MRO – OEM R&D – UAV AEROSPACE / AVIATION TECHNOLOGY ECONOMIC DEVELOPMENT ECONOMIC

5.3 th largest city in 35 , Mesa, Arizona is the million, and is projected to reach 4.9 all have large operations in Mesa.

more than 518,000 CAVU AerospaceCAVU

. Smart aerospace companies such as Boeing, Cessna, Able Aerospace, 2025

a 21-city region that has a population of by million MD Helicopters, and A STRATEGIC LOCATION FOR COMPANIES AEROSPACE Boasting a population of the United States and second largest in the Phoenix-Mesa metro area. Larger than Miami, Minneapolis, Atlanta, and St. Louis, Mesa encompasses square 138 miles inside mesa The Boeing Company’s location in Mesa, Arizona was once an orange grove and open desert, and more than 30 years ago a facility was constructed to produce helicopters for United States and allied forces. We’re still producing helicopters, and so much more, because of great partnerships with the City of Mesa and the East Valley, local area industry, an engaged workforce, and a community invested in our continued success.

STEVE WADE BOEING VICE PRESIDENT OF ATTACK HELICOPTER PROGRAMS & SENIOR MESA SITE EXECUTIVE

BOEING BUILDS THE AH-64 APACHE COMBAT HELICOPTER, AH-6 LITTLE BIRD LIGHT ATTACK/ RECONNAISSANCE HELICOPTER (SHOWN), AND THE CAMCOPTER S-100 UNMANNED AERIAL VEHICLE AT ITS ROTORCRAFT FACILITY IN MESA.

2 HAS A MAINTENANCE, REPAIR, AND OVERHAUL FACILITY BASED AT PHOENIX-MESA GATEWAY AIRPORT.

#7 in Aerospace Manufacturing Attractiveness – PwC 2020

With a 35-square-mile developing aerotropolis surrounding Phoenix-Mesa Gateway Airport and the advanced aerospace and defense manufacturing district surrounding Airport, Mesa has become an ideal location for international aerospace, aviation, and defense companies. Mesa companies have significant access to an abundant, highly-skilled workforce and one of the nation’s strongest aerospace/defense clusters, it is no wonder companies such as Boeing, Textron, Northrop Grumman, and MD Helicopters have major operations in Mesa.

Arizona Aerospace and Defense Top Arizona Aerospace and 1 (A&D) Industry Highlights Defense Companies

Arizona is home to more than 1,250 Aerospace and Defense • 57,800 A&D Employees in Arizona companies including the following major players, many of • $3.8B total Arizona A&D exports in 2019 which are located in Mesa: • $ 16.4B in total Federal contracts in 2019 • Embry-Riddle Aeronautical University rated for * Able Aerospace, A * Lockheed Martin the fourth year in a row, #1 in the nation for best Textron Company * Marsh Aviation undergraduate Aerospace/Aeronautical/Astronautical * Aerocast, Inc. * MD Helicopters Engineering Programs Airobotics * Mercury Systems • 330+ VFR days annually for near-perfect flying weather * Amphenol Aerospace * Nammo Defense Systems National Rankings1 Ascent Aviation Services * Northrop Grumman • #5 largest employment in space and defense Aviage Systems Northstar Aerospace systems manufacturing BAE Systems Paradigm Precision • #2 largest employment in guided missile Barnes Aerospace Parker-Hannifin systems manufacturing * Precision Heli-Support • #5 in concentration of Aerospace and Defense * The Boeing Company manufacturing establishments Bombardier Raytheon • #6 largest employment in aviation maintenance * CAE Aviation Academy Robertson Fuel Systems • #8 largest recipient of Department of Defense spending * CAVU Aerospace Sargent Aerospace & Defense * Cessna Securaplane Comtech EF Data * SEEOP Duralar Technologies * Silverado Cable ABLE AEROSPACE SERVICES, Standard Aero A TEXTRON COMPANY * Embraer General Dynamics * Times Microwave Systems * Heliponents, Inc. UTC Aerospace Systems Hexcel * WireMasters Honeywell Aerospace Viasat * Inter-Coastal Electronics (* Companies with facilities Iridium in Mesa) * L3Harris Technologies

3 ALLEGIANT SERVES MORE THAN 50 LOCATIONS FROM PHOENIX-MESA GATEWAY AIRPORT

Mesa’s Airports Host Top Companies and Developments

Mesa boasts two airports: Phoenix-Mesa Gateway Airport and Falcon Field Airport. Each offers a diverse portfolio of aerospace, defense, aviation, and other high-tech industries, plus the operations to support those industries such as MRO, cargo, and R&D activities.

