Andrew Todd has been hired by the accounting firm Beall Barclay & Company. He will work on the company’s Rogers, Ark., office.

Todd is a 2013 graduate of Arkansas State University in Jonesboro. Prior to graduating Summa Cum Laude with a bachelor’s degree in accounting and a bachelor’s degree in finance, he served as an intern in the office of U.S. Sen. John Boozman, R-Ark.

He is a student member of the Arkansas Society of Certified Public Accountants and the American Institute of Certified Public Accountants. Todd is also a member of the Beta Gamma Sigma and Phi Kappa Phi Honor Societies. He also served as president of the Arkansas State University Accounting Club and state president of Phi Beta Lambda business professional fraternity.

Todd is a native of Fort Smith where he graduated from Union Christian Academy. He is a volunteer with Compassionate Utilization of Resources (C.U.R.E.), a medical supply and disaster relief ministry and The Hope Chest in Fort Smith.

Todd also is an Eagle Scout with the Boy Scouts of America.

Sherry Clark has joined National Bank of Sallisaw and will work as a agriculture/consumer loan officer.

Clark joined NBS in May 2013 after time with another financial institution and 16 years with the United States Department of Agriculture. She was born and raised in Stilwell, Okla., and received a bachelor’s degree in agriculture education from the University of Arkansas.

She and her husband have one daughter.

Wal-Mart has set its sights on Siloam Springs for a new Neighborhood Market expected to open next fall.

The retail giant is scaling up its grocery format to 500 stores in the next 18 months, a move that is expected to drive strong sales and a key element in Wal-Mart’s growth strategy.

“This is great news for Siloam Springs. We are thankful to Wal-Mart for continuing to  bring growth and jobs to our city,” Siloam Springs Mayor John Mark Turner said. “This new development will continue to improve the quality of life for our residents and broaden our tax base.”

The new Neighborhood Market, located at Highway 412 and Holly Street, will create up to 95 jobs and is scheduled to open in the fall of 2014, according to Wal-Mart.

The store will be approximately 41,000 square feet, much like the new recent opening a in Bentonville. Wal-Mart said new store will include energy-efficient technology in keeping with its new more environmentally friendly prototype using LED lighting in the exterior signage and refrigeration cases.

“Walmart is excited for the opportunity to continue to expand our service to the people of Siloam Springs and Northwest Arkansas,” said Brian Hopper, Wal-Mart VP for real estate,

This will be the second location for Wal-Mart in Siloam Springs, a town of roughly 15,000 people. The city already has a supercenter that sells groceries and in the past two years attracted Aldi as well.

Retail analysts see Wal-Mart’s aggressive growth strategy as somewhat cannibalistic, given that the retailer continues expand in markets where it already has a strong presence.

Walmart continues to tout its expansion efforts as paramount to growing sales in part because these Neighborhood Markets are returning much higher comps as a cohort than the clunkier supercenter model.

Walmart U.S. CEO Bill Simon said earlier this week that Wal-Mart’s retail competitors from the Dollar Stores, Kroger, Publix and others are doing a great job offering convenience at competitive prices.

He said the smaller formats and Wal-Mart’s ability to merchandise them with an endless aisle inventory through merging its e-commerce platform with site-to-store is something many other retailers are not doing.
 

Toys R Us is offering a 10% cash reward up to $100 on certain toy purchases through Oct. 31 for its rewards card members and will extend the deadline for holiday returns through Jan. 25, the company announced Thursday.

The company said it will give customers their cash-back earnings on e-gift cards in November so they can use the money for holiday shopping. Layaway customers can also earn the rewards.

Toys R Us is bringing back free layaway through Dec. 15 with no upfront service fee and no minimum purchase requirement. For the first time, the company will let customers make layaway payments online.

In a move clearly aimed at rival Walmart's aggressive toy pricing, Toys R Us said "key items" will be marked "Hot Price Every Day," so shoppers know they are getting a good deal. The company recently rolled out a "Red Hot Deal" program, which regularly offers what the store says are big savings on certain products.
 

It was just late last month that two barges went on a directionless journey down the Arkansas River in Little Rock, striking the Interstate 30 bridge and a pedestrian bridge near the Clinton Presidential Library after breaking free from a tugboat.

While five bridges were initially shut down, it was determined that damage was not severe enough to close the bridges beyond the night of Aug. 24, when the accident occurred.

But the runaway barges brought back memories of May 26, 2002, when a barge struck the Interstate 40 bridge near Webbers Falls, Okla., upstream from Fort Smith on the Arkansas River. The accident resulted in 14 deaths after a 580-foot span of the interstate plunged into the river below.

With that in mind, has anything been done to provide better collision protection along the river?

According to District 4 Engineer Chad Adams of the Arkansas State Highway and Transportation Department, many of the bridges along the Arkansas River already have "pre-protection" cells designed to prevent barge-bridge collisions from occurring.

From Ozark to Fort Smith, there are five bridges that span the Arkansas River and Adams said three of the bridges have the "pre-protection" cells. They include the Arkansas River Bridge in Ozark and the Midland and Garrison Avenue Bridges in Fort Smith.

Gene Higginbotham, executive director of the Arkansas Waterways Commission, said the cells are round and located in the river.

"It's a round cylinder filled with all sorts of material," he said. "Their sole purpose is to protect that bridge structure. It hits that and the current will take it down stream. But it protects that bridge structure."

Another bridge in the area that has a protection system is the Arkansas Highway 59 bridge over Lock and Dam 13 near Barling, Adams said.

"That comes up out of the water, on the upstream side," he said. "There is a large pointed piece of concrete that extends out into the river in advance (of the bridge), so if something were to flow down and hit it, that would take the impact."

As for when the barriers were installed, Adams said that was not so clear, adding that the best estimate of when some protection systems were installed was the late 1960s or early 1970s.

The only bridge not to have a protection system of some sort from Ozark to the Oklahoma border is the Interstate 540 bridge. As for why, Adams said it had to do with design.

"I-540 does not have the pier protection system. There's certain requirements, items that go into consideration as to whether it's needed," he said. "Some of the newer bridges are designed to withstand the impact."

Besides the 2002 collapse in Webbers Falls and the August accident in Little Rock, it is rare to have a runaway barge along the river, Adams said, adding that within the last nine years, he could only recall an incident from April 25, 2011, when flooding rains caused a barge to break loose near Fort Smith, resulting in a shutdown of the Garrison, Midland, I-540 and Barling bridges until a runaway barge could be secured.

Regarding concerns about the stability of bridges should an accident occur, whether it is known to the AHTD, Adams said all bridges are inspected every 24 months unless it is a bridge that has been singled out for increased scrutiny. In the case of last month's accident in Little Rock, initial inspections occurred following the accident prior to the numerous bridges along the river re-opening.

But Adams said residents should not anticipate a potential accident resulting in loss of life or catastrophic damage like what was seen 11 years ago, saying that the accident last month shows that Arkansas' bridges are ready for any sort of accident that may come.

