Economic conditions for the Northwest Arkansas economy were stronger in the third quarter than in the previous three quarters, with employment and building permit numbers leading the way.

The third quarter 2013 grade of B+ was an improvement compared to the second quarter and unchanged compared to the B+ during the third quarter of 2012.

The quarterly Compass Report for Northwest Arkansas is managed by The City Wire. The report is the only independent analysis of economic conditions in the metro area.

Economist Jeff Collins, who conducts the data collection and analysis for The Compass Report, said impressive job creation numbers continue to be the story in Northwest Arkansas.

“The unemployment rate in Northwest Arkansas was the lowest in the state amongst all MSAs in September (5.2 percent). It was more than a full percentage point lower than that for the Little Rock/North Little Rock/Conway MSA (6.4 percent). The highest rate in the state was the Pine Bluff MSA at 9.4 percent. To add perspective, of the 372 MSAs in the country, only 23 posted rates above 10 percent in October and only 57 had rates below 5 percent,” Collins wrote in his analysis.

Continued growth in Northwest Arkansas has the potential to alter the state’s political landscape, according to Collins.

“The geographic differences in economic performance have very real implications for the distribution of population and wealth in the state. The Northwest Arkansas economy is quickly approaching two-thirds of the Central Arkansas economy. The implications for relative population are obvious,” Collins wrote. “Moreover, population correlates with political power. Should the current differential growth rates continue, the 2020 Census will lead to significant changes in relative representation in state government.”

Data collected for The Compass Report also suggest that state and national economic trends have been positive in the back half of 2013 – even with relative dysfunction within the federal government.

“Economic data, both at the local and national level in the third quarter was very encouraging, particularly the surprising growth in output. Even more encouraging was the rate of growth despite the lack of clear policy direction regarding federal spending. The primary concern continues to be weak labor markets,” Collins said.

Collins also provided an economic health summary of the state’s three largest metro areas.
• The Central Arkansas economy continues to underperform, in many ways reflecting the national economy.
• For the Northwest Arkansas economy, despite the rapid rate of growth there is no reason to believe that current growth rates are unsustainable. Look for momentum to continue for at least the four to six quarters.
• Despite continued erosion of manufacturing, the Fort Smith regional economy has been amazingly resilient. The uptick in growth bodes well for the regional economy.  Look for growth to continue through the next four quarters barring an unforeseen shock to the Fort Smith regional economy.

The 2013 third quarter economy in the central Arkansas area received a grade of C- meaning that economic conditions declined slightly compared to the third quarter of 2012 but were unchanged compared to the second quarter of 2013.

In the Fort Smith region, a third quarter 2013 grade of C+ was up compared to the second quarter of 2013 and an improvement over the C- in the third quarter of 2012.

NORTHWEST ARKANSAS
OVERALL GRADES — Northwest Arkansas regional economy (per quarter)
3Q 2013: B+
2Q 2013: B
1Q 2013: B
4Q 2012: C
3Q 2012: B+
2Q 2012: B-
1Q 2012: B-

DATA AND REPORT DOCUMENTS
Link here for the raw data used to prepare The Compass Report for the Fort Smith area, Northwest Arkansas and central Arkansas.

Link here for more narrative about regional and national economic conditions.

SECTOR DATA
CURRENT INDICATORS
Non-farm employment — A
Non-farm employment is well ahead of 2012 figures, with employment in the metro area at 222,900 in September compared to 211,700 in September 2012.

Goods-producing employment — C+
The decrease in manufacturing jobs as a percentage of the overall workforce helps diversify almost any metro economy. The percentage of manufacturing jobs in the overall workforce was 16% in September 2013, down from the 16.8% in September 2012.

This measure speaks to the risk in a local economy from being heavily weighted toward sectors that have been under economic pressure. One of the fundamental principles of reducing risk is diversification.

Metro area Unemployment rate — C+
The area unemployment rate, an important gauge in the health of the metro labor market, improved overall during the quarter. Unemployment in September was estimated at 5.2%, compared to 5.1% in September 2012. However, the third quarter of 2012 include a jobless rate higher than 6%, a level not reached during the 2013 quarter.

Sales and Use tax collections — B+
Sales tax collections in the region have shown steady gains since 2010. The tax collections, which are good indicators of regional consumer confidence, were up in Benton, Madison and Washington counties to $6.966 million during August 2013 — compared to $6.703 million in August 2012. Overall, collections were up for the quarter.

LEADING INDICATORS
Building Permit (housing) valuation — A
The total value of permits issued in the third quarter of 2013 (measured in a three-month rolling average) were higher than those in the first quarter of 2012. The rolling average in September was $37.314 million, ahead of the $27.791 million in September 2012.

Residential building is an indicator of current and expected population growth. As new households are created they induce growth in retail, education services, health care services and other types of businesses that provide goods and services to households. Also, new construction provides employment and tax revenues.

Hospitality employment — A
Hospitality employment in Northwest Arkansas has trended positive for several quarters. September 2013 saw 22,300 jobs in the regional hospitality sector, up from the 20,900 jobs in September 2012.

Growth in the hospitality and leisure sector as measured by growth in employment is included because of the emphasis on creating quality of place in local economic development initiatives.

Unlike enplanements/deplanements, which may or may not be tied to activity in restaurants, hotels, and cultural venues, hospitality and leisure employment most certainly are influenced by growth of these activities. Another possible measure is hospitality-related tax collections.

Manufacturing employment — C-
Manufacturing employment in the region was essentially flat during the quarter. Sector employment in September 2013 was 26,800, unchanged compared to September 2012.

Construction employment — B+
This sector, which includes mining/natural resources employment, saw gains in employment compared to the third quarter of 2012, ending September with 8,800 jobs, up over the 8,300 jobs in September 2012.

The rationale for including construction employment is similar to that for building permits. The employment measure is influenced by changes in both the residential and commercial real estate markets.

Obviously, new space implies new residents and new businesses.

Officials with Fort Smith-based OK Foods announced Thursday (Dec. 19) the withdrawal by the United Food and Commercial Workers Union (UFCW) of its petition for a union representation election filed Nov. 8, 2013.

As a result, the National Labor Relations Board cancelled the election scheduled to begin Dec. 18, 2013. 

According to the OK Foods’ statement, the union first targeted OK Foods employees for organizing at its Fort Smith poultry operations in 2012.

“The withdrawal clearly indicates the Union did not have the support it needed to win the election,” noted the statement. “Management of the company is very grateful to its employees for their support and confidence, and is looking forward to working together to make OK Foods a great place to work.”

A new high-rise building in Oklahoma City is likely to result in a higher utility bill for some Arkansas utility customers.

Oklahoma Gas and Electric confirmed reports that the company would abandon its current downtown Oklahoma City headquarters in order to be the anchor tenant of a new office complex to be built along Sheridan Avenue.

According to spokesman Brian Alford, the company is seeking to consolidate operations and moving into the new building, which he estimates could cost $100 million or more to build, would help the company accomplish that goal.

"Our current headquarters has served us very well for 85 years now, but the time has come to begin to plan for the future," he said. "Today we have more than 1,000 employees in the downtown Oklahoma City area and (they) are scattered in a lot of various locations. It creates a lot of inefficiencies. With this new home, we can put a lot of those employees under one roof."

But by eliminating the company's need to house employees in multiple locations throughout the downtown area, the company is likely to raise rates on its utility customers, he said. As for what those rate increases could be, Alford said that is to be determined.

"There are many variables and decisions that are still to be made. You'll have cost offsets and eliminations of other leases. In the end, the impact will be minimal on customer bills."

As no rate increases have been requested of the Oklahoma Corporation Commission or the Arkansas Public Works Commission, it is still to be determined just how minimal any impacts will be. Alford added that customers would likely see rate increases in three to five years, at the earliest.

The building, which OG&E will lease from Kestrel Investments, will sit at the intersection of Sheridan Boulevard and Walker Avenue. It is now the home of Stage Center, a defunct performing arts venue.

The height of the building has not yet been finalized, but Alford said the company's new headquarters was likely to be 16 stories tall, adding that the building is still in its design phase and heights could change. An initial application has been made with the Oklahoma City Planning Department that requests the razing of Stage Center.

