chair Arizona State University, W. P. Carey School of Business; FinePoint HR Patrick J. Van Zanen | Vice Chair Sacks Tierney P.A. Genia Kehayes | | Treasurer Experience Scottsdale Kerry Stratford | Secretary The Caliber Group Frank L. Divers | Board Development Business Development Specialists, Inc. Andrew Westle | At-Large Shellpoint Mortgage Servicing Rick Murray Arizona Chapter National Safety Council Otto Shill Jennings, Strouss & Salmon, PLC David Bones The Kenrich Group Mike Leeds Pro Sales Coaching, LLC Jason Trujillo Trujillo Private Wealth, LLC Janice Washington Arizona Small Business Development Center Network Lesli Pintor Growth Partners Arizona John Lewis National Bank of Arizona Sandra Barton Alliance Bank of Arizona

Albornoz, Clara, 14

Gallego, Kate, 22

Loye, Alexandra, 15

Stallings, Wendi, 15

Bartlow, Andrew C., 51

Giles, John, 22

Mackay, Christine, 22

Swetonic, Richard, 21

Bennett, Scott, 52

Hagen, Barbara, 10

Maldonado, Anna Maria, 20

Tomes, James, 55

Boxley, Don Jr., 13

Hangen, Mark, 18

Martens, David, 15

Urias, Lisa, 56

Bruhnke, Doug, 22

Harris, T. Brad, 51

Miranda, Micah, 22

Vermiglio, Zanaibar, 50

Butler, Jen, 54

Henninger, Don, 22

Morse, Amanda, 14

Voss, Uwe, 10

Butler, Tyler, 49

Hollis, Mignonne, 22

Murray, Rick, 63

Watson, Sandra, 31

Camacho, Chris, 22

Jabjiniak, Bill, 22

Ortega, Jesus Figueroa, 58

Williams, Nathan, 51

Campbell, Brittany, 61

Jackson, Charles, 66

Pintor, Lesli, 62

Zahn, Joshua, 53

Canecchia, Anthony, 49

Kearney, Brian, 16

Rogow, Maury, 21

Zalle, Michael, 14

Chakires, James N., 59

Kelly, Carrie, 22

Ross, Amy, 11

Zani, Mike, 51

Colangelo, Jerry, 9

Knudsen, Nicholas, 12

Sammut, Brandon, 10

Collins, Lori, 22

Leal, Jesus, 51

Seleznow, Steve, 22

11Eleven Consulting, 49

DH2i, 13

Optum Care, 5

Southwest Business, 61

Apex CPAs & Consultants, 59

Divvy, 6

PGIM Real Estate, 16

Stearns Bank, 8

Arizona Biltmore, 58

Drybar, 11

Phoenix, City of, 22

Telgian, 55

Arizona Commerce

Easy Ice, 18

Private Label International, 15

TheVideoBot, 21

Ford, 57

Purification LLC, 12

ThriftBooks, 10

Gila River Hotels & Casinos, 12

QNAP, 64

Toastmasters International, 60

Global Chamber, 22

Quarles & Brady, 19

TruWest® Credit Union, 12

Goodmans Interior Structures, 38

Renata’s Hearth, 58

Urban Development Partners, 16

Goodyear, City of, 47

Ryan Companies US, 16

Valleywise Health Foundation, 35

Greater Phoenix Economic Council, 22

Ryley Carlock & Applewhite, 35

Wentworth Property Acquisitions, 15

Greater Phoenix Leadership, 43

SanTan Brewing Company, 49

WESTMARC, 34

Growth Partners Arizona, 62

SCOTT, 22, 42

YellowBird, 14

HelloFresh, 10

Snell & Wilmer, 67

Zanzibar Enterprises, 50

Authority, 2, 3, 29, 30, 68 Arizona Community Foundation, 7, 22, 56 Arizona Consortium, 20 Arizona Coyotes, 12 Arizona Manufacturing Extension Partnership, 68 Arizona State University, 19 Arizona Technology Council, 39 Arizona Toastmasters, 60

JB Partners, 54

Association for

JDM Partners, 9

Entrepreneurship USA, 66 Aventiv Technologies, 49

Jive, 8

Beam on Farmer, The, 16

JLL, 16

Blue Cross Blue Shield of Arizona,

KEO Marketing, 39

12, 30

List Perfectly, 14

Cannon & Wendt Electric Co., 12

LiveRamp, 10

Canyon State Electric, 12

Lovitt & Touché, 21

Catellus, 16

Marwest Enterprises, 15

Chandler, City of, 22

Merit Partners, 15

Chiller Body, 57

Mesa, City of, 22

Colliers International in Arizona, 15

Mortenson, 16

Coppersmith Brockelman, 52

National Safety Council, Arizona

Desert Financial Wealth Management, 17, 53

CHECK US OUT

Chapter, 63 Novus Innovation Corridor, 16

In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.

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JULY 2021

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BY

What Is the YOLO Economy?