In order to keep that safety record, Higgenbotham said his organization would continue to work with the state, as well as engineers and designers working on future bridge projects to ensure safety.

"We want our bridges to be safe and (and to have) good navigation channels so everyone travels safely over and under the bridges."

It may seem odd to hear of a shortage in manufacturing workers following a decade which saw a nearly 25% decline in the number of manufacturing jobs available in Arkansas, but that is exactly what is facing existing manufacturers in the state today.

To combat the shortage, businesses and Arkansas Manufacturing Solutions, a state agency that works with organizations to bring resources to Arkansas manufacturers, are partnering to host the state’s second Manufacturing Day event on Oct. 4.

Marketing Manager Andy Capel of AMS said highlighting the needs of Arkansas manufacturers was important if the state is to turn around the shortage of available skilled manufacturing workers.

“The goal is to plant the seed now for (students) as (they) are making decisions to find out what are some (career) options for them,” he said. “These guys are machinists, but they’re really just computer guys. They’re not really running drill presses like they used to be. It’s giving the youth the information they need to know.”

With the jobs now found in factories requiring a different skill set from the jobs held by this generation’s mothers and fathers, companies have had to take different approaches to filling positions.

Human Resources Partner Zoë Lambert of Cameron Valves in Little Rock said her company has had to take the extreme step of going out of state to fill some positions. But she is hoping that can change following the company’s involvement with Arkansas Manufacturing Day on Oct. 4. On that day, the plant will host not only a tour of the facility but also a demonstration for central Arkansas high school students and the public.

“We wanted young people to realize there is opportunity in manufacturing from engineering to the shop floor,” she said. “We want them to realize its impact.”

Cameron Valves has also taken the step of partnering with vocational programs in the Little Rock area to prepare potential workers for a career in manufacturing.

“You need certain skill sets for certain positions,” she said. “Machinists have to pass an exam to qualify to be an employee here. And assemblers need to pass a logic exam. You need the skill set, but we’re also looking for strong employees that are well-rounded.”

Capel said while young people may have misconceptions about what it is that manufacturing employees do, they also do not fully understand how good a manufacturing job with a basic vocational education can be financially.

“A machinist for Cameron Valve is looking at a $45,000 to $65,000 a year job. Many people have an old perception of a manufacturing job as hot, dirty and you don’t get paid well to do it. But as far as learning specific skills they need, that’s what we’re in need of.”

Lambert said in addition to “very competitive” wages, employees can also expect an excellent benefits package and tuition reimbursement should they choose to further their education while employed with the company.

In addition to Cameron Valves, other manufacturers taking part in Arkansas Manufacturing Day include Molex of Maumelle, Nice-Pak of Jonesboro and Rockline Industries of Springdale.

“Arkansas Manufacturing Day is our push to bring appreciation to the manufacturers of Arkansas for what they produce and a general awareness of it,” Capel said. “A lot of them just do their thing and keep going and are not even known to be out there.”

Capel said the Oct. 4 event, which coincides with the national Manufacturing Day event, is just the start of addressing the need for more manufacturing workers as more and more companies make the decision to bring manufacturing positions back to the United States. For decades, outsourcing to countries like China has resulted in manufacturing jobs in Arkansas totaling just 154,300 in June 2013 versus a sector high of 247,300 in Feb. 1995, according to the U.S. Bureau of Labor Statistics.

“The federal government is pushing hard for manufacturing and re-shoring with Walmart. And Walmart just had their big manufacturing summit in Florida to try to re-shore,” he said. “I think there is a big effort across the board and looking at Arkansas, manufacturing is one of the major employers in Arkansas and one of the backbones of income – agriculture and manufacturing being the big ones there. Manufacturing is a way to grow companies and have a more diverse workforce.”

Lambert said her company is trying to prepare for what is already a need and will only increase as more work is on-shored to the state.

“Building this partnership with the vo-tech schools will curb that (shortage). But I’m thinking when they finish their vo-tech school, they are going to be targeting that exact skill set we’re looking for. That will work really well focusing on exactly what (our needed) skill set will be,” she said. “There are also some great partnerships to recruit some great people here and we expect to start seeing an impact within about a year.”

Retail stocks rose 1.1% on Wednesday (Sept. 18)  following the surprise announcement by the Federal Reserve to stay the course on its asset purchases for the near term.


The S&P Retail Index hit a record high at 851.32, up 1% on the news. Broader market indexes also rose to uncharted territory highs. 


It was widely speculated that the Federal Reserve would begin tapering down its monthly $85 billion of debt purchases later this year. That sentiment pushed long term interest rates higher in recent weeks and somewhat curtailed consumer spending.


Wal-Mart, Dollar General and other retailers in recent weeks have said consumers are being more cautious about every discretionary dollar spent, even though they are buying up large ticket items like automobiles.


Analysts expect holiday sales to rise a modest 2% to 3% from a year ago and said there is no real inflation to speak of at this time.


Wal-Mart shares closed Wednesday at $76.42, up $1.27. Little Rock-based Dillard’s shares rose $1.08, to close at $82.40.


Other retailers also reported higher closing prices on Wednesday:
Target $65.48, up $1.10;

Dollar General $57.92, up 59 cents;

Family Dollar $74.46, up $1.72; and

Amazon $312, up $7.86 or 2.59%.
 

Although Arkansas has a ban on gay marriage, many Arkansas employers must now manage certain retirement plans, health insurance plans and other workplace benefits to include same-sex couples legally married in a state or country that recognizes such marriages.

The U.S. Department of Labor announced Wednesday (Sept. 18) that a June 26 decision by the U.S. Supreme Court requires technical changes to the department's Employee Benefits Security Administration. The EBSA change apply to “plans, plan sponsors, fiduciaries, participants and beneficiaries on the decision's impact on the Employee Retirement Income Security Act of 1974,” noted the DOL statement.

One of Arkansas’ largest employers has already opened up benefits to same-sex couples. Wal-Mart recently announced an expansion of coverage eligibility for any spouse or domestic partner of a full-time employee which includes, medical, dental, a new vision option, critical illness and accident plans. Domestic partners will be eligible beginning in 2014, during the enrollment period starting Oct. 12.

Wal-Mart joins a long list of Fortune 500 companies including Costco, Ford, Home Depot and Best Buy to offer health care benefits to same-sex partners. The civil rights group, Human Rights Campaign, estimates 62% of Fortune 500 companies have already done so. HRC said inclusion efforts have increased from 34% in 2002.

RECENT LEGAL HISTORY
The U.S. Supreme Court decision in the Windsor v. U.S. case found the Defense of Marriage Act (DOMA) to be unconstitutional. The case involved two women from New York, Edith Windsor and Thea Spyer, who met in 1963 and were legally married in Canada in 2007. Spyer died in 2009. Windsor was legally blocked from claiming an estate tax exemption for surviving spouses because federal law (DOMA) did not recognize same-sex marriage as a qualifying exemption.