Plans for the site also call for an additional smaller structure to possibly house a hotel. A parking garage will also be built at the site.

Alford said no plans have been made for what to do with the company's headquarters on North Harvey Avenue, but he said no matter what move the company made, the costs would be high.

"With our current facilities, if we stay in them, they are in dire need of investment. That investment is really an investment in continued inefficiency."

Should the company's new headquarters rise at the intersection, it would join Devon Energy Corporation as the second downtown employer to consolidate operations to one structure at the intersection of Sheridan and Walker. Devon's new headquarters, which opened in October 2012, stands at 50 stories tall and is the 39th largest building in the United States.

One the most widely successful research ventures out of the University of Arkansas was recently honored by R&D Magazine as its 2013 technology product of the year. On Thursday (Dec. 19), NanoMech execs unveiled the R&D 100 plaque which puts the Springdale-based nano technology firm in elite company.

NanoMech CEO Jim Phillips said the award ranks just beneath a Nobel Prize in the science world and signifies the firm’s TuffTek product is considered one of the country’s top technological innovations. The Tufftek product is a special coating that is used in industrial manufacturing applications. This patented coating reduces wear, heat resistance and improves precision for cutting tools.

UA Chancellor David Gearhart told the small crowd at the unveiling ceremony the R&D 100 award is considered the “Oscar of Innovation” and other past winners include the flash cube, the fax machine and High Definition television

“I think you all are in good company here,” Gearhart said to the NanoMech team.

Dr. Ajay Malshe, founder of NanoMech and the inventor of TuffTek technology, said this award brings honor and significance to decades of work and sacrifice of several individuals.

“For me, I go back to when I told my wife I wanted to mortgage our futures, come to this country (from India) to teach and explore nano technology. She was behind me,” Malshe said.

Years later he told his story to Jim Phillips who came on board to invest. Together, he said they approached the cities of Fayetteville and Springdale and the governor who all came on board to help this entrepreneurial venture flourish.

NanoMech was founded in 2002, from Malshe’s research at the UA, where he is professor of mechanical engineering. He thanked his mentor Dr. Wenping Jiang, the National Science Foundation and the Environmental Protection Agency for their contributions to the university research and Nanomech over the years. Gearhart said the university has received more than $575,000 in royalty payments from the profits generated at NanoMech since they licensed the products and acquired the patents in 2005.

NanoMech employs 35 professionals at its manufacturing labs in Springdale. These are high-paying jobs averaging $80,000 ,and 80% are UA graduates. Phillips said the company plans to add 10 more employees in the near future and routinely hires interns from the UA engineering and technology schools.

In July, when NanoMech first heard of this honor, Gov. Mike Beebe said nano technology is important for the state’s economic growth because of the impact it can have on manufacturing.

Phillips echoed those statements during his speech on Thursday. He said nano technology has the power to impact many areas, from pharmaceuticals to artillery, but the biggest winner is likely the manufacturing segment which produces durable goods and helps move the GDP needle in the right direction.

The third quarter of 2013 was positive for the Fort Smith regional economy, but Fort Smith and Van Buren hospitality tax collections began to slow for the first time in several years.

“Overall, growth has been relatively flat over the last couple of quarters based on tax collections. The data for fourth quarter should provide insight as to whether the most recent data was an anomaly or whether the sector is slowing in the Fort Smith metro,” said Jeff Collins, an economist who provides analysis for The City Wire.

Collections in Van Buren during the first 10 months of 2013 total $357,694, up just 0.16% from the $357,115 in the same period of 2012.

October collections were $35,425, up 1.6% from the $34,859 in October 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, continues to project flat revenue for the 2013 and 2014 budget based on the 10-month trend line.

“As this trend continues I think we will end the year dead even with last year. I'm projecting revenue to be flat for 2014. I don't see anything in the economic indicators to lead me to believe that there will be a substantial increase in consumer spending,” Koeth explained.

Collins noted that third-quarter Van Buren collections were down 1.5% compared to the same quarter in 2012.

During 2012, Van Buren hospitality tax collections totaled $425,554, up 5.2% compared to the 2011 collections. Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The 2011 collections ended a two-year skid in Van Buren.

FORT SMITH
Collections in Fort Smith for the first 10 months of 2013 totals $624,764, down 3.1% compared to the same period in 2012. Fort Smith hospitality tax collections have improved during each quarter. Collections were down 6.4% in the first quarter, down 1.6% during the second quarter, and down just 0.5% in the third quarter.

October collections were $63,828, down 5.8% compared to October 2012. The city collects a 3% tax on lodging.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said October occupancy was down 5%.

“Overall Fort Smith saw a decline in occupancy for the month of 5%, however our average daily rate saw an increase of 3%. Arkansas overall for the month saw a decline of 2% in occupancy but an increase of 1.7% in average daily rate. Little Rock saw a decline for the month of 7.9% but their average daily rate was also up 3.4%. So while we are all seeing less occupancy, our rate is holding nicely and even increasing,” Legris explained.

Legris said the Fort Smith Convention Center held more events in October

However, Collins noted that Fort Smith hospitality tax collections during the third quarter of 2013 were down 0.55% compared to the same quarter in 2012.

“Until recently, the hospitality industry in Fort Smith, as measured by hospitality related tax collections, had shown continual improvement since Q2 2009 (based on a quarter-on-quarter comparison). Tax collection data for the last two quarters indicate the sector has slowed,” Collins wrote in his analysis.

During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period.

REGIONAL, STATE DATA
Employment in the Fort Smith regional tourism industry was 9,400 during October, unchanged compared to October and above the 9,000 in October 2012. The sector reached an employment high of 9,800 in August 2008.

Arkansas’ tourism sector (leisure & hospitality) employed 102,600 during October, up from 101,900 during October, but below the 103,400 during October 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

Arkansas’ 2% tourism tax receipts totaled $9.943 million for the first nine reporting months of 2013, up 3.12% compared to the $9.641 million during the same period of 2012.

Arkansas’ 2% tourism tax receipts totaled $12.405 million during 2012, up 3.16% compared to the $12.025 million during 2011. The gains marked the third consecutive year of improving tourism tax revenue.

The NWA StartUp Cup announced its 2013 winners during a celebration held Thursday morning (Dec. 19) at the Bentonville Public Library.


The three finalists come from a list of more than 30 entrepreneurs who originally entered the business model competition that encourages any entrepreneurs with any idea to participate. The winners include:
• 1st place: Rob Turner with Turner Light Covers, which is a company that offers a new, uniquely designed mounted recessed light cover.

• 2nd place: Jared and Sunniva Ritter with Solgave Animal Solutions, a socially-conscious company founded upon four pillars: nature, animals, balance and healing. SAS offers professional pet sitting, house sitting, dog walking, behavior modification, and a variety of other pet-related services.

• 3rd place: Mike Gillespie with Storage in Motion, which is a company that plans to produce a line of superior products for safely and responsibly storing firearms in vehicles and homes.

The winners will receive free professional services with value amounts varying based on how they placed in the final competition. First place will receive up to $7,500 in free services, $5,000 for second place and $2,500 for third place.

Event organizers will meet with the individual winning companies in coming weeks to determine their specific needs and connect the entrepreneurs with a network of professionals volunteering their time and talents for the competition.

The top three winners will also receive a free photo shoot and the first-place winner is eligible to submit an entry to compete in the World StartUp Cup in Yerevan, Armenia this March.

Turner, who earned the top spot said he was determined to maintain a positive attitude throughout the entire process.

“The most helpful aspect was being able to better understand what is necessary to take my business to the next level,” he said.

Sunniva Ritter said that for her and husband Jared, the most valuable aspect was becoming more focused in their business in regards to what services they offer. They also were able to better differentiate between their business model and goals for a non-profit organization that gives dogs a “second chance” with behavior modification and rehabilitation.

Mike Gillespie said he appreciated being “exposed to a lot of different approaches” to the business and that it was “eye-opening” to see the different way ways that he could take his business to market.