And why is it sparking entrepreneurship?

by Charles Jackson

Charles Jackson is the president of Scottsdalebased Association for Entrepreneurship USA, where he assists entrepreneurs nationwide with creating, establishing and expanding their businesses. Prior to his position at AFEUSA, Jackson served eight years on Arizona Board of Dental Examiners and has served as the president of American Dental Plan for nearly 30 years. He is also a published author and has consulted with a variety of small business ventures. afeusa.org

JULY 2021

66

INBUSINESSPHX.COM

The acronym “YOLO” took the world by storm in 2011 when Canadian rapper Drake used the term, meaning You Only Live Once, in a song. Since then, YOLO has been used far and wide as a newer version of carpe diem, or seize the day, as a way to encourage people to take risks and live life to the fullest. Now YOLO is being used to describe a new mindset that is changing the economy in the U.S. So, what is the YOLO Economy and how did it come to be?

In 2020, the coronavirus pandemic upended all aspects of life, particularly work. Thousands lost their jobs and those with jobs that weren’t essential were ordered to work from home for months. This abrupt change forced many to reevaluate where they were in their career and if it truly brought them joy. After seeing the freedom of remote work or the benefit of having more downtime to focus on their side hustle, millennials are now questioning if a traditional 9-to-5 job is the best fit for them. This generation has seen firsthand that sacrifice their parents made for their traditional jobs didn’t always equal happiness and success. Many millennials don’t feel tied to the idea of staying with one job for decades or even working for another person. In fact, a report by Gallup named millennials the generation most likely to switch jobs, so it’s no surprise that the changes brought on by the pandemic are leading them to say “YOLO” and explore what life could be like if they were to take their career into their own hands.

The U.S. Business Formation Statistics found that 4.35 million new business applications were submitted in 2020, a 24.13% increase from 2019. This may seem surprising considering how many small businesses closed due to the pandemic, but it’s likely those were businesses that were unable to adapt to the challenges created by the pandemic. Now, thanks to technology, starting a business is easier than ever before and doesn’t require a brick-and-mortar store or office.

This freedom is what’s drawing millennials to non-traditional

The U.S. Business Formation Statistics found that 4.35 million new business applications were submitted in 2020, a 24.13% increase from 2019.

work and creating the YOLO Economy. Instead of wasting time commuting, they can work from any location that’s convenient for them. If they want to spend more time with family, they can set their own hours to accommodate that. Self-employment affords many freedoms that an office job does not.

So, is this the end of traditional jobs as we know it? Probably not. While it’s likely entrepreneurship will continue to grow, it’s not for everyone. Traditional jobs provide a lot of stability that takes more work to secure when self-employed, like a steady income, access to health insurance, retirement plans and other benefits. However, the pandemic has also changed traditional jobs and companies will need to continue to adapt to keep their employees happy. The past year forced businesses to be more efficient with their time and money. Zoom took the place of in-person meetings, and workplace travel and homes transitioned into offices. While many employers feared a drop in productivity due to the quick shift to working from home, a study by Airtasker found that those working remotely worked 1.4 more days every month, or 16.8 more days every year than people who worked in an office. It’s likely we’ll continue to see employers offer a flexible schedule or full-time remote positions moving forward. Not only do employees appreciate this option, but it also allows businesses to source wellqualified individuals for open positions in cities beyond where the business is physically located.

The YOLO Economy is one of the many changes resulting from the recent pandemic and it won’t be the last. While some millennials might continue to work in the traditional 9-to-5 workforce, many more have started to embrace the benefits of flexible work schedules, more family time, better control over their earnings and the idea of operating their own business that offers a greater method to accumulate wealth. Millennials have embraced that we really “only live once” and are working to make it the best life possible.

Huge teams.

Hidden costs.

Everything on the meter.

Sorry, that’s just not us.

Our clients hire us to understand who they are and what they want, whether that’s leaner teams, transparent budgets or alternative fee arrangements.

We continually monitor and evaluate their needs, anticipating the value they demand – delivered the way they want it.

Find out more at swlaw.com.

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“Arizona MEP was very creative, looked at the individual opportunities and challenges, and supported what we needed to tackle the challenge and grow.

They do it in a personal, creative, and helpful way.”

Sherri Barry, Co-Founder, FABRIC

With decades of leadership, manufacturing and business expertise, the Arizona Commerce Authority’s Manufacturing Extension Partnership (Arizona MEP) helps small- and medium-sized manufacturers achieve their goals. This past year, Arizona MEP provided critical expertise to FABRIC in response to the impacts of COVID-19. The program enabled Tempe-based FABRIC to set up four socially distanced production lines, recruit more than 60 team members and pivot operations to produce more than 200,000 FDA-approved, reusable hospital gowns statewide.

Arizona’s manufacturers can leverage Arizona MEP’s programs to continue recovering. From responding to workforce and supply chain disruptions to making operational shifts to support the manufacturing of PPE and critical supplies, the Arizona MEP Emergency Assistance Program provides subsidized services to help manufacturers return stronger for the future. Applications for this one-time, CARES Act-supported program are open until late Spring 2021 and offered on a first come, first served basis.

Learn more about Arizona MEP and the Emergency Assistance Program azcommerce.com/programs/arizona-mep | 602-845-1256