The good news about Arkansas’ January jobless picture is that the number of unemployed is down 5.17% compared to January 2012. The bad news is that the number of employed in January is down 1.4% compared to January 2012.

Arkansas’ unemployment rate in January was 7.2%, up slightly from 7.1% in December, and below the 7.4% in January 2012.

January marks four consecutive years – 48 consecutive months – that Arkansas’ jobless rate has been at or above 7%. January also continued a trend in which the jobless rate improves but declines in the size of the workforce and number of employed point to ongoing weakness in Arkansas’ economy.

Employed Arkansans were an estimated 1.247 million in January, down 17,889 jobs, or 1.41%, compared to January 2012, according to the Monday (Mar. 18) report from the U.S. Bureau of Labor Statistics.

The BLS estimate shows 5,264 fewer Arkansans were unemployed in January than January 2012. The number of unemployed in January fell to 96,492, up from 95,732 in December, but well below the 101,756.

The workforce size shrank from an estimated 1.347 million in December to 1.344 million in January. The workforce totaled 1.367 million in January 2012. December was the first time Arkansas’ workforce size fell below 1.36 million since September 2010.

“Arkansas’ unemployment rate rose slightly in January, related in large part to the decline in employment. The rate increase was not unexpected and mirrors the trend seen at the national level,” DWS Communications Director Kimberly Friedman said in a statement.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during January was an estimated 249,600, above the the 248,400 during December and ahead of the 240,900 during January 2012. Peak employment in the sector was 250,400 during December 2007.

Manufacturing jobs in Arkansas during January totaled 156,300, up from the 155,000 in December and down an estimated 500 jobs compared to January 2012. Employment in the once booming manufacturing sector fell in 2012 to levels not seen since early 1968. The January jobs figure is more than 25% below the January 2003 sector employment of 210,300. Peak employment in the sector was 247,300 in February 1995.

Government job employment during January was 214,400, down from 216,200 in December and below the 215,900 during January 2012.

The state’s Education and Health Services sector during January had 173,500 jobs, up from the 173,000 during December and up from 171,100 during January 2012. Employment in the sector is up more than 25% compared to January 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 103,700 during January, down from the 102,900 during December and ahead of the 102,000 during January 2012. The January jobs estimate marks a new employment high in the sector. The previous high was 103,400 jobs during October 2012.

The construction sector employed an estimated 43,700 during January, down from the 46,000 during December and below the 48,800 during January 2011. Employment in the sector is down more than 16% from January 2003.

NATIONAL, REGIONAL DATA
The BLS figures show that 40 states had jobless rate decreases in January compared to January 2012 and seven states saw rate increases, and three states had no change. The U.S. jobless rate during January was 7.9%, below 8.3% during January 2012. The U.S. jobless rate in February was 7.7%, down from 8.3% in February 2012.

The highest jobless rate was 9.8% in California and Rhode Island, and the lowest rate was 3.3% in North Dakota.

Oklahoma’s jobless rate was 5.1% in January, down from 5.2% in December and below the 6.3% during January 2011. The jobless rate in Missouri during January was 6.7%, unchanged from December and below the 8% during January 2011.

First National Bank of Rogers has named Clinton Ryan as vice president/commercial loan officer, according to Sam Sicard, president & CEO of the First National Bank
of Fort Smith.

Ryan has more than seven years of banking and financial experience and previously served in the same position with another local financial institution.

“Clinton is exactly the right fit for First National Bank of Rogers,” Sicard said in a statement. “He personifies the hard work and dedication that all our employees exhibit. He cares about our customers like they were his own family.”

Ryan is a graduate of the University of Arkansas and the ABA National Commercial Lending School. He is an active member of the Springdale Kiwanis Club and F.A.S.T. (Friends of Slaughter Pen Trails.) He and his wife, Stefanie, have two sons.

Agents across Northwest Arkansas say 2013 is off to a good start with two months of business already in the books.

During February, agents sold 405 homes in Benton and Washington counties with a net value of $65.66 million, up 8.3% from the year-ago period, according to MountData.com.

Vicki Briolat, agent with Crye Leike in Bentonvile, said more than a week ago she had closed enough deals in 2013 to earn a decent year’s income.

“We have been incredibly busy and March should also be another strong month with the number of pending transactions waiting to close,” Briolat said.

Paul Bynum of MountData.com reports 600 pending transactions at the end of February and agrees this is a leading indicator for strong future sales.

Coldwell Banker, the region’s largest firm in terms of sales volume, reported an 11% increase in its closed business during the month of February. George Faucette, co-owner of the local Coldwell Banker franchise, said the firm had $55 million in written business last month, which includes pending sales and a few transactions that closed early.

The firm’s written business rose 37% from a year ago in the month of February, according to Faucette.

He agreed sales should continue to trend higher in March and hopefully throughout the entire spring and summer selling season. Faucette attributes the sales increase to an improving job market and slightly stronger consumer confidence readings. He says new demand is being fueled from younger folks establishing new households as well existing homeowners looking to sell and move up now that prices have seemed to stabilize and interest rates remain incredibly low -- 3.56% nationally during February.

Last month median home sales prices rose 3.65% in Benton County to $134.750, but the biggest increase was seen in Washington County according to MountData.com. At $139,000, the median home sale price rose 15.8% in Washington County during February when compared to the prior year.

Bynum says 2013 is on course to be a strong growth year as underlying metrics such as inventory and demand are moving in the right direction. There were 3,162 homes listed for sale at the end of February, 205 of those were new construction. Inventory is down 9% from a year ago.

Homes priced under $150,000 are deemed to be in a seller’s market, with a 4-to 5-month supply of inventory listed for sale, according to Bynum. The inventory is much tighter for homes priced under $100,000, he said.

Faucette expects prices to remain fairly stable this year with a modest 3% to 5% increase from a year ago provided the foreclosures continue to gradually work their way through the pipeline. He predicts it will take another 24 months to work through the backlog of foreclosure homes than have languished since 2011.

“Through February our written business is up 42% from the same timeframe in 2012. I am feeling pretty good about the prospects for a stronger 2013,” Faucette said.

NWA Home Sales Data (January-February)
Total Volume
2013: $129.011 million
2012: $114.654 million

Units Sold
2013: 785
2012: 718

Median Sales Price
2013: $136,000
2012: $128,000

Source: MountData.com

Several businesses in Fort Smith are working with the Fort Smith Public Library and other agencies to provide meals to children during Spring Break.

According to a press release from the River Valley Regional Food Bank, seven out of 10 students in the Fort Smith Public School District receive a free or reduced lunch at school.

“So, where do school children who receive free and reduced lunches at school go for food during Spring Break? That's a question we started asking,” Ken Kupchick, director of marketing for the River Valley Regional Food Bank.

Some students hang out at Fort Smith Public Library facilities during the week, said FSPL Director Jennifer Goodson. Some of the children stay all day and do not eat.

