2

SAHRA MEETING

2014-2016 Performing Plant of the Year

2012, 2013 and 2014 Most Productive Plant of the Year

2012- 2014 West Plant of the Year and 2016 Safest Plant

Doubled Workforce in 2016

3.7% 5-Year Personal Income Growth

*BEA

180kLabor Force

*GIS

$8BRegional GDP

*BEA

1.5MWithin 60 Mile

Radius*GIS

6.3% 2016 Job Growth

*BLS

9th

Most Diverse Economy in U.S.

*Wallethub

Border Crime Stats

Number of homicides from confrontations in bordering cities(2011-2015)

Reynosa 143

Nuevo Laredo 98

Tijuana 86

Juarez 79

Matamoros 72

Nogales 41

Rio Bravo 12

Mexicali 4

San Luis Rio… 2

Piedras Negras 2

Agua Prieta 1

Acuna 1

Tecate 0

*Source: CETYSUniversity

Community Profile

0.00%5.00% 10.00% 15.00%

20.00% 25.00%

Growth 2013-2018

Growth 2010-2013

Growth 2000-2010

High School Graduate (or GED)

Some College, no degree

Associate Degree

Bachelor's Degree

Master's Degree

Professional School Degree

Doctorate Degree

79.75%

26.64%

6.92%

12.9%

3.20%

0.74%

0.35%

1,544,454People within

60 Minutes

*Source: Claritas

209,000Population

MSA

Median Age31.3

(62% = <44)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Total Labor Force Total Employment Total Unemployment

FY 2012/2013 (Average) 94,827 71,173 23,655

FY 2013/2014 (Average) 94,667 70,995 23,673

FY 2014/2015 (Average) 92,429 71,964 20,632

FY 2015/2016 (Average) 93,028 75,529 19,302

FY 2016/2017 (Average) 95,656 78,232 17,424

24.9% 24.9%22.0%

19.8% 18.1%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%

FY 2012/2013(Average)

FY 2013/2014(Average)

FY 2014/2015(Average)

FY 2015/2016(Average)

FY 2016/2017(Average)

Yuma County Unemployment Rate

Yuma County Employment Trends

Economic Growth Indicators

$550 Million+ in Healthcare------

Emergency Room Cancer Center Heart Center Neo-Natal CenterResidency ProgramBorder Health Clinic

$128 Million+ in Education-----

$6M Helios Grant$82M Vote Approved Bonding$20M Apple Investment$4M Industrial Technology Lab$20M+ in Science/Agriculture Labs

$2.86 Billion + in Infrastructure-----

APS 500 kV Line Double Track 250MW PV Power PlantSan Luis Commercial POEArea Service Highway-195Aqua Viva Water Treatment Plant

TAXABLE SALES BASE WITHIN YUMA COUNTY

Arizona Department of Revenue

Yuma County Tax Information

FY 2012/2013 FY 2013/2014 FY 2014/2015 FY2015/2016 FY2016/2017

Restaurant/Bar $225,093,444 $232,129,941 $246,376,497 $260,855,263 $300,948,951

Hotel/Motel $48,434,339 $45,376,476 $48,375,917 $49,690,653 $57,480,651

Retail Sales $1,323,786,160 $1,363,336,318 $1,439,982,288 $1,511,911,704 $1,550,206,721

The Yuma County Taxable Sales Base is calculated from the State Tax Collections.