In a 5-4 vote, the Court overturned DOMA.

“DOMA's principal effect is to identify and make unequal a subset of state-sanctioned marriages,” noted a portion of the majority opinion. “It contrives to deprive some couples married under the laws of their State, but not others, of both rights and responsibilities, creating two contradictory marriage regimes within the same State.”

In his dissent, Justice Antonin Scalia said the issue should not have been before the Court.

“This case is about power in several respects. It is about the power of our people to govern themselves, and the power of this Court to pronounce the law. Today's opinion aggrandizes the latter, with the predictable consequence of diminishing the former.”

‘HISTORIC STEP’
According to the DOL, the changes will be applied to approximately 701,000 private sector retirement plans, 2.3 million health plans and other plans that provide benefits to more than 141 million Americans. Collectively, these plans hold more than $7.3 trillion in assets.

"This decision represents a historic step toward equality for all American families, and I have directed the department's agency heads to ensure that they are implementing the decision in a way that provides maximum protection for workers and their families," Secretary of Labor Thomas Perez said in the statement. "The department plans to issue additional guidance in the coming months as we continue to consult with the Department of Justice and other federal agencies to implement the decision."

Changes from the Court’s decision are expected to require changes to more than 1,000 federal laws regulating portions of the Internal Revenue Code, the Employee Retirement Income Security Act (ERISA), the Consolidated Omnibus Budget Reconciliation Act (COBRA), the Health Insurance Portability and Accountability Act (HIPAA) and the Family Medical Leave Act (FMLA).

IRS INFORMATION
The Internal Revenue Service has issued new rules, and has also posted a FAQ page for same-sex couples.

“The IRS has a general rule recognizing a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages,” notes a portion of the opening answer on the FAQ page.

According to the National Law Review, plan sponsors were to begin complying with the changes effective Sept. 16, 2013.

“As of September 16, 2013, employers must stop imputing income for health benefits for same-sex spouses. If applicable (assuming the existence of a cafeteria plan), employers must also switch from after-tax to pre-tax premiums for same-sex spouse health benefits,” noted the NLR guidance posted Wednesday.

ARKANSAS BAN
An ongoing effort to end Arkansas’ ban on gay marriage hit a roadblock on Tuesday (Sept. 17) when Arkansas Attorney General Dustin McDaniel rejected a proposed amendment – The Arkansas Marriage Equality Amendment – submitted by Little Rock resident Jennifer Pierce.

“Having analyzed your proposed amendment in light of the foregoing precepts, I conclude that I must reject your proposal due to deficiencies in the ballot title and in your proposal’s text,” noted McDaniel’s opinion. “The ballot title is also deficient because it makes no attempt to summarize for the voter what effect your proposal would have on existing law.”

Arkansas’ ban on gay marriage was enacted when 75% of voters supported Amendment 83 in the 2004 general election. Arkansas Gov. Mike Beebe, a Democrat, opposes same-sex marriage.

Mercy Northwest Arkansas recently announced Brenda Chase as its new chief operating officer.

Prior to this appointment Chase served as ambulatory care director, assistant vice president and vice president of patient care service. She also formerly held the chief operating officer position for Mercy Hot Springs.

Chase is 20-year veteran in health care and a third generation in her family to work at Mercy.

In her new role, Chase is accountable for effectively leading the clinical and ancillary operations of Mercy Hospital Northwest Arkansas. She will be heavily involved in strategic planning, the development of new or expanded services and promoting the integration of services on a system-wide basis.

“One word I would use to describe myself is determination. I don’t give up on people, co-workers, performance improvement projects and goals. I also strive to be a leader who listens. I have experienced all the different aspects of health care, allowing me to truly empathize with co-workers or physicians and understand their concerns, frustrations and obstacles as well as opportunities. I do not just see this as something I merely can do, but what leaders must do,” Chase said.

She is married to Raymond Chase and said one of the most important things to remember is that life is a balance. She said spending time with her family helps her keep that focus.
 

Survival attributed to the work of good people, the rewards of good risks and the whims of good fortune was the theme that emerged during the Thursday event (Sept. 19) marking the 90th anniversary of Fort Smith-based Arkansas Best Corp.

Blanketed by blue skies and joined by several hundred employees, former employees, political leaders and well-wishers, officials with the transportation holding company and a trucking trade group spoke about the trucking industry and the company’s past and future.

Arkansas Best began as a small local freight hauler –  OK Transfer – in 1923 operating in the Fort Smith area. With a market cap of almost $700 million, the company now includes ABF Freight System, one of the nation’s largest less-than-truckload (LTL) carriers, and has grown organically and through acquisitions to provide global shipping and logistics services.

David Humphrey, vice president of investor relations for Arkansas Best, set the stage with opening remarks that noted the company had survived more than 30 acquisitions, a hostile takeover attempt and significant technological innovations.

Early owners and executives had to survive the dynamics of operating in a pre-1980 system heavily regulated by the federal government and the early chaos of a post-1980 unregulated marketplace. Roy Slagle, president and CEO of ABF Freight System, said 90 years for most businesses is great, but “it’s an incredible thing when a trucking company does it.”

Slagle said 1980 was a “watershed moment” for the trucking industry when the federal Motor Carrier Act deregulated the industry and greatly lowered the cost to enter the business. But Slagle proudly noted that of the top 50 carriers operating in 1965, ABF is the only one still operating under the same brand.

Considered to be a watershed moment for the company was when Fort Smith attorney Robert A. Young Jr., bought the company in 1951. The history page of the Arkansas Best website notes of Young: “The more than 20 acquisitions that followed illustrated the vision he instilled in the company. Every acquisition turned into a profitable operation within a year after it merged with ABF. Following the purchase of Best Motor Freight in 1957, the company's name was changed to Arkansas-Best Freight System, Inc., the name it operated under until the official name change to ABF Freight System, Inc. in 1980.”

Robert Young III, was 10 years old when his father bought the company. Young said his father was a “gambler, a risk taker,” and knew the company had a future. His father “hocked his life insurance policies” and assumed other debt to bet on that future.

The corporate history notes that all acquisitions were ultimately profitable. But Young, who followed his father as president and CEO of Arkansas Best in 1973 and still serves as Board Chairman, said Thursday it was often “touch and go” in the process of buying a trucking company that was going broke before they bought it.

“After each acquisition, it was hell getting them turned around,” Young said.

But within a year, the deals would become profitable, and Young said can still remember the first month they had $1 million in sales.

“That was a big deal,” said Young, adding that now the company makes $1 million in the first hour of the first day of each month.

The company posted revenue of $2.065 billion in 2012, the first year above the $2 billion level. Operating revenue for the first half of the year is $1.097 billion, better than the $951.41 million during the same period of 2012.

Young said his father did not micromanage and was “amenable to change,” going so far as being willing to adopt good ideas from competitors.