Kupchick reached out to area businesses to do something “symbolic” to raise awareness of the issue and feed a few of the children. Working with Goodson, they decided to provide lunches at the library’s Windsor Branch.

“There are 10,000 kids in the Fort Smith School District who receive that (lunch support during school). We don’t have the means to provide them all a lunch over Spring Break, so this is our symbolic gesture,” Kupchick explained.

Debra Presson, with Golden Corral in Fort Smith, signed up to provide Monday lunches.  About 30 children received a lunch on Monday, up from the about 20 in 2012, the first year of the effort.

Mickey Sellard with the Golden Living cafeteria agreed to provide lunches on Tuesday.

Also on Tuesday, Carl Davis, owner of Davis Iron & Metal, is scheduled to conduct a hot dog cookout. Kupchick said they plan to provide around 200 hot dog meal.

Ling Ling Moorman, a volunteer with St. John's Sack Lunch program, is providing a ham sandwich lunch on Wednesday.

Alex Catsavis, with George's Restaurant, is providing on Thursday a mixed deli tray for the children to make up their own lunches.

Joe’s Cantina is providing Friday's lunch.

“Rick Card (with Joe’s Cantina) was more than willing to help and will put together a lunch with a Mexican flair,” noted the press release from River Valley Regional Food Bank. “Rick simply said, ‘You just tell me what you need.’”

Kupchick and Goodson said the number of children coming to the Windsor Branch for a lunch will grow through the week. They predict at least 50 children by Friday.

According to the River Valley Regional Food Bank statement, there are 21,700 kids in Sebastian and Crawford counties receiving free or reduced priced meals in school.

“I think it’s good for people to know that this level of hunger exists in our community,” Goodson said. “The businesses are the unsung heroes. They don’t this for the publicity. They do this because the need is there.”

Agents across the Fort Smith metro area sold 89 homes in February valued at roughly $12.461 million, which was a nice improvement over the year ago period.

Sales volume rose 65.9% from a year ago thanks to more transactions and a rising overall sales price.

MountData.com reports the median sales price for homes sold in February rose to $140,020, up from $101,453 a year earlier.

Kevin King, broker and franchise owner of Weichert King Realty Group, says the median price is likely being pushed higher from a few more higher-end home deals.

“I have seen more higher-end home listings in recent weeks, but the number of overall listings remains fairly stable in the Fort Smith market at 600 homes for sale,” King said.

He also reports more showings and interest from both buyers and sellers as 2013 has gotten under way.

“We have seen more relocation business as some executives are moving out and others are moving in. I am happy to see consumer confidence improve and remain hopeful this market will get some new job growth to stabilize unemployment in the coming months,” King said.

While Sebastian County showed housing gains last month, that was not the case in neighboring Crawford County.

Agents sold 22 homes last month in Crawford County, which was less than half of 51 homes sold a year ago, according to MountData.com. The sales volume tumbled 66% to $1.949 million from the year ago period.

Not only did sales languish across Crawford County last month, but the median sales price also declined sharply to $88,600 as more distressed and lower priced homes were sold.

During the first two months of the year, sales in Crawford County are down nearly 50% from the same period in 2012. The decline is split equally between lower unit sales and lower overall prices.

Looking ahead, King reported through the first two weeks of March, there had been 61 homes sold in Sebastian and Crawford counties, the median price was $147,400, a good bit higher than seen in February. He said roughly half of those deals were for homes located in Fort Smith.

King expects foreclosures will have a roller coaster impact over the next year as the backlog of inventory is pushed back onto the market.

“I see investors snapping up these discounted properties pretty quickly because there is still a strong rental demand here given the weaker job market and tougher credit guidelines among mortgage lenders,” King said.

Across Sebastian County home sales are up 14% on units sold and 14.7% higher in total volume for the first two months of 2013, when compared to the year-ago period, according to MountData.com.

Home Sales Data (January-February)
Sebastian County
Unit Sales
2013: 139
2012: 122

Total Sales Volume
2013: $18.652 million
2012: $ 14.508 million

Median Sales Price
2013: $11,250
2012: $105,000

Crawford County
Unit Sales
2013: 49
2012: 81

Total Sales Volume
2013: $4.653 million
2012: $9.236 million

Median Sales Price
2013: $89,500
2012: $100,000

Source: MountData.com

Erin Brockovich, the famous consumer advocate known for exposing and fighting back against corporate pollution, is coming to Fort Smith next week to participate in a town hall meeting related to contamination near Whirlpool’s idled Fort Smith manufacturing plant.

Brockovich’s visit was noted in an e-mail from Fort Smith City Administrator Ray Gosack to area media. According to Gosack’s e-mail, city resident Debbie Keith has worked to bring Brockovich to Fort Smith for a town hall meeting set for 6 to 9 p.m., March 26, at the Fort Smith Senior Activity Center at Cavanaugh Road and South 28th Street. (The City Wire has not been able to independently verify that Brockovich will attend the Fort Smith town hall.)

Gosack was informed of the meeting by City Director Mike Lorenz.

“I have spoken with Ms. Keith several times regarding the Whirlpool contamination issue and she called me on Friday (March 15) to let me know of the following information regarding her contact with the Brockovich Consulting firm and their upcoming visit to Fort Smith,” Lorenz noted in the e-mail. “Given the escalation of this issue in the past few weeks, it would likely be advisable that as many of the board attend this meeting as possible.”

WHIRLPOOL’S TCE CONTAMINATION
The issue that has escalated began with a request to ban groundwater wells in a neighborhood near Whirlpool’s Fort Smith plant.

The ban was requested by Whirlpool as a response to trichloroethylene (TCE) in the soil in the residential neighborhood in the area of Ingersoll Avenue to Brazil Avenue near Whirlpool’s shuttered manufacturing plant. TCE had previously been used by the company at its Fort Smith manufacturing plant in equipment degreasing operations from 1967 to 1981, according to information provided by ENVIRON International Corp.

At a Feb. 12 meeting of the Fort Smith Board of Directors, a lawyer and consultants representing Whirlpool said possible cancer-causing chemicals in the ground around its former Fort Smith manufacturing facility had not spread. But the Whirlpool representatives were notified by the Arkansas Department of Environmental Quality (ADEQ) 20 days prior to that presentation that trichloroethylene (TCE) was not necessarily contained.

Tamara House-Knight, a senior associate and toxicologist for ENVIRON International Corp., disputes the ADEQ claim that the TCE pollution is moving. ENVIRON is the environmental firm hired by Whirlpool to collect data on the TCE pollution. ENVIRON also disputes the ADEQ suggestion that Whirlpool do more to clean up the pollution.

BOARD DELAYS REQUEST
On March 1, the Fort Smith Board of Directors agreed to remove the Whirlpool request from the agenda of a March 5 meeting and place it on the agenda of the March 27 Board meeting.

City Director Keith Lau has been the most vocal in his opposition to Whirlpool’s request.

