The Arizona Chamber of Commerce & Industry and the Arizona Manufacturers Council along with the Arizona Manufacturing Extension Partnership last week hosted the Arizona Manufacturing Summit, offering a deep dive into the state’s manufacturing sector and assessing its workforce needs and a look at what skills will be necessary to fill tomorrow’s jobs.
“Manufacturing in Arizona is sizzling,” Arizona Manufacturers Council Executive Director Grace Appelbe said. “The semiconductor sector, obviously, is experiencing tremendous growth, but the state is also attracting new jobs in areas as varied as defense and aerospace, consumer goods, and food and beverage. Manufacturers of all sizes and industries know that Arizona has the talent and the business-friendly environment to be successful.”
Ariz. manufacturing employment by the numbers
Event moderator Bart Taylor of Moss Adams kicked things off by noting that there are approximately 13 million manufacturing jobs in the United States, with the sector adding 2-5 million net new jobs in the last decade after losing more than 8 million jobs after reaching a peak in 1978.
Taylor said that growth in the last decade, combined with a projection to add more than 3 million jobs in the years ahead is “An incredible story of growth.”
Arizona Commerce Authority Sr. Vice President Allison Grigg walked attendees through the latest in state manufacturing employment numbers and emerging industries.
- Arizona is home to over 5,400 manufacturing facilities spanning diverse sectors, with semiconductors leading the way.
- The state has approximately 190,000 manufacturing jobs.
- Last year, manufacturing’s average wages in Arizona were about 35% higher than the statewide average.
- Between 2018 and 2023, Arizona achieved the third-fastest manufacturing job growth in the U.S., fueled primarily by high-tech sectors.
- Leading the nation in semiconductor projects, the state saw around 40 major announcements and a commitment of 16,000 semiconductor jobs, representing more than $102 billion in investment.
- The ACA is currently managing its largest project pipeline, with around 450 active projects representing over 132,000 potential jobs and $174 billion in capital investment.
- Of these, 306 are manufacturing projects, predominantly in aerospace and defense, battery production, and semiconductors.
Growing semiconductor sector attracting talent
A panel of experts discussed the needs of employers in manufacturing, with insight from semiconductor leaders Intel and TSMC, and VB Cosmetics and Latham Industries.
The fight for talent is fierce, panelists said. Employers have two options to build their workforce: train and develop workers or hire them away from other employers.
But the growing Arizona semiconductor manufacturing sector offers the equivalent of a tide lifting all boats, panelists said, drawing more talent to the state to work with manufacturers beyond semiconductors.
Arizona has secured $15 billion in direct investment from the CHIPS Act, part of which is designated for workforce funding. Once this funding process begins, Arizona manufacturers aim to collaborate with partners to establish programs focused on training, upskilling, and reskilling employees to enter the semiconductor industry.
Employers relying on educators
Employers are counting on Arizona education leaders at the community college and university level to help ensure the talent pipeline stays full.
TSMC and Intel have strong partnerships with the Maricopa Community College District, the state’s three public universities, Grand Canyon University, and Career and Technical Education providers WestMec and EVIT, where high-school students can get exposed to the industry and learn more about what a career in advanced manufacturing might entail.
GCU last year launched its CNC Machinist Pathway, a 15-week program that exists alongside the university’s growing baccalaureate engineering and business programs to provide students job-ready training in manufacturing parts for medical, aerospace and semiconductor industries.