A diversified economy should be encouraged by the Phoenix economic development plan. By 2012, the metro area population had surged to above 4.3 million. The Valley has now grown to become the 13th largest metropolitan area in the country. The number has grown from 4.19 million in 2010, when it was ranked 14th according to U. S. Census Bureau.
Yet its quality of life indicators have fallen due to the housing crisis and its aftermath. The area is still vulnerable to the boom and bust cycle with an economy dependent on housing and construction. At the same time the sprawl development pattern has hidden a time bomb of unsustainable costs associated with infrastructure maintenance. This is because the yield from the suburban development pattern, this being the amount of taxes recovered per increment of liability assumed is vastly insufficient. This pattern prevails in Phoenix as much as it does in the suburbs beyond its territorial boundary.
In a reliant on RE cycle economy, new RE developments bring near term profit and subsequent pain to follow. The onerous maintenance burden comes due years later. But, the collapse of the housing bubble and its ramification has been a wake up call. Lawmakers, development experts and business leaders to suggest a departure from the status quo. Critics have pointed out past history where an industrial base was allowed to diminish with no effective replacement. Past failures should not be repeated, if the city is to break this pattern.
At this time, experts have suggested luring solar and advanced manufacturing employers. Critics point out that the ambitious goals set after the Savings and Loan crisis era recession were not continued. The plans encompassed setting up the Greater Phoenix Economic Council and developing clusters. The dot com crash in 2001 killed off young tech firms and this was not followed by resurgence of new firms in this sector thereafter. What is started must be pursued consistently to avoid a repeat situation.
It must be kept in minded that knowledge companies need a well educated labor force. Automation and the increasing use of technological advances such as robots are displacing low skilled workers. Meanwhile the city has an abundant supply of this type of labor. Business leaders should look to absorb what is available in the tourism and retirement service industries.
Experts understand that any rebound of the housing market will not be anything like what transpired before the bust. Lenders will be more careful. There is a budding bioscience sector that is a promising start in a different direction. An indication of this is the willingness of Luxembourg to invest in a 200 million dollar research partnership. This partnership includes connections with Arizona State University and the Translational Genomics Research Institute.
Translational Genomics Research Institute is an example of the kind of anchor that is needed to build a diversified economic base. This was indicated by the economic impact study by Tripp Umbach released in November 2011. It revealed that in 2010 for every 1 dollar that was invested by the state, there was a positive impact of over 14 dollars. By 2015 this return from TGen is expected to increase by 11 dollars.
TGen is helping the city make a name for itself in the biomedical industry. People believe this biomedical anchor is helping to lay the foundation for the area to emerge as one of the national leaders in the bioscience sector. To reinvent itself, Phoenix economic development needs to build new clusters along this line in other industries as well.
Yet its quality of life indicators have fallen due to the housing crisis and its aftermath. The area is still vulnerable to the boom and bust cycle with an economy dependent on housing and construction. At the same time the sprawl development pattern has hidden a time bomb of unsustainable costs associated with infrastructure maintenance. This is because the yield from the suburban development pattern, this being the amount of taxes recovered per increment of liability assumed is vastly insufficient. This pattern prevails in Phoenix as much as it does in the suburbs beyond its territorial boundary.
In a reliant on RE cycle economy, new RE developments bring near term profit and subsequent pain to follow. The onerous maintenance burden comes due years later. But, the collapse of the housing bubble and its ramification has been a wake up call. Lawmakers, development experts and business leaders to suggest a departure from the status quo. Critics have pointed out past history where an industrial base was allowed to diminish with no effective replacement. Past failures should not be repeated, if the city is to break this pattern.
At this time, experts have suggested luring solar and advanced manufacturing employers. Critics point out that the ambitious goals set after the Savings and Loan crisis era recession were not continued. The plans encompassed setting up the Greater Phoenix Economic Council and developing clusters. The dot com crash in 2001 killed off young tech firms and this was not followed by resurgence of new firms in this sector thereafter. What is started must be pursued consistently to avoid a repeat situation.
It must be kept in minded that knowledge companies need a well educated labor force. Automation and the increasing use of technological advances such as robots are displacing low skilled workers. Meanwhile the city has an abundant supply of this type of labor. Business leaders should look to absorb what is available in the tourism and retirement service industries.
Experts understand that any rebound of the housing market will not be anything like what transpired before the bust. Lenders will be more careful. There is a budding bioscience sector that is a promising start in a different direction. An indication of this is the willingness of Luxembourg to invest in a 200 million dollar research partnership. This partnership includes connections with Arizona State University and the Translational Genomics Research Institute.
Translational Genomics Research Institute is an example of the kind of anchor that is needed to build a diversified economic base. This was indicated by the economic impact study by Tripp Umbach released in November 2011. It revealed that in 2010 for every 1 dollar that was invested by the state, there was a positive impact of over 14 dollars. By 2015 this return from TGen is expected to increase by 11 dollars.
TGen is helping the city make a name for itself in the biomedical industry. People believe this biomedical anchor is helping to lay the foundation for the area to emerge as one of the national leaders in the bioscience sector. To reinvent itself, Phoenix economic development needs to build new clusters along this line in other industries as well.
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