The condition of Arizona’s infrastructure has a direct impact on economic productivity and quality of life. As economic competition expands domestically and globally, and as the knowledge economy evolves, the importance of a strong infrastructure increases. Education, in particular, is of growing importance. Arizona’s infrastructure challenges will require commitment and creativity to meet the needs and potential of 10 million people and to ensure a positive future for the state.

Arizona’s total value of international exports as a share of gross product was 33rd highest among the 50 states and District of Columbia in 2012. Arizona ranked 36th for manufactured goods. In 1997, Arizona had ranked eighth overall and ninth for manufactured goods. The state’s large relative decline in export share can be traced to its sizable relative decrease in its manufacturing sector. In particular, the electronics manufacturing subsector’s share of total GDP has dropped considerably.

Does H20 = Growth in Arizona? That is how many people view the water-growth equation -- any introduction of "new" water supplies inevitably stimulates population growth and economic activity. However, the report by Morrison Institute for Public Policy, Growth on the Coconino Plateau, offers some surprisingly contrary conclusions. Completed on behalf of Arizona Department of Water Resources and the Coconino Plateau Watershed, this document is relevant for all regions of rural Arizona. Among the findings: - Some rural areas in the West have constructed major water supply projects only to see most of their towns languish, not prosper. - New water infrastructure in growing rural counties hasn't affected the size so much as the pattern of new development. - Leapfrog sprawl into unincorporated areas has been discouraged in regions where cities and towns hold control over the distribution of new water supplies. Bottom line, water won't automatically produce population growth. But planning for water - how it is supplied and governed - does offer a useful tool for managing future growth. Moreover, it can provide some measure of protection for the environment. We believe this report has important application well beyond northern Arizona. By providing original research and analysis on the water-growth equation, this report helps resolve one of Arizona's most critical issues. As a result, public policy discussions in the future will be able to focus on the state's most important growth drivers and how they can be managed.