“He told you what he wanted the end results to be” and then he let you make it happen, Young said of his father’s management style.

With some emotion in his voice, Young wished his father could see the 2013 version of the company he acquired in 1951.

“I would love to bring him back for just 15 minutes to see how far we’ve come.”

The industry and company have further to go, said Bill Graves, president and CEO of the American Trucking Associations’ and former Kansas governor. Graves also noted that 90 years in the trucking business is even more impressive when considering there was not a trucking industry prior to about 1910. Grave said that Arkansas Best has been successful on a path that “many, many other companies have attempted but failed.

Graves said changes in the economy have resulted in a “proliferation of warehouses and distribution services” that are forming an “LTL sweet spot” for companies like ABF with a regional network model.

Ralph Garcia, a frontline worker who still logs about 100,000 miles annually in an ABF truck, also spoke Thursday. Garcia has driven 35 years for ABF and recently received the Neill Darmstadter Professional Excellence Award at the American Trucking Associations’ 2013 National Truck Driving Championships. It’s the top honor for drivers in the industry.

Garcia said ABF “practices excellence and practices integrity” in such a way that many drivers want to work for the company.

“The reputation on the road is, ‘Get me on with ABF.’ ... That’s what drivers talk about out there,” Garcia said, adding later that “It’s no accident that we’e been in business for 90 years.”

About 7,500 drivers, dockworkers and other specialty workers work under a labor agreement through the International Brotherhood of Teamsters. ABF and the Teamsters are still working to get full ratification of a new five-year contract that was approved June 27. However, seven supplemental provisions of the contract were rejected, with a vote in late August seeing five of the seven gain approval. It could be the end of October before the contract is fully ratified.

Arkansas Best Corp. President and CEO Judy McReynolds said the keys to past success were good people, a good culture and a willingness to change and adapt. Moving forward, McReynolds said success will also require leveraging technology, “investing in great people,” and providing great customer service.

McReynolds reiterated the company’s revenue goal of $3 billion by 2015.

“We are more than able to accomplish this goal,” she said.

In a statement about the anniversary, Fort Smith Mayor Sandy Sanders thanked the company for its community support.

“Not only is ABF Freight System, Inc., an essential economic driver, the company has been an excellent community supporter for the past 90 years. The city’s performing arts space in the convention center bears the name of ABF's parent, Arkansas Best,” Sanders said. “We thank ABF and Arkansas Best for its commitment to Fort Smith, and we look forward to the next ninety years.”

One of Arkansas' largest locally-owned accounting firms marked a major milestone Thursday (Sept. 19) – a half-century in operation.

Beall Barclay & Company marked its 50th anniversary with a reception for employees at its offices in Fort Smith and Rogers. Barbara Hambrick, the firm's managing member, said while the company has always been an accounting firm, it has grown in services offered through decades of acquisitions and mergers.

"It's always been a public accounting firm, so Bill Beall joined two other men in 1963 and started an accounting firm," she said. "Over the years, there have been several mergers and in 1997, we merged with Dick Barclay's firm in Northwest Arkansas to firm the firm that is now Beall Barclay and Company … We do pretty much anything that clients need as far as financial services, so we do individual work and we do large corporations. We really like family-owned small businesses but we also have several very large regional clients. We have a few clients that have international ties."

As far as the specific type of work, Hambrick said it can range from audits to tax returns to business evaluations to certified fraud examination.

"You name it. As far as financial services go, we take care of it."

Beall, one of the co-founders of the company along with Roy Vail and Charles Coleman, was at the celebration in Fort Smith and said he was amazed to see what the company has become since its humble beginnings in 1963. He said the early key to the company's success was technological innovation, using computers in accounting, even in the 60s and 70s.

"Charles realized that computers were going to be the future of accounting, they're the future of everything now, but we got into computers in the beginning in '63. We used a data processing services out of Lansing, Mich. We sent our information up there and it came back and everybody else was still writing up books with pen and ink. You spend half your time getting the thing balanced and we could turn out a financial statement in ten days, two weeks for somebody and the nobody else even ever got a financial statement. Small businesses couldn't get on because it was just too labor intensive, so that's how we prospered - by doing that."

Many of the early clients for Beall's company were contractors, who needed to be able to figure job costs.

"In 1963, they didn't know what their costs were until they got through with the job. And we had contractors who wanted job cost reports every week and we could do it with computers, and so that just gave us a huge up on everybody else. It's like driving a race – everybody else in a Volkswagen Beatle and we were driving a Corvette."

While the company has continued to grow and prosper since its 1963 founding, it has not been without struggles. The biggest struggle has been making it through the tough conditions that have plagued the nation's economy during the last five years, Hambrick said. But even in spite of a tough economy, she said the company has not let one employee go, even when others have.

"I think one of our strengths has been that we haven't cut back on staff. The people that we have in our firm are very important to us and we've cut back on some of the extras that they might have gotten in the past, but we have not laid off people or gotten rid of people because of the economy," she said. "The hardest thing that the economy has done as far as the firm as a whole is for us watching our clients struggle through the hard economic times. A lot of our clients have had to cut back, you know they've had to close locations, they've had to lay off employees. And they've really pulled back on plans that they had for the future to wait and see what happens. And that's been the toughest thing, for me, is to watch the clients be unsure and concerned about what's going to happen with their business."

Speaking about employees of the company through the years, Beall said he was proud of how Beall Barclay & Company never really had a "glass ceiling to break through."

"Since all the early partners had daughters and no sons, we never had a glass ceiling for women. If women could do the job, we promoted them. So early on, we had female accounting staff and female partners and we have a female running the business now."

As for what the future holds for Beall Barclay & Company, Hambrick said she and her partners would focus on continuing to be based in Fort Smith and serving their clients from the Missouri border to Mena and Muskogee, Okla., to Russellville. She said serving those needs would likely to lead to growth, including the possibility of opening a third branch office or even more mergers.

"Our mission statement says, 'We want to be the dominate provider of financial services in that area,' so anywhere in that diamond is where we want to have a strong presence."

Arkansas’ jobless rate during August was unchanged compared to July, but a year-over-year comparison shows that 27,000 have left the workforce and more than 26,000 fewer Arkansans are employed.

The state’s jobless rate was 7.4% in August, up slightly compared to 7.3% in August 2012. Arkansas was one of 12 states to post an increase compared to August 2012, according to the Monday (Aug. 19) report from the U.S. Bureau of Labor Statistics.

Arkansas’ labor force was an estimated 1.323 million in August, down 27,363, or 2%, compared to August 2012. The August figure reflected 4,744 fewer Arkansans in the labor force compared to July.

The number of employed in Arkansas during August was 1.224 million, a drop of 26,639 compared to August 2012, or down 2.12%. The number of employed dropped 5,322 between July and August.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012. In August, Arkansas was one of nine states to see a jobless rate increase compared to August 2012. Also, August marked the 54th consecutive month that Arkansas’ jobless rate has been at or above 7%.