$1,389,000,000

$1,507,000,000 $1,541,000,000 $1,571,000,000$1,653,000,000

$1,751,886,000

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

2011 2012 2013 2014 2015 2016

Yuma County Bank Deposits

BUILDING PERMIT By MUNICIPALITY

01,0002,0003,0004,0005,0006,0007,000

San Luis Somerton Wellton Yuma

2012/2013 243 176 71 4,888

2013/2014 313 128 48 4,710

2014/2015 429 129 41 5,223

2015/2016 715 120 52 5,989

2016/2017 678 343 71 6,099

Building Permits Issued by MunicipalityFY 2012/2013 to FY 2016/2017

$0$20,000,000$40,000,000$60,000,000$80,000,000

$100,000,000$120,000,000$140,000,000

San Luis Somerton Wellton Yuma

2012/2013 $18,524,887 $10,431,596 $1,894,017 $115,472,312

2013/2014 $25,982,445 $6,432,670 $1,187,821 $121,682,399

2014/2015 $41,128,371 $8,258,531 $1,153,960 $126,374,895

2015/2016 $35,653,089 $13,363,193 $2,534,690 $113,346,223

2016/2017 $45,416,709 $29,837,666 $3,253,930 $124,062,364

Building Permits Issued by MunicipalityFY 2012/2013 to FY 2016/2017

1,855 1,873 1,8361,893

2,211

200

1,200

2,200

3,200

FY 2012/2013 FY 2013/2014 FY 2014/2015 FY 2015/2016 FY 2016/2017

Single Family

Manufacturing

$458M

Aviation and Defense Testing

$1.3B

Agribusiness

$3.2B

Major Industries

$6BGDP

Company Employment (FTE)

Almark Eggs (Egg Products Processor) 200

Gourmet Garden (Herb & Spice Paste Processor) 90

Martech Medical (Medical Device Manufacturing) 180

Insultech (Thermal/Acoustical Insulation) 90

LRC Coil (Refrigerated Coil Manufacturer) 15

MPW Industrial (Water Filtration Component Manufacturer) 45

Jordan Manufacturing (Patio Furniture Manufacturer) 75

S&A Industries (Tier-I Toyota Parts Manufacturer) 35

SL International Cold Storage (Frozen/Cold Storage 3PL) 120

Coca Cola Distribution 30

Color Coat (Industrial Aluminum Fabricator) 60

Pet Food Manufacturer (Confidential) 50

Cold Storage Developer (Confidential) 15

Ready to Eat Frozen Food Processor (Yuma Competing for RFP)

500

Total 1,505

2016-2018 New Yuma Manufacturing Locates Job Creation2016-2018 New Yuma Manufacturing Locates Job Creation

2016-2018 New Yuma Manufacturing Locates Capital Investment Company Amount

Almark Eggs (Egg Products Processor) – BTS (100k sf/200k sf full build) $45,000,000

Gourmet Garden (Herb & Spice Paste Processor) – BTS (100k sf/220k sf full build) $48,000,000

Martech Medical (Medical Device Manufacturing) – BTS (25k sf/65k sf full build) $21,000,000

Insultech (Thermal/Acoustical Insulation) – BTS (25k sf) $2,500,000

LRC Coil (Refrigerated Coil Manufacturer) – BTS (15k sf) $3,500,000

MPW Industrial (Water Filtration Component Manufacturer) – BTS (40k sf) $14,000,000

Jordan Manufacturing (Patio Furniture Manufacturer) – Existing 180k sf $5,400,000

S&A Industries (Tier-I Toyota Parts Manufacturer) – BTS (30k sf) $7,500,000

SL International Cold Storage (Frozen/Cold Storage 3PL) – BTS (50k sf) $8,000,000

Coca Cola Distribution – BTS (60k sf) $10,000,000

Color Coat (Industrial Aluminum Fabricator) – Existing 30k sf+/- $1,500,000

Pet Food Manufacturer (Confidential) – Existing 400k sf $3,000,000

Cold Storage Developer (Confidential) – BTS (80k sf) $20,000,000

Ready to Eat Frozen Food Processor (Yuma Competing for RFP) $50,000,000

Total $219,400,000

2016-2018 New Yuma Manufacturing Locates Capital Investment

Major Industrial

Presence in Yuma

Aviation and Defense Testing

Presence in Yuma

Food Processing

in Yuma

40,000+ Acres of Durum

Wheat

3,000,000lbs

Of Live Weight Cattle

700,000Gallons of

Fluid Milk(monthly)

150+ Crops Grown

(#2 in U.S.)

Raw Commodity Inputs

Manufacturing Profile

<4%Unionization*2015 Union Membership

190,000+Laborshed

* BLS, UofA

<3%Turnover

Rate*2015 YMA LaborSurvey

Occupational Title # of workers Month Year

Helpers--Production Workers 5,618 July 2015

Construction Laborers 4,234 July 2015

Production Workers, All Other 2,215 July 2015

Packers and Packagers, Hand 3,379 July 2015

Customer Service Representatives 1,834 July 2015

Industrial Truck and Tractor Operators 627 July 2015

Agricultural Equipment Operators 1,795 July 2015

Laborers and Freight, Stock, and Material Movers, Hand

1,769 July 2015

Heavy and Tractor-Trailer Truck Drivers 516 July 2015

Office Clerks, General 1,036 July 2015

Receptionists and Information Clerks 694 July 2015

Maintenance and Repair Workers, General 782 July 2015

Stock Clerks 752 July 2015

Total 25,251

Source: AZ Job Connection - July2016

0 100 200 300 400

Aviation Mechanics/Techinicians 363

Logistics & Supply Chain 71

Industrial Equipment Repairers 59

HAZMAT 47

Operating Engineers 19

IT/Computer Operator 18

CommercialDrivers 16

Automotive Technician 9

Existing Marines Occupation Profile (2016)

