The PennZone

PHOENIX - PennZone -- The Arizona Technology Council today released its Q1 2026 Arizona Technology Industry Impact Report, highlighting Arizona's continued advancement in advanced manufacturing, aerospace and defense, semiconductors, artificial intelligence and applied research while underscoring growing demand for high-value engineering, cybersecurity and technology leadership roles across the state's innovation economy.

"Arizona's technology economy continues to move up the value chain, driven by growth in advanced engineering, semiconductor manufacturing, cybersecurity and applied research," said Steven G. Zylstra, president and CEO of the Council and SciTech Institute. "This report demonstrates how strategic investments by industry, higher education and public-sector partners are creating high-quality jobs, strengthening our innovation ecosystem and positioning Arizona for long-term global competitiveness."

Key findings from the Q1 2026 Impact Report include:

• Rapid growth in advanced engineering and manufacturing roles: Total computer hardware engineers grew nearly 194% between 2020 and 2025 while the average annual wages exceeded $162,700, reflecting Arizona's expanding leadership in semiconductor and embedded systems development.
• Continued expansion of cybersecurity careers: The number of computer and information systems managers increased approximately 42% and information security analysts grew nearly 28%, highlighting increasing demand for governance, risk management and digital security expertise.
• Continued decline in legacy IT positions: The ranks of computer systems analysts and computer network support specialists continue to decline as automation, cloud technologies and evolving enterprise IT models reshape workforce demand.

Beyond labor market data, the Q1 report features a cross-section of company announcements, workforce initiatives and research investments that illustrate how Arizona's technology ecosystem continues to expand through new facilities, production growth, workforce development and innovation partnerships.

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Highlights from the Q1 2026 report include:

Technology Career News

• Defense, aerospace companies eye Arizona expansion as state's project pipeline widens
• Raytheon to ramp up Tucson production after landing multiyear missile deals

Diversity in Technology

• Why Communities Thrive When Inclusion Is Not Optional
• BizTucson Nextgen Leaders: Katie Schwertz – Senior Manager of Optical Assemblies and Technology, Edmund Optics

Technology Sector Company News

• Avnet stock hits all-time high after earnings beat expectations for fourth straight quarter
• Benchmark Electronics beats Wall Street revenue predictions

Workforce Development and Education

• ACA Partners with University of Arizona on $35.5M Semiconductor Cleanroom Expansion
• ASU and SRP Partnership Offers Mentorship and $20K Pitch Opportunity for Arizona Firms

Investment and Research

• University of Arizona research expenditures exceed $1 billion
• Arizona lands AI venture studio backed by LG Electronics' investment arm

On the Council's behalf, the quarterly report is compiled by Lightcast, an organization that creates web-based, data-reporting solutions designed to help cities, industries and planners drive effective policy; create new growth; and engage stakeholders.

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Download or view the complete report on the Council's website here.