Union members at Tyson Fresh Meats beef plants ratified a new five-year labor agreement on Saturday, Jan. 11.

The deal solidified raises of $1.60 per hour over the terms of the agreement for more than 3,500 union packers employed by Tyson Foods Inc.

The contract took effect immediately and according to the release, the pay bump raises the plant’s top hourly wage to $18.15 for processing and $16.80 for slaughter. Top maintenance pay over the course of the contract is $19.95 per hour. The union members agreed to work all scheduled hours and adhere to the plant’s safety protocol.

The deal also elevated starting pay for beef processing to $13.92 per hour, $14.10 per hour for slaughter and maintenance worker starting pay is $17.55 per hour.
 The workers are members of the United Food and Commercial Workers Union.


“We believe the new contract will benefit our team members and help ensure the continued success of the Dakota City beef complex,” said Bruce Pautsch, vice president of human resources operations for Tyson Fresh Meats.

He said the meat company works closely with the local union and has done so for years.

Financial media firm 24/4 Wall St. recently released its top 10 list of hated companies for 2013. The ranking is based on protests from workers or disenchanted shareholders. Out of the top 10 selections, five were retailers.

Many of the most-hated companies are quite profitable, with millions of customers and rank among the nation’s largest employers.

1. McDonald’s
2. Abercrombie & Fitch
3. Electronic Arts
4. Sears Holdings
5. Dish Network
6. Wal-Mart Stores Inc.
7. J.P. Morgan Chase
8. lululemon
9. BlackBerry
10. J.C.Penney

Consumers did show up just in time to partially save the holiday season for retailers, according to the National Retail Federation report which showed December retail receipts increased 4.6% year from the year ago period (excluding automobiles, gas stations and restaurants).

The trade group said severe winter weather disrupted consumer spending during the holiday season. But in the end they finally showed up taking advantage of heavy promotions and last-minute deals. Costco’s Jim Sinegal said this week that the 2013 holiday period looked somewhat bleak until the weekend and final two days of the shopping season, when consumers showed up and in droves to finish out their shopping lists.

Total holiday retail sales, which includes November and December transactions rose 3.8% to $601.8 billion, which was in line with NRF’s forecast of 3.9% and $602.1 billion.This does not include the e-commerce sales of $95.7 billion, up 9.3% from last year.

“Despite facing a truncated holiday season, severe weather, and shaky consumer confidence, retailers rose to the challenge and executed their strategies with proven success,” NRF President and CEO Matthew Shay said. 


December retail sales, released today by the U.S. Census Bureau, which include categories such as automobiles, gasoline stations, and restaurants, increased 4.1% year-over-year.



Economists warn that despite the total increase in sales receipts year-over-year, retailers won’t likely see fatter profits.

 A number of retailers have already guided down their expectations for the holiday quarter and first reporting period of 2014.



Undoubtedly, some of the sales increase came at the expense of margin. Retailers are still stressed and a long-term promotional environment may actually hurt the bottom line,” said Jack Kleinhenz, chief economist for NRF.
 He said as consumer confidence grows, there will be less need for retailers to heavily promote and discount their offerings.
 Kleinhenz said 2013 proved to be a volatile year for retail sales amid wide swings in consumer confidence.



"While economic and policy uncertainties remain, the economy seems set for steady growth in the New Year,” he said.

Consumer spending, while selective, is gaining traction, according to Kathy Bostjancic, director of macroeconomic analysis for The Conference Board.

“There might be a falloff in retail sales growth in January, but that has more to do with inclement weather, and will likely be followed by a recovery in February,” she said.

Bostjancic expects the "resilient" American shopper to spend increased wages in the first half of 2014 on replacement furniture and household appliances, even if they are not on sale.

“And that could be the big economic story for the entire first half of 2014,” she added.

December retail sales by category with annual comparison:
• Building material and garden equipment sales increased 4.2%;


• Clothing and clothing accessories increased 4.7%; 


• Electronics and appliance stores’ sales decreased 1.5%;


• Furniture and home furnishing stores’ sales increased 5%; 


• General merchandise stores’ sales were flat year-over-year;
• Health and personal care sales increased 5.9%; 


• Sporting goods, hobby, book and music sales increased 5.8%. 


