Originally Published: June 12, 2021 4:05 p.m.
The new, high-tech CP Technologies North American headquarters and manufacturing facility at 2620 Deep Well Ranch, north of Prescott Regional Airport, could be a harbinger of things to come in the Quad Cities.
Gov. Doug Ducey has already lured several high-tech manufacturing firms to Arizona by providing such incentives as lower taxes and a growing skilled labor force. Until now, though, most of those firms have landed in the Phoenix and Tucson areas, perhaps as expected. Prescott and Flagstaff, for example, have recently found a way to get in on the game.
Prescott Mayor Greg Mengarelli, far left, stands next to Arizona Gov. Doug Ducey as he helps the head of CP Technologies Mike McCormack cut the ribbon on the company’s new facility in Prescott on June 9, 2021. (Doug Cook/Courier)
On June 9, Ducey, Prescott Mayor Greg Mengarelli, Arizona business leaders and CP Technologies brass, among others, gathered for a ribbon-cutting event for CP Technologies’ high-tech facility, showing off the company’s impressive line of computer hardware and surveillance products.
“What we’re seeing here today is Arizona in the midst of a manufacturing boom,” said Ducey, who referenced other new high-tech manufacturing complexes, specifically in Chandler. “These are not one-off enterprises. They are interconnected, and they were attracted to the state for a reason.”
CP Technologies’ 50,000-square-foot complex is unique because it builds “rugged” high-performance computer platforms, data links and LCD displays for the military, industrial and commercial markets. It also makes combat-proven Unmanned Aerial Vehicles (UAV) for the Department of Defense, among other clients.
CP Technologies specializes in rugged computers that are built to withstand harsh elements outdoors, such as extreme heat and bitterly cold weather, and certain levels of vibration, G-forces and shock.
However, most importantly for quad-city residents, by relocating from its 22,000-square-foot complex in San Diego to Prescott, CP Technologies is bringing well-paying jobs to the area.
“We see a bright future for Prescott, with more high-paying jobs coming to our region,” Mengarelli said.
CP Technologies also plans to expand its operations east of the current complex in the future, company Vice President Mark Kempf said.
Currently, CP Technologies has 40 to 50 employees at its Prescott plant, but it eventually plans to grow to 150-plus full-time employees at the facility over the next 1.5 to 2 years, Kempf said. CP Technologies intends to hire engineers, technicians and salespeople.
“We want to build another 50,000-square-foot complex [next door], but we need to get this one fully loaded first,” Kempf added.
Kempf said another reason CP Technologies chose Prescott for its expanded headquarters is because of the variety of local businesses that operate here, such as metal fabricators.
PARTNERING WITH ARIZONA
Rafael Chairman Dr. Uzi Landau (the grandfather of CP), CP Aeronautics President and CEO Moshe Elazar and CP Technologies President and CEO Mike McCormack all commented on what it meant to them to partner with the state of Arizona and the City of Prescott as they sought a new home outside of Southern California.
Burdened by high taxes and a high cost of living in California, McCormack said Arizona made it a no-brainer to relocate.
“It was a choice between five states, but Arizona made it an easy choice,” said McCormack, who relocated a portion of his staff with him from San Diego to Prescott.
Elizar said one of his first tasks as the newly appointed CP Aeronautics president and CEO in March 2020 was moving the company from California to Arizona, despite it being in the middle of the COVID-19 pandemic.
“We feel at home, and we’re proud to be part of the local community,” he added. “We want to play a role as an essential economic player in Arizona.”
Landau said that there were “a lot of economic reasons to move CP” and that the “governor welcoming us was a key factor,” adding that CP Technologies will continue to invest more of its resources in Arizona.
“Prescott has an impressive array of institutions dedicated to the field of aeronautics,” Landau said, referring in part to the Embry-Riddle Aeronautical University and Yavapai College campuses. “It is a privilege to work with you, Arizonans.”
ABOUT CP TECHNOLOGIES
Since being bought by Israeli-based Aeronautics Ltd. in 2018, CP North America, which operates CP Technologies, CP Systems, and CP Aeronautics, has expanded its offerings and necessitated its move to Prescott.
McCormack said CP Technologies has built rugged computer equipment for the past 24 years.
For more information, visit cp-techusa.com.
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