ARKANSAS’ LABOR FORCE DECLINE
Greg Kaza, economic researcher and executive director of the Arkansas Policy Foundation, said the underlying numbers are more telling than the unemployment percentage.

“Arkansas' civilian labor force – all employed and unemployed Arkansans – is contracting in an expansion, an unprecedented development in state labor market records that date to the mid-1970s,” Kaza explained in a memo to The City Wire. “The simplest explanation for the unprecedented contraction of Arkansas' civilian labor force is that economic policies are not working. Discouraged workers are leaving the work force because they cannot find employment.”

Kaza’s memo included the following points based on the June labor report.
• Arkansas' civilian labor force was 1,332,500 in June 2013, a decline of 20,300 workers from June 2009 when the Great Recession ended and a new expansion started. The civilian labor force was 1,352,800 that month.

• Arkansas Department of Workforce Services data show civilian labor force growth at the four-year mark in three prior expansions (1981-1990, 1991-2001, 2001-2007). These periods were November 1981 to November 1985 (1,025,700 to 1,060,200); March 1991 to March 1995 (1,120,300 to 1,228,800); and November 2001 to November 2005 (1,254,100 to 1,351,200).

• Arkansas' labor market is weaker than past recessions when the force expanded or contracted by fewer workers. These recessions were from March to November 2001 (1,253,800 to 1,254,100); July 1990 to March 1991 (1,124,700 to 1,120,300); and December 2007 to June 2009 (1,370,900 to 1,352,800). The force added 300 (2001) but fell 4,400 (1990-91) and 18,100 (2007-09) versus the recent decline of 20,300 (2009-13).

• The U.S. civilian labor force has expanded in the last four years, increasing from 154,710,000 (June 2009) to 155,835,000 (June 2013).

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during August was an estimated 250,400, down from 251,400 in July and well ahead of the 241,200 during August 2012.

Manufacturing jobs in Arkansas during August totaled 154,700, up from the 153,800 in July and below the 155,300 in August 2012. Employment in the manufacturing sector fell in 2012 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during August was 214,700, down slightly from 214,800 in July and below the 215,900 during August 2012.

The state’s Education and Health Services sector during August had 176,400 jobs, down from the 177,000 during July and up from 171,500 during August 2012. Employment in the sector is up more than 26% compared to August 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 101,400 during August, down from 101,600 during July, and below the 102,300 during August 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

NATIONAL DATA

The BLS report also noted that 36 states had unemployment rate decreases from a year earlier, 12 states had increases, and two states had no change. The national jobless rate during August was at 7.3%, and was down from the 8.1% in August 2012.

Nevada had the highest unemployment rate among the states in August at 9.5%. The next highest rate was in Illinois with 9.2%. North Dakota again had the lowest jobless rate, 3%.

The August jobless rate in Oklahoma was 5.3%, unchanged compared to July and August 2012.

Missouri’s jobless rate during August was 7.2%, up from 7.1% in July and up compared to 7% in August 2012.

Kohl's will add about 53,000 seasonal workers to handle the holidays this year, an average of 40 workers per store, plus 6,400 distribution center workers and 350 credit operations temps, according to a company announcement Thursday (Sept. 19).

Target aso recently said it will add about 70,000 seasonal positions, about 20% fewer than last year. The move to hire 18,000 fewer temporary holiday workers versus last year's 88,000 comes as the Minneapolis-based chain saw that its own permanent employees wanted to get first dibs on working extra hours for the holiday season.


On the same day the Arkansas Department of Environmental Quality submitted final responses to Whirlpool's challenges to the agency's annual groundwater monitoring report, the city of Fort Smith has confirmed that officials with ADEQ and Whirlpool will attend a Board of Directors study session to be held Oct. 8 at 6 p.m. at the Senior Center at 2700 Cavanaugh Road.

City Administrator Ray Gosack said this meeting will provide the Board with the improved communication it demanded in February.

"It's basically that the Board of Directors asked for improved communications and Whirlpool has asked to give an update to the Board and they asked for that to be on Oct. 8," Gosack said. "We've asked ADEQ (to be present) in case they (the Board) asked for any updates from the agency."

The main topic of the meeting will be the company's revised mitigation plan, he said, adding that both organizations will be able to provide an update and answer questions that may have not been previously addressed in letters and documents released to the media.

"This is an opportunity for Whirlpool to provide an update to the mayor and Board of Directors. Clearly, the mayor and Board will have an opportunity to ask questions."

With the event being a study session, Gosack said it will not be open to public comment. That will be reserved for later in October or November when ADEQ and Whirlpool hold public meetings regarding the revised mitigation plan.

Gosack said his last communication with Whirlpool was approximately four weeks ago, when the company requested the meeting with the city.

He said the company has assured him they want to move quickly to clean up the pollution of trichloroethylene (TCE), a potentially cancer-causing chemical the company used at its former Fort Smith manufacturing facility as a degreasing agent until the 1980s.

The company has told Gosack, and indicated in previous drafts of its revised mitigation plan, it would install soil gas vapor monitoring stations in the neighborhood north of its former facility to ensure that no TCE is entering the airways and possibly sickening residents in the area.

The continued monitoring of not only vapor, but also actual soil, is important to the city as they begin a multi-million, multi-year sewer project that includes property attached to the Whirlpool site and the TCE plume.

"We (the city of Fort Smith) have done soil sampling in that area and there is no indication that there is a TCE problem for the sewer line project," Gosack said, adding that the city is working with Whirlpool on a possible indemnification agreement that may cover not only the costs of testing but also any damages that the city may incur as a result of TCE contamination during the project, including medical costs for employees. Gosack said such concerns are being addressed to ensure that no city workers, or contractors, are harmed as a result of the project.

"We're identifying if there are going to be any problems because we don't want anyone harmed," he said. "Our goal is to identify up front if there are any problems or not. If there are concerns, the workers can take proper protective measures to avoid harm to themselves."

As for what those measures may be, Gosack was unsure, though he said often city employees working underground or in tight areas wear breathing apparatus to avoid ingestion of potentially harmful contaminants.

Gosack said Whirlpool's reaching out to the city for a public meeting, while at the same time ADEQ submitting its final response to Whirlpool's comments regarding the annual groundwater monitoring report, show that communication among the three is where it should be.

"I think it has gone in the right direction and its staying there. Not only communication from Whirlpool, but from ADEQ. It is evidenced in today's letter. The communication improved immensely since the February Board meeting and both have maintained that level of communication."

In today's (Sept. 20) letter from ADEQ, the agency did say there is consensus that the southern boundary of the TCE plume now does not extend beyond the southern Whirlpool property line, but it said three monitoring wells have shown an increase in TCE concentrations.

