The Arizona Manufacturers Council has announced the recipients of the 2026 Manufacturer of the Year Awards, recognizing companies and leaders making an impact across Arizona鈥檚 manufacturing sector.

The annual awards recognize excellence across seven categories, from manufacturing growth and innovation to sustainability and industry leadership. This year鈥檚 honorees will be recognized Oct. 13 at the Manufacturer of the Year Awards Luncheon presented by APS.

鈥淎rizona manufacturers continue to grow, invest and innovate in ways that strengthen the state鈥檚 economy and expand what gets made here,鈥� said Grace Appelbe, executive director of the Arizona Manufacturers Council. 鈥淭his year鈥檚 honorees reflect the depth of that work, from longstanding Arizona companies to major industrial operations and emerging technologies.鈥�

2026 Award Recipients

Small Manufacturer of the Year 鈥� Valley Forge & Bolt: The Phoenix-based manufacturer makes industrial bolts and fasteners used in demanding environments such as mining, steel and oil and gas. The company is also known for patented technology that allows operators to monitor bolt tension in real time, helping improve safety, reliability, and maintenance.

Medium Manufacturer of the Year 鈥� Nucor Steel Kingman: Nucor鈥檚 Kingman mill produces reinforcing bar and wire rod used in roads, buildings, bridges and other infrastructure. In 2025, the facility brought a new $100 million melt shop online, allowing Nucor to recycle scrap metal into new steel products directly in Kingman and expand production for customers across the West.

Large Manufacturer of the Year 鈥� Shamrock Foods Company: Founded in Tucson in 1922, Shamrock has grown from a small dairy operation into one of the nation鈥檚 largest family-owned food companies. The Arizona-based company鈥檚 operations include Shamrock Farms, foodservice distribution, dairy manufacturing and a portfolio of food and beverage businesses serving customers across the West and nationwide.

Arizona Success Story 鈥� Pivot Manufacturing: Phoenix-based Pivot Manufacturing is a locally grown manufacturer specializing in precision machining, assembly and production work for complex industries, including aerospace and defense. Over more than two decades, the company has expanded its capabilities while building a team of engineers, machinists and quality specialists.

Excellence in Innovation 鈥� Florence Copper: Florence Copper began commercial copper production in 2026, using a process that recovers copper from underground without the large open pit, blasting and hauling associated with conventional mining. The operation is currently ramping up and is expected to produce up to 85 million pounds of copper annually at full capacity.

Excellence in Sustainability 鈥� Swire Coca-Cola: The Coca-Cola bottler has made water conservation and replenishment a major part of its sustainability work, reducing the amount of water used in manufacturing while supporting projects designed to return water to communities and nature. Swire Coca-Cola also operates throughout Arizona as part of its 13-state western U.S. footprint.

Champion of the Year 鈥� Rep. Michael Carbone: Carbone is recognized for his work on policies supporting Arizona manufacturing, including sponsoring HB 4026, legislation backed by the Arizona Chamber and Arizona Manufacturers Council to strengthen the state鈥檚 public infrastructure program for major manufacturing projects. The program helps communities fund roads, water and other infrastructure needed to support large-scale manufacturing investment.

The 2026 honorees will be recognized at the Arizona Manufacturers Council鈥檚 Manufacturer of the Year Awards Luncheon on Oct. 13.

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Public voting is now open for the top three finalists in the 2026 Hottest Thing Made in Arizona competition.

The Arizona Chamber of Commerce & Industry and Arizona Manufacturers Council on Monday announced the top three finalists in the fourth annual statewide competition, presented by Grand Canyon University.

This year鈥檚 contenders span medical technology, industrial manufacturing and craft brewing:

SynCardia Total Artificial Heart

Manufactured in Tucson, the is the world鈥檚 first FDA-approved total artificial heart. The device is used as a bridge to transplant for eligible patients facing life-threatening biventricular heart failure, replacing the heart鈥檚 pumping chambers and keeping blood circulating while a patient awaits a donor heart.

