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Water, Lack of Buildings Among Concerns for Arizona Economic Development Experts

By May 23, 2023No Comments

By Audrey Jensen | Phoenix Business Journal

Several challenges in the economy could impact Arizona’s economic development going into the rest of 2023.

As Arizona continues setting itself up for more growth, more than 100 economic development professionals in the state say they are concerned over some of the biggest challenges the state is facing.

This includes Arizona’s shortfalls in housing and available buildings, the ongoing drought and water shortages, talent supply and city processes, according to a new Arizona Association for Economic Development survey of 120 economic development professionals and providers.

Overall, the survey found that the main concerns for growth include: permitting, regulations and water resources; lack of available commercial and industrial buildings; housing affordability and availability and workforce.

“Talent attraction continues to be a key competitive factor in economic development in Arizona, and throughout the country,” said Sarah Murley of Applied Economics, in a statement. “Arizona has benefitted from a high level of in-migration in recent years that have bolstered the labor force, but this year’s AAED survey also highlights the strong connection between workforce attraction and housing affordability in this rapid growth environment.”

About 46% of the 88 economic developers surveyed said they expected strong growth to continue in 2023, while about 6% expect an economic downturn the rest of the year. Of the 32 service providers surveyed, about 40% said they expect weakening growth while another 40% expect little change.

This year’s results are similar to a survey conducted last year, which also had inadequate infrastructure, lack of political support and debates on incentives listed as top concerns for economic development practitioners or providers.

Last year, the number one concern was lack of available buildings and lack of skilled labor for practitioners and providers, respectively, while this year the No. 1 concerns were housing affordability and lack of labor.

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