Arizona’s manufacturing employment dropped 1.1 percent over the past 12 months, according to the 2007 Arizona Manufacturers Directory, an industrial directory published by Manufacturers’ News Inc. MNI reports Arizona lost 2,723 manufacturing jobs and 74 plants since March 2006.
“This is a trend we’ve seen in other states,” said MNI president Thomas Dubin. “Although manufacturing output is at record highs, industrial employment is stagnant or declining. This is partly the result of outsourcing, mergers and consolidation, but the nature of today’s manufacturing also plays an important role. Fewer employees are needed due to automation and technology; instead of four assembly line workers, now you may have just one controlling the manufacturing process through a computer.”
Southern Arizona accounts for the most manufacturing activity, with 93 percent (225,090) of the state’s jobs, with 72 percent of these located in Maricopa County, and 15 percent in Pima County. Maricopa jobs are down 2.5 percent from last year, while Pima County saw a 3.6 percent increase. A total of 6.9 percent, or 16,806, of Arizona’s industrial jobs are located in northern Arizona. MNI data shows manufacturing jobs in the North were down 1.1 percent from last year, while the South saw a 1.3 percent loss.
Manufacturers’ News reports Arizona is home to 6,104 manufacturers employing 241,897 workers. MNI surveys both large and small manufacturers, including small start-up companies with just a few employees.
MNI’s regional analysis shows Arizona ranks 28th in the nation for manufacturing plants and 26th for jobs. The Grand Canyon State ranks third in the West for manufacturing jobs and plants, accounting for 11 percent of the region’s manufacturers and 8.9 percent of its jobs. Arizona was one of the few Western states to lose manufacturing jobs in 2006, with most of the West seeing significant increases in industrial employment. Earlier MNI releases show the region reported significant gains in Washington, Oregon, Utah and Nevada, offset by losses in California and Hawaii.
Phoenix is Arizona’s top industrial employer, accounting for more than one-third of the state’s manufacturing employment, or 85,963 jobs, and is home to 1,923 plants. MNI reports Phoenix ranks among the top 40 cities in the U.S. by industrial jobs, ranking ninth in the nation and second in the Western region, just behind Los Angeles. Tucson is the state’s second-largest industrial employer, accounting for 34,694 manufacturing jobs or 14 percent of the state while Tempe ranks third with 21,456 jobs. Over half of Arizona’s manufacturing jobs are located in these three cities.
MNI reports Phoenix industrial jobs were down 5 percent over the 12-month period and plants were down 3 percent. Tucson saw an increase of 3 percent in industrial employment while Tempe was down 837 jobs, or 3.7 percent.
According to the 2007 edition, industrial machinery and equipment is Arizona’s largest industrial sector by number of plants, accounting for 845 manufacturers. The aviation/defense industries account for the largest share of Arizona’s industrial employment, with aircraft and aircraft parts accounting for 21,065 jobs and related defense sectors accounting for 18,744 jobs. Major employers in these sectors include Tucson-based Raytheon Missile Systems and Honeywell Aerospace.