Online price transparency has heightened the competition between Amazon and Wal-Mart Stores and there is no sign either side is backing down, according to Kantar Retail analysts who recently released their second annual price comparison between the retail giants.

Contrary to popular belief, Amazon does not have lower “across-the-board” prices than Wal-Mart Stores Inc., according to the Kantar study. However, Amazon continues to gain market share with its loyalty programs and focus on customer service.

Analysts Robin Sherk and Anne Zybowski,also noted that these two retailers are seeking the same consumers with two different strategies. Kantar Retail ShopperScape, found that Wal-Mart shares half (51%) of its past four-week shoppers with Amazon, and Wal-Mart shoppers are twice as likely to frequent Amazon (19%) on a weekly basis than Walmart.com (9%).

However, consumers might be interested to learn that Walmart.com prices were 7% lower than Amazon on the basket of 59 items compared between Walmart supercenters, Walmart.com and Amazon. The supercenter had the lowest overall basket total – some 8% cheaper than Walmart.com and 16% less expensive than Amazon, according to the Kantar study.

Amazon does not claim to have the lowest price but it does push a customer-service message while offering competitive prices on millions of items, many of which can be delivered free in two days for Amazon Prime members. Amazon also believes in rewarding customer loyalty with special discounts for consumers who subscribe for automatic deliveries of certain key staples with the “Subscribe & Save” program.

Wal-Mart’s mission is to save people money as the lowest cost provider in retail every day, and to provide elite price competitiveness online every day.

EDIBLE GROCERY
There were 18 items in the edible grocery sub-basket and the biggest driver in the price discrepancies related to the third party items (products not held in stock by the retailer).

Kantar found that Amazon was heavily dependent on third party items with its recent expansion into grocery. Some 12 out of 18 items in Amazon’s sub-basket category were third-party items.

In comparison, none of the 18 items in Walmart.com sub-basket were third party. The study found that if shoppers just purchased those first-party items, Amazon’s pricing was on equal footing with Walmart Supercenter and 19% less than Walmart.com.

NON-EDIBLE GROCERY
There were 12 items in the sub-basket and again the Walmart Supercenter had the lowest overall total, 3% less than Walmart.com and 11% savings over Amazon.

Again it was the third party items that made the difference in the basket totals. The price differences were huge in this category among some items such as Windex Antibacterial Multi-Surface Cleaner — $2.47 at Walmart Supercenter, $7.07 at Walmart.com and $9.49 at Amazon.

All three retailers had same price on GLAD trash bags at $7.48, Mr. Cleaner Magic Eraser at $6.94 and Finish Powerball Tabs at $5.97.

Amazon won the pricing battle of Similac infant formula at 5.6% cheaper than Walmart.com and the supercenter prices. Bounty paper towels at Amazon were priced  5.7% less than the other two retail options.

Kantar notes that Amazon’s use of Subscribe & Save is an opportunity for the retailer to pick up steam in this category. Four of the 12 items in Amazon’s non-edible sub-basket were eligible for the Subscribe & Save option. Once these items were placed on subscription they became 5%-10% cheaper than at Walmart.com and the supercenter.

Walmart.com and the supercenter still had lower overall sub-basket totals, even with the  reduced subscription rates for the four eligible items at Amazon.

HEALTH & BEAUTY AIDS
There were interesting findings in the health & beauty aid sub-basket with complete parity between Walmart.com and the supercenter total prices. Three items – bar soap, pain killers and eye make-up – were out of stock at the Walmart Supercenter, while the cotton swabs were out of stock at Walmart.com.

Amazon’s sub-basket was 6% more expensive than the other retail options. Six of the 13 items in this sub-basket were third party items for Amazon, which resulted in the higher prices.

GENERAL MERCHANDISE
Amazon was 7% more expensive than the supercenter and 4% cheaper than Walmart.com in the general merchandise sub-basket. But the bigger difference was found between Walmart.com and the supercenter with an 11% price gap in favor of the physical store.

