winter 2014 treo

SPECIAL REPORT 2014 THE REGIONS BUSINESS MAGAZINE

TREO Chairmans Circle provides insight, impact and influence for our future.

Driving a New Economic

PARADIGMfor Southern ArizonaPARADIGM

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Building economic prosperity requires a solid game plan, one that anticipates change on the horizon.

It calls for a roadmap, a master plan for success.

To help Tucson realize its economic prowess, Tucson Regional Economic Opportunities or TREO in 2007 created its Economic Blueprint to guide development efforts in the region.

The 300-page analysis of Tucsons as-sets established a framework for private and public sectors to work together to build prosperity, target industries that can shape our future and establish pri-orities.

But much has changed in the region and in the world in the last seven years, and TREO is crafting a Blueprint Up-date to accelerate development efforts in this new economy.

Whats different this time? The origi-nal blueprint helped TREO to identify the areas economic drivers, strengths and gaps, while the update will focus on how to best leverage emerging opportu-nities, according to TREO leadership. The Blueprint Update will build on what has worked with the goal of shoring up areas where progress is still lacking.

Committees made up of leaders from private, public and non-profit sectors armed with input from the community are studying the issues critical in build-

ing the economy, and are developing an action plan for optimizing success.

Perhaps the greatest challenge to fu-ture prosperity lies in identifying and supplying the pipeline of human talent required to meet todays business de-mand. Its a daily concern for some local employers.

Judy Rich, president and CEO of TMC Healthcare, said finding that hu-man talent is critical to Tucsons success.

As an employer of 3,300 people, I am always concerned about the availability of qualified candidates for our business, she said. Talent and workforce devel-opment are key components in building our local and regional economy.

Philip Tedesco, CEO of Tucson As-

sociation of Realtors, said the region is currently unable to meet the demand for skilled labor.

When companies are considering moving to the region, access to a skilled labor pool is a critically important part of the decision-making process, he said.

Joe Snell, TREO president and CEO, said strengthening our competitive-ness is the main focus of the BlueprintUpdate.

The updated Blueprint will take a bold and bigger approach by redefin-ing the concept of region and how we will meet market needs, Snell said, which is critical for Arizona to compete in a global economy.

At the annual TREO luncheon last fall, it was noted that there are about 150 key markets around the world, and that Arizona competes with about 75 of those megapolitan markets that are at-tracting successful economic enterprise.

While Arizona historically has not embraced the concept of marketing shared assets, the rebranding of the re-gion as the Sun Corridor from Flag-staff south to the border at Nogales is critical for Arizonas success in a global market, business leaders contend.

How Arizona goes about proving that it has the means to meet the supply needed lies in redefining the market in the Sun Corridor, and not as individual

for a New Economy

Today and in the future,the availabilityof skilled laborat all levels willdrive all market decisions. Joe Snell, President & CEO, TREO


silos or markets, Snell added. Talent has options, he continued.

Skilled people have options. Theyve got the front range of Colorado, the Austin-Dallas corridor, Route 128 in Boston, the LA-San Diego corridor and the global markets to choose from. Its just good business to be part of the Sun Corridor. We have all the right assets.

Paul Bonavia, chairman and CEO of UNS Energy, Tucson Electric Power & UniSource Energy Services which sponsored the first Blueprint and is also sponsoring the update agrees. If we dont see ourselves as part of a larger megapolitan area, we wont succeed.

He said TEPs support of this effort is just good business.

Were the most local business in the world, he said. Were only as strong as our community. For a company like TEP, being interested in creating wealth in our community is the most natural thing for us.

Within the Talent Committee, three areas will be explored development of 21st century skills, where the talent gap lies from the employers perspective, and what the community can do to attract and keep young professionals. Identify-ing the types of jobs that go unfilled will be included in the work, to help define the steps needed to become more com-petitive.

Healthcare, regional economic de-velopment, business environment and infrastructure are other critical issues to be addressed by the TREO committees. Success in these areas greatly determines succees in attracting talent, Snell said.

He said while the first Blueprint was wildly successful in laying out the re-gions first economic development vi-sion, the update must clarify what suc-cess looks like in terms of the types of jobs needed.

Snell and Bonavia hope that by ex-panding the collaboration including industry participation and viewpoints the process will send the message that

the prosperity of the community is de-pendent on contribution and ownership among all segments of society.

TREO is not a vending machine that you just put a couple of quarters in and jobs come out, Snell said. I hope that by engaging the community more deep-ly in this update, (everyone) will under-stand that we dont outsource economic development in our region. We own it this is a collective responsibility.

Committees are expected to submit recommendations to TREO by January, and the Blueprint Update is expected to be released in April 2014.

for a New EconomyBy Mary Minor Davis

BizPROGRESS

If we dontsee ourselves aspart of a largermegapolitan

area, we wont succeed. Paul Bonavia, Chairman & CEOUNS Energy, Tucson Electric Power

& UniSource Energy Services

Blueprint Update Sponsor:Tucson Electric Power

Committee Leads:HealthcareFletcher McCusker, CEOSinfonia HealthCare CorporationInfrastructureDennis Minano, vice chair, Sonoran InstituteTalentDaisy Jenkins, presidentDaisy Jenkins & AssociatesBusiness EnvironmentDavid Hutchens, president & COO, UNS Energy, Tucson Electric Power & UniSource Energy Services; and Omar Mireles,executive VP, HSL PropertiesRegional Economic DevelopmentSatish Hiremath, mayor, Town of Oro Valley

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TREO CHAIRMAN OF THE BOARD

Guy GuntherVP & GM, Greater Arizona

CenturyLink

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Its been only three years since Guy Gunther and his family moved to Tucson from Denver, but already the VP and GM for Greater Arizona CenturyLink has a keen sense for Southern Arizonas business assets and its potential to be a global market leader.

Serving as TREOs chairman of the board, Gunther is excited about the opportunities he sees not only for his company, but for Arizonas economic success.

I stepped in just as some interesting things were happening, he said, referring to the growing concept of the Sun Corridor, the proposed Interstate 11 project, recent business interest in Tucson and the Blueprint Update.

I see a lot of opportunity for growth, not only for Century-Link, but also an opportunity to rebrand TREO and the region and establish a strong competitive market.

Rebranding is something Gunther is familiar with. Having been a part of Qwest Communications and the merger with CenturyLink in Colorado, he came to Arizona to showcase the business services offered by CenturyLink and grow market share.

From the CenturyLink perspective, we see a lot of opportu-nity for growth, he said. My role is to look for those additional opportunities to grow the business portfolio. I quickly realized that Tucson and Southern Arizona have a lot to showcase.

CenturyLinks mission improving lives by connecting the community and strengthening business aligned well with TREOs mission, Gunther said.

The challenge that I saw early on is the fractionalized nature of the community, he added. There are different groups out there that all want the best for the region, but Im not sure that people connect how it all goes hand-in-hand.

As a newcomer, Gunther has read studies conducted by Ari-zona State University, Arizona Forward, Imagine Greater Tucson and others. They show we share the same core values moving forward environmentally, economically and socially.

I see the role of TREO as creating that coalition and seeking defined commonality with the ultimate goal of creating jobs and economic prosperity.

This cannot be accomplished by TREO alone. Gunther is reaching out to groups in the community neighborhoods, busi-nesses, government entities and other business groups. We need a coalition that speaks with one voice so that those who are mak-ing the larger decisions hear us.

