Arizona energy profile

Manufacturing energy costs in Arizona

The current industrial power rate in Arizona is 7.23 cents per kWh (Apr 2026, EIA), ranking 11 of 51 states and sitting 16.5% below the national average.

Current prices in Arizona

  • Industrial electricity: 7.23 cents per kWh (Apr 2026, EIA).
  • Commercial electricity, the rate a warehouse or distribution center in Arizona typically pays: 11.49 cents per kWh.
  • Industrial natural gas: 2.67 per Mcf (Apr 2026), 45.5% below the national average.
  • Just below Arizona on the price ladder: Tennessee at 6.95, Washington at 7.01, Louisiana at 7.16 cents. Just above: Idaho at 7.27, Kentucky at 7.3, South Carolina at 7.45 cents.

What the rate does to operating cost

  • A 10 kW machine running a 4,000 hour year costs about 2,892 in electricity at Arizona rates versus 3,464 at the national average; at 50 kW the gap is 14,460 versus 17,320, and at 200 kW it is 57,840 versus 69,280.
  • For site selection and quoting, Arizona sits on the favorable side of the power map. Processes that live or die on electricity cost, from electrolysis to induction heating, price out better here than in most states.

What factory labor pays in Arizona

  • Industrial production managers: $60.01/hr median in Arizona versus $60.61 nationally (OEWS 2025).
  • Industrial engineers: $52.06/hr median in Arizona versus $49.25 nationally (OEWS 2025).
  • Production supervisors: $36.22/hr median in Arizona versus $35.79 nationally (OEWS 2025).
  • Industrial machinery mechanics: $35.96/hr median in Arizona versus $31.02 nationally (OEWS 2025).
  • Machinists: $29.37/hr median in Arizona versus $28.24 nationally (OEWS 2025).
  • Tool and die makers: $28.44/hr median in Arizona versus $30.79 nationally (OEWS 2025).
  • Arizona employs about 193,000 manufacturing workers as of May 2026 (BLS).

Sources and update cadence

  • Prices come from the U.S. Energy Information Administration and refresh automatically when the agency publishes; this page also archives each month's Arizona observation so the local price history deepens over time.

Last reviewed 2026-05-12.