Innovation, collaboration and a growing workforce create a powerful formula for success. When combined, these areas are key to Arizona’s manufacturing growth.
E3 Displays is a global designer and manufacturer of innovative displays based in Phoenix. As business grew steadily over the last decade, Founder and CEO Chuck Rahig recognized the need to rethink his company’s organizational structure, processes and personnel.
For that, he turned to the Arizona Manufacturing Extension Partnership (AZ MEP), which operates under the Arizona Commerce Authority. Rahig and his team worked with the experts at AZ MEP to develop a one-year plan for the company focused on increasing production output and enabling long-term growth.
AZ MEP helped E3 establish a new lean manufacturing process and complete value stream mapping while working together to recruit for and hire a new vice president of global operations to implement the new vision.
The partnership paid off immensely. Over a six-month period, the new VP, combined with more efficient processes, helped double production output, enabling the company to add a second shift. In addition, the revamp helped position the company, which now employs approximately 50 people, to meet the country’s urgent demand for ventilators last year, increasing production of ventilator displays 20-fold during that time.
“AZ MEP is a tremendous resource on so many fronts, way beyond what I first imagined,” said Rahrig of the partnership.
The program represents just one way the Arizona Commerce Authority assists in strengthening the state’s manufacturers, both large and small.
Factors driving manufacturing growth
In recent years, Arizona’s manufacturing landscape has expanded rapidly. Between 2016 and 2020, Arizona ranked no. 2 in the nation for the rate of manufacturing job growth (EMSI).
Today, the state has more than 175,000 jobs in manufacturing with more than 5,220 manufacturing establishments. These jobs pay well, on average more than $82,000 a year, over 50% higher than the average wage, according to the Arizona Office of Economic Opportunity.
For an industry that requires everything from ample space to affordable energy, modern transportation infrastructure and a robust workforce, Arizona offers the complete package.
“We needed a location for our factory that had a track record of supporting energy storage, a growing clean transportation sector, and a workforce that could deliver American-made battery technology,” said Lindsay Gorrill, CEO of KORE Power, which announced in July a new lithium-ion battery production plant along with 3,000 jobs in Buckeye. “Arizona hit a home run.”
Arizona’s low-cost business environment, one made even more competitive recently with Governor Ducey’s signing of the lowest-in-the-nation flat tax, combined with a global supply chain shakeup, has more advanced manufacturers considering the state than ever before.
A top selling point for many is Arizona’s talent pipeline. Arizona State University, which has been ranked the most innovative university seven years running, has approximately 25,000 students enrolled in engineering programs — a 170% increase since 2010, according to data from the Arizona Board of Regents.
Expertise in emerging technologies such as optics, quantum computing, renewable energy, grid reliability, biosciences and more at the University of Arizona and Northern Arizona University contribute to a vibrant innovation ecosystem.
Arizona’s expansive community college system plays an important role as well, partnering with industry to offer in-demand skills training. Examples include the manufacturing training center, “Drive48,” at Central Arizona College, the Automotive Technology and Innovation Center at Pima Community College, and the Arizona Advanced Manufacturing Institute at Mesa Community College.
For Zero Electric Vehicle President Jim Maury, Arizona’s rich talent pool has propelled the company to new heights. The company, which manufacturers car electrification kits, announced in September a new 1,000 square-foot production facility and headquarters in Gilbert.
"ZEV values the incredible talent coming through these college programs,” Maury said. “We have over four graduates with patent filings in less than six months of development – that is rapid innovation."
ZEV is one of many manufacturers around the state adding operations over the last eight months, including Shambaugh & Sons in Kingman, CP Technologies in Prescott, UACJ Whitehall in Flagstaff, APEL Extrusions in Phoenix and BD in Tucson.
They are joined by homegrown technology stars like EnPower, a Phoenix-based startup engineering lithium-ion batteries that charge over three times faster than traditional batteries, with more power and longer lifespans.
Helping fuel the rise of newcomers like ZEV and EnPower is an expansive network of more established technology leaders including iconic global companies like Boeing, Northrop Grumman, General Dynamics, Sub-Zero, Ball Corporation, PING, Mark Anthony Brewing, Red Bull, NXP Semiconductors, Microchip, Benchmark Electronics and more.
Taken together, the state’s diverse manufacturing landscape represents one of the hottest in the country. With innovation and technology driving further growth, Arizona promises to be a land of opportunity for manufacturers — both large and small — for many years to come.
To find more information about the Arizona Manufacturing Extension Partnership or contact an expert, visit https://www.azcommerce.com/programs/arizona-mep/.
