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Unprecedented Times Spur Action
Here in Tucson, the current recession’s effects continue to be felt across the spectrum of Southern Arizona private/public sector budgets and employment levels. Job losses are mounting, affecting our colleagues, friends, and families.
Long gone for now are the days of heavy in-migration and periods of high population growth, spurred by our climate and quality of life. Losses in industries like home building and construction have resulted, amplifying the “over reliance” on these types of jobs to fuel the economy. As long as these non-primary jobs remain the main economic drivers, we will continue to suffer the consequences of a “population boom or bust” economy.
What is TREO's Response to the Economic Crisis?
TREO has created an immediate action plan we’re calling Tucson: Job One. This new plan has clearly defined priorities to address strengthening the local economy and creating/maintaining jobs and spending. While the situation is critical, we can and must take our destiny into our own hands, providing leadership in developing local tools and programs to create jobs for our citizens. This is our chance to synergize the region’s recent strategic planning efforts and priorities, demonstrating how all local economic drivers can work together to emerge stronger and with a much more diversified economy.
Look for the launch of Tucson: Job One at a special investor gathering in the coming weeks.
Connectivity is Critical
Our current situation points out how important it is to diversify our economic engines. TREO must accelerate its leadership in strengthening our employment base by creating primary high-skilled/high-wage jobs.
In a rapidly changing economic environment, it’s critical that TREO play a lead role in helping to connect companies to the workers or services they need. TREO’s web site and established connections with local companies can serve a role in providing this “connectivity”.
As part of a strategy to improve the connectivity between employers and job hunters, TREO recently embarked on a comprehensive survey of 170 of the top local companies to gather data on those planning to hire new employees within the next year. Companies that responded to the survey reported a total of more than 2,200 open positions anticipated to be filled within the next 12 months. (Data as of Feb. 2009).
There are many resources available in the community for people looking for business support, information on starting a business, networking opportunities, and much more.
TREO has created a new section on its web site with information for both job seekers and companies looking for business support. Find out "Who's Hiring" in Tucson, or find business resources at www.treoaz.org.
Business Development Update
First two quarters FY08-09
Despite the slowing economy, activity in TREO's Business Development department remains steady. In fact, the number of active projects is slightly higher (+2%) the first two quarters of this year compared to the first two quarters of FY07-08.
Number of Active Projects by Industry
Call Center
Manufacturing
Other
Professional Services
Transportation
Total |
7
20
14
3
2
46 |
Potential Jobs by Industry
Call Center
Manufacturing
Other
Professional Services
Transportation
Total |
1380
1001
925
313
20
3639 |
- Hosted 12 Clients (Attraction)
- Assisted 8 local clients (Expansion)
- 48 Requests for Information (Attraction)
- Responded to 302 inquiries about business assistance programs
"Select Tucson" Launched to Site Selectors
TREO recently launched a quarterly email newsletter specifically targeted to site selectors. The goal of the newsletter is to highlight industry strengths and company relocation or expansion announcements in order to keep Tucson top of mind when a site selector is considering locations for a company.
The newsletter was sent to more than 2,400 site selectors nationally. Click here to view the first edition of the newsletter.
TREO and GPEC Launch CA Marketing Campaign
Arizona Sun Corridor: Open for Business
Like Arizona, California is struggling through one of the worst budget deficits in its history. In order to balance its budget, California lawmakers recently voted for large tax increases and massive spending cuts. This creates a unique opportunity for Arizona to target job leads from its neighboring state, as many companies will struggle in this new business environment. This, coupled with the fact that the Phoenix-Tucson corridor will be one of the fastest growing in the nation over the next 35 years, gives California-based companies reason to look to Arizona for lower operating costs, ability to service their clients from a neighboring state and access to new markets.
Locating a business operation in Arizona has many advantages to a California-based operation. Wages, income tax rates, utility rates, worker’s compensation insurance and many other operating costs are lower in Arizona. The Sun Corridor has a geographic proximity to a California client base, a skilled and talented workforce, compatible industries and a sizable population that can accelerate company profits.