Supporting this effort is a TREO board of relentless leader-ship, Gunther said. It is remarkable to me the people we have involved are spending time day in and day out because they care about this region and our success. That makes me very proud and its what makes it fun for me.

ShowcasingOur Strengths

By Mary Minor Davis

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TREO IMMEDIATE PAST CHAIR

Stephen G. EggenRetired CFO

Raytheon Missile Systems

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What is your perspective on the importance of talent and workforce development as a key economic driver?

The one constancy is change. Change in our tastes, pref-erences, wants and needs. The way a successful organiza-tion responds to change is through continuous workforce and talent development. The entity that is successful in this development secures a competitive advantage in at-tracting and retaining the greatest talent from a shrink-ing pool. If our region is successful in this effort, it will serve as a key driver to economic prosperity. But its not an easy assignment. The workforce from a demographic standpoint presents challenges to companies trying to stay ahead of the competition. Thats why its critical to attract a variety of businesses and industries that provide high-paying and diverse opportunities to the workforce.

Why do you invest in and support economic development initiatives?

We rely on economic development as fuel for growth. Economic development provides communities with a growing revenue base that is an attraction for oth-ers looking for a stable and prospering community. Economic development allows a community to build a strong educational system and a healthy and sus-tainable infrastructure. One of the best things we can do for our children is to build a healthy and attractive community where they can raise their own children. This creates a sustainable pipeline of new employees that is vi-tal to our success.

Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?

The TREO Blueprint is not designed to be a final solu-tion or answer I wish it was that simple. It is meant to be a framework that we can use to focus our efforts on economic development. We need this framework to focus our increasingly scarce resources in areas that result in the greatest payoff. I serve on the Talent Committee. If pub-lic and private sectors can get the right talent at the right time, the rest will fall into place.

What is the outlook for the defense industry in 2014?

Government sequestration, budget pressures and general lack of progress on these issues in government will con-tinue to put pressure on the industry. The survivors will be those who remain focused on the mission providing the best products to our war fighters, on cost and on sched-ule. Companies like Raytheon which are diversified in product offerings and relentless in the mission have a strategic advantage.

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TREO SECRETARY/TREASURER

Lisa LovalloMarket VP, Southern Arizona

Cox Communications

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The way Cox Communications brings infor-mation and entertainment to our customers is changing daily. We need employees who can deal with a dynamic product set and who can interact with customers whose ex-pectations are also evolving rapidly.

A home-grown workforce that can handle the complexities of telecommunications technology and effectively interact with and serve a diverse, experienced and demand-ing customer base is critical to our business needs today and into the future.

Why does Cox Communications invest in and support economic development initiatives?

Every Cox Communications customer lives and works in our local market. Our business success is tied to the health and prosperity of our local economy. Economic development efforts are necessary to bring more jobs and industry to our region.

Regarding the TREO BlueprintUpdate, why is the committeeyou serve on in this strategicplanning initiative important to you?

How our community develops and delivers healthcare services is a foundational eco-nomic imperative. Our local community needs to have the best possible healthcare services in the region this is critical, not just to the health of our citizens, employees and friends, but to the health and well being of our local economy.

What is the outlook for Cox Communications in 2014?

Cox Communications is and will continue to be a success story in Southern Arizona. Our products, services and locally focused workforce give Southern Arizona the tele-communications infrastructure needed for commercial and residential growth now and in the future. Going forward, we are well po-sitioned to expand our operations and net-works throughout the region and state.

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Joe SnellPresident & CEO

TREO

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Joe Snell has seen tremendous change in his eight years at the helm of TREO. History, the Great Recession and global compe-tition have reshaped his organizations focus, with new paradigms in economic development bringing about innovative approaches to enhancing economic prosperity.

Arizona has never had to truly compete, Snell explained. Blessed with in-migration from 1957 into 2007, Arizona led the country in population growth and a certain amount of income growth we held a lot of No. 1 rankings. Then the bottom fell out in 2007. The recession changed everything. We can no longer rely on wealth and in-migration.

The secret to success in this new economy is our ability to fill open jobs with a skilled workforce, Snell said. Talent attraction and retention is now the chief driver of the economy.

Several thousand jobs go unfilled each year in our region be-cause companies cannot find employees with the skills they need, Snell said.

While TREO continues to aggressively recruit new companies and help existing ones expand, the economic development orga-nization is helping to lead the charge in developing strategies that attract and retain talent that companies require.

The old days of recruiting companies and filling those jobs once they are up and running are over, Snell said. Its a new world. We must recruit and develop talent if we want to win. We must help shape our community so that the best and brightest want to live here.

This is a new approach for economic development. Groups like TREO traditionally focused on deals with companies while work-force development groups focused on the supply of employees.

The old model is no longer sufficient, Snell said. Both systems must now be connected for success. In this new role, TREO must serve as a Match.com connecting companies with skilled em-ployees.

We must bridge the gulf between the workforce supply system and the economic development demand system so they become one system, Snell said. Thats how well win.

Key in this model is the creation of a region that is attractive to highly-skilled workers. We must build a community where the most sought-after workers want to live and build their lives.

He said the region must have a megapolitan mindset, under-standing that one of our greatest strengths is our location in the heart of the Sun Corridor, stretching from north of Phoenix south to Nogales.

We must combine our strengths with those of our neighbors to attract talent and new business, Snell said. The days of com-peting jurisdictions are over.

TREO LEADERSHIP

Joe SnellPresident & CEO

TREO

Laser Focuson Talent Gap

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TREO CHAIRMANS CIRCLE

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Ventana Medical Systems depends upon Southern Ari-zonas strengths in science, engineering and skilled manu-facturing, as well as a host of supporting professions. Our business is growing very quickly, so developing and retain-ing talent is a critical component of our success. If we are unable to bring in and keep the stellar talent we require, Ventana and other businesses could be at tremendous risk. We must make Southern Arizona attractive to the best and brightest in the nation and world.

Why does Ventana Medical Systems invest in and support economic development initiatives?

It is the only way to succeed. Tucson and the region are hidden gems and we need to tell the world about our strengths. Economic development brings in new compa-nies, people and resources to fuel innovation and technol-ogy breakthroughs that will benefit our community for generations to come.

Regarding the TREO Blueprint Update, why is this strategic planning initiative important to you?

First, we need an integrated Blueprint to ensure that the business community and government are aligned in the priorities. I serve on the Healthcare and Talent Commit-tees. Like many employers in Southern Arizona, we find it challenging to attract and maintain a professional talent pool when complementary opportunities for new recruits spouses and partners are lacking. TREOs Gateway Tuc-son program was formed to address these issues.

The Talent Committee will provide strategies for other equally important issues including working with our schools and universities to help ensure that our young people are developing the 21st century skills needed to meet tomorrows business demands.

What is the outlook for Ventana Medical Systems in 2014?

Strong and expanding. We are growing in every part of our business in every part of the world. We are the fast-est growing business area within Roche Diagnostics. Our mission at Ventana is to improve the lives of all patients af-flicted with cancer. We fulfill our mission through enabling accurate and timely diagnoses and customized treatment options for cancer patients. We are committed to advanc-ing personalized healthcare by developing diagnostics for targeted new drugs. The value of this approach is root-ed in positive outcomes for patients saving lives and improving quality of life. With Ventana and the Roche Group together, there is no better company in the world to make this approach a reality.

