Federal Expo in Scottsdale Pairs Small Arizona Firms With Major Industry Buyers

Arizona has become a leader in aerospace and semiconductor manufacturing, according to the Small Business Administration, thanks in part to recent expansions by well-known companies such as TSMC, Intel and Boeing. Behind those names, thousands of smaller businesses in the state help keep the larger U.S. supply chain running.

To help those firms find work, the SBA, a federal agency that connects small companies with funding and contract opportunities, hosted its third supplier matchmaking expo in Scottsdale on Wednesday. The two earlier events took place in Michigan and North Carolina.

SBA Deputy Administrator Bill Briggs described the expo as part of a national push to bring manufacturing back to the United States. He pointed to lessons from the COVID era. "What we unfortunately learned in the COVID era in particular, was that one supply chain interruption, one shipping delay can really freeze an industry," Briggs said. He added that rebuilding domestic capacity brings lower transportation and shipping costs as well as "tremendous opportunity for our workforce."

Small businesses dominate the state's economy. The SBA estimates that 99% of Arizona firms are small businesses, representing more than 700,000 companies and half of the people employed in the state. SBA Arizona District Director Corey Wunderlich estimated that about 64% of those firms operate within the semiconductor and aerospace industries.

Briggs said that profile made Arizona a natural stop for the expo. He described the state and its neighbors, such as New Mexico, as an emerging corridor for domestic manufacturing and aerospace engineering, with innovation taking place in defense and logistics as well.

SBA staff said roughly 1,000 firms registered to attend, and 600 showed up. Those companies could meet with industry leaders such as Northrop Grumman and Intel, along with federal, state and local departments looking for contracted work or specialty parts.

Anyone could attend, but more than 200 companies applied for 10-minute, one-on-one sessions with buyers. Those meetings were expected to move companies closer to final deals because the SBA and the Arizona APEX Accelerator had done some matchmaking work beforehand. "They're matched early on with potential buyers," Briggs said. "Sort of like speed dating, and they're getting to know each other. And from our prior two matchmaking expos, we know there are positive outcomes."

Wunderlich said more major industries are contracting with local businesses because doing so helps shield them from global supply chain shocks. Even so, it can be hard to know which capabilities exist nearby. "You could drive past a small business in the state of Arizona and not even realize what their capabilities are," he said.

In his view, the event gave small businesses a chance to "get their foot in the door and say, 'you don't need to worry about trying to import that from a different country. We can provide that for you, too, right here.'"