2 Grow ACA’s Strategic Framework VISION: Arizona is the best location for high-quality business growth MISSION: Grow & diversify Arizona’s Economy & create quality jobs for its citizens by supporting and attracting businesses in targeted, high-growth clusters, with an emphasis on the base industries. STRATEGIES: ACTION PLAN: Increase Awareness of Arizona’s Attractiveness Coordinate Arizona’s Economic Development Make Arizona a Leading Hub in High-Quality Manufacturing and Advanced Business Services Support Employer-focused, Demand-driven Workforce Development Integrate All Areas of Arizona into the State’s Growth 1 Recruit 3 Create Enhance Arizona’s Competitiveness Develop Infrastructure to Support Economic Growth Become a Preferred Trading Partner with Mexico and Canada Foster Innovation and Support Entrepreneurship Make Arizona Preferred Location for Target Industries: A&D, Semiconductors, Optics, Biosciences, Solar Energy

ACA Results FY2013 – Q2FY Projects; attraction and expansion 26,050 Jobs announced $3.9B Capital Investment $56,791 Average Wage

ACA Results FY2013 – Q2FY2014 City of Project Location/Expansion Q thru Q2-2014

331 Projects 56,428 Jobs $28.16 B CapEx $48,430 Average Wages All ACA Pipeline by Industry Pipeline Projects (All ACA) Business Attraction and Expansion Pipeline by Industry Segment, YTD Q3-2014

65 to 69 years29,92534,9034,97817% 60 to 64 years36,76540,1173,3529% 70 to 74 years23,00525,7982,79312% 25 to 29 years29,07330,9661,8937% 75 to 79 years15,88117,7441,86312% 55 to 59 years37,49438,6661,1723% 30 to 34 years27,16728,3361,1694% 20 to 24 years39,87740,8791,0023% Under 5 years33,52034, % 35 to 39 years26,17426, % 85 years and over9,54210, % 80 to 84 years11,07111, % 10 to 14 years35,28235, % 5 to 9 years33,83534, % 40 to 44 years28,17127,101 (1,070) (4%) 50 to 54 years36,86935,458 (1,411) (4%) 45 to 49 years32,42530,361 (2,064) (6%) 15 to 19 years40,11536,784 (3,331) (8%) Total526,190539,78413,5943% NACOG DEMOGRAPHICS 2011 TO 2014 Demographic2011 Population2014 PopulationChange% Change Under 5 years33,52034, % 5 to 9 years33,83534, % 10 to 14 years35,28235, % 15 to 19 years40,11536,784 (3,331) (8%) 20 to 24 years39,87740,8791,0023% 25 to 29 years29,07330,9661,8937% 30 to 34 years27,16728,3361,1694% 35 to 39 years26,17426, % 40 to 44 years28,17127,101 (1,070) (4%) 45 to 49 years32,42530,361 (2,064) (6%) 50 to 54 years36,86935,458 (1,411) (4%) 55 to 59 years37,49438,6661,1723% 60 to 64 years36,76540,1173,3529% 65 to 69 years29,92534,9034,97817% 70 to 74 years23,00525,7982,79312% 75 to 79 years15,88117,7441,86312% 80 to 84 years11,07111, % 85 years and over 9,54210, %

Demographic2011 Population2014 PopulationChange% Change 60 to 64 years36,76540,1173,3529% 65 to 69 years29,92534,9034,97817% 70 to 74 years23,00525,7982,79312%  The largest change came from people ages 60 to 74 growing by more than 11,000 people between 2011 to 2014  Only 784 babies entered this region during that time period NACOG KEY DEMOGRAPHICS-INCREASE

65 to 69 years29,92534,9034,97817% 60 to 64 years36,76540,1173,3529% 70 to 74 years23,00525,7982,79312% 25 to 29 years29,07330,9661,8937% 75 to 79 years15,88117,7441,86312% 55 to 59 years37,49438,6661,1723% 30 to 34 years27,16728,3361,1694% 20 to 24 years39,87740,8791,0023% Under 5 years33,52034, % 35 to 39 years26,17426, % 85 years and over9,54210, % 80 to 84 years11,07111, % 10 to 14 years35,28235, % 5 to 9 years33,83534, % 40 to 44 years28,17127,101 (1,070) (4%) 50 to 54 years36,86935,458 (1,411) (4%) 45 to 49 years32,42530,361 (2,064) (6%) 15 to 19 years40,11536,784 (3,331) (8%) Total526,190539,78413,5943% NACOG KEY DEMOGRAPHICS-DECREASE -8% -4% -6% -4%