Wireless SPC4庐 Load Indicating System

Made by Valley Forge & Bolt in Phoenix, the allows users to measure and monitor fastener tension locally or remotely, helping identify bolts or studs that have lost clamp load.

The technology is used in demanding industrial applications including mining, oil and gas, steel and other heavy industries.

Hatch Chile Gatos Golden Ale

Brewed by Fate Brewing Company in Scottsdale, is made with roasted Hatch chiles, giving the beer a pronounced chile aroma with mild flavor and very little heat. The beer has become one of Fate鈥檚 longstanding signature brews.

鈥淭his year鈥檚 top three reflect the diversity of Arizona manufacturing, from lifesaving medical devices and precision industrial technology to Arizona-brewed craft beer,鈥� said Grace Appelbe, executive director of the Arizona Manufacturers Council. 鈥淭hat diversity is exactly what this competition is meant to highlight, along with the companies and skilled teams behind the products made here.鈥�

The Hottest Thing Made in Arizona competition launched in 2023 as a way to highlight the range and strength of Arizona鈥檚 manufacturing sector. Past winners include Boeing鈥檚 AH-64 Apache helicopter, the Dexcom G7 continuous glucose monitor, and Honeywell Aerospace鈥檚 131-9 auxiliary power unit.

Public voting is open through Oct. 13, with one vote allowed per day per device.

The winner will be announced Oct. 13 at the Arizona Manufacturers Council鈥檚 Manufacturer of the Year Awards Luncheon.

Cast your vote at

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Manufacturers are growing more optimistic about sales and production over the coming year, but rising input costs, transportation expenses and continued global uncertainty are keeping pressure on the sector, according to a .

NAM鈥檚 Q3 2026 Manufacturers鈥� Outlook Survey found that manufacturers expect raw material and other input costs to increase 5% over the next 12 months. Increased raw material costs ranked as manufacturers鈥� top business challenge for the second consecutive quarter, followed by rising health care costs and trade uncertainty.

The results illustrate a manufacturing economy in which stronger expectations for demand are colliding with persistent cost pressures.

鈥淎rizona manufacturers are ready to grow, invest and compete, but the cost of doing business remains a significant challenge,鈥� Arizona Manufacturers Council Executive Director Grace Appelbe said. 鈥淲hether it鈥檚 raw materials, energy, transportation or health care, rising costs ultimately affect manufacturers鈥� ability to invest in their operations and their workforce. And the uncertainty surrounding tariffs isn鈥檛 helping. Tariffs are import taxes, and manufacturers pay them when they source key inputs from abroad, putting additional pressure on costs that can ultimately be passed along to consumers. The encouraging news is that manufacturers remain optimistic about what lies ahead, and policymakers can help sustain that momentum by advancing policies that provide greater certainty and keep Arizona and the United States competitive.鈥�

That optimism is reflected in manufacturers鈥� expectations for the coming year. Survey respondents projected sales, production, capital investment and exports to grow at their fastest rates in more than four years.

Manufacturers expect sales to increase 4.3% over the next 12 months and production to rise 3.8%, the highest projected growth rates for both measures since the second quarter of 2022.

鈥淪trong demand is fueling a notable increase in anticipated sales and production growth, both projected to rise 4.3% and 3.8%, respectively, the highest growth rates for both indexes since Q2 2022,鈥� NAM Chief Economist Victoria Bloom said. 鈥淏ecause of a strengthening sales forecast, manufacturers remain optimistic, though growth in the industry would likely be stronger if cost pressures eased.鈥�

Global disruptions continue to complicate that outlook.

Among manufacturers surveyed about the conflict in the Middle East, 60.6% said conditions related to the conflict had not improved from the previous quarter, while 33.2% said challenges had worsened.

Transportation expenses are adding to those pressures. More than three-quarters of manufacturers, 77.3%, identified freight rates as a challenge, while 74.1% cited fuel costs. Trucks are especially important to the sector, with 98.6% of respondents reporting that they rely on trucking to move goods.

Manufacturers also appear prepared to make significant investments in their operations.