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Mara G. AspinallPresident & CEO

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James K. BeckmannPresident & CEO

Carondelet Health Network

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Our field requires an extremely skilled workforce. Our professionals must be knowledgeable and well-trained. They must be dedicated and compassionate. This com-bination is critical to a successful medical outcome for our patients. Recruitment of the right individuals who together become a dynamic healthcare team is impor-tant to our organizations reputation. The ability of any healthcare system or medical practice to become a vital and respected community partner is intrinsically linked to its ability to build a workforce that shares its values and commitment to community.

Why does Carondelet Health Network invest in and support economic development initiatives?

The most successful and stable economies in our country appear to be those in which major businesses help one another. The communitys overall economic strength lies in its business leaders sharing ideas, supporting one an-others growth, encouraging expansion by other potential employers, providing support and incentives for small business development, and working together to better the future outlook for all residents.


As a Healthcare Committee member, I am encouraged by the incredible enthusiasm of the members of our group toward strengthening the well-being of this community. Carondelet made a commitment more than a year ago to move away from a focus on reactive medical care and toward a model that provides Tucsonans with avenues to proactively manage their health. We are committed to keeping the healthy well, working with at-risk patients to mitigate problems before they develop into chronic ill-nesses, and managing the chronically ill so they can live their very best lives. I see an interest among all members of our committee to make Tucson a healthier place to live and to build a reputation as one of the healthiest places in America.

What is the outlook for your industry in 2014?

The healthcare industry and healthcare reform have taken center stage nationally. People are more aware of the status of their own health and the cost of managing their medical care. They are willing to educate themselves about both. I think 2014 will see greater focus on indi-vidual responsibility for ones health and drive forward the concept of strengthening well-being as a way to manage healthcare costs in America.

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To attract employers that offer quality, high-wage jobs, our com-munity needs a highly skilled workforce that can fill those posi-tions. We already have diverse educational resources with The University of Arizona, Pima Community College and other in-stitutions. Our economy is changing, and opportunities emerge and develop over time. Our workforce needs to remain flexible to remain competitive.

Why do UNS Energy, Tucson Electric Power andUniSource Energy Services invest in and supporteconomic development initiatives?

As a public utility company, we rise and fall with the communi-ties that we serve. We provide service here in the Tucson met-ropolitan area, our employees live here and our customers live here. Not only is this companys livelihood tied to the commu-nity, so is the quality of life for our employees and their families. We are part of this community and we want it to succeed.

Regarding the TREO Blueprint Update, why is thecommittee you serve on in this strategic planninginitiative important to you?

Building a regional economic plan or updating one, as were preparing to do is an inclusive process that requires discussion among many participants with many different perspectives. It should spark discussion and collaboration between businesses, government entities, nonprofit organizations and residents of the community. Thats important because it gives members of the community an opportunity to identify their needs and how they can contribute to improving our economy.

The original blueprint gave us a foundation and an action plan to follow. This update is important because weve seen many changes in the global marketplace and emerging opportunities for our region in international commerce. Aspects of our econ-omy are showing signs of improvement and projections suggest that Arizonas economic growth will outpace the national aver-age in the coming years. The Blueprint Update will help our community to pursue these developing opportunities.

What is the outlook for your industry and business in 2014?

New environmental regulations and developing technologies will continue to affect our industry and how TEP delivers the most cost-effective, reliable service to our customers. Were making significant progress toward diversifying our generating fuel mix. Although we anticipate generally flat retail sales next year, we continue to focus on working efficiently, keeping our operating expenses down and investing in our electrical system to ensure we continue to meet or exceed our customers expectations.

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Paul BonaviaChairman & CEO

UNS Energy, Tucson Electric Power & UniSource Energy Services


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Sharon BronsonVice Chair

Pima County Board of Supervisors

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What is your perspective on the importance oftalent and workforce development as a keyeconomic driver?

Lets face it big companies moving to town are the superstars that grab the headlines, while workforce development efforts re-main in the background.

Sexy or not, workforce development is the foundation of the lo-cal economy. Our prosperity is tied to whether our residents can find work and whether companies can hire our residents. Build-ing productivity in a time of increased global competition and accelerating innovation is a complex undertaking that demands focus and investment. We must keep up with the skills required to capitalize on emerging technologies.

Why does Pima County invest in and support economic development initiatives?

As a major funder, Pima County supports TREOs economic development efforts because the organization represents a one stop service that clients demand. It has long been recognized that fragmented, go it alone approaches will lose out every time to a regional, cohesive approach that emphasizes the strength of a community regardless of jurisdictional boundaries.

The reality is that local jurisdictions have far more in common than they have apart. A unified voice is key when competing with other communities that may have greater resources and name recognition.

Regarding the TREO Blueprint Update, why is thecommittee you serve on in this strategic planninginitiative important to you?

When the Blueprint was first developed, we were in a very differ-ent economic environment, so I am highly engaged in revisiting some of the key features, such as developing local talent.

We are no longer competing with each other locally or even across the state. Were competing globally. That changing dy-namic will force us to start thinking as partners while finding our own niche. Thats why I am pleased that weve been successful in several grants that leverage our border connections both in strengthening our logistics positioning and in developing a stra-tegic plan for manufacturing. What is the outlook for Pima County in 2014?

Uncertainty is not helpful in a recovering economy, but I am optimistic about 2014 at a local level. Energy is building around our southern corridor, providing new opportunities for growth around our strengths including military & defense, interna-tional trade and new technologies. Our partnerships are strong with The University of Arizona and Pima Community College, which are committed to growing the talent pipeline that compa-nies require. We cant be ambivalent about seizing opportunities that ultimately will help fuel the high-paying, science-based jobs we seek.

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What is your perspective on the impor-tance of talent and workforce develop-ment as a key economic driver?

Clearly all metropolitan areas are in a race to add primary industries and the resulting jobs and wages. It is increasingly evident that the depth and breadth of the local talent pool is the primary dif-ferentiating factor for companies deciding where to locate. For our region to be competitive going forward, it is imperative that we understand this and take the necessary holistic actions to be com-petitive not only regionally, but nationally and internationally.

If we are to ever take advantage of the potential opportunities the growing Sun Corridor has to offer, we must develop the strategies and tactics necessary to attract and retain world-class talent. Economic development in Southern Arizona will stagnate without a concerted effort in this area.

Why does the Jim Click Automotive Team invest in and support economic develop-ment initiatives?

Long-term economic development is the lifeblood that a business needs to grow and provide ad-equate capital returns. Failure to continually invest in economic development efforts exposes business-es to the potential of the well drying up. This is not a recipe for a vibrant region. Choosing to not invest in economic development is perilous.

Regarding the TREO Blueprint Update, why is the committee you serve on in this stra-tegic planning initiative important to you?

The Talent Committee is a critical piece in the blueprint. The future of our region depends on the development of the talent pool.

What is the outlook for the automotive in-dustry in 2014?

The auto industry continues to rebound consis-tently from the depths of the recession. We antici-pate that 2014 will follow that trend. In fact, we anticipate an even stronger growth rate year over year. The average age of the U.S. vehicle fleet is more than 11 years, a number that continues to grow. Clearly the need to replace aging vehicles is significant as businesses and consumers make those purchase decisions.