Phoenix-Mesa Gateway Airport Falcon Field Airport Located in southeast Mesa, Phoenix-Mesa Gateway Airport is an With more than 270,000 operations annually, Falcon Field Airport attractive alternative to Phoenix Sky Harbor International Airport. is the third busiest general aviation airport in the U.S. • Gateway Airport has three long runways, 10,400 ft., 10,200 ft., • More than 800 aircraft are based at Falcon Field Airport. and 9,300 ft. and will accommodate any size aircraft. • Two runways of 5,100 and 3,800 feet accommodate a wide • In 2019, Gateway Airport served more than 1.7 million variety of fixed-wing aircraft and helicopters. passengers, a 15.86% increase over the previous year. • Falcon Field Airport hosts an FAA air traffic control tower. • Allegiant Air serves passengers through Gateway Airport to • More than 100 on-airport businesses provide aviation services more than 50 locations across the U.S. including San Francisco/ – fueling, maintenance and repairs, inspections, avionics, Oakland, Las Vegas, and Cincinnati. aircraft painting, aircraft interiors, aircraft charters, and rentals • WestJet and Swoop provide international service to Edmonton – to support aircraft operations, manufacturing, and research and Calgary, Canada. and development activities. • More than 1,000 acres are available for development in the • With helipads and nearby desert areas for practice maneuvers, Gateway Airport area. Gateway Airport is ideal for maintenance, Falcon Field Airport is ideal for aircraft components and systems repair, and overhaul related companies in addition to manufacturing; fixed- and rotor-wing , manufacturing operations. repair and overhaul uses; aircraft restoration; aircraft testing; • Phoenix-Mesa Gateway Airport is home to SkyBridge Arizona, aircraft sales; corporate aviation departments; and the nation’s first and only joint air cargo hub to house both U.S. fixed-base operators. and Mexican customs agents. • Falcon Field recently completed 394,000 square feet of mixed- • U.S. Customs are on-site at Gateway Airport, as well as US-VISIT use hangers, ranging in size from 4,000 to 15,000 square feet (a U.S. Customs and Border Protection management system) for available for lease. international charters (up to 20 passengers and crew). • More than 50 acres are available on-airport for aviation-related • Gateway Airport has an FAA-contract air traffic control tower. development with direct runway/taxiway access. www.gatewayairport.com • Six industrial parks with more than 1,000 acres of industrial-zoned land are located throughout the Falcon District and provide a wide range of options suitable for nearly any operation. www.falconfieldairport.com

“Embraer Executive Jet Services (EEJS) support strategy to serve its existing and new Phenom and Legacy business jet customers included the deployment of new Embraer Owned Maintenance, Repair and Overhaul (MRO) Service Centers across North America. After a series of extensive studies performed to determine the optimum location for the construction of these EEJS MRO centers, one of the sites retained was Mesa, Arizona. Mesa offers a wonderful hub location for many of our Western United States customers. Weather is mild and predictable making pilot workload easier on flight planning. Mesa is without a doubt a winning location for one of Embraer’s Executive Jet Service Centers.”

Jacques Blondeau VP Maintenance Services World Wide, Embraer Executive Jets

4 Incentives & Programs2

Programs and incentives for qualifying businesses continue to attract companies to Mesa.

• Mesa has no primary property tax, resulting in significant savings for companies when compared to other cities within and outside Arizona.