"They left us with an abandoned manufacturing facility, took production out of the country and left us with a problem," Lau said as part of a March 1 interview with The City Wire. "I can't see the Board of Directors voting for this. If it were me, I would pull it off the agenda. It would not even be an option."

‘THEY’RE NOT GOD’
Keith said she began the process that eventually included Brockovich after being skeptical of the claims made by Whirlpool at its environmental consultants.

“I live in front of Whirlpool and I attended the neighborhood meeting and I didn't like the answers I was getting," Keith told The City Wire. "I came home and did research on my own and forwarded it on to a law firm in Chicago."

Continuing, Keith noted: "We're just a small community neighborhood. My whole family has lived here our whole lives. The fact that a company can say 32 years ago, we contaminated your property, that's just wrong. I would have never raised my kids in this house if there was a chance that they could be hurt in any way. They don't have that right. They're not God."

Robert Jones III, an attorney in Fayetteville who represents Whirlpool on the matter, said any calls about the groundwater contamination had to go through Whirlpool's media relations office, which did not return phone calls.

Keith said attempts to contact Whirlpool and Jones have proven frustrating.

"I'm very angry and I took it to Erin Brockovich. ... According to them, this happens all the time. They (big corporations) have they money, they have all the power, and nothing ever happens,” Keith said.

Stan Allison recently joined Liberty Bank’s Northwest Arkansas division as vice president and trust officer.

Allison has served more than 30 years in the financial service industry with 16 years in trust services departments.

“Stan will make an excellent addition to our banking team in Northwest Arkansas,” said Howard Hamilton, regional president and chief operating officer.  “His extensive background in trust services – including personal trust, investment management, and estate settlement – will allow Liberty Bank to expand our range of banking services for our customers."

A graduate of Arkansas Bankers Trust School and Southern Trust School in Mobile, Ala., Allison is active in the community serving as past president of the Bella Vista Sunrise Rotary Club and volunteer for several other community organizations.

He and his wife Robin have two children and six grandchildren and are members of Fellowship Bible Church.

Allison will be located in Liberty Bank’s new Northwest Arkansas regional banking center at the corner of Joyce Boulevard and Vantage Drive, opening in May.

Reports from Arkansas-based trucking companies and numbers from two closely watched national freight reports paint the picture of a national economy that is soft and uncertain.

The Cass Freight Index reported a 5.6% increase in shipments in February, which helped counter a January decrease of 4.8%. The February increase also ended four consecutive months of Index declines.

“February’s sharp increase is partially due to the strong showing for rail over the last four weeks – carloadings are up 3.7% and intermodal units are up 6.9% over the preceding four weeks,” the Cass report noted.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the Index. The data comes from a Cass client base of 350 large shippers.

The American Trucking Associations’ February Truck Tonnage Index rose 0.6%, down slightly from a revised 1% gain in February. Counter to the Cass Index, the February ATA report marked four straight months of increases – a streak not seen since late 2011.

Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., provides economic analysis for the Cass Freight Index. She said a reason for variations between the ATA and Cass reports is that Cass measures transaction data and ATA measures tonnage.

“The most likely reason for the difference in the last few months is that the average weight of a shipment rose during the period,” Wilson noted.

TONNAGE GAINS
Year-to-date, compared with the same period in 2012, the ATA tonnage index is up 4.4%. In 2012, tonnage increased 2.3% from 2011.

“Fitting with several other key economic indicators, truck tonnage is up earlier than we anticipated this year,” ATA Chief Economist Bob Costello said in a statement. “While I think this is a good sign for the industry and the economy, I’m still concerned that freight tonnage will slow in the months ahead as the federal government sequester continues and households finish spending their tax returns. A little longer term, I think the economy and the industry are poised for a more robust recovery.”

Trucking serves as a barometer of the U.S. economy, representing 70% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.

SOFT COMPARISONS
David Humphrey, vice president of investor relations and corporate communications for Fort Smith-based Arkansas Best Corp., said tonnage is improving in the first quarter of 2013, but the comparisons are up against a weak freight environment in early 2012. The company’s 10-K, filed Feb. 28, noted a 6%-7% increase in tonnage for the first few weeks of the quarter compared to the same period in 2012.

“When considering the 1Q’13-T-D total tonnage increase it is important to remember that in the first quarter of 2012 (the period we are now comparing back to) ABF’s total tonnage per day declined 10.6% versus the first quarter of 2011,” Humphrey explained.

ABF Freight System, one of the nation’s largest less-than-truckload carriers, is the principal subsidiary of Arkansas Best Corp.

Cliff Beckham, chief financial officer of Van Buren-based USA Truck, said the company measures “dispatch miles” instead of tonnage.

“We have experienced an increase in miles (year over year), but we attribute that to internal improvements (such as seating more trucks with drivers). Overall, the freight market is soft for this time of year,” Beckham said.

ECONOMIC POSITIVES, NEGATIVES
The soft market, according to Wilson, also limits how much shippers can charge for increases in tonnage.

“Freight expenditures rose 1.8% in February, but still remain 1% below the same period last year. The weak performance of the economy has prevented carriers from implementing large rate increases. Most of February’s growth in expenditures can be attributed to the heavier loads and fuel surcharges,” Wilson explained.

Wilson provided the following positives and negatives facing shippers for the remainder of 2013.
Positives
• Sales of new and existing homes picked up last month, and more importantly, building permits – an indicator of future construction – hit their highest level in four years.

• Automobile and small truck sales have been strong for three months running.

• The Institute for Supply Management’s PMI for manufacturing activity accelerated at the fastest pace in two years.

• Consumer sentiment is up despite hits to household income.

Negatives
• The potential impact of the Sequester and resulting government spending cuts and personnel furloughs.

• The hike in payroll taxes.

• Weak retail sales and high fuel prices.

• Continued global economic decline.

• Weak job growth and high unemployment.

“March should continue to look much the same as January and February for the freight transportation sector. The impact of government spending cuts will not hit all at once and will have long‐term effects on the economy, but it is difficult to gauge them now,” Wilson said in her analysis.

In moving to Northwest Arkansas, West Virginia natives Marcia and Dana Davis were comforted by the hills and valleys along Interstate 540 between Alma and their new home.

“It just felt like home,” Dana Davis said during a recent interview at the Powerhouse Seafood and Grill.

Davis, 57, is the new president and CEO of the Bentonville Bella Vista Chamber of Commerce. His first day on the job was March 4.

His path to Bentonville is not typical of a chamber executive

The attorney began in West Virginia working at high levels of state government. He was the chief deputy Attorney General in West Virginia. He also served as the No. 2 person and interim director of the West Virginia Economic Development Office. It was there he helped craft and implement the state’s first strategic economic development plan. It was rolled out in 1992.

An expected track for someone like Davis who had risen through the ranks so quickly would be to seek an elected office.

“I really enjoyed the public service aspect of the work,” Davis said during the March 14 interview with The City Wire, “but I never really had any aspiration to run for public office. ... I believed that I could impact policy without having to do that.”