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James H. Click, Jr.President

Jim Click Automotive Team

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Michael CrowPresident

Arizona State University

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We are now in a knowledge economy, where industries fol-low the workforce as opposed to the other way around. With the increasing pace of innovation and the intensity of global competition, the quality of an organizations workforce has become a prime determinant of whether it survives or fails. Likewise, the quality of a regions workforce is a prime de-terminant of whether or not there are plentiful high-wage jobs and a strong tax base.

Why does Arizona State University invest in and support economic development initiatives?

ASU is a public university whose mission as a public trust includes serving as an economic engine for Ari-zona. We produce more highly skilled college gradu-ates by orders of magnitude than any other institu-tion. That makes us a major supplier of the human capital necessary for Arizonas economic growth and prosperity. We are also interested in making sure there is an ample supply of high wage, attractive jobs so students will remain in Arizona after they graduate.


Businesses in Tucson and throughout the Sun Cor-ridor are having trouble finding qualified employees because of the level of education or training required in the knowledge economy. To address this, all elements of the Arizona educational pipeline must be strong, including K-12, community colleges and universities. Quality-of-life issues are also important to the modern workforce, espe-cially the creative class that Richard Florida has shown to be a key driving force for economic development in U.S. cities. Quality-of-life issues include having libraries, muse-ums, performing arts venues, symposia and lectures, as well as continuing education for employees and educational op-tions for their children.

What is the outlook for ASU and higher education in 2014?

At ASU, we have two principal products education and research. In 2012, U.S. college enrollment declined for the first time in six years. In Arizona, enrollments have contin-ued to increase due to an overflow of qualified students from California combined with moderate tuition increases and high levels of financial aid for those with financial need.

On the research front, cuts in federal funding are an issue for all research universities. At ASU, we are continuing to compete for and win federal projects and programs at a high level, and we are diversifying our portfolio by pursuing corporate and international projects.

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The knowledge-based economy we face today is consider-ably different than the economy of the past where skills could be quickly acquired and utilized in a specific trade. Companies are attracted to potential employees who are able to learn new skills and drive the inevitable changes in disciplines and technology through innovative and syn-ergistic approaches to the challenges of the 21st century.

Why does The University of Arizona invest in and support economic development initiatives?

The UA is committed to developing Arizona into a dy-namic leader in the global economy. We already have world-class industry and businesses in biosciences and healthcare, astronomy, aerospace and other fields. With economic growth and innovation, the people of Arizona can build on this foundation to create job security, ade-quate and affordable healthcare, a thriving culture and community, top-quality education and a fulfilling life.

We must work together to break with conventional busi-ness models and diversify sources of revenue for higher education and government. Building economic partner-ships will ensure that Arizona is a viable destination for industries to prosper and to benefit from each others suc-cesses.


For the UA to be successful in reinventing our land grant mission for the 21st and 22nd centuries, it is critical that we work with our partners to ensure our teaching and research target the real-world problems faced by South-ern Arizonas residents, families, businesses and leaders. I see TREOs Blueprint as instrumental in ensuring syn-ergy between the UAs strategic priorities and those of the Tucson and Southern Arizona region to build on existing strengths and create new areas of economic development.

What is the outlook for UA and higher education in 2014?

Higher education faces many challenges. However, by generating a supportive environment where students and faculty can develop creative solutions to real-world prob-lems, the UA will be on the forefront of educating a new, integrative workforce equipped with a global mindset. Our faculty will continue leading the way in innovative research and creative inquiry. The UAs strategic vision of engagement, innovation, partnership and synergy models Arizonas path to meeting the challenges of the 21st cen-tury, and with our new academic strategic plan Never Settle 2014 promises to be an outstanding year.

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Lee LambertChancellor

Pima Community College

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Workforce quality is the crucial factor in the success of individual businesses and collectively in Tucsons abil-ity to provide high-skill jobs for its residents. Adults who can write clearly, think critically and compute accurately will give Tucson the edge it needs to be a successful player in a brutally competitive 21st century global marketplace.

Why does Pima Community College invest in and support economic development initiatives?

Tucson is among the poorest cities in the United States. That fact alone should animate any publicly funded insti-tution to develop strategies to provide those in need with the opportunities for leading more prosperous lives.


Educational excellence is crucial to PCC because all edu-cators from pre-K through college should have as a common goal producing college- or career-ready adults. Education must be integrated to ensure that students have the ability to progress successfully at the next level. PCC will continue to work with local K-12 districts and the states public universities to best synchronize our efforts for the benefit of our students. What is the outlook for PCC and higher education in 2014?

Technological advances and a push for greater account-ability are ushering in a new era of rapid change in higher education. The challenge for institutions such as PCC is to channel these transformative forces so that we can im-prove services to our students and the community.

For example, the classrooms and labs in our new build-ing at Northwest Campus scheduled to open this spring are hard-wired with the latest interactive-learning technologies. Similarly, knowing that 20 percent of our students took at least one online class this year, we are ex-ploring the potential of Massive Open Online Courses to enhance learning and give our students affordable educa-tion options.

Tying government funding of higher education to schools performance will be a topic of public policy debate for the foreseeable future. PCC has participated in a pilot program to develop measures of accountability that ac-curately capture the unique role of community colleges in the education pipeline. We will vigorously advocate at all levels of government for sensible reforms that put students first.

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Tucson has not been an easy place to re-cruit big-league talent, despite our weather and our quality of life. Recruits often are concerned that their significant other will have difficulty finding quality employment here. They are often concerned about their ability to move to another employer in the same sector. Our sectors are not very deep.

We need to develop talent, recruit our col-leagues and create a rich spin-off environ-ment so risk-takers see upward opportunity in our region. Nothing is more important.

Why does Sinfonia HealthCare invest in and support economic development initiatives?

A high tide raises all ships. If Tucson thrives and grows, our business grows. The government has not proven to be an effec-tive economic driver, and these efforts are better off in the private sector.


I chair the Healthcare Committee, which is an inspired group of system executives. We believe the time is right for Tucson to become a major healthcare destination, focused on wellness and prevention, edu-cation and state-of-the-art medical care systems.

What is the outlook for the health-care industry and Sinfonia Health-Care in 2014?

Healthcare in 2014 is facing a revolution. As the Affordable Care Act rolls out, mil-lions of people will become eligible for insurance. Home healthcare will grow dramatically as patients and payers look to innovative new delivery models based on the new demand.

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Judy PatrickChairman of the Board

CopperPoint Mutual Insurance Company (formerly SCF Arizona)

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An educational system that prepares students for employ-ment with specific skills identified by the business commu-nity is critical to a healthy business climate. Hiring locally develops a broad community attachment, is less costly for businesses and keeps talented young people in our com-munities. K-12 and higher education must produce grad-uates with general and specific employment skills. Why does your business invest in and support economic development initiatives?

CopperPoint Mutual Insurance Company formerly SCF Arizona believes that a healthy and growing busi-ness climate provides more opportunity for our company, broader support to the economic development and cul-tural strength of our communities and is good for our fu-ture. Healthy businesses produce a stronger tax base and volunteer base. Having a diverse business base provides more employment opportunities for our families and our children. Regarding the TREO Blueprint Update, why is the committee you serve on in this strategic planning initiative important to you?

As a member of the Infrastructure Committee, I cant em-phasize enough our support of the extension of Interstate 11 south to Mexicos border. The issue is more pressing today than it was 20 years ago when the North American Free Trade Agreement or NAFTA was in its infancy.