The celebration included comments from Daniel Hintz, former director of Downtown Bentonville Inc. and self-proclaimed serial entrepreneur. He spoke of the hardships and joys that accompany entrepreneurialism.

“It’s your company, your beliefs, your philosophy,” he said in regards to the need for personal and professional branding.

Amy Robinson, director of strategic partnerships and event production with StartUp Cup, also spoke at the celebration.

“We’re solving the challenges we encounter right in front of us,” she said of entrepreneurs all over the world. “This is what you’re a part of on a global scale.”

Prepping for more growth in downtown Bentonville, the Duck Dynasty controversy and its potential impact on Wal-Mart, and the potential loss of a corporate headquarters are part of the Northwest Arkansas Friday Wire for Dec. 20.

NOTES & ANALYSIS
• Building upon success
There are fewer farms in and around Bentonville these days, but city officials haven’t forgotten the old farm saying, “Make hay while the sun shines.” Bentonville, buzzing with dizzying economic activity thanks to Wal-Mart, the vendor community and fancy (relatively) new world-class art museum, has more room to grow.

Bentonville Mayor Bob McCaslin and other city officials recently unveiled a redevelopment plan that encompasses the southeastern quadrant of the 18-acre downtown area. McCaslin said the city’s role in this process is to the put out vision which can be supported with infrastructure investment in roads, sidewalks and sewer. He said it will be private investment that will shape the final outcome, much like has happened on the town square.

Kudos to McCaslin and city staff for their efforts to plan ahead.

• Corporate loss?
Hopes are fading fast for those who wished Siloam Springs-based Allens Foods could emerge from bankruptcy and remain based in Northwest Arkansas. Allens, which filed for bankruptcy on Oct. 28, has agreed to an asset purchase deal valued at $148 million with Seneca Foods Corp. out of New York.

If the deal goes through, and it’s likely it will, it’s doubtful Seneca will need a second corporate office location. It will be interesting to see what will remain of Allens operations in Arkansas and Allens corporate jobs in Siloam Springs.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Wal-Mart shareholder lawsuit allowed to proceed
A shareholder-derivative lawsuit against Wal-Mart Stores and key officers of the global retailer may move forward, according to an opinion issued Wednesday (Dec. 18) by a three-judge panel with the 8th U.S. Circuit Court of Appeals.

• ‘Save Your Do’
Obesity is a growing health epidemic in the U.S., and according to federal statistics roughly four out of five African American women are overweight or obese.

• Tourism award nominees
The nominees for the 2014 Henry Awards have been announced, with several cities and groups from the Fort Smith and Northwest Arkansas areas making the list.

NUMBERS ON THE WIRE
$575,000: Royalty payments to the University of Arkansas from profits generated by NanoMech which sells nanotechnology-based products developed by UA researchers.

$44,000: The total amount of misspending allegedly committed by Lt. Gov. Mark Darr, R-Ark., according to an Ethics Commission report released Wednesday (Dec. 18). Darr told reporters as he left a hearing on the matter in Little Rock that he would not resign from the state's No. 2 Constitutional office.

37.5%: Percentage of respondents to a survey by CardRatings.com who have had the same credit card for at least 10 years.

40%: Percentage of Arkansas business leaders in the inaugural Talk Business "Business Leaders Confidence Survey" who expect significant or slight employee hiring. 35% see no change, while 24% expect a slight decline in headcount.

OUTSIDE THE WIRE
• What will Wal-Mart do with Phil Robertson?
The big box giant is responsible for about 50% of this year’s incredible $400 million in Duck Dynasty-related retail sales, with Phil Robertson’s mug (along with his bearded relatives) gracing its bestselling t-shirt in both men’s and women’s apparel. Some Walmart stores in the south feature entire aisles devoted to the Louisiana duck hunters, selling everything from bedding to prayer devotionals adorned with their trademark camouflage and folksy catchphrases.

• Expanding Sam’s Clubs in China
Wal-Mart Stores Inc.'s China chief executive is looking to shake up operations in one of its toughest markets with an amped-up effort to sell Sam's Club warehouse stores to Chinese, among other measures. So far, the Bentonville, Ark., retailer has focused mostly on rolling out Wal-Mart-branded stores.

• Why Al Jazeera America Doesn’t Care About Its Low Ratings
In the five months since its August 2013 debut, Al Jazeera America has already lost more than half the viewers of its notoriously low-rated predecessor, Current TV. The network’s ratings crested at a measly 18,000 average daily viewers and have since fallen to just 13,000, a number the media has gleefully and repeatedly pointed out as pathetic.

WORD ON THE WIRE
“There has been so much to learn with this Wal-Mart venture. Even though I have a business degree from University of California Berkley, I sometimes feel like an idiot. I will say coming in through the supplier diversity and woman’s empowerment doors, we have received a great deal of help along the way.”
– Jill Osur, CEO of Save Your Do, a small supplier to Wal-Mart Stores Inc.

“We continue to draw investment from inside and outside the region, today I attended an opening of a new restaurant (Taziki’s) in town. The owners are from Pulaski County, who spent some time in town and liked what they saw here. This makes their fifth restaurant in the state.”
– Bentonville Mayor Bob McCaslin on the city’s plans for more development in the downtown area

“Most of my clients want to add square footage. I had a call today from a lady who is retiring and wants to add 600 square feet to her home. Right now I am finishing up another master bedroom suite addition.”
– Steve Abshier, president of Abshier Construction in Rogers, about the growth in home renovation jobs in Northwest Arkansas

The passing of esteemed lawyer Eddie Christian Sr., the potential for a medical school in Fort Smith and learning the rules when running for elected office are part of the Dec. 20 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• A potential big deal
The folks at the Fort Smith Regional Healthcare Foundation dropped some big news this week about their plans to land a osteopathy medical school in Fort Smith. Priming the financial pump for the proposed project would be Some of the revenue from the 2009 purchase of Fort Smith-based Sparks Health System. If built, the medical school could generate an up to $100 million a year economic impact.

Several hurdles face the project, but none appear too high. Barring any procedural or financial surprises, such a school could see its first group of students by the fall of 2015.

It sure would be nice to see such a school – with up to 600 students once fully operational – locate somewhere in downtown Fort Smith.

• Learn the rules
One of the frustrating aspects of covering Arkansas politics is watching candidates for legislative or local seats get in trouble with simple financial reporting rules and other aspects of running for office. Arkansas’ rules are not complicated, but each year several candidates around the state find a way to color outside the lines, so to speak.

To help with that process, the University of Arkansas at Fort Smith is planning to hold a “So You Want to Get Elected” workshop on Jan. 24-25. Among the speakers are former Arkansas House Speaker Shane Broadway, Sen. Joyce Elliott of Little Rock, UAFS Political Science Professor Williams Yamkam and Clint Reed, a partner at Impact Management Group in Little Rock.

When it comes to following basic election rules in Arkansas, ignorance is no excuse.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Foundation seeks to build medical school in Fort Smith
Some of the revenue from the 2009 purchase of Fort Smith-based Sparks Health System could be used to help build and operate a medical school in Fort Smith and generate an up to $100 million a year economic impact.

• Van Buren pay raises
Employees and elected officials in the city of Van Buren will take home a larger pay check next year after the Van Buren City Council formally approved the city's fiscal year 2014 budget and a separate ordinance dealing with elected officials' salaries.

• Tourism award nominees
The nominees for the 2014 Henry Awards have been announced, with several cities and groups from the Fort Smith and Northwest Arkansas areas making the list.

NUMBERS ON THE WIRE
45: The number of years Eddie Christian Sr. practiced law in Fort Smith. Christian, a Fort Smith-based attorney known in wide legal circles as one of the best defense attorneys in the nation, died following a fight with cancer. He was 72.

$10.9 million: The approved budget of the Ben Geren Aquatics Center, nearly $3 million over original estimates presented to Fort Smith voters when they went to the polls in May 2012 to approve funding the city's $4 million half of the project.

$44,000: The total amount of misspending allegedly committed by Lt. Gov. Mark Darr, R-Ark., according to an Ethics Commission report released Wednesday (Dec. 18). Darr told reporters as he left a hearing on the matter in Little Rock that he would not resign from the state's No. 2 Constitutional office.