Davis grew up in a family that owned small businesses. One was a restaurant near Charleston, W.V., in which Davis learned firsthand the ups and downs of owning a small business. There were numerous times he would work a double shift at the restaurant because employees wouldn’t show up. His economic development work, he said, put him in an arena in which he could help small businesses.

“My parents were entrepreneurs. They owned several businesses when I was growing up, so I got to see what that required. ... I know what it’s like to be a small business owner,” Davis said.

When he was not selected to be director of the West Virginia Economic Development Office, Davis left public work in 2001 and began a new career in a private legal practice. But the desire for public service kept calling. He and his wife began looking at growth corridors in the east of the Mississippi River that might present an opportunity for public service.

“I just wanted to get back to working with businesses again,” Davis explained.

It was about that time that the middle of the three Davis sons earned a National Merit Scholarship. He chose to attend the University of Oklahoma. It was on a trip to Norman, Okla., that they were impressed with the corridor between Oklahoma City and Dallas.

It just so happened that the Lawton, Okla., Chamber of Commerce was looking for a new president. He was hired for that job in 2004. His background became more diversified in that job considering that much of the Lawton economy revolves around Fort Sill, a key U.S. military base focused on artillery training.

Three years later Davis was attracted to the high-growth north Dallas suburb of Southlake, Texas. He and his wife fell in love with the city and the conveniences found in the Dallas metro area. But then the Bentonville Bella Vista job came open. Davis knew Bentonville was the headquarters for Wal-Mart Stores Inc., but he didn’t know a lot about the region.

His research discovered several attributes that he and his wife found impressive. First was the number of “transplants” to the area who planned to retire to the area. Davis said roughly 80% of people he spoke to about the area were not from the area but had no plans to live anywhere else.

“That was a tell-tale sign for us,” Davis said.

Obviously, the growth and economic opportunity in the region was attractive. But more so than that, Davis said, was the commitment of area business and civic leaders to continue the progress.

“I look to see if the people hiring you are really committed,” Davis said of the chamber Board of Directors. “They are very committed to what the chamber could do. ... They all have a dedication to ensure that our chamber is relevant to Northwest Arkansas.”

Davis said his law background, previous chamber work and experience working in state government at top levels helped him land the Bentonville Bella Vista job.

As of the March 14 interview, Davis said he was “very pleased” with the professionalism and “eagerness of the staff” to help him transition into the job. Davis plans to visit with former Chamber President Ed Clifford in the near future.

“I certainly want to take advantage of his knowledge and expertise, and, frankly, his connections,” Davis said of Clifford.

Continuing to be a “strong partner with the Northwest Arkansas Council” and letting the world know “Benton County is open for jobs,” Davis responded when asked about some of his top goals.

He also maintains that passion to support small business.

“Yes, there are many big companies here ... but we must have those programs that support small business. We have to ensure that, programmatically, we support these businesses, these small business owners,” Davis said.

The Deloitte Consumer Spending Index remained steady in February primarily as a decline in initial unemployment claims and a rise in real average hourly earnings offset negative forces. 

The index tracks consumer cash flow as an indicator of future consumer spending.

"The economic fundamentals that influence consumer spending are aligning," said Patricia Buckley, director, economic policy and analysis at Deloitte, and author of the monthly index.

"Financial institutions and the markets are stronger, and consumer confidence and real spending appear to be weathering the 2013 payroll tax increases fairly well. Absent the uncertainty surrounding the impact of the sequester, an economic turnaround would likely be imminent," Buckley added.

The index, which comprises four components — tax burden, initial unemployment claims, real wages and real home prices — rose slightly this month to 4 from a reading of 3.9 the previous month.

"The index along with other positive retail news demonstrates that retailers have been able to focus consumers on spring – Easter entertaining, warm-weather apparel and home improvement projects," said Alison Paul, vice chairman of Deloitte, and retail & distribution sector leader. "Keeping that momentum will take more than just traditional seasonal signage and promotions.  Highlighting new and unique merchandise – both in store and on web sites while fully integrating with mobile applications – can continue to drive traffic and encourage full-price purchases, inspiring consumers to spend their tax refunds."

Index Highlights
• The tax burden rose nearly 2% on a year-over-year basis in January to 11.29%.

• Initial unemployment claims decreased to 352,750, falling 6% from a year ago.
 
• Real hourly wages modestly increased over the past three months to $8.78.

• Real new home prices ticked down about 0.5% year-over-year to $97,925.

Brandon Barber, once a high-profile developer during the heady days of seemingly non-stop Northwest Arkansas commercial development, was arrested Wednesday (March 20) on several federal charges related to fraud and his bankruptcy filing.

Conner Eldridge, the United States Attorney for the Western District of Arkansas, and Christopher Henry, IRS-Criminal Investigation Special Agent in Charge for the Nashville Field Office, and Randall Coleman, FBI Special Agent in Charge, issued a statement on Wednesday saying the Barber and four other men were charged with federal crimes stemming from schemes to defraud involving several Northwest Arkansas real estate transactions and Barber’s bankruptcy case.

Barber was arrested Wednesday morning in New York City. The other individuals charged are Fayetteville attorney K. Vaughn Knight, 46; New York attorney James Van Doren, 37; Jeff Whorton, 45, of Johnson, Ark.; and Brandon Rains, 31, from Springdale.

The four indictments, handed down from a Grand Jury seated in Fort Smith, are:
• Providing false and fraudulent financial information and statements to Legacy National Bank of Springdale in connection with loans to finance the Legacy Condominium building and project in Fayetteville;

• Providing false and fraudulent financial information and statements to Metropolitan National Bank of Little Rock and Enterprise Bank of St. Louis, in connection with loans to finance the Bellafont project in Fayetteville;

• Concealing assets and income from creditors and the bankruptcy court by transferring funds to Van Doren and Knight or accounts controlled by them and using those funds for Barber’s personal benefit and expenses; and.

• Falsely and fraudulently representing purchase prices for real estate to First Federal Bank of Harrison, Ark., to obtain loan amounts exceeding the actual purchase prices and thereby generating excess cash without the Bank’s knowledge or approval.

The charged conduct generally occurred from 2005 through 2009.

“Prosecuting federal crimes involving fraud is an important priority in the Western District of Arkansas and for the Department of Justice. As alleged in the indictment, this case involves schemes to defraud financial institutions and our federal bankruptcy court. We will continue to pursue and prosecute cases involving schemes designed to defraud and deceive,” Eldridge noted in the statement.

As further alleged in the indictments, Barber was involved in residential and commercial real estate development, construction, and sales in Northwest Arkansas. Barber conducted business under several corporate entities that were managed by The Barber Group Inc. From June 2003 to October 2008, entities controlled by or affiliated with Barber secured over $200 million in loans from various financial institutions, including Legacy National Bank of Springdale, Metropolitan National Bank of Little Rock, First Federal Bank of Harrison, and Enterprise Bank of St. Louis.