Amazon offered a 50% savings on the XBOX 360 - Call of Duty Black Ops II videogame over the Walmart Supercenter price and came in 28% cheaper than Walmart.com. But both Walmart prices came in 26% cheaper on TaylorMade golf balls than Amazon.

There were several wide price gaps in this sub-basket for the same items, a reminder to consumers to compare prices item by item when shopping online.

KANTAR INSIGHTS
As Walmart.com is focused on vying with Amazon, Kantar expects to see price volatility increase in the next year, particularly in general merchandise as Walmart.com ramps up item offerings and increases the number of third-party relationships.

Kantar said if Walmart.com is going to accelerate its position against Amazon it must find a way to balance its third party assortment expansion while also driving strong online price impressions.

“This will be tricky,” Sherk noted. “It will involve innovative means in additions to price matching, such as showing shoppers price visibility over time or new digital comparison tools versus competitors.”

She anticipates that as Walmart.com becomes more aggressive in advancing its website offerings, it will look to supplier’s support in the process.

Zybowski notes that Amazon’s Subscribe & Save is win-win-win for the shopper, Amazon and the supplier because it locks in loyalty to the item purchase on a replenishment basis. While there is a 5% base incentive or reward for the loyalty, the primary motive is convenience, not price.

“It’s a double win for shoppers as it saves them time and money. This loyalty is a real threat to many trip drivers to a Walmart Store,” Zybowksi noted in the report.

Amazon also has raised the incentives to 15% when five items are ordered for the same delivery time. This may be of great interest to Amazon Mom Prime shoppers who already earn 20% off of eligible items.

Zybowski said as online shoppers get a larger discount and fewer boxes, Amazon wins as it saves on packing and efficiencies within the supply chain.

Early data last year showed the new subscription program was gaining traction with Gen Yers and Baby Boomers. There were 5% of Walmart shoppers using the Subscribe and Save option a year ago. Zybowski said this is a real concern for Wal-Mart Stores because shoppers are no longer going to the physical shelf for these items which makes it difficult to win back their business or capture other sales while the consumer is in the store.

Poultry companies like Tyson Foods and Pilgrim’s Pride along with independent firms such as Simmons and OK Foods are expected to pull back poultry production in hopes of bolstering prices and margins on chicken parts, according to an industry analyst and insiders.

Companies have steadily increasing chicken production over recent months hoping to capture more consumer dollars amid record high beef prices. Broiler production increased 3% in December from a year ago because of higher slaughter and bird weights, according to USDA reports.

BMO Capital Markets analyst Kenneth Zaslow expects the recent poultry expansion to slow. Although production should continue to increase for the foreseeable future, supply expansion likely will slow from fourth-quarter levels, Zaslow said in a note to clients.


“The industry can only extend the productivity of birds for so long,” Zaslow notes.

He predicted the smaller breeding flock will slow production growth to roughly 2% in the first half of 2014. One key metric used to measure future production are chick placements, which rose by 1% in December, pulling back from 3% to 4% pace recorded the past fall.

“The increase in chicks placed should remain somewhat limited as lower hatchability continues to mitigate the increase in egg sets,” Zaslow said.

Local poultry growers polled in December reported roughly a 21-day lay-out period in between flocks for the most of last year. They do not want to see fewer chicks placed as that will further reduce their farm income. But poultry companies saw their operating margins tighten in December on softer wholesale chicken prices, particularly breast meat and leg quarters. At the same time the companies also worked through their supplies of higher priced grains.

Sanderson Farms executives said last month that the softness in the boneless breast market reflects the weakness in the market for protein consumed away from home and higher chicken production numbers throughout the last quarter of 2013.


While foot traffic through food service establishment remains challenged by macroeconomic conditions, the spike in boneless breast late last May was triggered by menu shifts featuring chicken products at fast-food and casual dining venues. Prices subsided as the year progressed, with breast meat prices averaging some 40 cents below the $2-per-pound industry benchmark.