65 to 69 years29,92534,9034,97817% 60 to 64 years36,76540,1173,3529% 70 to 74 years23,00525,7982,79312% 25 to 29 years29,07330,9661,8937% 75 to 79 years15,88117,7441,86312% 55 to 59 years37,49438,6661,1723% 30 to 34 years27,16728,3361,1694% 20 to 24 years39,87740,8791,0023% Under 5 years33,52034, % 35 to 39 years26,17426, % 85 years and over9,54210, % 80 to 84 years11,07111, % 10 to 14 years35,28235, % 5 to 9 years33,83534, % 40 to 44 years28,17127,101 (1,070) (4%) 50 to 54 years36,86935,458 (1,411) (4%) 45 to 49 years32,42530,361 (2,064) (6%) 15 to 19 years40,11536,784 (3,331) (8%) Total526,190539,78413,5943% NACOG REGIONAL TRENDS Year# of NACOG Jobs# of Nation Jobs ,687135,950, ,240138,278, ,619140,273, ,798142,108,288

65 to 69 years29,92534,9034,97817% 60 to 64 years36,76540,1173,3529% 70 to 74 years23,00525,7982,79312% 25 to 29 years29,07330,9661,8937% 75 to 79 years15,88117,7441,86312% 55 to 59 years37,49438,6661,1723% 30 to 34 years27,16728,3361,1694% 20 to 24 years39,87740,8791,0023% Under 5 years33,52034, % 35 to 39 years26,17426, % 85 years and over9,54210, % 80 to 84 years11,07111, % 10 to 14 years35,28235, % 5 to 9 years33,83534, % 40 to 44 years28,17127,101 (1,070) (4%) 50 to 54 years36,86935,458 (1,411) (4%) 45 to 49 years32,42530,361 (2,064) (6%) 15 to 19 years40,11536,784 (3,331) (8%) Total526,190539,78413,5943% NACOG GROSS REGIONAL PRODUCT Earnings (2012)Property Income (2012) Taxes on Production (2012) Total GRP (2012) $9,006,603,131$4,398,348,720$857,003,446$14,261,955,298 NAICSIndustryGRP (2012)% of Total 11Agriculture, Forestry, Fishing and Hunting$479,064,6283% 21Mining, Quarrying, and Oil and Gas Extraction$568,887,7484% 22Utilities$271,064,7242% 23Construction$403,878,5463% 31Manufacturing$1,118,147,3188% 42Wholesale Trade$363,460,9033% 44Retail Trade$1,045,682,4097% 48Transportation and Warehousing$390,999,0493% 51Information$267,765,8092% 52Finance and Insurance$566,665,8594% 53Real Estate and Rental and Leasing$1,078,119,7598% 54Professional, Scientific, and Technical Services$349,748,4522% 55Management of Companies and Enterprises$27,652,3660% 56 Administrative and Support and Waste Management and Remediation Services $240,099,8222% 61Educational Services (Private)$184,836,5251% 62Health Care and Social Assistance$1,386,310,98410% 71Arts, Entertainment, and Recreation$163,404,2391% 72Accommodation and Food Services$730,371,6805% 81Other Services (except Public Administration)$237,026,3652% 90Government$3,238,285,34423% Other non-industries$1,150,482,7698%

NACOG GROSS REGIONAL PRODUCT Retail Trade, 7% Food Services, 5% Mining, 4% Construction, 3% Ag, 2% Utilities, 2%

65 to 69 years29,92534,9034,97817% 60 to 64 years36,76540,1173,3529% 70 to 74 years23,00525,7982,79312% 25 to 29 years29,07330,9661,8937% 75 to 79 years15,88117,7441,86312% 55 to 59 years37,49438,6661,1723% 30 to 34 years27,16728,3361,1694% 20 to 24 years39,87740,8791,0023% Under 5 years33,52034, % 35 to 39 years26,17426, % 85 years and over9,54210, % 80 to 84 years11,07111, % 10 to 14 years35,28235, % 5 to 9 years33,83534, % 40 to 44 years28,17127,101 (1,070) (4%) 50 to 54 years36,86935,458 (1,411) (4%) 45 to 49 years32,42530,361 (2,064) (6%) 15 to 19 years40,11536,784 (3,331) (8%) Total526,190539,78413,5943% Focus on Manufacturing Bolster the manufacturing base via NAMP  Insist on education curriculum consistent with what industry needs  Support JTEDS  Leverage supply chain with industry Focus on rural infrastructure, including broadband

Focus on Manufacturing cont. Focus on rural infrastructure (incl. broadband)  Upgrades to existing systems  Extensions to add supply of employment use property  Be prepared-have all pre-work completed  Get creative with construction funding