40%: Percentage of Arkansas business leaders in the inaugural Talk Business “Business Leaders Confidence Survey" who expect significant or slight employee hiring. 35% see no change, while 24% expect a slight decline in headcount.

OUTSIDE THE WIRE
• What will Wal-Mart do with Phil Robertson?
The big box giant is responsible for about 50% of this year’s incredible $400 million in Duck Dynasty-related retail sales, with Phil Robertson’s mug (along with his bearded relatives) gracing its bestselling t-shirt in both men’s and women’s apparel. Some Walmart stores in the south feature entire aisles devoted to the Louisiana duck hunters, selling everything from bedding to prayer devotionals adorned with their trademark camouflage and folksy catchphrases.

• Why Al Jazeera America Doesn’t Care About Its Low Ratings
In the five months since its August 2013 debut, Al Jazeera America has already lost more than half the viewers of its notoriously low-rated predecessor, Current TV. The network’s ratings crested at a measly 18,000 average daily viewers and have since fallen to just 13,000, a number the media has gleefully and repeatedly pointed out as pathetic.

WORD ON THE WIRE
"Write it off as a campaign expense. That's what I would do. And (finding out) how to account for and how to find the information about your campaign financing would be worth that $125."
– Fort Smith City Director Keith Lau, speaking about how a "How to" workshop such as the University of Arkansas at Fort Smith's upcoming "So You Want to Get Elected" would be beneficial to any interested person thinking about entering the political arena.

"My performance is based on actual accomplishments. We have a strategic plan with specific objectives that we are judged by, particularly me. So at the end of the year, if we met those, then I request a bonus based on meeting those objectives."
– Ivy Owen, executive director of the Fort Chaffee Redevelopment Authority, explaining why he had requested a $25,000 bonus

“By and large, they (bank customers) are optimistic, but everybody seems to be guarded somewhat. It is improving, but we all know of the issues out there for 2014 that remain unsettled and uncertain. No one is going to throw a party, but what we are hearing is encouraging.”
Joe Edwards, president of Fort Smith-based Benefit Bank, about what bank customers are saying about their economic expectations for 2014

Arkansas’ jobless rate was 7.5% in November, unchanged compared to October, but above the 7.2% in November 2012. Arkansas was one of just seven states to post a year-over-year jobless rate increase.

The report issued Friday (Dec. 20) by the U.S. Bureau of Labor Statistics also shows the continuance of three negative economic trends for Arkansas: a decline in the size of the workforce, a decline in the number of employed, and an increase in the number of unemployed.

Arkansas’ labor force was an estimated 1.325 million in November, up slightly compared to October, but down 1.69% compared to November 20102. The year-over-year comparison shows almost 23,000 fewer in the Arkansas labor force.

The number of employed in Arkansas during November was 1.226 million, above October employment of 1.221 million, but down 2.02% compared to the 1.251 million in November 2012. The number of employed in Arkansas has dropped by 25,369 between November 2012 and November 2013.

The number of unemployed was an estimated 99,064 during November, down from the 99,760 in October, but up  2.67% compared to the 96,486 in November 2012.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to 7.3% during 2012. Also, November marked the 58th consecutive month that Arkansas’ jobless rate has been at or above 7%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during November was an estimated 252,300, down from 254,100 in October and well ahead of the 248,500 during November 2012.

Manufacturing jobs in Arkansas during November totaled 154,700, down from the 155,100 in October and below the 155,200 in November 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 November was 215,200, up from 215,000 in October and below the 216,300 during November 2012.

The state’s Education and Health Services sector during November had 176,600 jobs, up from the 176,200 during October and up from 173,300 during November 2012. Employment in the sector is up more than 25% compared to November 2003.

Arkansas’ tourism sector (leisure & hospitality) employed 103,600 during November, up from 103,000 during October, and above the 103,200 during November 2012. At a revised 103,700, January 2013 marked a new employment high in the sector.

NATIONAL DATA
The BLS report also noted that 42 states had unemployment rate decreases from a year earlier, 7 states had increases, and one state had no change. The national jobless rate during November was at 7%, and was down from the 7.8% in November 2012.

Nevada and Rhode Island had the highest unemployment rate among the states in November at 9%. The next highest rate was in Michigan with 8.8%, followed by Illinois at 8.7%. North Dakota again had the lowest jobless rate at 2.6%.

The November jobless rate in Oklahoma was 5.4%, down from 5.5% in October and up from 5.1% in November 2012.

Missouri’s jobless rate during November was 6.1%, down from 6.5% in October and down compared to 6.6% in November 2012.

Clark Partners Realty Group announced that Scott Cook has been awarded the Accredited Buyer’s Representation designation by the National Association of Realtors.

Cook joins more than 30,000 real estate professionals in North America who have earned the ABR® designation. All were required to successfully complete a comprehensive course in buyer representation and an elective course focusing on a buyer representation specialty.

Lowell-based J.B. Hunt Transport Services has morphed into a widely diversified logistics provider in recent years with calculated expansions in its intermodal division and substantial investments last year in the dedicated contract services division.

But as 2013 winds to a close, the transport giant announced management shifts and a $130 million investment to its laggard truckload division in 2014.

TALENT SHIFT

Hunt said last week that Shelley Simpson, chief marketing officer and president of Integrated Capacity Solutions, has been placed into a strategic leadership role of its truckload division as she maintains her current responsibilities.

Greg Breeden also was recently hired as the senior vice president of the division’s marketing and network operation. Breeden returns to J.B. Hunt after leading Crete Carrier Corporation’s national sales, marketing and customer service team for over 20 years. His responsibilities will include establishing network pricing, lane density and geographical customer network development.

Steve Rogers, vice president of operations, has transferred from the dedicated contract services business unit to assist in establishing the operational discipline necessary to turn the truckload unit into a consistently profitable business, according the recent company release.

Chief operating officer Craig Harper will focus his efforts on operational service levels across all business units, overall driver recruiting and retention, further developing the safety culture as well as remain responsible for fuel purchasing.

Analysts generally approve of this shift in management.

“The company is increasingly becoming a provider of logistics solutions for its customers. Shelly Simpson is driving the effort and is providing strong leadership in sales and marketing plus the integrated capacity solutions unit,” said John Larkin, analyst with Stifel Nicolaus. (Stifel conducts investment banking services with J.B.Hunt and is compensated accordingly for those services.)

Larkin said it makes sense for Simpson to lead Hunt’s “long suffering truck unit as some ICS customers prefer JB Hunt to provide its own truckload services as a component of integrated solutions."

“While the truck unit, at its reduced size, will never be all things to all people, it can be a valuable arrow in Simpson’s quiver as she and her teams work to continuously optimize the supply chains of the company's customers,” Larkin, who is neutral on these shares shares, noted in a email.

Ben Hearnsberger with Stephens Inc. noted in an email, “We like Shelley Simpson, the new head of the TL division and think she will do a good job.”


FUNDING GROWTH
Aside from the added talent, Hunt said the $130 million it plans to spend in its truckload division next year will be used to support what it believes will be a 2-year turnaround in this laggard division. The expenditure will “support our strategic vision while expecting to reduce operating costs’ throughout 2014 with more operational discipline," the company said.

Overall, J.B. Hunt has planned a robust capital expenditure plan for 2014 nearing $700 million which is a 15% increase in the firm’s annual interest expense. The company has earmarked $304 million in replacement cost expenditures, with a $100 million going to the truckload division this year. Another $33 million will be channeled into the truckload division to support its growth objectives which include a 100 basis point uptick in the division’s operating margins in 2014, while maintaining flat truck count, flat revenue per truck and a 10% improvement in utilization, according to the company’s 2014 outlook.

As of September 30, J.B.Hunt reported assets worth $161 million in its truckload division, shrinking from $185 million as the end of 2012. The other three divisions within Hunt each grew assets by an average 13% during the same period.

Hunt said it will dole out $65 million in intermodal container replacements and ante up $212 million to support the division’s growth to some 6,500 containers. This division is expected to see a 10% to 14% load growth in 2014.