"While it is true that the samples taken since 2007 (seven samples from ITMW-5, six samples from ITMW-9 and three samples from ITMW-10) do not appear to fluctuate, the same can be said for almost any of three (3) to seven (7) consecutive samples from any of the three (3) wells for any given time period. That's why EPA recommends a minimum of eight (8) data points for statistically valid trend analysis," wrote ADEQ engineer Mostafa Mehran.

The letter also addressed possible data error in some figures provided by ENVIRON, Whirlpool's environmental consultant.

"Either the TCE data for the monitoring well MW-25 in the 2013 report is in error or all previous reports are in error," Mehran wrote, adding that he suspects a conversion error may have occurred.

Whirlpool is required to submit a response to the deficiencies noted in the letter within 30 days of receipt.

Link here for the ADEQ letter.

Sales tax revenue for Fort Smith in the city’s August report was up more than 2% and the city’s portion of the countywide tax was up more than 17% – although Fort Smith Finance Director Kara Bushkuhl is not certain the county jump will hold up in subsequent reports.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.641 million in the August report, up 2.06% from the same period in 2012. The collections in the August report were 1.02% below budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in September are from taxes collected in July and transferred by merchants to the state in August.)

The August report ended four consecutive months of year-over-year declines.

For the first eight reporting months of 2013, each of the 1% sales taxes generated $13.135 million, down 1.09% compared to the same period of 2012, and 4.07% below budget estimates.

Collections in 2012 of the two 1% taxes totaled $39.21 million, slightly ahead of the $38.683 million during 2011. The 2011 collections were 3.9% above 2010 collections.

Fort Smith’s share of the county 1% sales tax in the August report is $1.441 million, up 17.27% compared to August 2012. The collection was up 14.32% compared to the revenue estimate.

Bushkuhl said there could be an error on the August report from the state. If so, the change – likely a reduction – would be reflected in the September report.

“It was very surprising, and we probably need to wait until next month to see if there is a reversal for an error in the deposit of funds,” Bushkuhl said.

For the first eight months of 2013, the countywide tax has generated $10.4 million for Fort Smith, up 0.51% compared to 2012 and down 1.95% compared to budget forecasts.

The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget general supports fire, police and other critical city functions. A downward trend in the countywide collections has resulted in city officials seeking 4% budget cuts from all departments.

Franchise fees collected by the city through Sept. 24 total $3.111 million, up compared to the $2.948 million collected during the same period of 2012. Property tax collections through Sept. 23 totaled $2.81 million, a gain over the $2.71 million reported during the same period of 2012.

Statewide, tax collections are off to a good start for the fiscal year. Year-to-date gross revenue (July 2013-Aug. 2013) totaled $910.6 million, 2.9% above the same period last year and above forecast by 1.2%, according to the report issued Sept. 4 by the Arkansas Department of Finance and Administration.

Year-to-date sales and use tax collections were $380.5 million, up 6.9% above last year and 2.3% above forecast.

August gross revenue was $443 million, up 4.6% above last year and 1% above forecast. Sales and use tax collections during the month totaled $194.5 million, up 9.3% from last year and 4% above forecast.

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

A new 70 store shopping center would undoubtedly have a positive impact on any city or town in which it might find itself. But when the town is barely more than 4,000 people, such a development has the potential to completely change more than just the traffic count, but also the tax base.

The development is planned for 90 acres at the intersection of Arkansas Highways 22 and 59. FCRA Executive Director Ivy Owen has said the development could employee up to 700 people once it is fully leased.

The city of Barling levies a 1 cent sales tax on any purchase made within the community, giving the city an effective tax rate of 8.75% when factoring in state and county sales tax, as well.

"Depending on the number of stores, we're talking from 50% to 400%, depending on what stores go through," said City Administrator Mike Tanner.

For any city, those numbers are staggering. But in Barling, where Tanner said depending on the year sales tax collections between city and county combined bring in between $935,000 and $1.065 million, such an increase could change how the city operates city government.

"It would dramatically help us," he said.

Some projects Tanner is interested in should the mall go in and the tax dollars start flowing include an extension of H Street in the north of the city to Frontier Road, a new municipal complex on land at Chaffee Crossing or possibly a new fire sub-station.

All of the projects are needed, he said, though it could be years before the city is able to fund any sort of expansions that could add another fire station or take the municipal complex into a modern facility, instead of the current municipal complex located in the former Barling School building that was constructed in 1938. The building currently houses city administration and the city's police department.

City Director David Brigham said he believes the increase in sales tax revenue for the city will be about 300%, which he said would finally allow Barling to stand on its own two feet.

"I think what it will do for us will allow us to become a stand alone city without having any bedroom community-type name attached to it," he said.

Because the city could potentially draw enough revenue to not depend on municipal amenities from the city of Fort Smith and other surrounding municipalities, he said there were all sorts of different things Barling would be able to offer its citizens.

"Naturally, road improvements (would be priority). Probably we could do a sidewalk program. The improvement of the appearance of our town as far as new businesses coming in and things like that, it will give us some of the funds that we need to attract some other businesses into our town. Basically, it will just be probably about a 300% improvement to the city of Barling."

While many in and around Barling may be seeing green, Tanner has been cautious when it comes to thinking about a future that includes a large shopping center on the east side of his city. Just because the development could bring an increase in sales tax revenues, he said it is likely that the city would need to do infrastructure improvements to accommodate the shopping center and other growth expected down the road.

"Of course, you know we're going to have to do some water/sewer projects out in that area to facilitate that mall," he said, though the costs could possibly be shared with both the mall developer and possibly the Fort Chaffee Redevelopment Authority, though he said it was too early to know for sure.

Another "growing pain" Tanner mentioned is the need to provide better fire protection for the shopping center and area residents. In order to provide that protection, it is likely that a ladder truck will need to be purchased for Barling's volunteer fire department in the future and those don't come cheap. Tanner said even on the low end, a ladder truck would run upward of $500,000.

No matter what happens with the proposed mall development, Brigham said the redevelopment of Chaffee Crossing is allowing Barling to finally shine, even if it is in the shadow of its much larger neighbor to the west.

"It's only right that as the city of Fort Smith has grown, Barling's going to have a chance to do a little growth of it's own. I think it's a real positive influence."

Employment in Northwest Arkansas grew by 3% from 2011 to 2012, a rate that outstripped the growth rate in peer regions, the state and the nation, according to a report commissioned by the Northwest Arkansas Council and compiled by the University of Arkansas Center for Business and Economic Research.

Jobs are the key to continued economic buoyancy, according to Kathy Deck, CBER Director.
 
In the year reviewed, the 3% increase in local jobs was almost twice the national rate and five times better than the state results, Deck said.

More recent economic data indicates nonfarm employment added 9,000 local jobs between January 2012 and January 2013. Nonfarm payrolls rose again to 217,000 workers adding 4,000 more positions through June 2013, according to latest The Compass Report, compiled by The City Wire.

Deck said employment growth continues to be the region’s most outstanding feature. The university’s report also indicates the region’s economic development focus should be on improving establishment growth, adult education and acquisition of federal research dollars.

