A diversified economy should be encouraged by the Phoenix economic development plan. By 2012, the metro area population had surged to above 4.3 million. The Valley has now grown to become the 13th largest metropolitan area in the country. The number has grown from 4.19 million in 2010, when it was ranked 14th according to U. S. Census Bureau.
Yet its quality of life indicators have fallen due to the housing crisis and its aftermath. The area is still vulnerable to the boom and bust cycle with an economy dependent on housing and construction. At the same time the sprawl development pattern has hidden a time bomb of unsustainable costs associated with infrastructure maintenance. This is because the yield from the suburban development pattern, this being the amount of taxes recovered per increment of liability assumed is vastly insufficient. This pattern prevails in Phoenix as much as it does in the suburbs beyond its territorial boundary.
In a reliant on RE cycle economy, new RE developments bring near term profit and subsequent pain to follow. The onerous maintenance burden comes due years later. But, the collapse of the housing bubble and its ramification has been a wake up call. Lawmakers, development experts and business leaders to suggest a departure from the status quo. Critics have pointed out past history where an industrial base was allowed to diminish with no effective replacement. Past failures should not be repeated, if the city is to break this pattern.
Some people have suggested bringing solar and advanced manufacturers. Critics note that ambitious planning to recover from the recession of Savings and Loan crisis era faltered. These plans included setting up of the Greater Phoenix Economic Council and cluster development. The dot com crash led to the demise of young tech companies, which was not followed by birth of new firms. To avoid a repeat situation this time, what is begun should be pursued.
Such companies require a well educated work force as automation and increasing use of other technological advancements such as robots is steadily displacing the use of low skilled labor. The low skilled labor, of which the city has a significant supply, is better suited to the tourism industry and retirement community support services. At present, the typical household income at 43, 960 dollars by 2011 is almost 5,000 below the median income in rest of the state according to the Census. Meanwhile, both are below the national average.
Experts understand that any rebound of the housing market will not be anything like what transpired before the bust. Lenders will be more careful. There is a budding bioscience sector that is a promising start in a different direction. An indication of this is the willingness of Luxembourg to invest in a 200 million dollar research partnership. This partnership includes connections with Arizona State University and the Translational Genomics Research Institute.
Translational Genomics Research Institute is an example of the kind of anchor that is needed to build a diversified economic base. This was indicated by the economic impact study by Tripp Umbach released in November 2011. It revealed that in 2010 for every 1 dollar that was invested by the state, there was a positive impact of over 14 dollars. By 2015 this return from TGen is expected to increase by 11 dollars.
TGen is helping the city make a name for itself in the biomedical industry. People believe this biomedical anchor is helping to lay the foundation for the area to emerge as one of the national leaders in the bioscience sector. To reinvent itself, Phoenix economic development needs to build new clusters along this line in other industries as well.
Yet its quality of life indicators have fallen due to the housing crisis and its aftermath. The area is still vulnerable to the boom and bust cycle with an economy dependent on housing and construction. At the same time the sprawl development pattern has hidden a time bomb of unsustainable costs associated with infrastructure maintenance. This is because the yield from the suburban development pattern, this being the amount of taxes recovered per increment of liability assumed is vastly insufficient. This pattern prevails in Phoenix as much as it does in the suburbs beyond its territorial boundary.
In a reliant on RE cycle economy, new RE developments bring near term profit and subsequent pain to follow. The onerous maintenance burden comes due years later. But, the collapse of the housing bubble and its ramification has been a wake up call. Lawmakers, development experts and business leaders to suggest a departure from the status quo. Critics have pointed out past history where an industrial base was allowed to diminish with no effective replacement. Past failures should not be repeated, if the city is to break this pattern.
Some people have suggested bringing solar and advanced manufacturers. Critics note that ambitious planning to recover from the recession of Savings and Loan crisis era faltered. These plans included setting up of the Greater Phoenix Economic Council and cluster development. The dot com crash led to the demise of young tech companies, which was not followed by birth of new firms. To avoid a repeat situation this time, what is begun should be pursued.
Such companies require a well educated work force as automation and increasing use of other technological advancements such as robots is steadily displacing the use of low skilled labor. The low skilled labor, of which the city has a significant supply, is better suited to the tourism industry and retirement community support services. At present, the typical household income at 43, 960 dollars by 2011 is almost 5,000 below the median income in rest of the state according to the Census. Meanwhile, both are below the national average.
Experts understand that any rebound of the housing market will not be anything like what transpired before the bust. Lenders will be more careful. There is a budding bioscience sector that is a promising start in a different direction. An indication of this is the willingness of Luxembourg to invest in a 200 million dollar research partnership. This partnership includes connections with Arizona State University and the Translational Genomics Research Institute.
Translational Genomics Research Institute is an example of the kind of anchor that is needed to build a diversified economic base. This was indicated by the economic impact study by Tripp Umbach released in November 2011. It revealed that in 2010 for every 1 dollar that was invested by the state, there was a positive impact of over 14 dollars. By 2015 this return from TGen is expected to increase by 11 dollars.
TGen is helping the city make a name for itself in the biomedical industry. People believe this biomedical anchor is helping to lay the foundation for the area to emerge as one of the national leaders in the bioscience sector. To reinvent itself, Phoenix economic development needs to build new clusters along this line in other industries as well.
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