22,591Under-

Employed Workers

*AZ JobConnection

Average Wage

$11.50/hr*2015 YMA LaborSurvey

$200,877Output Per Employee

*BLS, Census

Manufacturing Profile

Occupational Title # of workers Month Year

Helpers--Production Workers 408 Februrary 2016

Construction Laborers 348 Februrary 2016

Production Workers, All Other 262 Februrary 2016

Packers and Packagers, Hand 345 Februrary 2016

Customer Service Representatives 273 Februrary 2016

Industrial Truck and Tractor Operators 180 Februrary 2016

Agricultural Equipment Operators 194 Februrary 2016

Laborers and Freight, Stock, and Material Movers, Hand

134 Februrary 2016

Heavy and Tractor-Trailer Truck Drivers 116 Februrary 2016

Office Clerks, General 96 Februrary 2016

Receptionists and Information Clerks 129 Februrary 2016

Maintenance and Repair Workers, General 80 Februrary 2016

Stock Clerks 95 Februrary 2016

Total 2,660

Source: AZ Job Connection - July 2016

DualCitizenship

Exiting Marines

and Trailing Spouses

Population Growth

Underemployed/Unemployed

Labor Sources

Workforce Coalition

Water

o State Senior Water Rights to Colorado River

o Managing 160 billion Gallons of Water Per Year

o 73,000,000 Gallons of Industrial Potable Processed Water

o 35,000,000 Gallons of Unused Excess Industrial Capacity

o 9 Aquifers for Redundant Water Supply

o Water Desalinization Plant (300,000,000 gallons)

Wastewater

o 22,500,000 Wastewater System Industrial Capacity

o 10,500,000 Excess Industrial Capacity

o 5,000,000 Gallons of Unconstructed Industrial Capacity Available

Utility Infrastructureo 4,000 MW Nuclear Power Facility Primary Source of Power

o (2) 500 kV Transmission Lines for Redundant Power Supply

o 264MW Back Up Coal Fired Peaker Plant for Emergency Outage

o 300MW of Solar Generated Commercial Power

o 12” High Pressure Gas Line (El Paso Gas) Serving Yuma Region

6.4%Interruption

Rate*APS

3.2%Outage

Per Customer

* APS

Average Outage =

4 Min*APS

Business Environment

Minimum Wage $11.50 ($15/hr by 2022) $10.00/hr ($12/hr by 2020)

Workman’s Compensation Rate (per $100)

$1.85 $.89

Unemployment Insurance Rate 3.4% 2%

Unionization Rate 18.2% 2.6%

Right to Work State? No Yes

Electricity Rates :

Commercial Power (Cents/KwH) 12.79 $8.86

Industrial Power (Cents/KwH) 10.66 $6.98

Taxes:

Individual Income Tax 1%-13.3% 2.5% - 4.54%

Corporate Income Tax 8.84% 4.7%

State Sales Tax 7.25% 6.5%

Effective Property Tax Rate 1.1% 2.2%

Cost of Doing Business

MISSION

“To expand economic activity within Yuma County by attracting commerce and

industry to the region, and by assisting in developing the region's existing

industry to its fullest potential.”

VISION

“Greater Yuma will be recognized as a globally competitive region— one that

embraces advancing technology, attracts and retains human capital and

continues to develop & foster the amenities that make the Yuma Region a

great place to live and work.”

CORE VALUES•Honesty and Integrity In all we do

• Commitment to Stakeholders and Personnel

• Diversity, Tolerance , Equity

• The Creation of Wealth for Individuals, Businesses and Communities

• Cooperation and Collaboration

• Environmental Stewardship

How well is yourMission understood, values displayed in behaviors and vision a drivingmotivator?

QUESTIONS?

THANK YOU

SAHRA!