In order to reach these California companies on the ground in an efficient manner, the state's two largest economic development organizations TREO and GPEC (Greater Phoenix Economic Council) have partnered to develop job leads in key targeted industries. This 2009 six-month pilot program leverages our resources and has already produced high-value leads.
A new website has been launched to help market the campaign. Check it out at www.locateinarizona.com. Click here to read the press release about the campaign, and click here to read FAQ's about the initiative.
Tucson Values Teachers Needs Business Support
As our state legislature seems poised to make major cuts in P-20 education in Arizona, Tucson Values Teachers offers an ideal opportunity for businesses in Southern Arizona to take K-12 education into their own hands, and help shape a K-12 system that educates and trains the citizens and workforce that are vital to our future prosperity. Tucson Values Teachers includes five different strands that identify specific areas of action where all citizens and businesses can step up, get involved and change our region’s future. For information about Tucson Values Teachers, please visit www.tucsonvaluesteachers.org.
Science Foundation Arizona (SFAz) has approved a major grant (with matching by local businesses) to support an innovative program that combines Master’s level training at the UA with paid teacher internships that provide hands-on experience to the teacher in today’s business environment.
SFAz has approved funding for a cohort of 30 teachers, and many more have applied so far, so the demand and availability of this highly-qualified workforce is ready to go. Tucson Values Teachers offers the opportunity for area businesses to not just talk about the importance of a high quality educational system, but to step up and get involved to create a K-12 system that delivers the future employees and citizens who will secure a prosperous future for us all.
For more information or additional questions, please contact Jacquelyn Jackson, Executive Director of TVT at jjackson@tucsonvaluesteachers.org.
Upcoming Events
TMCC Man and Woman of the Year Awards
On April 7, the Tucson Metropolitan Chamber of Commerce will host the annual Man and Woman of the Year and Founders Award luncheon at the Westin La Paloma.
TREO congratulates this year's winners:
2008 Man of the Year:
Larry Hecker, Attorney, Hecker and Muehlebach
Of Counsel, TREO Board of Directors
2008 Woman of the Year:
Sarah Brown Smallhouse, President, Brown Family Foundations
TREO Board Member
2008 Founder of the Year:
Don Diamond, Chairmain, Diamond Ventures Inc. (TREO Investor)
Click here for more information or to attend the luncheon.
UA Innovation Day
Innovation Day at the University of Arizona celebrates technology development and commercialization by highlighting the research achievements of students, staff and faculty.
The event includes networking, a technology innovation luncheon, a showcase, and presentations.
March 24, 2009
9:00am to 5:30pm
University of Arizona Student Union
Community $35, UA faculty/staff FREE
Contact Arizona Center for Innovation 520-382-3260, info@azinnovation.com or register online at www.innovation.arizona.edu.
Save the Date - ABEC Annual Meeting & Conference
The 2009 Arizona Business and Education Coaltion (ABEC) Annual Meeting & Conference will be held Monday, June 1.
Featured speakers will discuss the top 10 performing countries in education, why partnerships are playing an innovative role in education, and creating conditions for innovative, transformative policy-making in education.
For additional details on the conference, visit ABEC's website at www.azbec.org.
Good News from TREO Investors
NOVA Home Loans Leads in Mortgage Lending
Since 1980, NOVA Home Loans has been Tucson’s preferred lender. NOVA was one of the first firms nationwide to provide consumers with real choices as a mortgage broker. NOVA is now licensed as a mortgage bank and offers maximum efficiency with in-house loan processing and underwriting while retaining the consumer options the company pioneered as a broker. NOVA Home Loans leads the way with the widest array of FHA, VA and conventional loan products the mortgage industry has to offer.
NOVA Home Loans recently announced that the company led in overall mortgage lending throughout the Southern Arizona marketplace for 2008, outpacing several major national competitors. “NOVA’s continued dominance in Pima County reflects the solidarity of our company and the quality of our reputation,” said Jon Volpe, NOVA’s chief executive officer. “For 29 years, NOVA has been a constant on Tucson’s mortgage lending landscape.”