Nearly two-thirds of respondents, 63%, said they plan to import industrial machinery, parts or components during the next year to support existing or planned manufacturing operations. Among those companies, 69.2% expect to use the equipment to upgrade or replace existing machinery, while 63.6% said the machinery would support new or expanded operations.

NAM said the findings demonstrate the importance of policies that allow manufacturers to secure the equipment needed to expand and modernize their facilities. The organization is advocating for a U.S. Manufacturing Investment Accelerator Program designed to improve manufacturers鈥� access to industrial machinery.

鈥淢anufacturers are seeing encouraging signs for growth, but they are also facing some strong headwinds such as rising costs and global uncertainty that continue to place pressure on global supply chains,鈥� NAM President and CEO Jay Timmons said.

Timmons called for action on several priorities important to manufacturers, including surface transportation reauthorization, permitting reform, health care costs and greater trade certainty.

The quarterly results come as Arizona continues to expand its advanced manufacturing footprint, with semiconductor, aerospace and defense, electronics and other manufacturers playing an increasingly prominent role in the state鈥檚 economy.

NAM conducted its Q3 Manufacturers鈥� Outlook Survey from Aug. 11 through Aug. 27.

Photo: Pete unseth, , via Wikimedia Commons

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A group of bills introduced during Arizona鈥檚 2026 legislative session could have imposed more than $31 billion in new annual costs on the state鈥檚 economy if enacted, according to a new analysis from Common Sense Institute Arizona and the Arizona Chamber Foundation. 

The annual identified 119 bills involving taxes, labor policy, energy and environmental regulations and other requirements affecting businesses. Researchers were able to quantify the potential costs of 88 of those measures, estimating a combined impact of at least $31.5 billion annually. 

If the bills had taken effect together, the report estimates Arizona could have lost 424,400 jobs, seen per-capita income fall by as much as $4,100 annually and experienced a $48 billion reduction in state gross domestic product. 

None of the 119 bills included in the report became law. 

鈥淎rizona鈥檚 economic success is not an accident. It reflects years of policy choices that have kept taxes competitive, preserved a flexible labor environment, cut red tape, and given businesses the confidence to invest and hire here,鈥� Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said. 鈥淲e鈥檙e fortunate none of these bills became law. If they had, Arizona鈥檚 competitive advantages could have been dramatically undermined. Arizona鈥檚 competitive position is strong, but we can鈥檛 take it for granted.鈥� 

Among the measures analyzed was an effort to repeal Arizona鈥檚 right-to-work protections, which CSI identified as the single proposal with the largest estimated economic impact. The report projected repeal could cost the state between 30,000 and 40,000 jobs and reduce annual economic growth by 21%. 

The analysis also identified nearly $3.8 billion in potential new taxes, including proposals for an additional 3.5% tax on personal income above $250,000 and an 8% tax on income above $1 million. Other measures would have changed corporate tax policy or imposed new payroll taxes on employers. 

Labor-related proposals accounted for more than $17.5 billion in estimated costs. Those bills included mandatory paid-leave programs, changes to scheduling and overtime requirements, minimum wage increases, and additional workplace mandates. 

Another 20 bills related to energy and environmental policy carried an estimated $7.1 billion in costs. Among them were proposals requiring electric utilities to generate at least half of their electricity from renewable sources and imposing new renewable energy and battery storage requirements on data centers. 

Legal and administrative proposals accounted for another estimated $3.3 billion. The measures included rent-control policies, requirements that retailers accept cash, restrictions on pharmacy benefit managers, and other business regulations. 

Katie Ratlief, executive director of CSI Arizona, said the report is intended to examine the cumulative effect of policy decisions rather than any one proposal in isolation. 

鈥淣o single policy determines the entire direction of an economy, but policy choices compound over time,鈥� Ratlief said. 鈥淭hat鈥檚 exactly why we do this analysis every year. A tax here, a new mandate there, another regulatory requirement somewhere else may not seem significant on its own. But put them all together, and the economic picture can change dramatically.鈥� 

The report also compares Arizona鈥檚 recent economic performance with Colorado, pointing to differences in the policy approaches taken by the two states. 

