2 min read November 2023 —The Phoenix metro area is one of the fastest growing regions in the country, and industries have been taking notice. According to the U.S. Census, Maricopa County saw the largest influx of residents in 2022 compared to other counties in the country, adding 56,831 residents last year, a 1.3% increase from 2021. The population is now around 4.6 million — one of the highest among U.S. counties.
Phoenix’s relatively affordable housing and rental costs compared to other major metropolitan areas in the west have contributed to the surge in new residents. According to PayScale’s Cost of Living Calculator, housing in Los Angeles is 93.9% higher than in Phoenix, while other regional hubs like Denver and San Diego have a 5.9% and 37.9% higher cost of living, respectively.
Despite the heatwaves in the Valley of the Sun and the state reaching temperatures of 110 degrees Fahrenheit for 54 days in 2023, population growth in the area has remained steadfast. To learn more about the area’s rapid growth, find out what industries are moving Phoenix forward.
Education hub
The education sector is a mainstay in Phoenix, serving as a major economic driver for the area. There are more than 43 colleges within 20 miles of Phoenix that offer a quality education. Among those are Grand Canyon University, Arizona Christian University and Arizona State University. GCU employs over 16,000 people, while ASU has 55,712 people on staff. The area is also home to one of the country’s leading master’s programs, with Thunderbird School of Management’s alumni network including Johnson & Johnson CEO Joaquin Duato, former Morgan Stanley chairman Walid Chammah and PepsiCo CEO Ramon Laguarta, among others.
Tourism destination
Another driving force of the economy is Phoenix’s tourism and hospitality industry as the region is home to various natural landscapes that accommodate world-class golf courses and hiking trails. Phoenix Sky Harbor International Airport, conveniently located within the city, offers more than 140 domestic and international nonstop flights. Some of the top tourist attractions in the area include Camelback Mountain, Papago Park, South Mountain Park and Preserve and Desert Botanical Park.
Thriving healthcare & bioscience sectors
Three out of five workers in the Greater Phoenix area are a part of the healthcare industry, and employment growth is expected to surge in life sciences. According to CBRE, the Phoenix metro area has churned out the fastest rate of growth for new life sciences graduates, increasing by 90% between 2016 and 2021. Phoenix’s higher education pipeline also helps provide a solid talent pipeline for the healthcare industry. The Greater Phoenix Economic Council also noted that healthcare creates around 60,000 jobs and adds $8 billion to the local economy.
Financial focus
Greater Phoenix’s business and financial services sector is also moving in an upward trajectory. The Greater Phoenix area’s financial services landscape is considered the sixth largest in the nation, with top financial services companies in the area including Wells Fargo, Bank of America, JP Morgan Chase and Charles Schwab, among others. The sector also has a solidified talent pool to choose from, with over 1,700 college students graduating with degrees in accounting, finance, economics, mathematics and consumer relations, as cited by GPEC.
Emerging manufacturing base
Phoenix has one of the largest manufacturing supply chains in the country and is home to over 2,800 manufacturing establishments. In 2022, the area gained global attention with Taiwan Semiconductor Manufacturing’s (TSMC) announcement to invest $40 billion in Arizona for two chip plants — breaking the record as the biggest foreign investment in state history. Greater Phoenix manufacturing jobs between 2020 and 2030 are expected to grow by 14.4%.
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