Phoenix, Arizona, is at a pivotal point in its economic development, particularly in the advanced manufacturing sector. As the city evolves into a hub for semiconductors, renewable energy, and aerospace industries, it faces several challenges in workforce development. These challenges stem from both the rapid expansion of manufacturing jobs and the need for a highly skilled labor force to meet this demand. 

Meeting the Demand for Skilled Workers 

Phoenix has experienced substantial growth in its manufacturing sector, particularly in advanced fields such as semiconductors. Since 2020, Arizona has won more than 40 semiconductor expansions, representing over $102 billion in capital investment and over 15,700 direct industry jobs. The state continues to demonstrate remarkable momentum, with the flourishing industry contributing significantly to employment, creating more than 140,000 jobs, including 22,000 semiconductor manufacturing jobs alone. 

The workforce demands are intensifying rapidly. One industry report predicts 115,000 additional semiconductor jobs will be added nationwide by 2030. But based on current degree completion rates, more than half of those jobs, including most of the technical roles, risk going unfilled. This challenge is particularly acute in Arizona, where major semiconductor companies are scaling operations at unprecedented rates. 

A major semiconductor company’s expansion exemplifies this growth trajectory. The company’s first Phoenix fab, or fabrication plant, began production last year, employing 3,000 workers. By the time its third fab opens by the end of the decade, the company anticipates needing 6,000 total employees. Meanwhile, Intel projects creating about 10,000 jobs across Arizona, New Mexico, Oregon and Ohio, with a majority of those in factory positions, where 70 percent are technicians. 

Addressing Gaps in Workforce Training Programs 

Arizona has responded to workforce challenges with significant investments in training and apprenticeship programs. In January 2024, the City of Phoenix and senior officials from the Biden-Harris Administration announced a $5 million commitment to establish a new semiconductor technician Registered Apprenticeship Program. 

The state has launched multiple innovative programs to build its skilled workforce pipeline: 

Major Apprenticeship Initiatives 

Intel’s Manufacturing Technician Program: The one-year registered apprenticeship program involves a mix of classroom instruction and on-the-job training, with apprenticeships showing greater-than-average retention rates, as 90% of apprentices stay with their employer after program completion. 

Technician Apprenticeship: This program focuses on training facility technicians through specialized instruction in water, mechanical, electrical, and gas and chemical systems, directly addressing the technical skills gap in semiconductor manufacturing. 

SCAN Arizona Program: The SEMI Career and Apprenticeship Network (SCAN) provides customized training programs created for the microelectronics industry that teach the foundational and specialized skills needed for workers to succeed in well-paid, high-demand jobs in microelectronics. 

Arizona State University AZNext: The Arizona State University AZNext Program is a public-private partnership designed to create a bold, innovative, and sustaining workforce development ecosystem that addresses the need for more skilled workers in IT, cybersecurity, and advanced manufacturing roles. 

Arizona’s commitment to workforce development was further demonstrated when on April 10, 2025, more than 200 employers, industry professionals and apprentices attended the state’s first Arizona Registered Apprenticeship Summit, hosted by the DES Arizona Apprenticeship Office. 

Competing for Talent in a Hot Labor Market 

Arizona continues to be highly competitive in attracting manufacturing talent. The state’s semiconductor industry represents one of the largest economic development successes in recent history, with Arizona leading the nation in semiconductor investment, supplier expansions and jobs. 

However, challenges remain in talent acquisition and retention. The rapid expansion of facilities like a $100 million, 900,000-square-foot facility that will be a crucial partner to over 200 semiconductor-related companies in Arizona, with plans to create more than 50 local jobs by early 2025, scaling up to 100 employees as production expands, requires companies to be increasingly competitive in their compensation and benefits packages. 

To remain competitive, companies are implementing comprehensive talent strategies that include: 

• Competitive wages and benefits packages 

• Comprehensive training and career advancement opportunities 

• Partnerships with educational institutions 

• Apprenticeship programs with guaranteed employment pathways 

How Companies Can Leverage Acara Solutions to Overcome These Challenges 

To address these challenges, companies in Phoenix can benefit significantly from partnering with talent solutions firms like Acara Solutions. Through our Master Vendor Programs (MVP) and Recruitment Process Outsourcing (RPO) services, Acara Solutions can provide strategic workforce solutions to help companies meet their staffing needs while reducing vendor spend. 

Utilizing Master Vendor Programs (MVP) 

Acara Solutions’ Master Vendor Programs (MVP) streamline the recruitment and hiring processes by consolidating vendor management under one umbrella. This approach can help companies in Phoenix manage their staffing needs more effectively by reducing administrative burdens and improving communication across multiple vendors. For companies facing challenges in filling numerous roles quickly — as seen in the semiconductor and advanced manufacturing sectors — an MVP can ensure a consistent and reliable supply of candidates, reducing time-to-fill and vendor management costs. 

By centralizing the recruitment process, MVPs also enhance quality control, ensuring that all candidates meet the required skill sets and qualifications. This is particularly important in industries like semiconductors, where specific technical expertise and certifications are essential. Additionally, MVPs provide transparency into vendor performance, enabling companies to make data-driven decisions to optimize their hiring strategies. 

Read our recent E-Book: Master Vendor Programs (MVP): The Key to Your Contingent Workforce’s Success 

Implementing Recruitment Process Outsourcing (RPO) 

Recruitment Process Outsourcing (RPO) offers a comprehensive solution for companies struggling with workforce development challenges. Through RPO, Acara Solutions takes over some or all aspects of a company’s recruitment function, from sourcing and screening to onboarding and compliance. This service can help companies in Phoenix build a robust talent pipeline, particularly for hard-to-fill roles in advanced manufacturing. 

An RPO partnership allows companies to scale their recruitment efforts quickly to meet fluctuating demands without incurring the costs associated with traditional staffing models. For example, as manufacturers ramp up their operations in Phoenix, an RPO provider like Acara Solutions can quickly adapt to meet the increased demand for skilled workers, utilizing their extensive networks and industry expertise to source the right talent. 

Moreover, RPO services can help companies optimize their recruitment processes to improve candidate experience, reduce turnover rates, and enhance employer branding. This is crucial in a competitive labor market like Phoenix, where attracting and retaining top talent is a constant challenge. 

View our latest infographic: Three Types of Recruitment Process Outsourcing 

Phoenix is Poised for Unprecedented Growth as a Manufacturing Hub 

Arizona’s advanced manufacturing sector is experiencing unprecedented growth, with the semiconductor industry leading the charge. The state’s strategic investments in workforce development, combined with major expansions from major companies position Arizona as a critical hub for America’s semiconductor resurgence. By implementing Master Vendor Programs and Recruitment Process Outsourcing, businesses can build stronger workforce pipelines, reduce costs, and enhance their competitiveness in this dynamic labor market. 

The combination of substantial capital investment, comprehensive workforce development programs, and strategic talent partnerships positions Arizona to sustain its growth trajectory and continue attracting major investments in the advanced manufacturing sector. 

Contact Eric Blaser at Acara Solutions today to learn how our strategic workforce solutions can help your business thrive in this dynamic market.