The Western Blue Chip Economic Forecast, which now incorporates the Arizona Blue Chip Forecast, focuses on the changing economies of 12 Western states: Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Western employs the proven accuracy of the consensus forecasting method brought to prominence by the late Robert J. Eggert, often referred to as the "Sage of Sedona." Forecasts are compiled by website editor Lee McPheters, research professor of economics in the W. P. Carey School of Business, who has studied the Western region for over two decades.

Arizona’s Economy, published quarterly by the Economic and Business Research Center at the Eller College of Management, is provided as an educational service by The University of Arizona. As part of The University of Arizona’s public mission to improve quality of life for the people of Arizona and the nation, the Economic and Business Research Center is dedicated to providing Arizona citizens and decision makers with high quality economic data and objective forecasts and analyses.

The mission of the Ad Hoc Committee on Arizona's Business Climate was to look at the critical issues of business development, retention and expansion in Arizona. Between the months of August 2001 and December 2001, the Committee met in various locations throughout the State to hear from those directly involved with business and economic development. The goal was to find what Arizona is doing right and to identify areas that need improvement to make this the best place in the country in which to do business.

This paper complements a detailed assessment of job quality, based on analysis of industrial and occupational mix, recently completed by the Seidman Institute’s Center for Business Research. The overall conclusions in this report are consistent with those of the more extensive CBR research. Arizona’s economy grows very rapidly, but per person or per worker measures of wages, compensation, incomes, and gross state product are below the national average. No evidence exists that the situation is improving appreciably (or deteriorating). Indeed, the state appears to be creating income, wealth and quality jobs at rates that are similar to those displayed by other states. Arizona is a job-generating marvel and is among the nation’s leaders in aggregate growth. If the state is successful at improving the quality of its labor force and creating higher-quality jobs, its per worker and per person comparisons will improve.

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.

Regional economic theory states that a local economy is driven by economic activities that import money into the region (county or state in this report) through the sales of goods and services to customers who do not live in the region. Such export activities differ from population-driven activities, which sell to and support the local population. “Export” in this usage is not limited to goods and services sold to customers from other countries, but includes all sales made to customers outside the local region — at the state level, in other states, and at the county level, in other counties within the state. An export activity sometimes is referred to as a “basic” activity — the terms are synonymous.