According to the analysis, Arizona鈥檚 inflation-adjusted GDP has grown 20% faster than Colorado鈥檚 since 2016, reversing the relationship seen during the previous decade. Arizona鈥檚 net interstate migration since 2020 is also up 18.5% compared with its average during the 2010s, while Colorado鈥檚 has declined by more than 90%. 

CSI estimates Arizona would have about 154,405 fewer workers and $26.4 billion less in real GDP today if the state had followed Colorado鈥檚 economic growth trajectory since 2019. 

The report says Colorado has enacted at least 50 measures in recent years that CSI considers detrimental to economic growth, while legislation appearing on Arizona鈥檚 annual 鈥淛ob Killers鈥� lists has not been enacted. 

Arizona Chamber Executive Vice President Courtney Coolidge said maintaining the state鈥檚 competitiveness will remain important as policymakers address issues including affordability, workforce, energy and water. 

鈥淎rizona鈥檚 competitive advantage is something we have built over decades, but it is not permanent,鈥� Coolidge said. 鈥淎s lawmakers tackle real challenges around affordability, workforce, energy and water, the answer cannot be to make it more expensive to hire people, build projects and grow businesses. We need to solve problems without sacrificing the policies that have made Arizona one of the best states in the country to invest and create jobs.鈥� 

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Arizona State University is partnering with Philip Morris International鈥檚 U.S. businesses on a new national initiative aimed at finding and funding innovative, community-driven solutions to some of the challenges facing communities across the country.

The , announced this week by PMI U.S., will award five $50,000 grants to nonprofit organizations developing practical ideas to strengthen their communities.

ASU will serve as a key partner in administering the competition and its judging process, bringing the university鈥檚 expertise in innovation and entrepreneurship to an initiative that will reach all 50 states.

鈥淚nnovation is most impactful when rooted in the needs and strengths of communities,鈥� said Dr. Sethuraman 鈥淧anch鈥� Panchanathan, University Professor of Technology and Innovation and Foundation Chair in Computing and Augmented Intelligence at ASU. 鈥淭he Community Futures Challenge reflects a shared commitment to identifying those ideas, advancing innovation with purpose, and supporting efforts that can deliver meaningful impact across the country.鈥�

Panchanathan, who previously served as director of the National Science Foundation, will chair the Challenge鈥檚 judging panel.

The competition is open to eligible U.S.-based 501(c)(3) nonprofit organizations with projects serving adults age 21 and older. Projects may be in the early-stage, pilot or scaling phase.

The Challenge will also include a four-city 鈥渋nnovation hub鈥� tour intended to highlight local problem-solvers and bring together business, civic and community leaders. Phoenix will serve as one of the four stops, along with Stamford, Connecticut; Pittsburgh; and Jacksonville, Florida.

鈥淎t PMI U.S., we believe America鈥檚 next chapter will be shaped by the people not afraid to tackle difficult problems, turn bold ideas into action, and open up new routes to progress for their communities,鈥� PMI U.S. CEO Stacey Kennedy said. 鈥淎s our businesses continue to invest in American jobs, manufacturing, and innovation, the Community Futures Challenge extends that commitment by backing the people and ideas helping build what comes next.鈥�

The initiative comes as the United States approaches its 250th anniversary and is part of PMI U.S.鈥檚 broader 鈥淚nvested in America鈥� effort. The company says it has invested more than $1 billion in U.S. operations, workforce expansion and innovation capabilities since 2022.

The Challenge is built around the premise that some of the most promising solutions to community challenges originate with the people and organizations closest to them.

A recent nationwide survey commissioned by PMI U.S. and conducted by The Harris Poll found that 86% of U.S. adults believe the most meaningful innovation solves real-world problems people encounter in their daily lives. The survey also found that 87% believe communities understand their own challenges better than outside experts, while 90% believe companies should act as community partners rather than assume they have all the answers.

ASU will help oversee a selection process designed to identify ideas with the potential to produce meaningful and scalable results.

