History of Phoenix, Arizona - Economy

Economy

The early economy of Phoenix was primarily agricultural, dependent mainly on the "5Cs" which were copper, cattle, climate, cotton and citrus. In the last four decades most of the farmlands have been turned into suburbs, and the economy has diversified as swiftly as the population has grown. The construction boom collapsed in 2008, as the financial crisis of 2007–2010 began; housing prices plunged. As Phoenix is the state capital, many residents in the area are employed by the government. Arizona State University has also enhanced the area's population through education and its growing research capabilities. Numerous high-tech and telecommunications companies have also recently relocated to the area. Due to the warm climate in winter, Phoenix benefits greatly from seasonal tourism and recreation, such as the golf industry.

Phoenix is currently home to four Fortune 500 companies: electronics corporation Avnet, mining company Freeport-McMoRan, retailer PetSmart and waste hauler Republic Services. Honeywell's Aerospace division is headquartered in Phoenix, and the valley hosts many of their avionics and mechanical facilities. Intel has one of their largest sites here, employing about 10,000 employees and 7 chip manufacturing fabs, including the $3 billion state-of-the-art 300 mm and 45 nm Fab 32.

American Express hosts their financial transactions, customer information, and their entire website in Phoenix. The city is also home to the headquarters of U-HAUL International, a rental and moving supply company; as well as Best Western, the world's largest family of hotels; Apollo Group, parent of the University of Phoenix; and utility company Pinnacle West. Choice Hotels International has its IT division and Operations Support Center in the North Phoenix area. US Airways relocated it Corporate Headquarters to Metro Phoenix area (Tempe) in 2005 after being acquired by America West Airlines. US Airways is the largest carrier at Sky Harbor International Airport in Phoenix. Mesa Air Group, a regional airline group, is headquartered in Phoenix.

Despite the housing collapse, Phoenix is seeing an improvement in its rental housing. “Commercial-property owners are counting on apartment buildings to lead the Phoenix area's real-estate market toward recovery, based on a recent rebound for units rented and buildings sold.” The military has a significant presence in Phoenix with Luke Air Force Base located in the western suburbs. At its height, in the 1940s, the Phoenix area had three military bases: Luke Field (still in use), Falcon Field, and Williams Air Force Base (now Phoenix-Mesa Gateway Airport), with numerous auxiliary air fields located throughout the region.

Foreign governments have established 30 consular offices and eleven active foreign chambers of commerce and trade associations in metropolitan Phoenix.