Made in Arizona. It’s a tag that’s becoming more familiar as the state’s manufacturing base grows. Once heavily reliant on real estate development for its economy, Arizona now boasts more manufacturing jobs than construction. 

To celebrate this diverse and rising sector, Governor Doug Ducey declared April “Made in Arizona Month” to encourage everyone to buy homegrown products from tortillas to semiconductor chips.  

91ֱ�� spoke to one of the state’s leaders in the industry about the sector’s evolution and impact, Mark Gaspers, chairman of the board of the Arizona Manufacturers Council (AMC), the voice of the industry.

Gaspers, who is senior manager for Boeing’s State and Local Government Operations in the Southwest, gave his take on the industry’s investment in Arizona over the past decade.  

Here’s what Gaspers had to say: 

Q: How has the manufacturing landscape in Arizona changed in the past decade?

A: A recent report shows that Arizona exports increased by over 51 percent from 2010 and 2019. During that time, manufacturers added 28,000 new jobs, an 18.7 percent increase. By 2019, there were 5,157 manufacturing businesses and 177,300 manufacturing jobs in the state.

Our success is not by accident. Arizona’s legacy companies paved the way for the innovative manufacturing and technology growth we’re seeing today.

Others played a role in pushing forward policies that have attracted new companies and accelerated growth for our long-term Arizona manufacturers. Elected leaders, communities, the AMC, the Arizona Chamber, trade associations and the Arizona Commerce Authority under Sandra Watson’s leadership.

Some of the policies that have proven effective are a 75 percent reduction in real and personal property taxes for Arizona Foreign Trade Zone users, refundable tax credits for manufacturers creating jobs and investing in Arizona, and a 100 percent sales factor that reduces corporate tax liability for high wage and fiscal benefit exporters. 

Arizona also created additional depreciation, reducing the taxable value of an asset, and sales tax exemptions on purchases of manufacturing machinery, equipment and electricity used in the manufacturing process.

Education is another reason for our growth. We’ve seen rapid expansion of university research infrastructure and we have robust career and technical education programs with industry collaborating on workforce needs. 

Today, these policies have diversified our economy and the breadth of the manufacturing sector. If you look at our council membership, it reflects a range of sectors and products from the Boeing AH-64 Apache to Karsten Manufacturing Ping Golf Clubs and Sub Zero appliances, to name just a few.

Q: Which sectors are seeing the most growth in Arizona?

A: We’re seeing a historic level of investment by the semiconductor industry. Plans for massive investments by Intel and TSMC (Taiwan Semiconductor Manufacturing Company) are a sign of great things to come. Not only are these companies hiring employees and investing here, they are attracting new companies and suppliers to Arizona. 

Intel’s presence, for example, resulted in $8.58 billion for our economy in 2019. And that’s before its recent of a historic $20 billion investment for two new Arizona fabs in Chandler.

We’re also grateful for Arizona Senator (Kyrsten) Sinema’s leadership in the passage of the bipartisan , which is intended to restore America’s leadership in semiconductor manufacturing. That immediately impacted Arizona’s economy as it welcomed Intel’s plan of expansion.

Arizona has always been a leader in the aerospace and defense sector, and we continue to see growth and investment by Boeing, , , and as well as medium and small companies. There’s also a robust chain of suppliers with proximity to military testing facilities such as . 

To put the extent of the aerospace and defense supply chain in context, take Boeing’s average annual spend with just Arizona suppliers— $1.4 billion per year. That’s roughly two times the economic impact of the last Super Bowl in the state every year.

Q: What does the future look like for Arizona’s manufacturing sector? 

A: The future is bright and that means jobs today and opportunities for students tomorrow. One reason I am so excited for the future is because of the innovation and collaboration we see from our education partners. 

We are fortunate to have Maricopa Community College District represented on our Board of Directors. Maricopa’s partnership with other institutions is a prime example of collaboration by education with industry. Maricopa County Community College District, Central Arizona College and Pima Community College partnered together to develop a unified, industry-recognized curriculum specifically designed to teach the skills needed for high-paying, high-tech advanced manufacturing jobs. NAU recognized this innovation and also partnered with these schools. 

We have outstanding university partners that are focused on the needs of industry as well.

Arizona State University’s Fulton School of Engineering is the largest engineering college in the country. 