Zaslow expects lower feed costs in conjunction with the a slight pull back in production to help improve chicken prices in the coming months and fuel better margins — above historical averages going forward.

Springdale-based Tyson Foods will reports its quarterly profits on Jan. 30. Wall Street analysts expect the meat giant to earn a consensus 65 cents per share, up from 48 cents a year ago. Revenue is expected to top $8.78 billion, up 4.5% from the same period last year (October through December).


The ups and downs and ins and outs of Wal-Mart Stores, Razorback football and the regional housing market often generate the top stories – in terms of socio-economic impact – in Northwest Arkansas. That held true again in 2013.

5. University of Arkansas budget deficits and football losses
Although enrollment gains continue and significant investments were made in campus facilities at the state’s flagship university, 2013 was not the best of years for UA Chancellor G. David Gearhart and Head Hog Coach Bret Bielema.

A state audit found deficits in the UA Division of Advancement’s budget of $2.14 million in fiscal 2011 and $4.19 million in fiscal 2012.

In September 2013, Roger Norman, director of the state’s division of Legislative Audit, forwarded an investigative report to Prosecuting Attorney John Threet of Fayetteville. Threet eventually decided to not pursue an investigation based on the audit report. Several high ranking UA officials were dismissed in action related to the budget deficits, including Brad Choate, who ran the division, and John Diamond, vice chancellor of university relations.

Gearhart has denied any wrongdoing and has avoided charges and disciplinary action.

On the gridiron, the Razorbacks were hoping for some recovery following the “lost season” of 2012 when Coach John L. Smith delivered a 4-8 season. It couldn’t get any worse, right? Wrong. Bielema, the highly-touted coach recruited away from the University of Wisconsin by Athletic Director Jeff Long, presided over a 3-9 season, with the Hogs failing to win a conference game for the first time since 1942.

4. Regional jobs figures continue to impress
The Northwest Arkansas metro area is the only one of eight metro areas in or connected to Arkansas that has had a monthly jobless rate below 5% since November 2008.

It’s also the only region in Arkansas to see its labor force size and employment levels consistently move higher since 2008. The Northwest Arkansas labor force totaled 241,337 in November, ahead of the 236,832 in November 2012. By comparison, Arkansas’ labor force fell from 1.348 million in November 2012 to 1.325 million in November 2013.

Northwest Arkansas’ employment tally was an estimated 229,639 in November, almost 4,000 jobs more than the 225, 763 in November 2012. Arkansas’ employment tally fell from 1.251 million in November 2012 to 1.226 million in November 2013.

3. Shifts in the regional banking sector
Acquisitions and bankruptcy filings in Arkansas’ banking sector were certainly felt in Northwest Arkansas during 2013.

In June 2013, Home Bancshares acquired Liberty Bank in a deal valued at $280 million that created the second largest bank in Arkansas with assets of $7.1 billion in assets. Liberty Bank had several branches in Northwest Arkansas, and they are expected to remain open.

In September 2013, Simmons First National acquired financially troubled Metropolitan National Bank with a bid of $53.6 million paid to the federal court for the ongoing bankruptcy proceedings of Rogers Bancshares, the holding company for Little Rock-based Metropolitan National Bank. Closings are expected among some of the 12 branch operations Metropolitan had in Northwest Arkansas.

In October 2013, Bentonville-based Arvest Bank acquired Little Rock-based National Bank of Arkansas for an undisclosed amount. Arvest, the state’s largest bank, got a little bigger adding key marketshare in the Little Rock metro area with the purchase of National Bank of Arkansas.

Also during 2013, Chamber Bank acquired Decatur State Bank.

2. Wal-Mart names new CEO
CEO Mike Duke announced his retirement in November with plans for the next CEO to be 47-year-old Doug McMillon. McMillon is set to assume the job on Feb. 1. Duke held the job for five years.

A Jonesboro native and University of Arkansas graduate, McMillon will be the youngest to ascend to CEO since founder Sam Walton, who was 44 when the first Wal-Mart was built in Rogers. McMillon has served as the CEO of Walmart International. From 2006 to February 2009 McMillon served as CEO and president of Sam’s Club, an operating segment of Wal-Mart, with sales of more than $46 billion during his tenure.