Joining Panchanathan on the judging panel are retired Chief Master Sergeant of the Air Force JoAnne S. Bass; journalist Steve Clemons; longtime SXSW executive Hugh Forrest; University of Silicon Valley President and CEO Dr. Mark Naufel, who founded ASU鈥檚 Luminosity Lab; Atlantic Council Nonresident Senior Fellow Leah Pisar; Black Chamber of Arizona President and CEO Dr. Velma Trayham; entrepreneur Ted Yang; and Neuro co-founder and CEO Kent Yoshimura.

The inclusion of both Panchanathan and Trayham on the panel, along with Phoenix鈥檚 selection as an innovation hub, gives Arizona a prominent role in the national initiative.

For ASU, the partnership is also consistent with the university鈥檚 longstanding emphasis on entrepreneurship, applied research and using innovation to address real-world challenges.

Eligible nonprofits can apply for one of the five $50,000 grants at .

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As calls for a moratorium on data center development gain traction in Arizona, the Arizona Chamber of Commerce & Industry is offering supporters a chance to take that position to its logical conclusion.

The Chamber’s new Arizona Offline Pledge asks those calling for a blanket moratorium to also commit to giving up the many everyday technologies and services made possible by data center infrastructure.

“If you’re willing to call for a moratorium on data centers, it stands to reason you’d be willing to give up all the modern conveniences they make possible,” said Arizona Chamber Executive Vice President Courtney Coolidge. “So we decided to put together a pledge for anyone who wants to put that position into practice.”

The pledge asks moratorium supporters to commit to going without things like social media, artificial intelligence, streaming services, online banking and digital payments, cloud storage, GPS navigation, video conferencing, telehealth, and other cloud-based services.

Though tongue-in-cheek, the pledge highlights a broader point: data centers support far more than AI. They provide the digital infrastructure behind banking, cybersecurity, health care, logistics, advanced manufacturing, public safety communications, and many of the online services Arizonans use every day.

The Chamber argues that Arizona should have serious conversations about where data centers are located, how they’re developed and what responsible growth looks like, but that a blanket moratorium would ignore both the role this infrastructure already plays in daily life and its growing importance to Arizona’s economy.

“Concerns from communities shouldn’t be dismissed, and we aren’t suggesting a data center belongs on every corner,” Coolidge said. “But Arizona has never responded to difficult growth challenges by simply stopping. We solve problems.”

Arizona is already showing what that can look like, from water-efficient technologies to policies designed to ensure large energy users pay the infrastructure costs associated with their growth.

“Arizona has spent decades building a reputation as a state that tackles difficult problems and welcomes innovation,” Coolidge said. “Leadership means addressing legitimate concerns, protecting Arizona families and building responsibly without losing sight of the infrastructure our residents and economy increasingly depend on.”

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The Arizona Chamber of Commerce & Industry has joined a coalition asking the U.S. Supreme Court to review a federal air-quality rule that business groups say could make it more difficult to permit new manufacturing, energy and infrastructure projects. 

The petition, filed Friday, challenges a 2024 Environmental Protection Agency (鈥淓PA鈥�) National Ambient Air Quality Standard (鈥淣AAQS鈥�) revision that tightened the national standard for fine particulate matter, commonly known as PM2.5. The revision lowered the annual standard from 12 micrograms per cubic meter to 9, a 25% reduction.    

PM2.5 refers to microscopic particles in the air that are small enough to be inhaled deep into the lungs. Under the Clean Air Act, communities that do not meet federal air-quality standards can face additional regulatory requirements, while businesses seeking to build or expand major facilities can face more stringent permitting requirements. 

For businesses, the practical effect is in permitting. The new standard can tighten pre-construction permitting even in areas that met the previous standard, requiring companies to demonstrate that a new or expanded facility will not push air pollution above the federal limit. In areas deemed out of compliance, or 鈥渘onattainment,鈥� new projects can face even stricter emissions requirements. 