One of Barber’s entities, Lynnkohn LLC, filed for bankruptcy in August 2008 after Legacy National Bank obtained a $9 million judgment against Barber the previous month. In July of 2009, Barber additionally filed for personal Chapter 7 bankruptcy protection. During this time, K. Vaughn Knight served as Barber’s bankruptcy attorney and James Van Doren was a business associate. Before and after the bankruptcy filings, Barber, Knight, and Van Doren worked together to conceal assets from creditors and the court. These assets were hidden with various transactions and by utilizing several bank accounts, including Knight’s client trust account (also known as an IOLTA account).

The indictment also alleges that starting in August 2008, Barber, Jeff Whorton, and Brandon Rains were involved in a conspiracy to defraud First Federal Bank. During this period, the three made false and fraudulent representations to First Federal when they concealed and misrepresented the sales prices of property in order to obtain higher loan amounts and generate excess cash, which they concealed from the Bank.

The final round of Grand Jury indictments were delivered March 6.

The maximum penalties for each crime are:
• Bank fraud—30 years in prison and a $1 million fine;

• Money laundering—10 years in prison and $250,000 fine;

• Conspiracy to commit bankruptcy fraud—five years in prison and a $250,000 fine;

• Bankruptcy fraud by concealment of assets or false statements—five years in prison and a $250,000 fine;

• Conspiracy to commit wire fraud—20 years in prison and a $250,000 fine;

• Conspiracy to commit money laundering—20 years in prison and a $500,000 fine; and,

• Conspiracy to commit bank fraud—30 years in prison and $1 million fine.

Lunch is winding down at downtown Little Rock’s Doe’s Eat Place. Plates and glasses rattle between the tables and the kitchen, while the cash register sings a sweet tune of a big, busy lunch crowd.

U2′s “I Still Haven’t Found What I’m Looking For” drifts through the iconic establishment, but it’s clear that one patron’s search has long been settled.

Montine McNulty, executive director of the Arkansas Hospitality Association, is finishing her plate full of world-famous tamales and a second glass of sweet tea.

The long-time leader of the restaurant, travel and tourism trades says it’s still a rocky road out there, and the industries she represents are operating with caution.

“It’s good, but I wouldn’t say there’s a lot of optimism out there. I think business people are a little worried out there about what’s going to happen in the next year,” said McNulty.

What’s on a business owner’s mind? Workforce, consumer spending and especially health care.

“Everybody’s sorting through it and trying to determine the impact on their business,” McNulty says.

She’s spent the past year monitoring every workshop and webinar she can in order to pass along information to the folks she works for. To each business under her association’s umbrella, the impact could be different.

“I think for awhile most people had their heads buried in the sand about it,” she says. “Once they realized it is the law and its going to be carried out, they seem to be a little more interested in how its going to affect them.”

The Arkansas Hospitality Association represents the state’s lodging association, restaurant trade group, and the Arkansas Travel Council. In many states, these groups operate independently, but in Arkansas they fold under the AHA tent, a “great advantage,” according to McNulty.

The hospitality industry is a $5.7 billion economic engine in Arkansas. It employs nearly 100,000 workers – the third largest employer group in the state – and it’s poised to be the No. 1 job generator in state during the next decade.

“The great part about our industry is you can be entry level or an entrepreneur or executive,” says McNulty. “If you’re willing to get in there and work, you can be extremely successful in the hospitality and tourism industry.”

She hears success stories every day of hotel owners who once started as bellmen or restaurant owners who launched their careers as “chief dishwasher.”

McNulty, a Pine Bluff native, was drawn to the industry 16 years ago after serving on the state’s Parks and Tourism Commission.

“I just loved the atmosphere and the people and what goes on in this industry. It’s fun, it’s challenging and it gives people an opportunity to be successful,” she explains.

She’s a political animal and during a legislative session, she’ll be monitoring bills ranging from the wages to working conditions to health codes to unemployment insurance.

Any laws impacting those areas could have a major effect on not only the companies she represents, but the customers her members serve. And consumer behavior is a big deal. She notes the staccato nature of spending that dictates the fortunes of the hospitality industry.

“We went through a really down period and businesses got behind and in the hole,” she says in reference to the Great Recession. “Then things seemed to brighten up, and it seems like we’re going through another cycle where the consumer is being a little more cautious again.”

When asked, McNulty said she isn’t leaving her post any time soon. It’s way too good of a job and there’s too much promise on the horizon. She cites the innovations taking place in parts of Arkansas like the Crystal Bridges’ arts emphasis in the northwest and new entrepreneurial activities centered around the Southern traditions of the Delta.

“It’s all about quality of life. People want to travel to and live in places that have things to do. When we walked in here to Doe’s today, there was a group out front getting their picture made. They’ve created a place to be seen,” she noted to emphasize her point. “It’s a little bit of having fun in life and creating things that people want to do.”

When consumer advocate Erin Brockovich visits Fort Smith next week, she and her staff will not just speak to Fort Smith residents about Whirlpool contamination and leave town.

According to Bob Bowcock, an environmental investigator with the Brockovich Firm, the firm's staff will collect soil and other samples from the neighborhood surrounding the former Whirlpool facility for their own independent research.

"We're going to go around and take some samples and get an idea of what's really going on," Bowcock said.

What is really going on is that the situation appears severe to Brockovich. The fact that the Brockovich Firm is coming to Fort Smith shows the severity of the situation, Bowcock said.

"We get hundreds of requests a week and can only go to a few and only go to those that appear most severe," he said.

THE PROCESS
The investigator said it was typical in situations such as Fort Smith, where Whirlpool has admitted that potentially cancer-causing trichloroethylene (TCE) used at its manufacturing processes had leaked into the ground, that the situation could be worse than large corporations let on.

"After doing a couple hundred of these, it gets pretty easy to see," he said, adding that in many cases communities are exposed to TCE risk through not only ingestion, as Whirlpool as suggested, but through other methods, as well.

"It pushes soil vapor into people's basements and their homes. It is likely more dangerous breathing it and getting it into your lung issue," Bowcock said. "You and I both know what that does."

During the town hall event, scheduled for 6 p.m. on March 26 at the Fort Smith Senior Activity Center at Cavanaugh Road and South 28th Street, residents will hear that information from Bowcock and Brockovich about potential health problems that could be caused from TCE exposure. They also will take questions from the crowd.

POTENTIAL LEGAL SUPPORT
He said what happens next is entirely up to the residents of Fort Smith.

"(Residents) invite us in, tell us what they want us to do and we offer advice and counsel on what to do," Bowcock explained.

Should the results of tests conducted by the Brockovich Firm show that the situation in Fort Smith is severe enough to require further action and the community expresses a desire for future involvement of the Brockovich Firm, Bowcock said the firm could involve itself in getting some sort of legal resolution for residents.

The resolution could include many possibilities but it is too early to tell what those might be, though Bowcock says it could involve working with Whirlpool to further attempt to contain the TCE contamination through more than the corporation's proposed groundwater well ban and possibly pursuing financial settlements with Whirlpool for residents.