This corridor has the highest potential of any other in the state to become a successful import distribution zone. With its proximity to interstates, Tucson International Airport, the Port of Tucson and adjacent rail it is criti-cal that we make significant investments in this kind of public infrastructure. Thousands of jobs depend on trade with Mexico and thousands more will be created if we commit to extending a gateway that already accounts for more than $20 billion worth of imports and exports an-nually. This is a cornerstone of the Blueprint Update and it embodies a truly sound economic development strategy.

What is the outlook for your business in 2014?

CopperPoints business is dependent on the health of Ari-zonas business community. We believe 2014 will continue with slow but steady business expansion and employment growth. Our efforts will continue to help existing business-es expand while we work on improving our education and transportation systems to encourage business relocations in the future.

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As an employer of 3,300 people, I am always concerned about the availabil-ity of qualified candidates for our busi-ness. From the ability to read all the way to the mastery of highly technical skills, healthcare is counting on the community to train our future workforce. Talent and workforce development are key compo-nents in building our local and regional economy.

Why does Tucson Medical Center and TMC Healthcare invest in and support economic development initiatives?

A strong, healthy and vibrant commu-nity is critical to us as we recruit talent from all over the country. Growth is es-sential to sustain our goals as a provider of healthcare.


The Healthcare committee is bringing together healthcare leaders from across the region in a new and exciting col-laboration that I have never before seen in Tucson. Our strength lies in our col-lective good work, and I am encouraged by our efforts in this area that are critical to the future growth and success of our region.

What is the outlook for your industry and business in 2014?

We are expecting many changes in 2014, primarily from Medicaid expansion and the Health Information Exchanges. The shift from simply paying for healthcare to obtaining value in healthcare is strongly influencing our perspective and driving our plans for the future.

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Philip B. TedescoCEO

Tucson Association of Realtors

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What is your perspective on the importance of tal-ent and workforce development as a key economic driver?

Now more than ever, having a deep, quality workforce is a pri-ority because employers face increasing competitive pressures in this 21st century global economy. Education and skills are vital to economic success. Fulfilling that requirement locally makes K-12 education, technical training and secondary edu-cation the keys to the regions long-term economic strength.

Currently, the region cannot meet the demand for skilled la-bor. Workforce development and retention is the most critical link to retaining existing businesses and attracting new compa-nies that provide high-wage jobs. Why does the Tucson Association of Realtors invest in and support economic development initiatives?

The Tucson Association of Realtors invests in economic development initiatives to strengthen the region. Increas-ing capacity, developing additional economic drivers and putting expanded infrastructure in place supports future growth. Increased public/private partnerships and ongoing investment from the business community will continue to be critical to our success.


Serving on the TREO Infrastructure Committee has been important to me and the Tucson Association of Realtors because Southern Arizonas successful future will rely heavily on an expanded regional transportation plan. The proposed Intermountain West Corridor has been identified as the po-tential primary Arizona gateway to Mexico for rail, truck, and passenger traffic through Nogales, based on usage and infra-structure investment.

The concept is to connect air, freight, trucking, and economic activity centers in a major trade corridor stretching from Can-ada to Mexico. The most critical infrastructure roadway proj-ect will be linking Las Vegas and Phoenix, the two largest cities in the nation not connected by an interstate highway, before running south through Tucson all the way to the port of Guay-mas, Mexico. Positioning Tucson as a multimodal transporta-tion hub will ensure its future viability and competitiveness.

What is the outlook for your industry in 2014?

The real estate industry in Tucson is showing positive signs. Home prices are increasing, as are total sale volume and total unit sales. A more traditional market is developing as we come out of the worst economic downturn in years. The Tucson As-sociation of Realtors saw a 34 percent decline in membership over the last six years. The downturn was managed strategi-cally, and the association is well-positioned to continue to be successful in the coming years.

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We are fortunate to have The University of Arizona in our back-yard as an incubator for developing talent and expertise in the health professions and biomedical sciences. We must recruit and retain the best of these new physicians, nurses, pharmacists and researchers in Southern Arizona.

At The University of Arizona Medical Center South Campus we have expanded our residency spots to better serve the com-munity and offset an impending physician shortage in Arizona. We need even more residencies to develop home-grown talent in our state.

The average healthcare worker and physician are getting close to retirement. Who will take care of us? Healthcare will continue to be one of the top job-creating industries. There is tremendous opportunity to contribute to economic development and job cre-ation through teaching and training our future healthcare work-force.

Why does UA Health Network invest in and support economic development initiatives?

When I think about economic development, I think about edu-cation. Excellent healthcare requires a highly educated, skilled workforce. We need strong schools and we must support educa-tion at all levels. Tucson cant hope to attract the best and bright-est without it.


The Blueprint Healthcare Committee is important to our region. This committee, which includes the major providers in Tucson, provides a forum for us to look at health and healthcare issues from the community perspective. It is a great opportunity for us to network and explore initiatives that will improve the health of our community and examine opportunities to decrease health-care costs.

What is the outlook for UA Health Network and your industry in 2014?

Healthcare reform is here. That brings challenges and opportuni-ties. Thousands of previously uninsured Americans will now be able to afford health insurance, which is a great thing. We may see increased demand for medical services by a population that has been doing without them. We are gearing up to be ready to meet that pent-up demand.

Additionally, we are investing millions of dollars in technology. UA Health Network recently implemented an integrated elec-tronic health records system that will make our care more coordi-nated and improve patient safety and quality. More than 10,000 physicians and staff members received training on this system, and we expect it to translate into improved patient care.

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Dr. Mike WaldrumPresident & CEO

The University of Arizona Health Network

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Sandra WatsonPresident & CEO

Arizona Commerce Authority

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Businesses look for three factors when determining their next cor-porate move competitive tax structure, regulatory environment and access to highly skilled talent. Arizona is known as a top state for the quality and availability of its workforce ranking No. 2 in the country and No. 1 in higher education degree opportunities.

We are fortunate in that we have world-renowned university sys-tems and community colleges graduating the best-qualified and most brilliant minds in high-demand disciplines. But we must continue to align industry and academia to better prepare our workforce.

Thats why the Arizona Commerce Authority (ACA) continues to execute its Sector Strategies, which have become a national model. The strategies provide an ongoing commitment to bring-ing together industry and education to cultivate a highly skilled workforce.

Why does the ACA invest in and support economic development initiatives?

The ACA was created by historic legislation the Arizona Com-petitiveness Package, which was a bold plan that overhauled our tax system, streamlined our regulatory structure, developed a portfolio of incentives and honed our focus on business recruit-ment, expansion and creation. The ACA is the states premier economic-development arm. We are committed to attracting quality companies to the state and helping existing companies to create quality jobs for the economic health and well-being of Arizona.


I am proud to serve on TREOs Business Environment commit-tee, focusing on strengthening Arizonas competitiveness, busi-ness-friendly environment, incentives and more. To attract high-value, high growth-potential companies, Arizona must improve upon its competitiveness and incentive offerings.

What is the outlook for your agency in 2014?

I could not be more excited about the future. The ACA is work-ing with more than 400 companies that are in various stages of expansion and relocation decisions. We are working on bold ini-tiatives that I believe will elevate Arizona as a leader in economic development. The ACA serves as a corporate connector, a prob-lem-solver for the state and will continue to be a go-to leader in credible data for businesses.

We are also adopting an idea that I call economic development without boundaries one that capitalizes on Arizonas assets and leverages the attributes of our neighbors, specifically Cali-fornia and Mexico. We are building an action plan to capitalize on these strengths.