The dedicated contract services division will get $139 million in replacement capital expenditures and $103 million to support the growth this division which is expected to range between 10% and 12% from new contract and its growing Final Mile services.

The integrated brokerage division continues its growth with 2014 expectations of an 18% to 20% revenue bump driven by 11 new branches and the hiring of 150 to 180 new people and will benefit from the $48 million the firms spends on technology and facilities in 2014.

TRUCKING TURNAROUND
J.B. Hunt’s recent focus to turnaround its laggard truckload division is an about face for the firm that has de-emphasized its legacy operation for past several years.

In the most recent quarter at the end of September the firm’s truckload business continued its retreat as revenues dropped 17% year-over-year and operating income fell 84% from the year-ago period. The unit contributed just 7% of the company’s overall revenue in the third quarter and just a meager 1% of the company’s operating income. Comparable pricing dropped 1.7% year over year while utilization dropped about 0.5% when measured in terms of total miles per average number of trucks in the fleet, according to Stifel Nicolas.

The empty mile percentage stood at 14.2% in the third quarter and the size of the fleet shrunk 18% from the year-ago period.

“One has to wonder if the company would shut down or sell off its underperforming truck division at some point, especially as integrated capacity solutions grows its capabilities to provide a broader range of comprehensive truckload services to customers,” Stifel analysts noted following the dismal quarter results on Oct. 15.

Stephens Inc. noted Oct. 15 that J.B. Hunt’s truckload division was facing several issues negatively impacting its revenue. Brad Delco, analyst with Stephens, said the truckload segment was suffering from two primary issues – it’s volumes were being cannibalized by the company’s intermodal segment, as well as significant costs related to driver recruitment and retention issues a soft rate environment.

“Looking ahead, we do not expect the current pressures facing truckload to abate and we have tempered our expectations for the segment. Our new full year revenue estimate of $397.5 million is now 17.8% below fiscal 2012 for this segment,” Delco notes. Stephens Inc. gives J.B. Hunt an “overweight” or “buy” ranking at this time.

However, Delco downsized the truckload segment’s earnings before interest and taxes estimates to $5 million for this year, shaving $6 million from the firm’s predictions prior to the third quarter results.

Shares of J.B. Hunt Transport Services rose nearly 1% by noon on Monday, (Dec. 23). The shares were trading at $77.18, up 74 on light volume. The stock is up 4.87% during this fourth quarter. For the past 52 weeks shares have ranged from $58.12 to $78.65.

November data from two prominent transportation trackers continue to show a national economy that is improving but not with impressive gains.

The American Trucking Associations’ Truck Tonnage Index was up 2.7% in November after a 1.9% dip in October. The October decline was revised from an initial estimate of 2.8%. Year-to-date, the index is up 5.8% compared to the same period in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 122.4 in November, which was 8.8% below the previous month.

“Tonnage snapped back in November, which fits with several other economic indicators,” ATA Chief Economist Bob Costello said in his report. “Assuming that December isn’t weak, tonnage growth this year will be more than twice the gain in 2012.” 

Tonnage, as measured by the ATA, increased 2.3% in 2012.

Costello said strong tonnage gains in the second half of the year suggest the economy is better than some may believe.

“Still, truck tonnage continues to be supported by fast growing sectors of the economy that generate heavy freight loads, like residential construction, fracking for oil and natural gas, and auto production,” Costello said.

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.

North American shipments in November measured by the Cass Freight Index were down 1% compared to October, but were 1.1% above November 2012 and 4.6% higher than November 2011.

“Stronger–than-expected manufacturing activity and shipments of seasonal goods offset a general slowing of freight movements to temper the drop in shipment levels,” noted 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. “Expenditures rose just slightly, largely because of a surge in spot market rates the last week of the month.”

The Cass report also provided the following points about shipments in November.
• The weekly railroad traffic reports from the Association of American Railroads showed carload shipments up 2.7%, but inconsistently – up two weeks and down two weeks.

• Intermodal shipments slowed over the month, posting a 1% year‐over‐year gain in November after rising 2.5% in October.

• Refrigerated loads surged in the final week of the month due to the Thanksgiving holiday

• Given the current high levels of inventory, it is not surprising that the number of shipments is not growing – even in spite of the anticipated 3.9% rise in holiday sales over last year.

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.

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 is not as optimistic as Costello about economic conditions.

Wilson noted in her report: “We’re seeing mixed economic signals as we approach the end of the year. Many indicators have improved during the last several months, including new home sales, new jobs, new export orders, and manufacturing production, new orders and backlog. Exports rose in recent months, but largely based on the strength of oil product exports. Container exports and imports, largely aimed at the consumer market, have trended downward. Despite the better than expected third quarter GDP, the fourth quarter will not be as strong. December is likely to provide a weak finish to a relatively weak 2013 for the freight industry.”

Aldi recently announced a five-year, $3 billion, strategic plan to open 650 new stores across the nation. The grocery retailer also said it will build a regional headquarters and distribution center in Moreno Valley, Calif., as part of its plan to stretch the Aldi footprint from coast to coast.


The grocer discounter’s plan is to open 130 new Aldi stores over the next five years, ramping up from the 80 or so openings averaged in recent years in an attempt to gain share in an already crowded grocery market amid Wal-Mart’s aggressive Neighborhood Market build out.


"We're ramping up our expansion plans to meet growing demand for Aldi from customers across the country," said Jason Hart, president. "Recently, we successfully entered new markets such as Houston, and expanded our presence in competitive markets like South Florida and New York City.  At Aldi, we believe that great quality can be affordable, and we are eager to bring the Aldi difference to new markets like Southern California."


When the expansion is complete, Aldi will have stores coast-to-coast and anticipates serving more than 45 million customers per month. While that is a fraction of the 200 million shoppers who visit Wal-Mart each week, Aldi’s low prices, small format and quality guarantee resonate well with bargain seekers like Tommy and Kelly Davis of Forney, Texas, a bedroom community located southeast of Dallas.


The couple shops Aldi each week for their groceries, choosing the values and freshness of Aldi products over discounter Wal-Mart and regional full service grocer Brookshires.
The couple said the values are great, particularly in fresh produce and dairy. They also love the treasure hunt possibility with the deep closeout items that randomly show up in the store as well.


Aldi said its growth is accelerating because of its unique business model that lets smart shoppers save up to 50% on more than 1,300 of the most commonly purchased grocery items, including nearly 70 varieties of fresh fruits and vegetables, without the hassle of clipping coupons or buying in bulk.



“I think Aldi will be very successful with this expansion, although I’m a little surprised by the aggressive pace of store openings planned.I believe they’ll be successful because they really have no direct competitors in their niche,” said Jason Long, a retail analyst and CEO of Shift Marketing Group.

He said Dollar General and Family Dollar are adding food, and are competitive on price, but Aldi’s has a broader assortment of items.

“Another advantage to Aldi is their small store size, as Boomers continue to age they’ll value taking fewer steps inside an Aldi’s or Dollar Stores. It all adds up to more pressure on Wal-Mart to keep the footsteps they have and to prevent consumers from fleeing to Aldi, Dollar Stores, etc.,” Long added.


A broad market survey by Market Force Information for the past three years has shown Aldi as the consumers’ choice for the affordable price leader in the U.S. and Canada. An annual report by Kantar Retail released in October found Aldi trailed Dollar General, Wal-Mart and Family Dollar in their opening price basket study, which looked at the lowest price point available in 21 categories across the entire grocery segment, including health and beauty aids.


However, Kantar found that Aldi recorded the lowest edible grocery basket across the retailers surveyed. The edible food items totaled $11.40 at Aldi, $13.20 at Dollar General and $14.18 at Wal-Mart.


Driving its lead position, 90% of edible grocery items in Aldi’s basket were private label and priced under $2. The edible grocery sub-basket included 10 staple items: cereal, dry spaghetti, canned tuna, bread, half gallon of milk, peanut butter, canned vegetable, ketchup, pasta sauce and eggs.

Since opening its first store in 1976, Aldi has achieved steady growth entirely through organic expansion to nearly 1,300 stores across 32 states. Supermarket News ranks Aldi as the 25th largest grocer in the nation with more 25 million customers each month.