Calls to Whirlpool Corp. were not returned Thursday (March 21). Calls to Whirlpool and its public relations agency have not been returned for months.

After more than a year of piloting, Wal-Mart says it is tripling the number of U.S. stores that allows shoppers to scan items with their iPhones and pay at self-checkout counters.

The "Scan & Go" program was launched in Rogers, early last year and has been expanded gradually to about 70 stores across the country.

Wal-Mart says more than 200 stores will soon have the Scan & Go capabilities rolled out for shoppers in Denver, Phoenix, Omaha, Dallas and Austin, Oklahoma City and Tulsa, Seattle, Portland and San Jose, Calif.

The Scan & Go application only works with iPhone at this time, but Wal-Mart officials say an Android version will be offered soon.

The company is hoping to get as much customer feedback as possible, which is why the retailer is expanding the rollout.

Wal-Mart estimates more than half of its 200 million weekly shoppers have smartphones and allowing the consumer the ease of scanning items and then paying at a self-check-out station will only enhance the retailer’s overall shopping experience ratings.

At this time, the Scan & Go app does not permit payment from a mobile device, but Wal-Mart has said it working on mobile payment option, though no details have been released.

Atlanta-based Phoenix Metals Company plans to invest $12 million in a new 65,000-square-foot metal processing operation at Chaffee Crossing that could employ up to 40 with an average wage of $15 per hour.

The deal was finalized Thursday (Mar. 21) with a vote by the Fort Chaffee Redevelopment Authority to approve the land transaction. Phoenix Metals has 12 operations, including a processing site in Russellville.

“Phoenix Metals has been looking to add a service center somewhere along the I-40 corridor from Russellville to Tulsa to take care of our customers in that region,” Don Gray, the Russellville site manager for Phoenix, said in a statement released by the Fort Smith Regional Chamber of Commerce. “The Chaffee Crossing Development and the Fort Smith Regional Chamber of Commerce sold us on the Fort Smith Area. We are excited to become a part of the growing industrial development at Chaffee Crossing.”

Phoenix uses advanced laser and other cutting machines to provide cut-to-length orders, precision blanking, slitting, polishing, plasma cutting, shearing, and sawing.

The Fort Smith Regional Chamber, City of Fort Smith and the Fort Chaffee Redevelopment Authority worked together to recruit the company.

“Phoenix Metals decision to locate its processing center and warehouse operation in Fort Smith is a testament of our commitment to recruit high-tech businesses to this region,” Tim Allen, president of the Fort Smith Regional Chamber of Commerce, noted in the press release. “A Fortune 500 company of this quality locating its operation in Fort Smith is a win for both company and community.”

Continuing, Allen noted: “It's actually a processing company, not a manufacturing company. The process is the schematics come into the company and then they high tech skills needed to put computer data into the system will then take place and process the metal. So it's not actually manufacturing, it's processing and distribution."

Allen said the company wants to be up and operating by September.

Phoenix is a subsidiary of Los Angeles-based Reliance Steel & Aluminum (NYSE: RS), the largest metals service center company in North America. Reliance and its companies operate in more than 240 locations in 38 states, Australia, Belgium, Canada, China, Malaysia, Mexico, Singapore, South Korea, the United Arab Emirates and the United Kingdom. The company products include galvanized, hot-rolled and cold-finished steel, stainless steel, aluminum, brass, copper, titanium and alloy steel.

Fiscal year 2012 sales for Reliance totaled $8.44 billion, up 3.8% compared to the 2011 period. Tons sold increased 5.4% from the prior year.

Net income during 2012 was $403.5 million, up 17.4% compared to the 2011 period.

“We are very excited about the Phoenix Metals announcement. In addition to the capital investment and job creation, it’s another statement by a national company that Chaffee Crossing, Fort Smith and the region is the place to expand and do business. Phoenix Metals will become a premier industrial neighbor within the Chaffee Crossing industrial development.” said Ivy Owen, CEO of Chaffee Crossing.

Reliance went on an acquisition spree in 2012 that continued into 2013. The company announced Feb. 1, 2012, the purchase of McKey Perforating Co., a Tennessee operation that had 2011 sales of $18 million.

On April 4, Reliance acquired National Specialty Alloys, a global alloy processor based in Houston that reported $96 million in annual sales during its most recent fiscal year. That was followed by an April 30 announcement of a deal to acquire the Worthington Steel plant in Vonore, Tenn.

Reliance officials then announced Sept. 30 a deal to acquire GH Metal Solutions, a carbon steel fabricator based in Fort Payne, Ala., that reported 2011 sales of $44 million.

On Oct. 1, Reliance announced it had acquired Houston-based Sunbelt Steel Texas, a supplier of steel to the oil and gas industry.

In February 2013, the company announced a $1.2 billion deal to acquire Metals USA Holdings Corp. The deal was approved by the Board of both companies, and awaits regulatory clearances.

The Sparks Wound Care and Hyperbaric Center at Sparks Health System in Fort Smith has earned a Center of Distinction award from Healogics Inc., the largest provider of advanced wound care services in the United States.

Sparks contracts with Healogics to manage treatment of our wound care patients. The Sparks outpatient facility is the only healthcare location in northwest Arkansas to receive the distinction and is one of only three providers in Arkansas or Oklahoma to be honored.

“I feel extremely flattered that our staff is recognized in this manner for the quality work they do every day,” said Dennis Smith, program director of the Sparks Wound Care and Hyperbaric Center.

To be named a Center of Distinction, the Sparks Wound Care and Hyperbaric Center had to meet or exceed certain quality outcomes, including achieving a patient satisfaction rating of more than 92% and obtaining outstanding patient outcomes for 12 consecutive months.

Only 125 facilities nationwide met the standards established to be awarded as a Center of Distinction.

As Easter approaches this week American consumers are expected to spend an estimated $17.2 billion on candy, fashion, food and decor, but many will be looking for discounts and bargains according a survey conducted by BIGinsight on behalf of the National Retail Federation.

Keeping cost and their shopping list in mind, the average person celebrating Easter will spend approximately $145.13, flat with last year’s $145.28.

“With a plethora of budgetary concerns already on their plates, Americans this Easter will look for special, creative ways to celebrate the holiday without breaking the bank,” said NRF President and CEO Matthew Shay. “And as spring weather rolls in, consumers will find affordable ways to spruce up their homes and wardrobes, just in time for visiting family and friends this Easter holiday. Retailers are already lining their shelves with specials on chocolates, warm-weather apparel and even gardening tools and outdoor furniture.”

The survey found much of consumers’ budgets will go towards food for a family brunch or dinner: 86.9% of those celebrating Easter will spend an average of $45.26 on items needed for their holiday meal.

Traditionally known as the kickoff to spring, many will specifically set out to buy new spring attire. Nearly half (48.4%) will purchase clothing this Easter, spending an average of $25.91 on bright new outfits for their children and even something new for themselves.