The University of Arizona leads the country in research in several technologies including space, hypersonics, and quantum computing.

Embry-Riddle Aeronautical University’s Prescott campus is a crucial pipeline for the future engineering and aviation workforce of tomorrow.

Q: Any concerns for this sector that need to be addressed through state or federal policies?

A: We have seen increased investment here because the state is promoting a globally competitive environment that invites capital, promotes innovation, and furthers investment in research and development. Concerns for the sector would be if these policies were dismantled. 

Additionally, the competitive landscape is not static. We should continue to build upon our policies that encourage companies to invest in research and development in Arizona.

We support continued investment in our education system but do have concerns for our smaller manufacturers impacted by the decision of Prop. 208. We are hopeful that this legislative session yields support to our small businesses. 

Workforce remains a top concern for manufacturers. In addition to our education partners’ eye to the future, their ability to rapidly respond to shocks such as the pandemic are important to all of us as Arizonans. Employment in the manufacturing industry declined by 4.6 percent at the start of Covid, but has seen a return.

We are watching with great interest the debate on Capitol Hill regarding tax reform, labor and environmental issues. 

Q: How is manufacturing helping Arizona’s economy?

A: An underappreciated aspect of manufacturing is the benefit it imparts on all other sectors of our economy. It is an industry that generates significant economic activity well beyond primary manufacturing operations. 

A report by the Rounds Consulting Group states that for every dollar of manufacturing value that is added, another three dollars and sixty cents of value-add is generated elsewhere in the local economy. Additionally, each 1,000 direct manufacturing jobs creates another 1,542 secondary jobs in every other industry for a total of 2,542 jobs.

Other sectors are benefiting, too, from agriculture to health care to retail and transportation. 

As we see in the case of TSMC, large manufacturers that have more of their supply base located in the state magnifies this multiplier effect on the economy. And as we attract higher wage positions within manufacturing with regional and other engineering centers, the impact of the multiplier effect increases as well. 

Arizona’s manufacturing sector has fared remarkably well both prior to and through the 2020 recession. In Arizona, year-over-year growth in manufacturing employment was growing at about 5 percent per annum coming into 2020, thanks in large part to recent state and federal regulatory and tax relief. 

Further, while all states lost manufacturing jobs in 2020, Arizona’s losses appear to be about half the rate observed in other states, and the state continues to attract the interest of potential new manufacturers, which bodes well for resurgent growth in 2021 and beyond.To read more about the AMC, visit: .

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In a first-of-its-kind test, Boeing and the University of Arizona determined that airlines’ current cleaning solutions and technologies effectively destroy the virus that causes COVID-19.  

An analysis of more than 1 billion passengers also shows that it’s almost impossible to catch the virus on an airplane if precautions are taken such as masking, HEPA air filtering, and regular sanitizing with cleaning technologies, Boeing officials said.  

“Since the pandemic began, about 1.3 billion people have flown somewhere within the commercial air transportation system. We can track and verify less than 50 cases of coronavirus transmission during those journeys,” Boeing’s director of marketing, Tom Sanderson, said Wednesday at a virtual press conference. “We know the data tells us that people are not contracting the coronvirus at any significant rate throughout the travel journey.”

First live-virus testing on a passenger plane

The testing and analysis is part of the aerospace company’s Confident Travel Initiative (CTI) to enhance the safety and well-being of passengers, flight staff and ground crews during the pandemic.

“We want to help restore confidence to passengers and the flight crew,” Sanderson said. 

Boeing, which has major operations throughout Arizona including Tucson and Mesa, partnered with the university’s Department of Environmental Sciences to test cleaning technologies for the first time on a live virus on an unboarded plane. 

“While these cleaning solutions had been tested in other environments, an airplane behaves differently. It was critical for us to evaluate and confirm the chemicals and techniques we recommend for our customers’ use are effective and battle-tested,” said Mike Delaney, who leads Boeing’s CTI efforts. “By working with the University of Arizona, we were able to employ their world-renowned expertise in virology to do exactly that.”

Several technologies proved effective 

To carry out the test, a live virus called MS2 was applied to more than 230 high-touch surfaces including seat tray tables, arm rests, seat cushions, stowage bins, and lavatory and galley surfaces. MS2 is harmless to humans but more resistant than COVID-19, also known as SARS-CoV-2. 