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Strengthening the talent pipeline is critical to our success as a region. We are fortunate to have one of the nations finest research universities right here in Tucson, producing some of the nations top tal-ent. The University of Arizona is considered a top tier research institution. Many people dont realize it, but as a company, Raytheon recruits more engi-neers from the UA than any other university in the nation. From our sophisticated high-tech research to our commitment to improving educational op-portunities for students throughout Tucson, we work closely with the UA on a daily if not hourly basis. Raytheon believes the state must adequately fund our higher educational intuitions to build our talent pool to not only benefit our company, but all Arizonans.

Why does Raytheon Missile Systems invest in and support economic development initiatives?

Economic development is critical to our future. Its imperative that our elected officials and business leaders continue working together. If Southern Ari-zona is to continue growing and strengthening its economy, we must form a bipartisan team to make our part of the state attractive to existing businesses and new ones. Whether its improved tax incen-tives, upgrading our infrastructure, strengthening our educational commitment or developing a new aerospace & defense corridor, these are investments in Southern Arizonas future we must all support.

Regarding the TREO Blueprint Update, why is the committee you serve on in this stra-tegic planning initiative important to you?

Its important to me to serve on TREOs Business Environment Committee as it monitors the pulse and supports growth of the regions businesses, while keeping an eye on the future. Raytheon con-tributes its perspective as an international export business, and we work to ensure Tucson is attrac-tive to new businesses while striving to retain and provide appropriate support for those already here.

What is the outlook for Raytheon Missile Systems in 2014?

We continue to perform well for our customers around the globe. There are certainly challenges including sequestration, the government shut down and uncertain defense budgets but with a broad portfolio of products, cutting-edge technology and incredible employees, we are well positioned now and in the future.

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TREO LEADERSHIP


Kathy ByrneExecutive DirectorEl Rio Community Health Center Byrne, who serves on the Healthcare Committee, is a graduate of Georgetown University School of Foreign Service. Before she came to El Rio, Byrne worked for Carondelet Health Network, where she was responsible for strategic planning and new program development. She served as president and CEO of Mercy Care Plan, a joint venture of Carondelet and St. Josephs Hospital, and was assistant director with the state Medicaid program.

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Duane BlumbergMayorTown of Sahuarita

Vision for EconomicDevelopment Transportation infrastructure will be a key factor in the growth and development of Southern Arizona and the Sun Corridor, said Blum-berg, who serves on TREOs Infrastructure and Regional Economic Development committees. He believes its important for the region to reach consensus on projects even when there are greatly differing viewpoints and TREO plays a major role in the leadership of these issues.

2014 Industry Outlook Recent upticks in economic graphs are reflected in increased business activity in Sahuarita. Developers have resumed investing in additional housing units and amenities, and several new businesses are opening to serve the community.

Bonnie AllinPresident & CEO Tucson Airport Authority

Vision for EconomicDevelopment Enhancing opportunities for growth and employing citizens in living-wage jobs is critical to the regions pros-perity, said Allin, who serves on TREOs Infrastructure Committee. Tucson Interna-tional Airport is one of the communitys key economic drivers, contributing $3.2 bil-lion to the local economy an-nually and supporting 35,000 jobs. She sees TIA is an important component in the multi-modal logistics center that will promote Southern Arizona as a premier location for international business development.

2014 Industry Outlook The future for aviation con-tains challenges, particularly with regard to passenger air service due to the slow econ-omy and changes in airline business models. Community involvement will be necessary to move ahead through the coming years, she said.

Kevin BurnettSenior VP & CFOThe Sundt Companies

Vision for EconomicDevelopment The Infrastructure Commit-tee, of which Burnett is a member, is working on initia-tives to support infrastructure projects in Southern Arizona that are critical to economic growth. These include the proposed Interstate 11 cor-ridor and area transportation improvements planned for the next five to 10 years. The main challenge, Burnett said, is identifying and obtain-ing federal, state, local and private sources of funding to make these projects a reality.

2014 Industry Outlook Burnett believes the com-mercial construction market in the Tucson area and the state will remain slow in 2014 due to continued govern-mental budget pressures that limit the number and size of projects awarded. He sees private sector construction improving slowly, mostly in single family and multi-family residential housing and developer-built student housing.

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Mike HammondPresident & CEOCushman & Wakefield PICOR Commercial Real Estate Services Vision for EconomicDevelopment Hammond serves on the Infrastructure Committee because of its vital role in the regions economic growth. If the region is to provide a vibrant community offer-ing quality jobs for todays workers and tomorrows the region must strategically invest in new infrastructure, he said.

2014 Industry Outlook Tucson and Southern Arizona depend heavily on government spending, which is not likely to increase significantly in the near term and could drag down the economy. Hammond said the private sector is rebound-ing, however, particularly in housing. He believes our proximity to Mexico as well as the recent burst in activity from the bioscience and mining industries will help our economy. Overall, his outlook is for slow growth in 2014.


Duane FroeschlePresidentAlliance Bank of Arizona

Vision for EconomicDevelopment A frank assessment of the competiveness and respon-siveness to existing or incom-ing employers in our area is necessary, said Froeschle, who serves on the Business Environment Committee. He believes clarity will help private and public leaders work together to enhance the environment for growing job opportunities. He hopes this assessment can be referenced in conversations throughout the community to establish a clearer understanding of the importance of maintaining a business-friendly environ-ment.

2014 Industry Outlook While Froeschle recognizes the existence of several na-tional economic threats in the banking industry, he be-lieves many businesses have improved their operations and that the region is posi-tioned to lead the economic recovery.

Bruce DusenberryBusiness Development Consultant Suddath Relocation SystemsPresident & CEOHorizon Moving Systems

Vision for EconomicDevelopment Dusenberry serves on TREOs Business Environ-ment Committee, which explores ways to better sup-port political and business leaders who make decisions that are in the best interest of the community. Initiating and continuing positive com-munication between these important groups is essential in attracting new business and talent to the region in an increasingly competitive global market and to ensure a healthy business environ-ment and quality of life for residents.

2014 Industry Outlook The housing market crash experienced throughout the country during the recent re-cession had a harmful impact on the relocation industry. However, increased business volume seen over the past two years suggests continuing growth in 2014.

Ed HadleyPresident, Southwest USAWalton Development and Management

Vision for EconomicDevelopment With Waltons ownership of more than 10,000 acres in Arizona primarily in the Sun Corridor Hadley has the opportunity to make a difference in the areas de-velopment. He believes that Arizonas success in com-peting in a global economy depends on its ability to plan for and invest in the regions infrastructure needs. Hadley, who serves on TREOs Infrastructure Committee, recognizes the importance of sustainable planning that is both flexible and scalable to accommodate the demands of Arizonas diverse and improving economy.

2014 Industry Outlook Housing and land develop-ment look positive, although Hadley said growth will continue to be gradual and highly concentrated in core submarkets until employment expansion warrants normal growth absorption for all real estate uses.



Ed HoneaMayorTown of Marana Vision for EconomicDevelopment Because of his belief in growing the local economy, Honea is dedicated to his work on the Business Environment and Regional Economic Development committees. If we fail to create an atmosphere in our region that is good for business, we are doomed for failure, Honea said. As a leader in economic growth, TREO will continue to alter its business model as needed to ensure long-term success for the Tucson metropolitan area, he said.

2014 Industry Outlook The Town of Marana is excelling in housing and busi-ness starts and expects that to continue in the coming year.

