Arizona businesses are facing a dearth of skilled workers. The work force deficit is about quantity and about quality. It is both an immediate problem and a long-term problem. It is a threat to business competitiveness and Arizona's competitive advantage, and it challenges both industry and government to find solutions. Currently the State of Arizona is expanding work force development by establishing a new Governor's Council on Workforce Development Policy and an Office of Workforce Development Policy in the Arizona Department of Commerce to coordinate the existing myriad of independent, overlapping programs and services. Arizona is also creating a system that connects work force development and economic development activities, and the state is creating a system that tightly links industry to the design and ownership of work force programs and services. The Greater Phoenix Economic Council could take a greater role in work force development by providing leadership, coordinating various programs, recruiting talent from Mexico, and working with business and government to promote and develop needed skills. (An appendix provides charts, graphs, and other transparency masters for a presentation on work force development needs in Arizona and Phoenix.) (KC)