Hispanics are the Key to Tucson’s Success
The outlook was presented on September 1 at a Chamber event. It takes into account factors of economic landscape and then gets into the finer details of exactly how much Hispanics are impacting their local community. This year, a lot of the change shown was a result of population changes, showing that by 2035, Tucson will be mostly Hispanic.
“The Hispanic population in Arizona is a dynamic, fast-growing market that should be highly valued by businesses focused on their long-term success,” Gov. Doug Ducey said in a recent statement.
The outlook report backs up this statement in a big way: Hispanics in Arizona currently control 17% of the purchasing power throughout the state. This ranks seventh in the United States, behind California, Texas, Florida, New York, Illinois, and New Jersey.
To break those numbers down even further, the report shows purchasing power of Hispanics accounting for $8 billion annually in just Pima County. Even more shocking than that number is the fact that it is predicted to increase by 88% over the next 10 years. This means that by the year 2024, they will account for $14 million in spending in Tucson, which is 28% of the total market.
The report doesn’t stop with just spending, though. It continues on to analyze Hispanic impact on area businesses and how that is impacting the economy in a positive way. More and more Hispanic Arizonans are opening up small businesses, and those numbers will only increase as the population grows.
Lea Marquez Peterson, who is the Tucson Hispanic Chamber of Commerce CEO/president, says that in addition to there being more Hispanic small businesses, they’re actually doing very well in Tucson.
“Hispanic small business owners are above the market average when it comes to having a household income of greater than $100,000,” she said.
About 28% of small businesses in the city today are owned by Hispanics, which is an increase of 34% in just this last year. Expanding the scope across the nation, it shows that about 3.2 million companies are owned by Hispanic families. According to this outlook, that number should also continue to rise.
“With these population trends, increased availability of capital to start and grow a business and higher educational attainment — Hispanic owned businesses will continue to be the fast-growing business segment in the nation,” she said.
Hispanics have been especially involved in plumbing, HVAC, and piping, other research shows. Numbers generally vary across the states, but the highest concentrations are found in border states such as California, Arizona, New Mexico, and Texas.
Those concentrations range from “48% of the construction workforce in New Mexico to a low of less than 1% in Alaska. Hispanics, both native born and foreign born, make up about 15% of the national construction labor pool, which is about commensurate with their percent of the national population.”
However, the trend is also expanding into states like Georgia and the Carolinas, which comes as a surprise to many.
The plumbing industry as a whole is getting boosts from minorities, as more people in states like California focus on water usage. Water heating, for example, is the third largest expense in many homes. Industry-wise, though, minorities are providing a huge relief for industries in desperate need for workers, and studies indicate that Hispanics in particular have a huge presence in nearly every state in the nation.