"When we open a new store, word of mouth about the amazing quality and freshness of the products available at Aldi spreads quickly from loyal shoppers to friends and neighbors. While new customers are sometimes surprised that Aldi  doesn't look or feel like other grocery stores, once they learn how our efficiencies directly impact their savings at the register, they embrace the Aldi way of grocery shopping," said Hart.


Aldi generates savings for its customers through a low-overhead, focused approach that includes volume purchasing of 1,300 of the most common grocery items in the most popular sizes, which it sells at sizable discounts to other retailers.


Private label comprises more than 90% of the grocery products at Aldi, which is backed by a satisfaction guarantee that includes a replacement product and a full refund.


"We've updated our new store design to be brighter and more welcoming than ever before," said Hart. "And we continue to increase our healthy food options, including fresh produce, meats, dairy and baked goods. Our Fit & Active line offers a number of foods that have less fat and sodium, and fewer calories, and we are preparing to introduce our new SimplyNature line of natural and organic foods.”

Long said as more consumers are slowly learning that Aldi is owned by the same company as Trader Joe’s which gives Aldi a little more cachet than in the past.

“The model of deeply discounted groceries and heavy private label is a model that could have been a winner for Wal-Mart. It could have co-existed nicely with Wal-Mart’s current grocery strategy which is still largely a branded house,” Long said.

Fort Smith has been named the fifth-place western town on True West Magazine’s 2014 Top Western Towns.

Dodge City, Kan., won the top award. The towns will be featured in the February 2014 issue, which is scheduled to go on newsstands on Jan. 7.
 
Magazine editors listed the following as some of the reasons for Fort Smith’s western heritage.
• The ghost of Judge Isaac Parker is still around, in places like the “Hell on the Border” jail, a replica gallows, Judge Isaac Parker’s courtroom and a slew of exhibits on outlaws and lawmen at the Fort Smith National Historic Site.

• The Fort Smith Museum of History, located in the 1907 Atkinson-Williams Warehouse Building, holds the original furnishings of Judge Parker, as well as information on legends such as Deputy U.S. Marshal Bass Reeves.

• A good place to start a visit is Miss Laura’s Social Club, a former sporting house that now serves as the town’s official visitors center. The gracious, two-story Victorian “hotel” was the first brothel to be listed on the National Register of Historic Places.

“Fort Smith is a legendary name and place,” True West Executive Editor Bob Boze Bell, said in a statement. “So much Old West history is tied to the town — and is preserved for modern visitors to see. Fort Smith is more than worthy of the designation as a Top Western Town.”

This is the ninth year True West has presented this annual award. Editors base their selection on criteria demonstrating how each town has preserved its history through old buildings, museums and other institutions, events, and promotions of historic resources.

U.S. consumers continue to shift their purchases to online venues with comScore reporting that online sales were up more than 10% through Dec. 22. And while the online volume caught retailers and shippers off guard, the level is below what some expected.

Reston, Va.-based comScore, one of the top global companies in digital measurement and Internet analytics, reported Thursday (Dec. 26) that online sales for the period between Thanksgiving and Dec. 22 totaled $42.75 billion, up 9.86% compared to the $38.912 billion during the same period in 2012.

IBM Digital Analytics estimated that online sales were up 37% during the full final shopping weekend before Christmas. Forrester Research had estimated that online sales for the 2013 holiday season would be up 15%. According to the U.S. Department of Commerce, online sales are about 6% of overall U.S. retail sales, with the National Retail Federation estimating that online sales are about 14% of holiday sales.

DOUBLE-DIGIT GAINS
comScore Chairman Gian Fulgoni said he was surprised by softer-than-expected sales in the final holiday shopping week.

“Our expectations for the online holiday shopping season anticipated that consumers would spend heavily later into the season out of necessity to make up for the highly compressed holiday shopping calendar this year,” Fulgoni said in a statement. “Unfortunately that was not in the cards, as the final online shopping week saw considerably softer sales than anticipated, including zero billion dollar spending days – although Monday and Tuesday came close.”

Despite missing expectations, comScore’s comparison showed double-digit gains on the four notable shopping days of the season.
• Thanksgiving Day (Nov. 28): $766 million in online sales, up 21% compared to 2012
• Black Friday (Nov. 29): $1.199 billion, up 15% compared to Black Friday 2012
• Cyber Monday (Dec. 2): $1.735 billion, up 18% compared to Cyber Monday 2012
• Green Monday (Dec. 9): $1.401 billion, up 10% compared to Green Monday 2012.

Wal-Mart Stores, the largest global retailer, said its Cyber Monday online sales were the most in company history. The company said it processed more than 1 billion pageviews between Thanksgiving and Cyber Monday (Dec. 2).

Business for Amazon – the biggest competitor for Wal-Mart Stores and other traditional retailers – said more than 36.8 million items were ordered on Cyber Monday, or more than 426 items per second. Amazon officials said it was a record for the company.

Interest in the company’s Amazon Prime membership – a program that offers unlimited and free two-day shipping for an annual fee of around $79 – was so robust that at times Amazon limited access to the program so as to not negatively impact service to existing Prime members.

SHORTER SALES PERIOD
The 2013 holiday season, according to comScore, had 10 days with more than $1 billion spending, which was down from last year's total of 12 individual days. The comScore statement noted that there were six fewer days of online shopping in 2013 compared to 2012.

“In the end, I think we'll look back at this online holiday season as one where absolute dollar sales gains in consumer spending were held back by heavy retailer price discounting that occurred in an attempt to stimulate consumer demand, while at the same time, consumers weren't willing or able to increase their spending rate to fully compensate for the six-day shorter shopping period between Thanksgiving and Christmas,” Fulgoni said in the statement.

Sales between Nov. 1 and Dec. 24 were up 2.3%, according to a MasterCard Advisors' SpendingPulse report. The report, released Thursday (Dec. 26), noted that sales during a similar period in 2012 were up just 0.7%.

Sarah Quinlan, senior vice president at MasterCard Advisors, said in this Reuters report that jewelry was the best-performing category. SpendingPulse tracks customer spending on apparel, electronics, jewelry, luxury and home furniture & furnishings categories during the holiday season.

The comScore statement listed the top five retail categories for online purchases. The top category was video game consoles and accessories, followed by apparel and accessories; consumer electronics; computer hardware; and home and garden.

SHIPMENT DELAYS, GIFT CARD SALES
While the sales were below comScore’s expectations, the volume of goods purchased online proved more than many retailers and shippers expected.

UPS, which reportedly delivers about 45% of all U.S. packages, said its Monday air network volume exceeded the 7.75 million units the company expected. The company noted in a statement: "The volume of air packages in the UPS system did exceed capacity as demand was much greater than our forecast.”

Wal-Mart Stores, Amazon, Target and many retailers were unable to meet all shipment promises as a result of the surge of last-minute online purchases. Amazon offered a $20 gift card and refunded shipping costs for customers who did not get packages before Chirstmas. Kohls said it would pay the full cost of products not shipped in time.

In addition to an increase in online sales, consumers also are continuing the trend of buying gift cards.

The Corporate Executive Board predicted that gift card sales will top $118 billion in 2013, up 8% compared to 2012. Sales of so called “open network branded” cards like American Express or MasterCard were expected to grow from $41 billion in 2012 to $44 billion in 2013.

“The e-gifting trend will help propel continued growth in the gift card market in excess of $140 billion in sales by 2016,” noted the CEB report. “E-gifting is expected to top $10 billion during the same period, filling a niche for customers seeking to simultaneously buy and send their gifts to recipients they may not see in person over the holidays.”

BRICK-AND-MORTAR DECLINE
With online sales growing, it’s no surprise that brick-and-mortar sales and traffic struggled during the holiday season.

ShopperTrak, one of the world's largest counter and analyzer of retail shopper traffic, reported that for the Dec. 16 - Dec. 22 period that in-store retail sales fell by 3.1% from the same period in 2012. Retail brick-and-mortar shopper traffic plummeted by 21.2% compared to the same period in 2012.

