Manufacturing growth drives Arizona’s economy
Arizona’s economy is being powered by a dramatic expansion in its manufacturing sector, which has significantly outperformed national growth trends between 2019 and 2024. According to a report from the Arizona Commerce Authority (ACA), the state saw industrial employment surge by 10%, while its manufacturing GDP skyrocketed from $28.5 billion to $39.2 billion during the five-year period.
The sector’s momentum shows no signs of slowing. The ACA notes that approximately 70% of the projects in its current portfolio are manufacturing-related, representing a potential for over 96,000 new jobs.
This manufacturing renaissance was on full display at recent industry events, including SEMICON West, which was held in Arizona for the first time. The major trade show attracted thousands of tech leaders and featured announcements of multimillion-dollar investments. Key projects unveiled included Amkor’s $7 billion testing and advanced packaging campus in Peoria and the opening of a new Brewer Science innovation center in Chandler.
“The growth we’re seeing is not just in volume, but in quality and innovation,” said a state official, pointing to local firms like Swift Coat, Pure Wafer, and Axon. These companies were recently honored by the Arizona Manufacturers Council and the Arizona Chamber of Commerce and Industry for their contributions to the sector.
To secure this growth, Arizona is making significant investments in its future workforce. Arizona State University has opened an interdisciplinary facility in Mesa dedicated to research and training in advanced manufacturing, robotics, and artificial intelligence. Concurrently, the Future48 Workforce Accelerators program has expanded to six centers across the state, with a seventh planned for launch in Tucson, according to Arizona MEP.
These efforts are bolstered by targeted support for small and medium-sized enterprises. The Arizona Manufacturing Extension Program (MEP), which aids such businesses, completed nearly 200 projects with over 100 companies in fiscal year 2025. ACA data reveals that this initiative generated or preserved more than 1,130 jobs and delivered savings exceeding $14 million for the state’s manufacturers.