鈥淎rizona can protect clean air and continue to grow, but we have to be realistic about what these rules mean on the ground,鈥� Arizona Chamber President and CEO Danny Seiden said. 鈥淲hen a federal standard makes it harder to permit a new manufacturing plant, energy project or piece of critical infrastructure, that has consequences for investment, jobs and our ability to compete. Businesses need tough rules to also be clear, lawful and workable.鈥� 

The case centers on the process EPA used to adopt the stricter standard. 

The Clean Air Act directs EPA to conduct a 鈥渢horough review鈥� of national ambient air-quality standards every five years. The business coalition argues that when the Biden administration’s EPA revised the NAAQS outside that normal cycle, EPA did not complete the same comprehensive scientific review required for a regular five-year revision. The petition says it was the first time EPA had revised a national air-quality standard without completing such a review. In doing so, the EPA also failed to consider the costs of undertaking a discretionary off-cycle review. 聽

鈥淭he issue here is whether EPA can make a major change to an air-quality standard without going through the full review Congress required,鈥� said Vanessa Pomeroy, deputy general counsel and chief counsel of the Arizona Chamber Legal Center. 鈥淥ur position is that it can鈥檛. When a rule can affect permitting, investment and major projects across the country, the process matters.鈥� 

The case has taken an unusual turn since the rule was adopted. 

After initially defending the 2024 rule, the current EPA reversed its position and asked the U.S. Court of Appeals for the D.C. Circuit to vacate the rule, agreeing that the prior administration had not followed the required process and had failed to properly consider costs associated with initiating an off-cycle review. The D.C. Circuit rejected both the business groups鈥� challenge and EPA鈥檚 request and left the rule in place in June.聽

The Arizona Chamber, U.S. Chamber of Commerce, National Association of Manufacturers and other industry groups are now asking the Supreme Court to review that decision. Arizona legislative leaders are also among the petitioners. 

The permitting challenge is compounded by the fact that much of the particulate matter in the air comes from sources businesses cannot directly control. More than 84% comes from non-point sources such as wildfires, construction and road dust, while industrial sources and power plants account for about 16%. 

For Arizona, the case could help determine how easily federal air-quality standards can be tightened outside the normal review cycle and what that means for permitting, investment and major projects. 

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The Maricopa County Stadium District has appointed senior business executive Mark Winkleman as Executive Director.

Winkleman will serve as the Stadium District鈥檚 CEO and administrative lead 鈥� overseeing the organization鈥檚 finances and operations, and representing the group with public officials, community stakeholders and the Arizona Diamondbacks. He reports to a 9-member Stadium District Board of Directors that was created as part of legislation signed into law last year by Gov. Katie Hobbs. Chief of among the Stadium District鈥檚 responsibilities: managing $500 million worth of tax-funded renovations at Chase Field, home of the Arizona Diamondbacks in downtown Phoenix.

Winkleman called his appointment 鈥渁n honor,鈥� adding: “My goal is to further the District’s mission by protecting and enhancing this important public asset, providing disciplined and transparent stewardship of public resources, and working collaboratively with the Arizona Diamondbacks. I believe we can successfully modernize Chase Field while maintaining strong accountability to taxpayers and ensuring that the stadium continues to provide long-term value to our community and the State of Arizona.”

Danny Seiden, president & CEO of the Arizona Chamber of Commerce & Industry, welcomed Winkleman to the leadership role, and said the Stadium District has a vital mission to ensure Chase Field remains an essential community asset and landmark.

鈥淎rizona loves the Diamondbacks, and the business community has worked hard to ensure they continue to have a great home right here in downtown Phoenix,鈥� Seiden said. 鈥淚 can鈥檛 wait to see the results as the Diamondbacks and Maricopa County Stadium District modernize Chase Field for the millions of people who visit this beautiful facility every year.鈥�

Winkleman brings to the position more than four decades of executive, public-sector, real estate, legal and governance experience. He鈥檚 the founder and President of MGS Realty Partners, Inc., through which he has advised boards, investors and family offices on real estate strategy, governance, acquisitions, financing, redevelopment and asset management. Earlier, Winkleman served as Arizona State Land Commissioner, a role in which he led the Arizona State Land Department and managed State Trust land totaling 9.3 million acres.