“Bad weather throughout the country kept some shoppers away from stores," Bill Martin, ShopperTrak founder, said in a statement "This past week was their final opportunity to complete their holiday shopping before Christmas – and though many did finish making their purchases, retailers did not see as many shoppers as last year."

ShopperTrak said retail sales fell 0.7% and traffic was down 18.1% on the final Saturday before Christmas.

“ShopperTrak predicts after-holiday markdowns to drive robust retail sales and store traffic in the days to come, particularly the day after Christmas (Dec. 26) and the following Saturday (Dec. 28),” noted the statement.

Clinical informatics is the first new medical specialty created during the last two decades, according to Mercy Fort Smith, and it can now tout one of its own as among the only four in Arkansas to be certified in the field.

According to Stanford University's School of Medicine, clinical informatics"is the scientific discipline that seeks to enhance human health by implementing novel information technology, computer science and knowledge management methodologies to prevent disease, deliver more efficient and safer patient care, increase the effectiveness of translational research, and improve biomedical knowledge access."

And according to a press release from Mercy, Dr. Todd Stewart, a physician at Mercy Clinic, passed the first ever board certification exam in the field, joining just more than 400 physicians nationwide and only three others in Arkansas.

Two physicians at the University of Arkansas for Medical Sciences, Dr. Joseph Jensen and Dr. Donnal Walter, are also receiving certification. As of this posting, no other hospital system identified the fourth recipient.

Mercy said moving its records from paper charts to electronic health records was why Stewart's certification was important. Stewart elaborated, explaining that his interest in technology has been part of his drive to use computers to increase patient safety and productivity in the medical field.

"I've been interested in computers in medicine since medical school and residency training in the mid-1990s," he said. "I've enjoyed working with multiple companies to develop new products and technologies designed to make care both safer and more efficient for patients."

Part of the drive for certifying physicians in clinical informatics is not only streamlining medical records, but complying with new laws that are on the books, according to Stanford.

"Important health information about individuals is scattered across many systems that do not, and cannot, communicate with each other," Stanford's medical school said on its website. "New national and international initiatives aim to define and implement a secure, patient-centric, longitudinal electronic health record that will store an individual's past and present health status, care received and plan of care, and that can be appropriately shared to improve health outcomes and enhance patient safety."

UAMS' Jensen said clinical informatics improved "how people in medicine communicate."

"Clinical informatics touches everything in health care. For many years in health care, we have understood the importance of keeping a good record and describing and communicating patient care," he said. "Clinical informatics provides us tools to do this much more efficiently, over remote distances and with data standardized so that we can learn from the experiences of large groups of patients."

UAMS said the American Board of Medical Specialties approved the subspecialty of clinical informatics to establish "a standardized educational certification process for physicians in the field and enabling physicians to transform the health care into a system that taps the power of computer-bases to support all facets of health care delivery."

Mercy said the federal legislation moving medical facilities to invest in improved technologies is known as the HITECH Act, which passed in 2009. The bill provided funding for hospitals to improve technologies as part of the 2009 stimulus package.

The benefits to electronic records, according to Mercy, are four-fold:
• Having a more complete medical record instead of a disjointed paper record;
• Having a medical record available after hours or in an emergency situation;
• Being able to use medical data to better care for chronic disease; and
• Preventing medical errors such as repeating unnecessary tests or prescribing drugs with known problems or interactions.

As part of Mercy's push to improve electronic health records, the hospital and its associated clinics now make available the MyMercy online portal. Other features available to patients include the ability "to make appointments with their physicians, view test results, request refills and other conveniences."

Stewart will receive his formal certification in clinical informatics in January 2014.

The Arkansas Department of Environmental Quality released its final Remedial Action Decision Document (RADD) for Corrective Action on Friday (Dec. 27) that requires Whirlpool to spend at least $6 million to clean up pollution at its shuttered Fort Smith plant.

ADEQ’s plan also informs Whirlpool and residents affected by the company's spill of potentially cancer-causing trichloroethylene (TCE) of the final cleanup plan that has been the subject of public discussion for much of 2013.

The final RADD document does not vary in remediation approach from the draft RADD document first made public in October, implementing a three-pronged approach to remediation — asphalting the Whirlpool site, using chemical injection wells to dilute the TCE and implementing institutional controls. Several members of the Fort Smith Board of Directors opposed the remediation plan when it was proposed in October.

TCE EXPOSURE RISKS
ADEQ begins by outlining near the beginning of the document how TCE, a degreaser Whirlpool used until the 1980s at its now-shuttered plant on the south side of Fort Smith, could pose danger to individuals impacted by the plume, which extends from the former Whirlpool manufacturing facility to the north, across Ingersol Road.

The state agency tasked with environmental protection and cleanup said three types of individuals are at risk for TCE exposure on the Whirlpool site itself — routine workers, maintenance workers, and construction workers.

"Exposure routes for on-site routine workers from COCs in surface soil include ingestion, dermal contact, inhalation of soil-derived vapors and airborne particulates in outdoor air, and inhalation of soil-derived vapors that migrate through building foundations to indoor air," the document reads.

The ingestion route is very similar to what has already been discussed when Whirlpool lobbied the Fort Smith Board of Directors for a ban on the drilling of new groundwater wells both on the Whirlpool site and in the TCE-contaminated neighborhood directly north of the facility. The request for the ban was defeated.

ADEQ also addressed exposure routes for residents living over the TCE plume, stating that soil-derived and groundwater-derived vapors are exposure routes for anyone living in the affected area as well as "community workers" in the area.

Even with the concern, ADEQ advises that "vapor intrusion pathway from chemicals in soil does not result in an unacceptable exposure in the workplace for on-site routine workers," adding that there are no cancer risks based on measurements taken and compared to EPA-recommended guidelines.

REQUIRED REMEDIATION STEPS
As previously outlined in a draft RADD document, ADEQ said in the final RADD that the entire impacted area "will be covered with asphalt and an impermeable coating. The cover is designed to prevent the water from migrating through the contaminated soils."

In addition to the asphalt cover, a deed will be placed on the property to "prevent unauthorized excavation of the on-site impacted soils." Whirlpool will also be required to implement a soil gas monitoring program at the site for five years. The cost of the asphalting and soil gas monitoring will total $600,000.

In addition to the asphalting, ADEQ is requiring Whirlpool to invest $5.4 million in chemical treatment of the TCE contamination at three different sites, both on the Whirlpool site and elsewhere within the plume.

"Injection points may be added or removed depending upon the hydraulic conductivity and lithology identified during the pre-design phase of work and resulting design. Based on subsequent monitoring results it may be necessary to expand the treatment areas and/or re-treat these areas until a satisfactory trend in TCE concentrations is achieved."

Some of the design work is already taking place at the site, according to Katherine Benenati, ADEQ's public outreach and assistance division chief.

"Whirlpool’s consultants are in the field doing pre-design testing of the soils in preparation for implementing the RADD after the first of the year,"she said in a Dec. 18 e-mail.

The final action will be a deed notification on the Whirlpool site.

"The deed notification would identify the kinds of contaminants present, and describe activities that should not be conducted at the facility and grant site access to ADEQ," the RADD states, further adding that the deed restriction must be in place within 60 days of the RADD's effective date.

The RADD states that Whirlpool must begin remediation within 60 days of the effective date (Dec. 27) of the RADD and file quarterly reports every February 15, May 15, August 15, and November 15 as well as annual progress reports on January 15.

City of Fort Smith Communications Manager Tracy Winchell said the final RADD document arrived late in the day and city staff did not have an opportunity to evaluate its contents and recommendations during regular office hours.

Link here for a PDF of the ADEQ final RADD.

The equity markets were kind during 2013 to Arkansas’ publicly-held companies, with shareholders of 13 of the 16 companies seeing a price gain during the year. Arkansas’ trucking companies saw some of the biggest share price gains in 2013.

Despite a straggling economy, U.S. corporate earnings rose for a fourth straight year as 2013 wound to a close. Total earnings for S&P 500 companies in 2013 are forecast to increase 5.37%, to a record $109.03 a share, according to data from S&P Capital IQ.

Analysts like Paul Atkinson of Aberdeen Assets Management said, "It's tough to argue that companies are in anything other than good health."

