Advanced Business Services
Scottsdale and the surrounding Greater Phoenix area have benefited in the recent past from a national trend to diversify the financial industry base from its traditional hub on the Eastern Seaboard. Such efforts have provided companies with greater access to customers in the southwest and increased stability due to exceptionally low catastrophic occurrences due to weather. Companies moving into Scottsdale such as The Hartford, regional movements such as State Farm, as well as major Scottsdale expansions by such companies as Vanguard, Nautilus and Nationwide are all evidence of this trend.
The insurance and financial services sector has been established in Scottsdale since the 1970s when such major firms as Sentry Insurance and Scottsdale Insurance began their operations. In general, the sector offers higher value and higher paying activities than standard back office operations. Insurance and financial services industries have experienced strong growth in the region and the national projections for future growth in both employment and output are above average. In fact, Scottsdale has become known as the national center for the Excess & Surplus (E&S) insurance sector. Business Service companies are attracted to Scottsdale for a variety of reasons:
- An outstanding labor base with low relative cost of labor and a quality source of executive, administrative and managerial talent
- Strong dependability of energy supply with no major natural disasters
- Direct flight access for clients and corporate executives via the Scottsdale Airport, with seven day per week on-site U.S. Customs service
- Available corporate office space
- No corporate franchise tax
- Low workman’s comp & unemployment insurance costs
The Scottsdale financial services workforce increased 24.9% from 2012-2017 compared to 9.5% nationally and 16% in the Phoenix MSA.
Source: EMSI 2018
Top Local Firms
The Hartford which moved part of its national operations to Scottsdale in 2017 is expecting to hire 200 employees in the short term.
Nationwide Specialty Insurance
Nationwide Specialty Insurance benefits from the backing of one of the largest insurance and financial service providers in the United States, an A.M. Best rating of A+XV (superior), and a Standard & Poor’s "A" rating. It has recently expanded to 1,500 employees and has become the company’s southwest operational headquarters.
Vanguard is an investment management firm with more than 2,500 employees in Scottsdale. It is one of the largest investment management companies in the world with over a trillion dollars of assets under management. A new trading floor was recently opened in Scottsdale.
Nautilus Insurance is an excess and surplus lines commercial property and casualty insurance coverage firm which has undergone expansion expected to double its workforce to 500 employees.
Voya Funds Management
Voya Funds Management (formerly ING) is offers 40 years of history in asset management, and more than 900 employees and 200 investment professionals nationally with 220 or more total employees located in Scottsdale.
Officially incorporated in 1977, APL Logistics is a $1.6 billion global supply chain services provider. It combines origin and destination logistics solutions with transportation services across all modes and regions of the world. APL’s North American offices are located in the Scottsdale Airpark.
Top Industry Firms
|Nationwide||Headquarters||2,700||Fire, marine, and casualty insurance|
|PayPal||Branch||375||Online payment systems|
|Nautilus Insurance||Headquarters||280||Fire, Marine and casualty insurance|
|APL Logistics||Headquarters||250||Transportation Logistics|
|The Hartford||Branch||200||Casualty Insurance|
|Concord Servicing Corporation||Branch||187||Mortgage Services|
|Sagicor Life Insurance Company||Headquarters||150||Life Insurance|
|Homeowners Financial Group||Headquarters||143||Lending|