• The Military Reuse Zone is located at the Phoenix-Mesa Gateway Airport and can reduce real and property tax by up to 72.2% for a period of five years, eliminates county and state sales tax on new construction, and offers income tax credit for new employees. Talented Workforce at Competitive Wages • Foreign Trade Zone #221 (FTZ), also located at the Phoenix- Mesa Gateway Airport, covers more than 2,000 acres and • Arizona is a right-to-work state with a low level of unionization. provides qualifying companies a reduction of real and personal • Arizona is one of the top 15 most affordable states for average worker’s property tax by as much as 72.9% in perpetuity, as well as other compensation rates.3 cost savings. • Arizona ranks eighth lowest in the nation for unemployment insurance tax.4 • Mesa’s Federally Designated Opportunity Zones, located • The Phoenix-Mesa metro area boasts a skilled, easy-to-attract and around Falcon Field Airport and Phoenix-Mesa Gateway Airport, retain workforce. allow investors to defer and potentially reduce taxes on capital

gains, so long as the gain is reinvested in a qualified opportunity 5 fund that invests in one of Mesa’s opportunity zones. Business Friendly

• The Quality Jobs Tax Credit is a state incentive that provides tax Arizona has a progressive business environment that is supported credits to employers creating a minimum number of net new locally in the City of Mesa. Recent legislation has continued to quality jobs and making a minimum capital investment in Arizona. improve the operating environment for business. A simplified tax system lowers your cost of doing business. • The Qualified Facility Tax Credit is a state incentive that provides a refundable tax credit to taxpayers who are expanding or • Corporate and individual income tax rates that are among the locating a Qualified Facility in Arizona. lowest in the nation. • In 2017, corporate income tax declined by 30% to a final • Additional Depreciation, as part of the Arizona Competitiveness rate of just 4.9%. Package, enhances Arizona’s additional depreciation allowance • Arizona has no franchise tax, no business inventory tax, and no for property tax and substantially reduces tax liability for most estate tax. personal property devoted to commercial, industrial, and • Arizona has reduced long-term capital gains tax by as much as agricultural uses by reducing the taxable value of such property 25% for property acquired after 2011. during its first five years of use (by increasing the depreciation • Businesses with multi-state operations will appreciate a 100% factored in determining such value). sales factor income appointment formula.

TIMES MICROWAVE SYSTEMS, PART OF AMPHENOL MILITARY AND AEROSPACE DESIGNS, AND MANUFACTURES HIGH PERFORMANCE COAXIAL CABLES, CONNECTORS, AND CABLE ASSEMBLIES FOR MILITARY AND AEROSPACE APPLICATIONS IN MESA.

5 Unmanned Aerial Technology Arizona Laboratories for Security & Taking Off in Mesa Defense (AZLabs)

Arizona serves as a hub for innovations in Unmanned Aerial Arizona Laboratories for Security & Defense (AZLabs) is an Vehicle (UAV) and Unmanned Aerial Systems (UAS) technology. excellent location for UAV/UAS focused companies looking Four of the state’s prominent universities (University of for a secure facility to conduct R&D and other highly sensitive Arizona, Arizona State University, Northern Arizona University, activities. As a former Air Force Research Laboratory, AZLabs and Embry-Riddle University) are engaged in UAS-related research projects. Several universities and community colleges offer degrees specific to unmanned aerial systems technology, including ASU’s and Embry-Riddle University’s campuses adjacent to the Phoenix-Mesa Gateway Airport located in Labs Mesa. In addition, a new private university in Greater Phoenix, Unmanned Vehicle University, offers workforce development and master’s and doctoral degree programs related to Unmanned Aerial Systems. maintains Department of Defense security accreditations to support a broad range of proprietary projects including Mesa companies have a strong foothold in the industry. experiments, prototype evaluations, and distributed test and Innovative companies like Boeing, Mercury Systems, Inter- training with access to a highly skilled, tech-centric workforce. Coastal Electronics, and SEEOP are producing state-of- AZLabs lies adjacent to Phoenix-Mesa Gateway Airport, the-art, UAV/UAS systems for both military and commercial Arizona State University Polytechnic campus, Chandler-Gilbert applications, as well as developing critical control system Community College, and Embry-Riddle Aeronautical University hardware and software technology. Mesa. This strategic location offers tenants proximity to existing restricted airspace and military operations areas (MOAs), via Mesa is an ideal place for the development, testing, and three 10,000-foot runways, taxiways, aircraft parking, and manufacturing of unmanned aerial vehicles and systems access to fuel for U.S. Government and military patrons. because of predictable weather, access to airports and Additionally, AZLabs has closed areas with Government Services aviation resources, the local pipeline of UAV/UAS-trained Administration (GSA)-approved storage. labor, and the growing cluster of companies in the field. www.azlabs.org

