After several years of an anemic growth in the state’s economy, Chandler business leaders gathered Wednesday to hear some good news about the city’s economy from Jason Bagley, the manager of government affairs at Intel Corp.
He addressed the company’s effect on Chandler’s economy and the importance of education in Arizona.
Bagley told the audience that Intel plans to pump billions into the state’s economy in the near future.
Intel has allocated between $6 billion and $8 billion for research between its operations in Oregon and Arizona.
The company also plans to spend $5 billion on a new factory in Arizona that is scheduled for completion by the end of 2013, which will bring thousands of new Intel and constructions jobs to the state, Bagley said.
In addition to the new jobs provided by Intel and the construction of the factory, the company has an economic multiplier of three to four, said Christine Mackay, Chandler’s economic development director. That means for every job added by Intel at the new factory, three to four jobs will be added to community.
“Intel is obviously our largest employer in Chandler. They have got almost 10,000 employees here,” said Chandler City Councilman Jack Sellers.
“A lot of their people live in Chandler and not only do they then have a significant financial impact on the city, but they are very good citizens.”
The company’s economic effect was felt throughout the economic downturn. Mackay, who is credited with bringing 21,000 jobs to Chandler over the past five years, said that Intel offers the highest wages in the state and employs close to 10,000 people in Chandler, giving the city the third lowest foreclosure rate in the region.
While Intel has a large impact on Chandler, it also has plays a large role in the state’s economy: Intel invests $450 million in research and development in Arizona yearly and has an average $2.6 billion economic effect.
Bagley said the street goes both ways — Arizona has affected Intel as well. “Government definitely has an impact on companies like Intel, any business for that matter,” he said.
Tax treatment is perhaps the largest area where Arizona affects Intel. The company has expressed concern over the property tax because it is so much higher for businesses than homeowners.
In February, the property tax was lowered as a part of a $538-million piece of legislation that cut taxes and incentives for businesses to locate to Arizona. The legislation was touted by Gov. Jan Brewer and Republican legislators.
Bagley said this would affect future investment decisions Intel will make.
Chandler also has affected the taxes Intel must pay.
“We do have a for-trade zone set up so that it does impact the property tax rates that are paid. This is an enormous investment,” Sellers said.
“If it was valued at the normal commercial rates, it would make us very uncompetitive to locate a manufacturing plant here.”
Bagley also talked about education’s importance and its struggles.
“There is no silver bullet when it comes to education,” he said. “The issue is how the money is being spent.”
On Tuesday at a gathering of the Arizona Commerce Authority, a body created by executive order of Brewer, former Intel CEO Craig Barrett told lawmakers and business leaders that the current educational climate in Arizona was “not particularly attractive.” He even went so far as to say that the state would not be among the top 10 choices if Intel were looking to start an operation from the ground up.
On Wednesday, Bagley highlighted Intel’s financial contribution to education — more than $100 million each year is spent in over 50 countries — and its work with ABEC, the Arizona Business Education Coalition.
“(It) provides really the vehicle for the business community to work directly with the education community,” he said.
manini posted at 11:33 am on Fri, Apr 1, 2011.
Former INTEL CEO Craig Barrett is right & I've known it for years as a retired Motorola Principal Engineer/Scientist-Director & retired JPMorganChase exec. We've got too many spoiled, self-indulgent kids in AZ raised by dysfunction, dumb, spoiled, self-indulgent parents who expect to con or free-load their way thru life without competing with smarter people globally. High-tech design centers staff almost always came from foreign countries...Greece, Germany, Israel, China, Japan, Taiwan, India. Manufacturing plant staffing almost always came from "will_work_4_food," minimum wage non-unionized countries like MX, Malaysia, Indonesia, China, Taiwan, India, etc. Ummm, what happened to American staffing? They were either unionized, un-motivated, or lacked the technical, education, mathmatical, scientific skills to make major contributions than their foreign counterparts. I think this is what the NAFTA/North-American-Union crowd who want a merged MexAmeriCanada North American country called the "Global Marketplace & Global Village"...as long as the dumb U.S. taxpayers lower/eliminate U.S. tariff barriers against foreign trade dumping in the U.S. of multinational U.S.-based corporations. Then, these multinational U.S. corporations like GE, INTEL, GM, FORD, etc., coming crying to the impoverished, neglected U.S. taxpayers for a BAILOUT, like the crooked, criminal Wall St. Bankster$ have been doing with their mortgage-backed CDO/CDS Global PONZI SCHEME.
Leon Ceniceros posted at 11:34 am on Fri, Apr 1, 2011.
Intel Corporation donates $100 Million dollars to over 50 foreign Nations.
May I make a suggestion. Being that Intel is an.... AMERICAN CORPORATION.
Why is the American-based Intel Corporation donating 100 thousand million dollars every single year to help the students of ...............OTHER NATIONS ???
Before.......LECTURING.....Arizona about their depression/recession, Arizona Constitutional mandated .....BALANCED BUDGET...requirement that is requiring ....ACROSS THE BOARD REDUCTIONS IN EDUCATION, HEALTH AND SOCIAL BENEFITS AND OTHER HARD-HITTING FUNDS..............that instead of donating ......a HUNDRED THOUSAND MILLION DOLLARS TO FOREIGN STUDENTS..........that Intel donate a............HUNDRED THOUSAND MILLION DOLLARS TO...............AMERICAN STUDENTS.
Former Employee posted at 1:53 pm on Fri, Apr 1, 2011.
I agree with most of what manini said regarding our state. I too was an employee of both Intel and Moto but in lower position (fab equip maintenance technician). Eventually I did go back to school and finish a computer science degree.
Before I would jump on the wagon to congragulate Intel though you must know that the majority of the good jobs are held by foreign workers (middle east for example). Don't believe me ? Just go to the Country Brook apts on rural and ray. The majority of tenants work at Intel and are ALL from the middle east.
These people get jobs because they will work for less & create no static with management.
It is a very sad state when I see foreign workers living next to me, getting into their foreign cars to drive to a job located right up the street. Meanwhile I go back inside my apartment & pray that someone will call me for an interview. These days folks will find just about any reason they can to dismiss you from an interview.
I'm very pleased with myself. I got through this comment (almost) without making a statement on how horrible it is to actually work at Intel (especially for fab people).