West Phoenix, AZ is growing at an alarming rate. During our heated visit recently, we studied the economic vitality of Avondale, Goodyear, Litchfield and Tolleson. This area is the fastest growing area in all of Phoenix, which is the second fastest growing DMA metropolitan area in the United States of America. Maricopa County is number 2 next to Clark County in the Las Vegas NV metro. Surprise, Glendale and Goodyear are breaking all kinds of records as the Governor looks at future water and resource issues. Of course, we do our homework on economic factors before attempting to enter a region as most veteran entrepreneurs do.

In Avondale the population is growing and is currently about 36,000. 33% of which are Hispanic with a high school education average level of education. Agriculture and agricultural processing is the largest industrial sector, although that too is changing as light industry is taking advantage of the labor supply. Many new car dealers are helping the city coffers with sales tax revenue, though some of that has been given away on a short-term basis as incentives, but that all starts in two years. Beam Corp is a major employer there, says Jeffrey Fairman, Director of Economic Development.

Avondale is just south of Luke AFB and gets a lot of revenue from military employees who buy goods and services there. Also in the area is an 80,000 square foot Medical Center. Also major employers include; LP Steel Industries, Cashion Tank and Steel, California Materials, Bio Scientific and several new projects underway. The median home price is up 10% in the past year and is still good; $132K which is average for the area. Housing growth once again is incredible. Permit processing is assisted by the City Rationalization Committee.

http://www.avondale.org

Kids in the area enjoy the local water park, bowling alley, church youth groups, and Pop Warner soccer and many soccer teams. The MAG-Maricopa Association of Governments is spending $15.5 billion on new transportation infrastructure, much of which will go toward widening freeways through Avondale on I-10. The 22-member panel is about a billion over budget, but that will pick up as housing isn’t slowing down. The only big drawback is car theft issues, which the Phoenix area is number two second only to Tucson AZ. Most of these cars arrive in Mexico. Of all the cities in West Maricopa, there is a serious fire risk in the hot summers until the summer monsoon season begins, at which time fire crews on call and emergency crews move to Colorado, Idaho, Montana, Washington, South Dakota.

In Goodyear, AZ, things are a little different. The population has absolutely exploded and continues to do so. Lots of people work out at the jails on Palos Verde Rd and at the newer jail that you can see from I-10 some people we talked to worked at the nuclear power plant or for SRP or Betchel all of whom work there at the power plant. There are about 20,000 people in Goodyear, but there are also about 5,000 new homes under construction right now. It is 22% Hispanic and that number is being diluted, but in my opinion, future growth should be the same under that proportion for the next decade. As more and more Hispanic families enter the middle class, we will see them turn Republican and buy in the Goodyear area with a median home price of 142K and rising.

Goodyear, as you may have guessed, is named after the Akron Rubber Baron, which you can learn more about on the second floor of the Goodyear Building outside of Akron at the World of Rubber Museum at Goodyear’s original headquarters. At Goodyear they made rubber for US Navy seaplanes, now that facility is Lockheed Martin. The area is now mixed with retail, food processing, and lots of aerospace. We spoke with a Timco maintenance supervisor who said his most recent contract would require hiring an additional 140 people. Luftstanza Airlines also has its training center there. Del Monte and Poore Brothers process there. Snyders of Hanover, Rubbermaid, Walle Corp, Cavco.

Goodyear Airport is a great asset along with neighboring business parks. The runway is over 8,500 feet and can land and take off any aircraft known to man. The city has attracted many businesses and is business friendly with online applications for almost all permits. They have attracted; Aviation-Plastics and Composites, Sun Cor Development, Chariot Eagle, Wal-Mart Dist McClane Contractor, West Valley Medical Center. The weather is hot in the summer, but it’s workable year-round if you can handle average summer temperatures during the day;

[http://www.wrc.dri.edu/index.html] .

June through September is 100-105 degrees. The Greater Phoenix Economic Council also has some interesting statistics for the area. All cities in West Phoenix charge an additional 2% sales tax and the schools are considered excellent, even with all the non-English speaking students at first.

Litchfield has about 4,000 residents with only 8% Hispanic, but is growing exponentially. Some of the top employers include; Conklin Rose, Wig Wam 4-star Resort, Goodyear Family grew cotton there and later sold the land to Litchfield, who grew long-staple Egyptian cotton for use in processing and making tires for Goodyear. Water, of course, brought by SRP. In the future we will do a comprehensive study of the history of the SRP-Salt Water River Project. The median home price in the area has risen to 310K. The city is pro-business and allows grading of the at-risk ground prior to final permits to test the ability of the ground to support the project. These four cities on the west side of PHX have an average of 16.8% of the population between the ages of 25 and 34, which means job opportunities and a good customer base. 16.2% have an age group of 35 to 44 years. 46% Hispanic and similar to Los Angeles. The labor force is 29% less than secondary education. 23% only have a high school education and 24.8% have some college but no degree. The average prevailing wage for labor is $9.86 per hour.

Tolleson, has seen good growth since the completion of the freeway interchange for the 101 loop that connects to I-10. Huge new Auto Center. Freightliner Facility, Truck Stop, mainly because the city fathers saw an opportunity due to the freeway interchange and about 6 new car dealers moved onto I-10 and used a fast track permit processing program to do the rest. Also in the area are Lisanti Foods, Nabisco, Quaker Oats, Western Container, Greater PHX Auto Auction, Auto Zone Dist., Graybar Dist., Sara Lee Dist., Sysco Dist., Frys Dist., Cactus Transportation, Cost Co Dist. ., Fed Ex Depot, and there are still many residents who have driven home prices on this adjacent industrial highway to 100K on average. Tolleson has a population of 5,000 and is 70% Hispanic, unemployment is 6%. The main jobs are based in services, retail, warehousing and manufacturing. Other large employers include CSI, Sun Land Beef, Albertsons Dist., Pet Smart Dist. Dist., and various meat and food packing plants.

http://www.tollesonaz.org.

The suburban areas of West Phoenix have gone from dusty rural farming communities to extremely livable middle-class soccer mom communities with all the trimmings. It’s a good place to do business, a great customer base, and it will continue to grow for another two decades.