ARIZONA STATE UNIVERSITY POLYTECHNIC CAMPUS OFFERS DEGREE PROGRAMS IN AIR TRAFFIC MANAGEMENT

6 CAE OXFORD AVIATION ACADEMY (CAE) LOCATED AT FALCON FIELD AIRPORT.

Education Offers Strong Partnerships The East Valley Institute of Technology (EVIT) is a public education system of career training options for East Valley high for Business school students and adults. EVIT has programs in Aviation, Culinary Arts, Health Care, Cosmetology, Fashion Design, and Mesa is home to more than ten institutions of higher education. Welding among others. EVIT’s aviation program includes classes Many of these institutions offer specialized training over a broad in aviation maintenance, ground school and flight training, and array of technologies and aerospace programs. systems for pilots.

Arizona State University’s Aviation Program offers CAE Oxford Aviation Academy (CAE) is one of the world’s largest comprehensive degrees that combine academic studies with aviation training provider. CAE trains 220,000 civil and defense professional flight and aviation training. Undergraduate and crewmembers annually and serves more than 3,400 airlines, graduate degree programs include the following: aircraft operators, and manufacturers across the globe. CAE offers • Air Traffic Management a Pilot Training Program at its Mesa campus. • Air Transportation Management • Unmanned Aerial Systems • Professional Flight California Aeronautical University (CAU) opened a flight • Aviation Management training center at Falcon Field Airport in March 2021. At this location, CAU provides degree programs such as Bachelor of Science in Aeronautics, Bachelor of Science in Aviation Business Mesa Community College (MCC) is home to more than 20,000 Administration, Associate of Science in Aviation Studies, Master of students annually and offers more than 195 degree and certificate Science in Aviation, and Master of Business Administration. programs at its two campuses. MCC hosts the Arizona Advanced Manufacturing Institute (AzAMI) and offers the following associate degree and certificate programs: Embry Riddle Aeronautical University is the world’s pre-eminent • Automation and Robotics Technology university for aviation and aerospace education. Its Mesa campus • Aerospace Manufacturing Technology provides six associate degree programs, 14 bachelor’s, 18 • Manufacturing Engineering master’s, two doctoral, and two certificate programs. The Mesa • Machinist Apprenticeship campus is authorized to enroll international students with an F-1 • Electronics Technology visa. The following are just some of the many programs offered at • Electrical/Mechanical Drafting the Mesa campus. • Welding Technology • Aeronautics • Additive Manufacturing Processes • Aerospace Engineering • Aviation Business Administration • Aviation Maintenance In addition, AzAMI has partnered with the Boeing Company to • Aviation Security create the award-winning Cable Harness Wiring Boot Camp, which • Cybersecurity Management and Policy allows participants the opportunity to earn an industry-recognized • Engineering Technology certification that assures aerospace industry companies trained • Engineering Management personal ready to hire. • Homeland Security • Logistics and Supply Chain Management Chandler-Gilbert Community College (CGCC) offers the only • Technical Management FAA-approved community college aviation maintenance and flight • Unmanned Systems programs in Greater Phoenix. These programs are designed to meet the aviation industry’s need for well-prepared pilots and University of North Dakota and Chandler-Gilbert Community technicians. CGCC provides associate degrees and certificates in: College (CGCC) have partnered to offer a two-year degree • Aircraft Maintenance Technology program at CGCC in Mesa, adjacent to Phoenix-Mesa Gateway • Airway Science Technology, Flight Emphasis Airport with the option to continue flight training and receive a • Flight Technology four-year aviation degree at the University of North Dakota. • Powerplant Maintenance

7 ECONOMIC DEVELOPMENT

Empowered to Help Build Your Business The City of Mesa Office of Economic Development works closely with clients throughout all phases of the development process and looks forward to helping you build and grow your company in Mesa.

City of Mesa | Office of Economic Development 20 E Main, Suite 200 | PO Box 1466 | Mesa, Arizona 85211-1466 480.644.2398 | [email protected]

SELECTMESA.COM MESAAEROSPACE.COM

Endnotes 1. www.azcommerce.com/industries/aerospace-defense/talent/, 2021 2. www.azcommerce.com/locate/incentives, 2021 3. www.workerscompensationshop.com/insurance-states/arizona/rates, 2021 4. taxfoundation.org/state-unemployment-insurance-tax-codes-2021/ 5. www.azcommerce.com/business-first/simplified-tax-system, 2021

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