For the month of December 2008, NOVA’s market share was nearly 13 percent - more than four percent greater than its nearest competitor, nearly doubling the production that of the second place holder during the same period. In 2008, NOVA averaged slightly over $36 million per month in loan sales and funded more loans than anyone in Pima County.
For more information call (520) 745-0050 or visit www.novahomeloans.com.
Bank of Tucson Ready to Lend
Bank of Tucson was founded 13 years ago by President Mike Hannley, who has 36 years of banking experience in Tucson. Despite alarming media reports, business at Bank of Tucson is strong. Mike recently answered a few questions about the current state of business banking in Tucson.
What is your assessment of the current banking situation?
A misconception that most people hear from the media is that banks aren’t lending, and that absolutely is not true. At community banks, there is money to lend.
A majority, if not all banks in Tucson, are lending to local businesses, doing home loans and construction loans for qualified borrowers. All banks based in Tucson are healthy and ready to lend as needed.
It’s unfortunate that all banks are painted with the same brush because we are not all the same. Bank of Tucson is one of the most profitable and healthy banks in the state of Arizona. Community banks like Bank of Tucson are in the community, their deposits are from the community and their loans are to the community. We know our customers and work with them in difficult times.
What benefits does Bank of Tucson offer to its customers?
As a local bank, we have the ability to make all our decisions right here on premises. We make decisions in concert with recognizing the ebbs and flows of individual businesses and we take the time to counsel as needed.
It’s important to have that relationship with the bank itself, not just the loan officer but everyone who works in the bank.
What advice can you offer to businesses struggling in the current economy?
Businesses that are going through a hard time need to look at their expenses and see where they can cut back. If they have loans, they need to talk to their bank and see how they can adjust these loans to their cash flow to take advantage of every opportunity.
It’s really critical to look under every rock and adjust a company’s collection efforts, their spending habits, relationships with their customers, and be aggressive in their marketing. It’s important to maintain brand and business awareness, and don’t quit advertising - people need to know that you’re out there.
Bottom line – you just have to work a lot harder and a lot smarter.
LP&G Inc. Wins Two National Telly Awards
LP&G, Inc., has earned two Tellys in the 29th annual Telly Awards. The awards are for television commercials produced for the Susan G. Komen for the Cure - Southern Arizona affiliate and City of Tucson Environmental Services.
A Silver Telly Award, the highest award obtainable, was given for a public service announcement for the local chapter of the Susan G. Komen for the Cure foundation. The commercial titled "Size Doesn’t Matter" emphasizes the importance of mammograms and the availability of support from the foundation.
A Bronze Telly was awarded for the agency’s TV spot for The City of Tucson’s Environmental Services department. As part of the "Do More Blue" campaign, the commercial encourages people to learn more about what refuse can be recycled.
Founded in 1978, the Telly Awards is the premier award honoring outstanding local, regional, and cable TV commercials and programs, video and film productions, and online film and video.
For over 15 years, LP&G has offered a full range of strategic marketing, advertising, public relations, web and ideation services. From research and analysis to marketing, media buying and planning, LP&G creates growth. More information is available at www.lpginc.com.
Cornerstone Building Foundation Honors 2 TREO Investors
The Cornerstone Building Foundation, a joint effort of the AZ Builders Alliance and the American Council of Engineering Companies of America, recently honored two TREO investors.
The Cornerstone Building Foundation honored ABA Architects with the "Architect of the Year" award and T.L. Roof as the "Contractor of the Year."
New and Renewed Investors
TREO would like to thank all our new and renewed investors for their commitment to supporting economic development in the Tucson region.
New Investors
Renewed Investors
Did you know?
TREO's website features Success Stories and photos from local businesses and organizations in the Tucson region. Click here to read the Success Stories.
Would you like your business or organization to be featured on TREO's website as a Business Success Story? Contact Erin.Coulter@treoaz.org or call (520) 243-1935 for more information.
120 North Stone Ave., Suite 200
Tucson, Arizona 85701
520.243.1900 * 1.866.600.0331 * Fax 520.243.1910
www.treoaz.org
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