“More than 500 people applied for this position, and Mark’s experience in leading both private and public organizations set him apart from the other candidates” said Board Chairman John Graham. “The Board is pleased to have such an experienced and qualified individual to be our chief executive.”

Winkleman, who earned his business degree from the University of Kansas and law degree from the University of Virginia, has held numerous Arizona civic and nonprofit leadership positions. He is former chairman of ULI Arizona, the McDowell Sonoran Conservancy and Valley Partnership, and served on boards of directors for the City of Phoenix Industrial Development Authority and Arizona State Parks.

Photo courtesy: 鈥溾�� by ,

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For years, employers and working parents have understood the practical challenges created by a shortage of affordable, accessible child care. New research and polling suggest those challenges are increasingly becoming something else, too: an economic issue with growing political salience.

The numbers help explain why.

A finds that more than eight in 10 likely voters 鈥� 82% 鈥� consider the cost of childcare part of the nation鈥檚 broader concerns with the cost of living. More than three-quarters, 76%, say the cost of care for families with young children is either a crisis or a major problem.

For parents who actually pay for childcare, the issue is even more immediate. Asked to identify the two biggest cost pressures they face, 38% named childcare, putting it virtually even with groceries at 40% and behind only housing at 56%.

Those findings come as new data illustrate the size of the challenge here in Arizona 鈥� and recent economic research makes the case that childcare isn鈥檛 simply a family issue but increasingly a workforce and economic competitiveness issue as well.

Arizona families feel the squeeze

Arizona is home to more than 481,000 children age 5 and younger, according to the First Five Years Fund, and 62% have all available parents participating in the workforce.

For those families, care can represent a significant household expense. The annual price of center-based childcare in Arizona is $16,384, or about $1,365 per month. Home-based care is less expensive, but still averages $9,339 annually, or $778 per month. FFYF estimates a 17% gap between the supply of childcare and potential need in Arizona and puts the annual economic impact of the state鈥檚 childcare challenges at $3.3 billion.

Those figures align with that found Arizona鈥檚 supply of licensed child care providers has declined dramatically even as the state鈥檚 population has grown.

Arizona had 5,126 licensed childcare providers in 2002. By 2024, that number had fallen to 2,779 鈥� a 46% decline. Meanwhile, the median daily cost of licensed center-based infant care increased from $43.03 in 2018 to $61.40 in 2024.

The problem is especially acute in some rural areas, but it isn鈥檛 confined to them. CSI found that even Maricopa County has licensed capacity sufficient for only about 13% of its infant population.

A workforce issue hiding in plain sight

For the business community, perhaps the most consequential aspect of the childcare debate is its effect on the labor force.

When parents cannot find care, cannot afford it, or cannot find care that accommodates their work schedules, the consequences eventually reach employers. Workers may reduce their hours, turn down jobs or promotions, miss shifts, or leave the workforce altogether.

The latest polling suggests the effects extend well beyond parents themselves. Nearly 40% of all voters surveyed said their own ability to work is affected by coworkers鈥� childcare challenges. Almost half of working parents said childcare challenges affect their ability to work, and one in five parents with young children said those challenges frequently do so.

CSI attempted to put an economic value on addressing that problem.

Its analysis estimates that making childcare sufficiently affordable and accessible could draw between 15,500 and 87,800 additional Arizonans into the labor force. Under CSI鈥檚 midpoint scenario of 50,000 new workers, the effects ripple well beyond those individuals: The modeling projects 131,700 additional jobs by year five, approximately $17.5 billion in additional state GDP, more than $13.5 billion in additional personal income and an estimated $188 million in additional state income tax revenue.

Those are significant numbers in a state where employers regularly identify access to talent as one of their most important considerations when deciding whether to expand, relocate or invest.

Political salience is growing

None of this means there is an obvious policy answer.