David HutchensPresident & COOUNS Energy, Tucson Electric Power & UniSource Energy Services

Vision for EconomicDevelopment Hutchens, who co-leads the Business Environment Committee, said the original Blueprint helped TREO to identify the areas driv-ing industries, strengths and growth opportunities, while the update will focus on how to best take advantage of emerging opportunities.

2014 Industry Outlook TEP is pursuing plans to diversify its generation port-folio, which includes using fewer coal-fired resources, purchasing more natural gas-fired resources, expand-ing the use of renewable resources and looking at the most cost-effective options available.


William HarrisPresident & CEOScience Foundation Arizona

Harris leads SFAz, a non-profit organization that was created in 2006 from the collaboration of Southern Arizona Leadership Council, Greater Phoenix Leader-ship and the Flagstaff 40. Its goals are to invest in scientific and engineering areas of economic importance to Ari-zona, facilitate collaborations between research institutions and industry, support educa-tion in science, technology, engineering and math, and attract and retain world-class jobs and talent much the same as TREOs mission and work.

Satish HiremathMayorTown of Oro Valley

Vision for EconomicDevelopment Since hes been involved with TREO, Hiremath, who leads the Regional Economic De-velopment Committee, said he has come to understand that when a project lands in a particular jurisdiction it benefits the entire region. And regardless of how much private and government sectors might want to work independently, they are very much intertwined and need to be open to partnerships.

2014 Industry Outlook Hiremath reported a strong outlook for Oro Valley, with rapid expansion anticipated for 2014 based on growth indicators in all sectors. The town is making strides in business space availabil-ity, residential growth and private capital investment. Oro Valley plans to continue its focus on the high-tech and bioscience corridor.



Daisy JenkinsPresidentDaisy Jenkins & Associates

Vision for EconomicDevelopment As the lead of the Talent Committee, Jenkins said identifying the challenges and opportunities for talent or what she calls human capital development is important to the Tucson re-gion. Talent is a key driver of economic development, and the region must create an en-vironment that both attracts and retains top talent in skills, aptitude, creativity and innovation, she added. The committees goal is to keep University of Arizona gradu-ates here and to ensure that a talented workforce becomes a competitive advantage for the Tucson region. This will be achieved by cooperation and collaboration among all sectors of the community, including academic and business populations, city and county governments and numerous local organizations that have initiatives related to economic growth and development.

Gregg JohnsonCampus DirectorUniversity of Phoenix

After graduating from the University of Utah, Johnson became a Navy pilot and then directed church educa-tional programs. He served as a school administrator in Utah before joining the Uni-versity of Phoenix, where he leads the six Southern Ari-zona campuses. His respon-sibilities include overseeing enrollment, finance, student services and academic affairs. Johnson serves on the Talent Committee, and is active in the community, working with a number of organizations, including Tucson Hispanic Chamber of Commerce, Community Food Bank and Boys & Girls Clubs of Tucson.


Bill KelleyCFODiamond Ventures

Vision for EconomicDevelopment Kelley serves on the Business Development and Infrastruc-ture committees, which he believes are two of the most critical issues for Tucsons future. With his commitment to TREO, Kelley is striving to help attract employers in sectors that will broaden our employment base with high-er-paying jobs. His involve-ment with the Infrastructure Committee is also focused on the long-term future of the region by identifying investment in projects that are necessary to attract such employers.

2014 Industry Outlook Kelley reports that Diamond Ventures is positioned to take advantage of the recover-ing real estate market and is actively developing and investing in projects for 2014 and beyond. This includes both residential and com-mercial development in the Tucson area.

Adriana Kong RomeroSenior VP, Tucson Market PresidentBank of America

Vision for EconomicDevelopment As a member of the Talent Committee, Kong Romero embraces the work because she understands that retain-ing and attracting key talent is important to the growth of Tucson. The committee is identifying gaps, miscon-ceptions and opportunities and working with businesses and local leaders to create a strategy to grow talent, thus building a stronger region economically.

2014 Industry OutlookRomero sees a positive outlook for financial institu-tions in the coming year. Specifically in the case of her employer, shes noticing a continued focus on help-ing customers attain their financial goals. She feels that this commitment helps drive the economy on a global, national and local basis.


Lawrence MehrenPresident & CEOAccelerate Diagnostics

Vision for EconomicDevelopment As a small company compet-ing with multi-billion-dollar international giants, one of the most important competi-tive advantages is rapid inno-vation, Mehren said. And at the core of rapid innovation are people great people. With them, Accelerate and the region can compete, win and build a leadership position in a valuable market, he said. Without them, we will struggle.

2014 Industry Outlook Our industry is being shaped by legislative, demographic and economic changes beyond our control. In the end, however, we believe that products that offer real solu-tions to critical problems will always find a ready market. Our products do just that, and combined with a great team, an innovative pipeline and solid investor support, we are confident that the fu-ture for Accelerate Diagnos-tics is bright.

Frances McLaneMerrymanVP, Wealth Strategies GroupThe Northern TrustCompany

Vision for EconomicDevelopment Merryman serves as an Education liaison because she believes that providing an outstanding educational environment is critical in developing a qualified work-force to fill 21st century jobs and raising the wealth of our region. The communi-ties that can educate, attract and retain human capital will come out ahead.

2014 Industry Outlook Northern Trust achieved its objectives of growing and improving productivity in 2013, allowing for a stron-ger financial future. The financial markets in general, she reported, are projected to show steady and stronger growth in the coming year, assuming political discord in the U.S. government does not result in another standoff. The European economy is expected to show a slow recovery, and Chinas growth data has improved in recent months.


Steve LacePast PresidentTucson New Car Dealers Association

Lace, who serves on the Blueprint Talent Committee, is VP of Royal Automotive Group & Lexus of Tucson. Lace is responsible for the operations of the companys eight locations and seven new vehicle franchises. He sees a variety of new products and technological advances from automobile manufac-turers continuing to grow, which will result in more niche products at reasonable price points. Lace is a former board member of Tucson Medical Center Foundation.

Xavier ManriqueSenior VP, Arizona Regional Commercial Banking OfficeWells Fargo Bank

Vision for EconomicDevelopment With TREOs focus on Southern Arizonas econom-ic expansion through the bio-science and solar industries and Wells Fargos involve-ment in funding for technol-ogy and science, Manrique is excited to serve as an In-novation liaison. Since 2007, Wells Fargo has funded $21 billion for clean technology nationwide, including solar and wind projects.

2014 Industry OutlookDespite a challenging economy, Wells Fargos loans and deposits are experienc-ing strong growth, and credit quality continues to improve, according to Manrique. Increased small business optimism and a dramatic im-provement in household net worth are additional positive signs of recovery. Housing is also showing strong momen-tum going into the future.



Dennis MinanoVice ChairSonoran Institute

Vision for EconomicDevelopment Infrastructure is fundamen-tal to the regions ability to preserve, expand and attract businesses of all types and the jobs they represent, said Minano, who leads the Infrastructure Committee. Infrastructure is foundational to economic prosperity for future generations, and with Tucsons high tech and competitive international marketplace, delivery of raw materials and speed to mar-ket of finished products is a deciding factor in determin-ing where businesses expand, he added.

2014 Industry Outlook Minano said that the federal government and confidence in government will determine if we can expect something other than a snails pace of growth in the near future.

