Operating Costs

Operating a business in Arizona costs less than in many of our neighboring states. Discover the competitive cost advantages the Greater Phoenix area offers.

Enjoy a low cost of doing business

With low business costs and tax rates, affordable and reliable utilities and more, the Greater Phoenix area offers an advantageous environment for your business. See the factors below that make your savings add up and boost your bottom line.

Affordable electricity

Arizona public utilities generate power from a variety of stable sources and, according to the U.S. Energy Information Association, charge substantially less per kilowatt-hour (kWh) than utilities in other Wester states.

And SRP provides the best value for your energy dollar with electricity prices that are among the lowest in Arizona and the region. In fact, SRP rates on average are 49% lower than other regional providers.

Affordable, renewable water supplies

In addition, the average cost of water is very competitive in Greater Phoenix compared to competing markets, according to the U.S. Department of Energy. SRP is one of the largest raw water suppliers in Arizona and has managed water resources for over a century.

Low labor costs

Greater Phoenix enjoys low labor costs compared to other major cities. In fact, the grouping of Phoenix, Mesa and Scottsdale has the lowest rate of total compensation per hour, or all-in labor cost, compared to other cities in the Western region, according to the Bureau of Labor Statistics.

Low tax rate and incentives

At 4.9%, Arizona's regular corporate income tax is relatively low. The state also makes available more than $200 million in tax incentives, including refundable tax credits, grants and property tax reductions.

Low transportation costs

Close proximity to a multimodal transportation network keeps transport costs low. Two of the largest Class I railways in the world go through Arizona - BNSF and Union Pacific. These are also nine shortline and terminal railways in Arizona.

Sky Harbor International Airport serves 40 million passengers annually with 1,200 daily direct flights. Phoenix-Mesa Gateway Airport also serves commercial flights, and there are eight general aviation airports.

Interstate highways, including I-8, I-10, I-40 and U.S. 60, provide easy access to and from other major markets, and seven local freeways enable easy travel within Greater Phoenix.