From 2007 to 2012, the number of business establishments declined by 1.9% in Northwest Arkansas. This decline was more pronounced than those in the peer regions, the state, and the nation. Deck said the number of business establishments declined 2.6% in 2009, falling 1.2% in 2010 before starting to rebound in 2011 and 2012. During 2012 the region’s establishment growth rate improved to competitive levels with its peer regions, the state and the nation, Deck said.

Another strong metric in the local economy is the region’s real GDP which grew by 7% between 2007 and 2011. Gross Domestic Product is the sum of personal and government consumption, business and government investment and the net balance between imports and exports.

One of the major catalysts in GDP growth is housing as the National Association of Home Builders estimates residential investment has historically averaged 5% of the nation’s GDP, while housing services accounts for about 12% of GDP.

Northwest Arkansas housing has shown a robust resurgence over the past two years, with new residential building permit values rising 60% between January 2011 and the start of 2012, according the Compass Report. 
Building 100 single-family homes creates more than 300 full-time jobs and generates $8.9 million in federal, state and local tax revenues, according to the National Association of Home Builders.

Homes sales have also gained momentum across Northwest Arkansas since 2011. Agents sold 6,063 homes during 2012 in Benton and Washington counties, up 3.58% from the prior year. Through August of 2013 agents have sold 4,927 homes, up 53% from the same period in 2012, according to MountData.com. During the same periods, median home prices rose to $155,000 as of August. Median prices jumped 29.2% over the past two years, according to MountData.com

Economists agree that higher home prices boost consumer confidence, as real estate is generally the largest asset a family owns.

Mike Malone, CEO of the Northwest Arkansas Council, recently said the 27 to 30 new residents moving to the area daily are also a catalyst for the continued economic expansion. He said they are moving here because of the jobs but also the quality of life linked to the infrastructure, parks, trails and entertainment venues.

The one concern that Malone has for the growing region is the constant need for more infrastructure and the time required to get more roads improved and additional schools built.

One other platform for the region’s continued advancement is increasing the rate of college graduates. Business leaders continue to express a gap between open positions and many of the unemployed applicants.

The UA report indicates nearly 27.8% of local adults had attained a bachelor’s degree as of 2011. The college graduate rate increased from 25.6% in 2007, but still trailed its peer average of 30.1%.

The Wal-Mart Board of Directors meeting scheduled for later this week may include the selection and announcement of Doug McMillon or Bill Simon as the new top boss at Wal-Mart Stores.

A majority of insiders that include analysts, academics, service providers and consultants recently interviewed for this story give the nod to 46-year-old Doug
McMillon, CEO of Walmart International. If McMillon is not selected, the insiders say Bill Simon, 53, CEO of Walmart U.S., will be promoted to the top job.

“The board certainly has an unenviable task at hand if they are discussing corporate succession. They have two very strong candidates and there has not been a great deal of corporate history to draw from given Mike Duke is just the fourth CEO in the company’s 51-years,” said Alan Ellstrand, University of Arkansas professor and expert on corporate governance and top management teams.

Ellstrand said retail is a complex business especially given the scale at which Wal-Mart operates around the world.

“It would be a real surprise if Wal-Mart were to look outside the firm for their next CEO, I just don’t see that happening given the rich corporate culture that the CEO is expected to pass down,” he said.

Leon Nicholas, senior vice president of retail insights for Kantar Retail, agreed that McMillon and Simon are the likely candidates, though he doesn’t entirely rule out the slight possibility for an outsider, “that would be a game-changer, perhaps someone from the tech-world.”

Two other consultants, who spoke on condition of anonymity, said after the failed Ron Johnson experiment by J.C. Penney, there is no way Wal-Mart will chose a CEO from outside its own team. Johnson, a former Apple and Target executive, was hired by J.C. Penney in a bold gamble to renovate the company’s format. Johnson was fired in early April by the J.C. Penney Board of Directors.

DUKE DEPARTURE
Rumors have swirled for months that the 63-year-old Duke would step down as CEO before the end of the year and his 64th birthday on Dec. 7.

Duke has not publicly acknowledged the speculation. He was recently asked by CNBC anchor Maria Bartiromo about future retirement plans. Duke smiled, somewhat blushed, and declined comment.

Consultants said the timing is ripe, if indeed Duke does decide to step down as CEO. If Duke walks away from his post early next year, his would be the shortest stint of a Wal-Mart CEO at five years, but certainly one of the most fruitful for investors. Wal-Mart has flourished under Duke’s leadership approaching a half trillion dollars in total annual revenue, a record stock price set earlier this year growing market cap by $70 billion since he took the helm in February 2009.

Most believe Duke will serve out fiscal 2014 which ends Jan. 31, with McMillon or perhaps Simon taking the helm to start fiscal 2015. Duke’s predecessor Lee Scott announced his retirement in November 2008 effective Feb. 1, 2009.

Scott’s predecessor, David Glass, resigned as Wal-Mart CEO effective January 2000 after 12 years in that role. Founder Sam Walton held the position until relinquishing it to Glass in January 1988.

Wal-Mart also holds its annual investor meeting in Bentonville next month, which would be an opportune time for the incoming CEO to meet with the investment world on Wal-Mart’s home turf.

If McMillon, 46, succeeds Duke he is set up for a long run, said Ellstrand. Simon at age 53 is also seven years younger than Duke when he assumed the role, he added.

THE FCPACOMPLICATION
The looming investigation into violations by Wal-Mart officials of the Foreign Corrupt Practices Act could also be a factor in the timing. Wal-Mart has repeatedly said it has no control over the length of that investigation into bribery and other alleged illegal actions in the company’s Mexican business unit.

This investigation is approaching the two-year mark, something Nicholas said is one of the factors likely to lead to management changes this year.

The investigation was expanded to include China, Brazil and India and is expected to cost Wal-Mart $310 million this year. Roughly half of that money goes to lawyers working on the FCPA matter and the other half is being spent on the retailer’s internal compliance protocol.

Duke has spent 19 years with Wal-Mart, overseeing the international division from 2005 to 2009. Much of that period is under scrutiny by the ongoing investigation.

The April 2012 New York Times article that broke the story alleged that CEO Mike Duke and former CEO Lee Scott knew of the bribery issues within its Mexican business as far back as 2006 and did not self report or investigate until the media was in the midst of researching the story.

Analysts with Raymond James & Associates and Goldman Sachs said at that time new senior management would likely come as a result of these investigations, which typically take between two and three years to complete. Wal-Mart Board Chairman Rob Walton vowed to shareholders in June 2012 to deal swiftly with any personnel connected to improprieties should they be uncovered in the investigation.

Also in the line of fire if the allegations ring true is Eduardo Castro-Wright, who retired from the company in July 2012. Castro-Wright was credited for an amazing run in expanding the company’s Mexican business segment during the period under investigation.