The childcare market presents a particularly difficult economic equation. Care is expensive for parents while wages for childcare workers remain comparatively low. Providers operate in a labor-intensive business with narrow margins, and regulations intended to ensure children’s health and safety can also increase operating costs and create barriers to adding capacity.

CSI鈥檚 research cautions against viewing increased subsidies as the only answer. It points to regulatory reform, expansion of home-based and alternative models, and policies that encourage more providers to enter the market as ways to increase supply and put downward pressure on costs.

But what does appear to be changing is the political environment surrounding the issue.

The FFYF poll found broad support for several basic objectives: 83% support ensuring that parents can choose the type of childcare that works best for their family, 73% support lowering monthly child care costs, and 71% support expanding the supply of care. Nearly half of Democratic voters surveyed said congressional Democrats should work with Republicans and President Donald Trump to pass childcare legislation.

That is noteworthy at a time when affordability is likely to remain central to the political conversation.

Housing, groceries, energy and other household expenses tend to dominate discussions about the cost of living, but for many families with young children, childcare increasingly belongs in that conversation, representing one of the largest bills they pay.

And unlike many other household expenses, the availability and price of childcare can determine whether a parent is able to work in the first place.

That makes childcare unusual in the affordability debate: Addressing it has the potential not only to reduce pressure on household budgets, but also to increase labor-force participation and expand the pool of workers available to employers.

This latest research suggests policymakers should expect childcare to command greater attention, not simply as a family issue, but as an affordability, workforce, and economic growth issue with increasingly significant political implications.

Image courtesy Creative Commons Attribution-NonCommercial 4.0 International License

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The Arizona Chamber of Commerce & Industry and Arizona Manufacturers Council have opened nominations for two statewide competitions recognizing standout products, companies, and leaders across Arizona鈥檚 manufacturing sector.

The fourth annual competition, , invites manufacturers of all sizes to nominate products made in the state. Eligible entries can come from global companies, small businesses, artisan producers and independent makers.

Competition winners will be announced at an as part of the Arizona Manufacturers Council鈥檚 Manufacturing Month programming.

鈥淎rizona manufacturers are building everything from advanced aerospace and defense systems to semiconductors, lifesaving medical devices and everyday products that shape how we live and work,鈥� said Grace Appelbe, executive director of the Arizona Manufacturers Council. 鈥淭his competition is our chance to show people just how much is being made here, recognize the skilled teams behind those products and have a little fun deciding which one deserves the title of Hottest Thing Made in Arizona.鈥�

The competition returns as Arizona continues to attract major manufacturing investment and international attention.

recently announced an additional $100 billion investment in its Phoenix operations, bringing the company鈥檚 planned Arizona investment to $265 billion. The expanded plans include six semiconductor fabrication facilities, two advanced packaging facilities and a research and development center.

Amkor Technology鈥檚 planned $7 billion advanced semiconductor packaging and testing campus in Peoria was also named the for 2025 by Site Selection magazine. The project is expected to create as many as 3,000 jobs.

Past winners of the Hottest Thing Made in Arizona competition include:

• Boeing鈥檚 AH-64 Apache helicopter in 2023
• The Dexcom G7 continuous glucose monitor in 2024
• Honeywell Aerospace鈥檚 131-9 auxiliary power unit in 2025

Nominations are also open for the 2026 Arizona Manufacturer of the Year Awards, which recognize companies, industry leaders, and achievements in seven categories:

• Small Manufacturer of the Year
• Medium Manufacturer of the Year
• Large Manufacturer of the Year
• Excellence in Innovation
• Excellence in Sustainability
• Champion of the Year
• Arizona Success Story

鈥淭hese awards recognize the companies and people translating Arizona鈥檚 manufacturing momentum into real products, high-quality jobs and stronger communities,鈥� Appelbe said. 鈥淲hether they employ thousands of people or a few dozen, Arizona manufacturers are solving difficult problems, investing in their teams and proving that our state can compete with anyone.鈥�

The Hottest Thing Made in Arizona competition will include a series of public voting rounds, allowing employees, customers and communities to rally behind their favorite Arizona-made products.

Nominations can be submitted at .

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