Omar MirelesExecutive VPHSL Properties

Mireles manages the property portfolio for HSL Properties, a real estate investment firm with a focus on apartment investing, development and manage-ment. HSL is the largest apartment-community owner and operator in Southern Arizona and is answering the economic demand for more rental housing with the devel-opment of three new luxury, energy-efficient apartment communities. Mireles co-leads the Business Environ-ment Committee and serves on the board of directors of Arizona Multihousing As-sociation, Salpointe Catholic High School, Tu Nidito Chil-dren and Family Services, Tucson Airport Authority and Tucson Conquistadores.


Farhad MoghimiExecutive DirectorPima Association of Governments/Regional Transportation Authority

Vision for EconomicDevelopment Moghimi sees community leadership and cooperation as key components in help-ing to drive the region and the Sun Corridor toward its fullest economic capacity. He believes that supporting efforts to hear and explore new ideas, expand local in-dustries and encourage more local startup businesses will influence community pride and an improved standard of living. The community must strive to improve education and focus on generating bet-ter paying jobs, he said.

2014 Industry Outlook Pima Association of Govern-ments has a full plate for the future, particularly with the 20-year, $2.1 billion regional transportation plan. Moghi-mi said a solid transportation infrastructure goes hand-in-hand with a strong economy.

Tony PennPresident & CEOUnited Way of Tucson and Southern Arizona

Vision for EconomicDevelopment One of the most important objectives of the Economic Blueprint for Penn is the pursuit of excellence in educational systems that will enhance our ability to sup-port growth and innovation in existing companies and to attract new businesses. He feels privileged to serve as an Education liaison involved with educational issues that prepare the regions workforce for the jobs of today and tomorrow. This requires an all-inclusive effort between educational systems, government and businesses sharing the responsibility for workforce development.

2014 Industry Outlook Penn said the outlook for United Way of Tucson and Southern Arizona is optimis-tic, as it continues to serve as the backbone organization in the effort to create large-scale positive social change.


Jonathan RothschildMayorCity of Tucson

Vision for EconomicDevelopment Rothschild said improving transportation infrastructure which includes addressing bottlenecks at the border and Interstate 19, freight and passenger rail, transit, bikeways and walkways is important because it helps people get to work, adds to our quality of life and is a factor in economic develop-ment. Rothschild, who serves on the Regional Economic Development and Infrastruc-ture committees, also sees growing technologies and startups as priorities for our region.

2014 Industry Outlook The outlook for Tucson is better than its been for some time, Rothschild said. Downtown is thriving again, theres renewed energy and hope and the city is coming together more as a communi-ty around common goals. He reports that Tucsons business incentives are having the intended results and sparking downtown development.

Keri SilvynPartnerLazarus, Silvyn & Bangs

Vision for EconomicDevelopment Serving on TREOs Business Environment Committee al-lows Silvyn to take an active role in the regions economic development, which includes portraying a business-friendly perception to the rest of the world. As a longtime propo-nent of Tucson, shes able to learn from the past successes while continuing to see future opportunities. She said the backbone of success is a strong, vibrant and diverse business community that welcomes all types of jobs, from entrepreneurs to large corporations.

2014 Industry Outlook As a land-use specialist, Silvyn sees a positive outlook for the next two years due to the improving national economy and projected growth in Arizona. She pre-dicted an increasing demand for expertise in this area and an ability to bring projects to successful completion.


Virgil RenzulliVP, Public AffairsArizona State University

Vision for EconomicDevelopment TREOs Talent Committee, on which Renzulli serves, plays an integral part in Arizonas economic growth, he said, because the need for highly trained and skilled workers will increase at a time when employers are ex-periencing a labor shortage. He said the committee can help identify what the busi-ness community needs from post-secondary education and vice versa so that goals are met for both.

2014 Industry Outlook The forecast for the states university system is good, according to Renzulli. Enrollments are increasing, student quality is improving and the research enterprise ranks among the best in the country. The two problems that continue to present a challenge are scarce resourc-es and the need to strengthen the PreK-12 pipeline.

Walter RichterAdministrator, Corporate Public Affairs, Southern Arizona DivisionSouthwest Gas

Vision for EconomicDevelopment Improving our regions competitiveness is a goal for Southwest Gas and Richter, who contributes his time to TREOs Business Environ-ment Committee. Creating a business-friendly atmosphere in Southern Arizona is essen-tial, Richter said, for existing businesses to thrive and expand while new companies are attracted to the area.

2014 Industry Outlook Now recognized as the bridge to our renewable energy future, clean-burning natural gas is consistently cited as a key reason for the recent drop in greenhouse gas emissions. Richter is noticing a rising number of fleet vehicles using natural gas and expects that to con-tinue in 2014 and beyond.



Matthew WandoloskiVP, Corporate Strategy and AnalyticsBlue Cross Blue Shield of Arizona

Vision for EconomicDevelopment Development and growth of Tucson and the Sun Corridor are Wandoloskis passions, offering future graduates from Arizona uni-versities and colleges more opportunity to remain in the state. These goals comple-ment his professional philoso-phy of improving the lives of residents both in Southern Arizona and around the state. Wandoloski serves on TREOs Healthcare Com-mittee.

2014 Industry Outlook The longevity of Blue Cross Blue Shield of Arizona in business since 1939 demon-strates how health insurance in the state has kept pace with the growth of its popu-lation.

Raymond L. WoosleyPresidentAZCERT

Vision for EconomicDevelopment Serving on TREOs Health-care Committee is important to Woosley as it addresses how the community will be affected by current health-care changes. His company has similar goals, as well. AZ-CERT focuses on safe medi-cation use and is founded on the belief that personalized prevention of illness will be a cost-effective alternative to the nations current focus on illness care.

2014 Industry OutlookWoosleys forecast for health-care is that its availability will likely increase, but the quality of care will depend on whether the commu-nity is prepared to deliver the most cost-effective and scientifically-based medicine. AZCERT is forming health-care collaborations to define the path to optimal physical and economic health for the people of Southern Arizona.


David SmallhouseManaging DirectorMiramar Ventures

Vision for EconomicDevelopment Innovation is at the core of creating a vibrant economy in Southern Arizona and its the engine that keeps an economy competitive for all business ventures, according to Smallhouse, who serves as an Innovation liaison. He said all sectors must constant-ly strive to improve if they are to prosper, and compla-cency is the enemy of pros-perity, as competition will sooner or later drive margins down. A culture of innova-tion must be a priority if we are to grow our economy.

2014 Industry Outlook Smallhouse sees the slow growth of the Gross Domes-tic Product contributing to the current trend of de-creased risk taking by finan-cial institutions, businesses and investors. Recent IPO activity in select technology sectors, however, may be the beginning of a new era of liquidity.

Teri Lucie ThompsonSenior VP for University Relations & Chief Marketing OfficerThe University of Arizona

2014 Industry Outlook From a university viewpoint, Thompson continues to witness higher earnings and lower unemployment rates among college graduates, making higher education a valuable long-term invest-ment. Unfortunately, lower federal research funding, a slowdown in household in-come and more student debt are affecting opportunities in higher learning. On the positive side, The University of Arizona is positioned to capitalize on its research strengths, attract well-qual-ified students, deliver on its land grant mission and part-ner with its sister institutions, businesses and government.


winter 2014 treo

Documents

economic blueprint

economic prosperity

treo president

economic prowess

treo leadership

concept of region

blueprint update

ceo of tucson