Stronger earnings are generally the basis for higher stock prices, but much of Wall Street’s 2013 wealth is linked to the Fed's easy money policies amid a modestly improving economy. With that, U.S. stocks will close their best year since 1995.

The Dow Jones index is up 29% this year including dividends, while the broader S&P 500 index rose 32% for the full year. Analysts said investors could have sleep walked through 2013 and still made money by investing in one of the major index funds.

TRUCKERS ROLL HIGHER
Some of the biggest Arkansas turnarounds came from trucking firms, Arkansas Best Corp., USA Truck and P.A.M. Transportation, each posting triple-digit stock price gains during 2013.

Van-Buren-based USA Truck (NASDAQ: USAK) closed the year with a share price of $13.60, trading 4.33% lower on the day amid profit taking. The stock rose 297% during 2013, after starting the year at $3.49. Stock volatility was fueled in part by a hostile takeover bid from Knight Transportation.

P.A.M. Transportation (NASDAQ: PTSI), a dry van carrier based in Tontitown, saw its shares close 2013 at $20.61, down 1.20% on the day. During 2013, P.A.M. shares rose 108% from $9.89 where the stock traded on Jan. 2.

Shares of Fort Smith-based Arkansas Best Corp. (NASDAQ: ABFS) closed the year at $33.68, down 15 cents on the day. The transportation stock reached a high price of $35.96 in the past 52 weeks and ended the year up 246%, after trading at $9.72 on Jan. 2. Helping to boost confidence in the company was the completion in 2013 of a new five-year labor agreement with the International Brotherhood of Teamsters.

Lowell-based J.B. Hunt Transport (NASDAQ: JBHT), the largest, most diversified logistics company in this report, saw its shares close the year at $77.30. The share price rose 26.63% from its Jan. 2 closing price of $61.04. 

MIXED TECH RESULTS
As a sector, technology fared well in 2013, but results were mixed among the state’s two publicly-held tech companies.

Little Rock-based technology firm Acxiom (NASDAQ: ACXM) had a big year posting triple-digit stock gains as its shares closed 2013 at $36.98, up 23 cents on the day and 101% for the full year.

Acxiom shares were trading at $18.37 back on Jan. 2 and the steady price gains helped the firm grow its market cap to $2.78 billion this past year.

Shares of Little Rock-based Windstream Holdings (NASDAQ: WIN) closed the year at $7.97, down 5 cents on the day. During 2013 the technology firm’s shares slid 9.43% from the $8.80 share price reached on Jan. 2.

BANKING PROFITS
The financial sector as a whole posted its strongest profits since the 2008 recession but the share gains among Arkansas banks varied widely. Each of the four banks in this report acquired other institutions during 2013, expanding their footprints while also taking on more risk.

Home Bancshares of Conway (NASDAQ: HOMB) closed out 2013 at $37.33 per share. This growing bank’s stock price rose 120% during 2013 from $16.90 where it traded on Jan. 2. The bank holding company for Centennial Bank recently closed its $285 million acquisition of Liberty Bank, which created the second largest Arkansas-based bank behind Arvest.

LIttle Rock-based Bank of the Ozarks (NASDAQ: OZRK) also posted strong gains as its shares closed the year at $56.59. The shares increased 65% in value during 2013, rising from $34.37 back on Jan 2.

Share of Simmons First National Corp. (NASDAQ: SNFC) closed 2013 at $37.15. The Pine Bluff-based bank saw its share price rise 42% during 2013, up from $26.10 on Jan. 2. Simmons recently acquired Metropolitan National Bank which gives it a much larger market share in Little Rock and substantial real estate holdings in Northwest Arkansas. This deal is expected to close in the first quarter of 2014.

First Federal Bancshares of Harrison (NASDAQ: FFBH) reported a closing stock price of $8.70 for the 2013 year. The share value was down 8.61% for the full year of trading and one of the few companies to post negative gains in 2013.

UNPREDICTABLE RETAIL, CONSUMERS
Consumer attitudes greatly impact retail sales from cars to clothes and 2013 was anyone’s guess from month-to-month how fickle shoppers would act. Higher-end retailers returned better results as a group than big box discounters. New car sales outperformed expectations and used car sales were strong as more subprime lending opportunities became available.

Shares of Dillard’s Inc. (NYSE: DDS) closed out 2013 at $96.21, up 59 cents on the day. For the full year, the Little Rock-based retailer’s shares rallied 18% from the opening price of $81.53 to start 2013.

Wal-Mart Stores Inc. (NYSE: WMT) closed 2013 at $78.69, up 6 cents on the day. Shares of the retail giant rose 13.64% during the entire year, up from $69.24 back on Jan. 2. Analysts view Wal-Mart as a safe haven investment given its size and the 2.4% dividend yield it pays.

Shares of America’s Car-Mart Inc. (NASDAQ: CRMT) closed the year at $42.23. The Bentonville-based buy here, pay here used car dealer saw its share price increase just 3.07% in all of 2013. Despite an aggressive 10% growth rate in dealerships during the year, the company missed its second quarter earnings estimate while facing competitive pressures and tougher operating climate.

El Dorado-based Deltic Timber (NYSE: DEL) closed out the year at $67.94, down $1.29 on the day and down from the Jan. 3 closing price of $71.37. Despite the decline, it was a notable year for the timber, manufacturing and real estate-holding company. Deltic Timber Corp. acquired the remaining 50% interest in Del-Tin Fiber, LLC , a subsidiary of Temple-Inland. The $20 million deal immediately boosted Deltic’s bottom line and led to a record year in profits.

FOOD AND FUEL
Springdale-based Tyson Foods (NYSE: TSN) posted solid gains in 2013 as its share price closed Dec. 31 at $33.46, up 68% for the full year. Tyson Foods saw its stock price rise from $19.89 a share on Jan. 2, and recently set a 52-week high of $34.38.
 
Shares of Eldorado-based Murphy Oil (NYSE: MUR) closed 2013 at $64.88, up 74 cents on the day. Year-to-date, the company stock price rose 24%, from $52.31 where it traded on Jan. 2.

Murphy USA shares (NYSE: MUSA) closed Dec. 31 at $41.56, down 1.28% on the day. This company began trading on Sept. 3 at $37.51 after being spun off from parent Murphy Oil. Shares rose 10.79% between Sept. 3 and the end of 2013.

On Monday (Dec. 30) Walgreens announced it would provide 30-day supplies of free prescriptions to the backlogged Obamacare customers who have not yet received a plan identification number.

A day later, Wal-Mart also stepped up to the plate offering the same deal for those enrollees in the new healthcare exchanges made unavailable in recent weeks as part of the new law which kicks in Jan. 1.

“Customers who have signed up for the public health exchanges should be able to access their benefits immediately. That’s why, starting tomorrow(Jan. 1) through the end of January, we will fill up to a 30-day supply of prescriptions with no upfront cost to customers who have enrolled but have not yet received their plan identification information from their insurance providers, said John Agwunobi, president, health wellness for Walmart U.S.

Both retailers said their pharmacists could also provide assistance in verifying enrollment


The Campbell Soup Company announced late Tuesday (Dec. 31) a voluntary recall of 300 cases of 24-ounce jars of Prego Traditional Italian sauce because they habe been linked to possible spoilage.

The affected product was manufactured on Dec. 15 in Paris, Texas and can be identified by the “Best By” date of June 16, 2015 and a four-digit, military time code ranging from “CT BJ ZV 0330” through “CT BJ ZV 0449.” This information is printed on the top of the lid
  
The product subject to the recall was shipped on Dec. 21 to retailer distribution centers that serve the following seven states: Arizona, Arkansas, Kansas, Missouri, Nebraska, New Mexico and Oklahoma. This recall is limited to the U.S.

The potential spoilage was discovered as a result of the company’s routine quality control testing. This recall does not affect any other Campbell products. No consumer illnesses have been reported to date in connection with this recall.

Consumers who have purchased the product should not eat it. Consumers should return the product to the store where the product was purchased for a full refund.

For more information consumers can also call Campbell at 866-270-9303.