Technicians then disinfected the plane through several technologies. Chemical disinfectants were applied through two means: manual wiping and with an electrostatic sprayer that sprays liquid disinfectant. Ultra violet wands that destroy germs and antimicrobial coatings that halt the growth of disease also were used. 

All proved to be effective. 

“We confirmed that the probability of getting infected is close to zero using these techniques,” said UArizona Professor Charles Gerba, widely known as “Dr. Germ,” one of the world’s leading microbiologists and experts on infectious diseases. 

“This study allowed us to test and validate, for the first time, that disinfecting solutions kill SARS-CoV-2 on an airplane,” Gerba said. “It’s important to recognize we’re not only talking about SARS-CoV-2, but also other viruses and microorganisms.” 

HEPA air filters and air flow protect passengers, too

In addition to the disinfectant cleaning, current airplane filtering systems also protect passengers from disease, Sanderson said. 

HEPA air filters remove particles the size of the COVID-19 virus. Airflow within the cabin forces air downward instead of sideways or fore-and-aft and the air exchange rate is high, rolling over every two or three minutes. 

Boeing engineers and the UofArizona researchers said they are continuing to test recommended cleaning methods and technologies to protect travelers and crew including thermal disinfectant, touchless technologies and a self-cleaning lavatory. 

Getting travelers back to the skies safely is the ultimate goal, Sanderson said. 

Boeing is world’s largest aerospace company 

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries and leverages the talents of a global supplier base.

For more information about the company, go to: .  

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Boeing announced Tuesday it would be donating grant packages totaling $48 million to charities around the world in observance of Giving Tuesday.

Boeing is the largest aerospace company in the world and a leading provider of commercial airplanes, defense, space and security systems, and global services. It supports commercial and government customers in 150 countries, with more than 150,000 employees worldwide.

The grants will support 404 charitable organizations in 50 countries, funding programs through 2020 and beyond, according to Boeing.

More than $700,000 of the company’s investment will go to 10 organizations in Arizona that help veterans in the community and inspire prospective aerospace scientists and engineers.

“Boeing’s people bring to life our values and our enduring commitment to supporting the communities where we live and work,” said Dennis Muilenburg, president and CEO of .

Boeing says its employees amplify the aircraft manufacturer’s giving: By the end of 2019, Boeing employees will have donated nearly $40 million to charitable causes, bringing total employee contributions to $350 million in the past 10 years.

In 2018, Boeing’s 4,300 Arizona employees volunteered 11,000 hours mentoring FIRST Lego League and Robotics teams, building school gardens and helping veterans write resumes to help them re-enter civilian life, according to a company representative.

“Through their close collaboration, our teams and community partners are working to inspire the next generation of aerospace innovators, support our veterans and create lasting change in the communities we call home,” Muilenburg said.

The Giving Tuesday charitable grants package includes $8 million for science, technology, engineering and math (STEM) education and workforce development programs that help build a “talent pipeline” of civil aviation pilots and maintenance technicians, according to Boeing.

Boeing’s Pilot and Technician Outlook 2019-2038 that 804,000 new civil aviation pilots, 769,000 new maintenance technicians and 914,000 new cabin crew personnel will be needed to fly and maintain the world’s fleet over the next 20 years.

The includes the commercial aviation, business aviation and civil helicopter industries.

“At Boeing, were committed to helping students succeed,” said Cheri Carter, vice president of Boeing Global Engagement. “We want students to know that their future belongs to them — it has no boundaries.”

The company also committed $800,000 to launch the first Newton Flight Academy in Turkey in 2020, expanding on the existing Newton Europe in Spain and Poland that launched this year. The program teaches STEM skills to high school students through hands-on methods; grant dollars will support a permanent classroom in Turkey that includes three full-motion Boeing flight simulators.

“We believe our success as innovators depends on everyone coming together to inspire the next generation to share in our aerospace advancements,” Carter said. “That’s why we’re investing more than 50 percent of our philanthropic dollars to fund programs in the U.S. and abroad.”

A previously announced $10 million for veterans’ recovery and rehabilitation programs, as well as workforce transition services, is also included in the $48 million investment.

Giving Tuesday is a started in 2011 to create an international day of charitable giving immediately following Thanksgiving and the Black Friday sale shopping weekend.

To see a full list of Boeing’s grant partners, .

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