Earlier this year Tom Mars, former general counsel and chief administrative officer resigned abruptly from his post at the retail giant. He oversaw real estate, financial services in the U.S. and labor relations. The company gave no explanation for his exit.

Then in June, some seven months after Wal-Mart suspended some executives within its Bharti joint venture, the head of the Indian operations resigned. Wal-Mart confirmed then that Raj Jain, CEO of Bharti Walmart, was no longer with the company. Jain spent six years at that post with seven total years at the retailer.

Frank Vogl, one the nation’s top experts in corporate ethics, said Wal-Mart faced heightened media scrutiny over this investigation because of it’s own “proud ethics code.” He said whomever is the next CEO must walk the talk with respect to corporate ethics.

Consultants and analysts agree the next CEO at Wal-Mart must have no connection to these costly and potentially criminal allegations.

INTERNATIONAL EXPERTISE
Given the scope and magnitude of these FCPA investigations, consultants believe the next CEO of Wal-Mart will be one who is well-versed in the retailer’s global business interests.

McMillon has run the international division for more than three years, the last 18 months dealing head-on with these investigations and rolling out better internal controls against corruption in the future.

“That experience is huge for McMillon and he also has been schooled in the corporate culture having worked his way through the ranks and previously serving as CEO of Sam’s Club,” Ellstrand said.

During McMillon’s oversight, Walmart International has grown annual sales by 38.8% between fiscal years 2010 and 2013. Through half of fiscal 2014 annual sales rose 2.9% from the same period last year.

Simon does not have direct experience with Walmart International but he did serve a short stint as president of Global Business Development for Brinker International before joining the retail giant in 2006.

Duke and Scott had each run Walmart International before they were named CEO of Wal-Mart Stores Inc.

CULTURAL FIT
Retailers have a harder time than other companies in selecting CEOs that “stick,” according to a 2011 study by Russell Reynolds Associates. The average timespan for retail CEOs is five years, according to the study.

The study also found the main reason new outside CEO hires do not pan out is because of a “poor cultural fit.”

“There is no other job quite like CEO. But one pattern Wal-Mart has followed is promoting someone from within who speaks the culture,” Ellstrand said.

McMillon and Simon pass the culture muster given they have risen to the rank of CEO for Walmart International and Walmart U.S., respectively. The question for Wal-Mart’s board and its chairman Rob Walton is which candidate best personifies the corporate culture developed by Sam Walton and kept alive through the eyes of Glass, Scott and Duke.

Analysts said if McMillon is the next CEO, they like David Cheesewright as his logical successor over the international division. Duncan Mac Naughton is favored to assume CEO of Walmart U.S. should Simon move up.

The roads and rails were busier in August compared to July, but an economist with the American Trucking Associations’ says the increase in tonnage hauled may not accurately reflect national economic health.

The American Trucking Associations’ Truck Tonnage Index was up 1.4% in August after a a 0.6% dip in July. Year-to-date, the index is up 5% compared to the same period in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 131.3 in August, which was 1.5% above the previous month.

“The strength in tonnage continued again in August, with the index increasing in three of the last four months,” ATA Chief Economist Bob Costello said in a statement. “The improvement corresponds with a solid gain in manufacturing output during August reported by the Federal Reserve last week.”

Trucking serves as a barometer of the U.S. economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. 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.

Costello said the recent months of tonnage increases “is probably overstating the robustness of the economy” and health of the trucking sector.

“It just so happens that the sectors of the economy that are growing the fastest – in housing starts, auto production, and energy output, primarily through hydraulic fracturing – produce heavier than average freight, leading to accelerated growth in tonnage relative to shipments or loads,” he explained.

Costello also said truckload shipments are flat for the year, and less-than-truckload shipments are up less than 1.5% year-to-date.
 
The Cass Freight Index reported that shipments were up 1.7% in August, but freight expenditures were down 1.5%.

“The August decline is due more to the mix of commodities shipped in August than to lower rates. Despite this month’s decrease, 2013 expenditures are 3.4 percent higher than a year ago. Cumulatively, 2013 freight payments are up 3.6 percent,” according to Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., who provides economic analysis for the Cass Freight Index.

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.

Wilson said the 1.7% increase in August shipments compared to July support “the prediction that 2013 will have a peak holiday shipping season, even if it is little more than a bump in volume.”

The Cass report also noted that railroad traffic was up 6% in August compared to July, and intermodal shipments were up 6.5%.

Wilson said the trucking industry may soon face a problem of not enough equipment to meet demand.

“The trucking industry is still in a precarious balance, with over 95 percent capacity utilization and an abundance of regulatory and cost pressures that indicate a looming capacity problem. The tricky part is forecasting when demand will actually exceed capacity. The economy is growing slowly enough that the tipping point remains just on the horizon,” Wilson said.

The newly seated Board of Directors at Health Management Associates said Wednesday (Sept. 25) that it will seek a second opinion on a previously announced plan to sell the hospital company to Community Health Systems.

Naples, Fla.-based HMA is the parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren.

On July 30, HMA and Franklin, Tenn.-based Community Health announced that Community would acquire HMA in a deal valued at $7.6 billion. The deal, if it goes through, would likely close in the first quarter of 2014.

However, that deal was approved by an HMA Board that was ousted in a proxy fight pushed by New York City-based Glenview Management.

On June 25 Glenview formally requested that HMA shareholders vote for a complete overhaul of the HMA board of directors. Officials with Glenview said financial and structural problems at HMA were so deep that they believe a new Board was required to provide the experience to make changes. It was announced Aug. 12 that the board nominees submitted by Glenview, which owns 14.6% of HMA shares, had received more than 50% of shareholder support.

When the new board was named on Aug. 16, the new leadership promised a second look at the deal to sell to Community Health. That review has begun.

“In connection with its review, the Board has retained independent financial advisors, Lazard Frères & Co. LLC and UBS Securities LLC, legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP and financial operating and compliance consultant Alvarez & Marsal Healthcare Industry Group, LLC,” noted an HMA statement.

The associated filing with the U.S. Securities and Exchange Commission notes that the “Additional Financial Advisors is requested by the HMA board of directors to render an opinion as to the fairness, from a financial point of view, of the merger consideration to be received by the holders of HMA common stock ...”

If the decision is that it is not fair, HMA will terminate the agreement under a “company adverse recommendation change.” Such a change could lead to a hostile takeover attempt by Community Health or HMA would pay Community Health a $109 million termination fee.

The opinion from the advisors selected by HMA is to be issued no later than Nov. 19.

Glenview has said the $13.78 per share offer is too low.

Community Health agreed to the review, and both companies are moving forward with the formal process of preparing a proxy statement and prospectus related to the transaction for HMA shareholders to approve or reject.

HMA operates 71 hospitals in 15 states with approximately 11,000 licensed beds.

Shares of HMA (NYSE: HMA) closed Wednesday at $12.68, down 13 cents. During the past 52 weeks the share price has ranged from a $17.28 high to a $6.97 low.