Nine in 10 (90.5%) will stock up on Easter candy, spending an average of $20.66 on jelly beans, chocolate and more. Additionally, consumers will spend an average of $20.82 on gifts, $9.49 on flowers and $9.11 on decorations.

Roughly 63% of people said the will shop for the Easter needs in discount stores such as Wal-Mart and Target.

Department stores are also expected to get their fair share of business with 40% of people shopping there ahead of the holiday. Others said they will shop at specialty stores (24.9%), online (21.1%) and specialty clothing stores (10.6%).

“While many of today’s consumers are coping with tight budgets, the Easter Bunny isn’t headed toward retirement in 2013,” said BIGinsight Consumer Insights Director Pam Goodfellow. “Look for cost-conscious parents to scope the sale racks, head to discounters, and clip coupons to keep spending on track and to make the holiday special for youngsters this year.”

The survey also found that many people will use their smartphones and tablets to shop for Easter items. Some 43.3% of smartphone owners will use their mobile device to research product information, look up store hours and location, compare prices and even purchase gifts and other items.

Specifically, 14.8% say they will buy Easter products with their smartphones, according to the survey.

Mulberry, Ark., may be a small town, but it knows beans about beans.

Situated just off Interstate 40 in Crawford County, Mulberry is a farming and ranching community with a population of 1,655. It is also home to a growing new industry in the United States, and is being touted as the edamame (pronounced ed-ah-mah’-may) capital of America.

American Vegetable Soybean and Edamame Inc. is the newest addition to the town’s industrial park.

AVSE is owned by JYC International of Houston, and in the summer of 2012, it opened the first edamame processing plant in the country that is solely devoted to the healthful little bean.

“What strikes me about the state is that things here work well – from state agencies and the University of Arkansas right down to the community of Mulberry. People here have been very welcoming and understanding of what it takes to help a small business like ours succeed,” says Raymond Chung, co-owner and CFO of AVSE.

Chung says the company chose Mulberry because of its location and the good infrastructure.

“We are right next to I-40, and we are close to several towns, including Mulberry, where we recruit the labor we need,” says Chung, who will be moving to Arkansas to run the processing plant full-time. “We are also in proximity to our growers in the Arkansas River Valley, which cuts down on the time it takes to haul the crop to our facility to be processed. We also received a lot of support from the community of Mulberry, which provided us the land on which we built the plant.”

Mulberry Mayor Gary Baxter says it’s been great for his community and he is happy that ASVE claims to make Mulberry the edamame capital of the United States, and maybe the world.

“We are a healthy community,” Baxter says about the town that promotes health and wellness to its citizens. “Edamame is very healthy and has a lot of protein. This is really great for Mulberry and the state of Arkansas.”

Although soybeans are currently grown in and around Mulberry, Chung says edamame is different than the beans Arkansans are accustomed to seeing in the fields.

“Edamame are a different variety that have been bred to have big, green pods and larger, sweeter tasting beans,” Chung says. “Although edamame is planted like a conventional soybean, it is harvested while still young, green, and tender, like a vegetable. Our beans are all made with non-genetically modified (NonGMO) seeds.”

Edamame is a popular menu item in Asian restaurants and Chung says there is a certain etiquette to eating the little green beans.

“Edamame are fun to eat, both for kids and for adults,” he says. “The easiest way to eat them is to hold a pod between your fingers and gently squeeze, popping the beans into your mouth. It’s also great to sprinkle a little sea salt on the pods to add some flavor. Be careful though not to eat the pod itself because it’s not edible.”

For Japanese restaurant patron Molly Jones, edamame is a favorite appetizer.

“I love popping the bean in my mouth and tasting the salty pod,” she says as she sits at a table at her favorite sushi place. The server places a bowl of salty, steaming soy bean pods in front of her, and Jones pinches the pod and pops the beans into her mouth. She discards the shell into another bowl.

This unassuming little vegetable is packed full of vitamins and is touted to have all sorts of health benefits. According to an article in the June/July 2002 issue of Mother Earth News, aside from being a great source of quality protein and vitamin E, soy foods contain isoflavones, which seem to play a role in reducing the risk of heart attack, osteoporosis, breast cancer and prostate cancer.

Thanks to processing plants, such as ASVE, edamame is easy to make at home.

“In Arkansas, our edamame are available in Sam’s Clubs in the freezer section under the Imperial Gourmet brand,” Chung says. “We will be rolling out in many more stores, including major natural and organic markets nationwide in the coming months.”

Chung would not disclose the figures publicly of how many acres of edamame the company is expecting to plant, but he did say this year, there will be more than last year. He’s also guarded about employment figures.

However, Mayor Baxter said in 2012, 1,000 acres were harvested, and in 2013, 2,000 acres were planted. He says he expects the amount of land dedicated to edamame to reach upwards of 10,000 acres over the next few years.

“There have been about 40 to 50 full-time jobs created,” Baxter says of the processing plant, “plus the seasonal workers.”

ASVE’s parent company, JYC International Inc., was founded in the mid-90s as an import-export company aimed at trading products between the U.S. and the Asian countries. Its founder, J.Y. Chung, is also the founder of Chung’s Gourmet Foods, which has manufactured and distributed Asian packaged foods in the U.S. for more than 20 years.

Since 2002, JYC International has been importing frozen foods from China to the U.S. The imported frozen foods have been directly and indirectly distributed to the U.S. markets such as Costco Wholesale Clubs, Sam’s Club, Golden Corral restaurant chains, major U.S. grocery chains and the oriental food markets.

Chung says the company’s potential is just in its infancy stage.

“This is a big opportunity to create a new industry in America, and we are excited to be doing it here in Arkansas,” Chung said.

Fort Smith’s historic Clayton House invited guests to learn about the region’s more than 100 year-old natural gas industry at its “Clayton Conversations” series on Sunday (March 24) afternoon.

Mike Callan, president of Fort Smith-based Arkansas Oklahoma Gas Corp., spoke to the crowd about the area’s past and present natural gas production and about the impact the fuel has had on the economic development of the Fort Smith metro area.

Callan explained that Fort Smith’s natural gas industry did not truly begin until the late 1800’s and early 1900’s. Citing familiar names such as Harry Kelley, Callan said several early Fort Smith citizens pioneered natural gas production in the Fort Smith area, which contributed to the early establishment of several major manufacturers and businesses.

Situated in the middle of the Arkoma Basin, Fort Smith has experienced tremendous natural gas production over the last century. Callan explained that AOG was originally known as Fort Smith Gas and that through the acquisition of several smaller gas companies, the organization grew and expanded its services to a total of 10 counties.

Callan also provided interesting facts about natural gas production, including information about the modernizations of pipelines and about local sources of the fuel. He surprised many when he said the Fort Smith Landfill is the company’s fourth largest producer of natural gas.

“Production has been really good for Fort Smith,” said Callan, adding that local producers and operations had served as AOG’s primary source of natural gas for several decades.

On a state level, Callan noted that Arkansas is one of the top 10 natural gas producers in the US.

“We produce almost four times annually the amount of natural gas that Arkansans consume,” he said. “We are producing not only enough for our citizens, but also for the many new uses of natural gas.”

Bringing the discussion to the topic of the natural gas technologies of today, Callan spoke to the group about the use of the fuel in homes and automobiles. He talked about one of his passions, compressed natural gas, or CNG, as an alternative fuel for cars.

Describing it as a clean, cost-effective fuel alternative, Callan told the audience that CNG currently costs only 96 cents a gallon compared to today’s average of nearly $3.50 for regular gasoline.

In discussing the challenges associated with modern fuel options, Callan explained that Arkansas lags in terms of the number of alternative fuel run cars, due greatly in part to costs associated with converting a vehicle to CNG. He added that he and many others were encouraging lawmakers to provide incentives and rebates for consumers wanting to covert their vehicles to CNG to help further promote the cost-saving technology. 

Following his presentation, Callan opened the floor to questions and comments from the audience. Several inquired further about the use of CNG in motor vehicles and about the overall costs associated with natural gas production. Many older guests also reminisced about how the introduction of natural gas technology into their homes as children simplified life and provided a more stable source of fuel for heating and cooking.

The Clayton House hosts its “Conversations” series on the fourth Sunday afternoon of each month from January-October. Citizen speakers are invited to share the history of a particular aspect of the Fort Smith region’s community life. Clayton Conversations are open to the public. Seating is limited and reservations are encouraged. 

Shopping events like Black Friday are known for great prices but crazy crowds. A rapidly growing trend offers the same great prices (if not better) for families but without the insanity.

Consignment stores are nothing new, although the number of stores has increased in recent years as the economy soured. Another growing trend largely popular in the Northwest Arkansas area is consignment events. Held once or maybe a few times a year, area consignment events offer thousands of gently used clothing, toys and some furniture items for children and babies.

One of the largest sales in Northwest Arkansas is the Northwest Arkansas Rhea Lana consignment event, which Ashley Shaver Noland started in 2006. Rhea Lana is available all over the country and franchises can be purchased to establish a sale in a given geographic area.

The NWA sale has won several awards, including being named in the Top 10 Consignment Sales in the country according to consignmentmommies.com. It also earned the top spot of all the Rhea Lana events for having the largest number of consignors, items, sales and for the highest percentage of items sold.

RHEA LANA EXPANSION
The show became so popular that Noland decided it was time to open another in the area. The Fayetteville Rhea Lana sale started in 2009 and it serves mostly the Fayetteville area. The Northwest Arkansas event is usually in Rogers or Springdale and is more designed to reach the northern parts of the region.

“It had grown so much that we could tell there was a need for two events in Northwest Arkansas and divide the area,” she said. “The events have grown exponentially.”

Last year, Noland joined forces with two other friends to purchase a third franchise, this one for Siloam Springs.

“We were noticing that a lot of moms and dads were coming from all the way in Siloam Springs. We were hearing from them that it was hard to make three trips during the week for consigning, volunteering and shopping,” Noland said. “Once we realized there were so many, it made sense to bring Rhea Lana to them.”

The first show was successful, one of the largest “first events” within the company, she said. The second Siloam Springs Rhea Lana event is coming at the end of March and is expected to be even more successful.

VOLUNTEER ‘EMPLOYEES’
One aspect that makes several of the area consignment events unique is that they are operated entirely by volunteers. Volunteers get the privilege of shopping during a presale event, which means they get first dibs on the most items. Then the consignors get the opportunity to shop before the events open to the public. Expectant mothers can also print a pass and use it during the presale, Noland said.

“It’s a huge advantage,” she said of the presale. “It gives them the first pick on the best deals.”

The events are much like recycling in that consignors usually take the money they earn to turn around and purchase more clothes for their children. They are able to get rid of clothes their children have outgrown and purchase new items without spending much, if any, money out of pocket.

Rachel Drown first learned about consignment events four years ago when her daughter was born. She was a shopper at her first event, then she became a consignor. She also started her own business of making hair bows for her daughter and bow ties for her son. She sells those items at various places, including the consignment events.

“I was able to cover the cost of everything I spent plus some,” she said. “As a parent, it helps me get the money I need to buy a new wardrobe and put some money in my pocket for things you can’t get at the sales.”

SECRET TO THE SUCCESS
The Northwest Arkansas culture has really embraced the entire concept, Noland said.

“It’s the concept of families helping families and they really believe in it,” she said.

The economy has also led to consignment events becoming more popular.

“Families are looking for ways to be smart with their budget,” she said.

The ease of having all the various items in one location at one time is also a major factor.

“With garage sales, you drive all over town and there’s a lot of work and time spent for an unknown product,” she said. “When they come (to the events), they know there will be a great selection.”

MORE EVENTS
Rhea Lana’s may be one of the larger events in Northwest Arkansas, but they are far from the only one around. Fort Smith has hosted the Growing Kids Sale since 2003.

Operated by three siblings and their spouses, the event now has nearly 2,000 consignors each year, according to the website. Another popular consignment event is June Bugs Reruns, which offers events throughout the year, according to the website.

It was at some of these sales that Tresa Oldham first experienced consignment events. Her and her husband had just adopted a then-eight year old daughter and they wanted to get nice clothes for her at an affordable price.

“I had never heard of consignment sales before that but I went to Growing Kids in Fort Smith and it’s huge,” she said. “We went crazy and bought tons of stuff and they were mostly name brand.”

She then discovered the consignment events closer to home, including the White Elephant Exchange in Rogers. The couple that originally created the sale were trying to sell and the Oldhams decided to jump at the opportunity.

“This is an awesome opportunity to have this kind of business,” Oldham said. “We bought the business in November 2011 and decided to really ramp it up. Last year we had four or five events. Every time we had an event, we just grew. It was incredible.”

EVENT PREP
Creating the events are a lot of work and planning must start several months in advance. Consignors need the opportunity to clean out their closets and price their items, and marketing must be done to notify the public of the sale, she said. The event is operated similar to Rhea Lana in that it’s operated by volunteers who are rewarded by being able to shop the earliest.

Oldham likened the consignment events to the area craft fairs in that having a specific event with a large number of items creates more interest, almost a frenzy. People also know that the events will be well-stocked whereas sometimes consignment stores can go through slower periods.

“People can find unbelievable brands for very reasonable prices,” she said.

Darci Johnson started out at Rhea Lana but now consigns and shops at many events in the area including White Elephant, June Bugs and Second Look in Elm Springs. She is also a member of a Moms of Multiples organization that hosts consignment events (she has twins).

“We didn’t have anything like this in South Dakota where I’m from,” she said. “We can go to these sales and get items that normally we would have to get from all different stores but they are all in one location. We can get items from upscale stores for affordable prices.

“It’s a fun atmosphere. It’s about trading out items as well as selling items to make money to feed the family.”