In 1984, McMillon began his career with the company as a summer associate in a Walmart Distribution Center. In 1990, while pursuing his master degree, he rejoined the company in a Tulsa, Okla., Walmart store.

McMillon will be fifth CEO for Wal-Mart Stores Inc.

More than a dozen top level personnel shifted to new jobs or left the company as a result of the leadership change at the top.

1. Real estate continued to rebound
When the Northwest Arkansas real estate market showed signs of renewed strength in 2012, some wondered if it would continue into 2013. It did.

For the first 11 months of 2013, the number of homes sold in Northwest Arkansas was up 17.36% compared to the same period in 2012, and up almost 23% compared to 2011. It was the largest year-over-year increase among Arkansas’ four largest metro areas during 2012. For the first 11 months of 2013, the number of homes sold in central Arkansas are up 6.35%, up 13.04% in the Jonesboro area, and up 6.9% in the Fort Smith area.

The value of homes sold in Benton and Washington counties for the first 11 months of 2013 was $3.121 billion, up 13.06% compared to 2012 and up more than 25% compared to 2011.

Benton County had a narrow hold on the top Arkansas county for home sales in the first 11 months. The county, with a population of around 230,000, had 4,202 home sales between January and November. Pulaski County, with a population of around 390,000, posted 4,117 home sales in the same 11-month period.

Paul Bynum, analyst with MountData.com, said the average market time from listing to contract this year has been roughly 50 days, an indication that demand is strong relative to the supply of homes on the market.

The median price-per-square-foot is $84 through October, up from $78 a year ago. The median sales price of $149,900 in the combined two-counties is up 7% from a year ago, Bynum reports.

There was a 6-month supply of homes listed for sell at the end of October, which Bynum deems a balanced market for buyers and sellers.

OTHER NOTABLES
• The previous year also saw the federal case against former high-profile Northwest Arkansas developer Brandon Barber move forward. In March, Barber was arrested in New York City and transferred to Fayetteville. In November, K. Vaughn Knight, a Northwest Arkansas attorney and one-time associate with Brandon Barber, was found guilty on eight charges related to money laundering and fraud related to Barber’s messy bankruptcy. Barber, who has plead guilty to several charges, faces up to 45 years in prison with fines possibly maxing out at $1.5 million.

• The year also saw continued growth in regional sales tax collections, with the overall strength of the economy and enhanced tourism opportunities pushing more dollars through the region.

• Liquor store permits were issued by state officials in 2013 for Benton County liquor stores. County voters approved in 2012 a measure to change the county to “wet” with regard to alcohol sales. The county’s population allows for 55 liquor stores, the state handed out 39 permits in the July hearings. State officials said those applicants who were denied had the opportunity for appeal. The first liquor store in Benton County opened in August – Star Liquor located along Southwest Regional Airport Boulevard in Bentonville.

• Redman & Associates in October announced a $6.5 million investment to relocate its ride-on toy manufacturing business from Shanghai to Northwest Arkansas over the next three years. The move is part of a program by Wal-Mart Stores Inc. to move some suppliers back to the U.S. Wal-Mart officials announced on Jan. 15, 2013, a pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods. Company officials have said they hope to boost U.S. manufacturing – often referred to as “onshoring” – by purchasing more sporting goods, apparel basics, storage products, paper products, textiles, furniture and higher-end appliances.

• Serco hired more than 1,000 additional workers for its new Rogers data processing center, according to Candy Curtin, vice president of HR for the global service company. Aside from processing paper applications for the Affordable Health Care insurance program, Curtin said the firm also handles Visa processing for immigration and administration work for the U.S. Department of Defense and its family programs.

• Siloam Springs-based Allens Foods could soon be gobbled up by Seneca Foods Corporation as the New York-based fruit and vegetable manufacturer entered into an asset purchase agreement for $148 million in mid-December. The deal had not been approved by the end of the year.

Notable deaths included:
• Doyle Rogers, chairman of the board of Metropolitan National Bank and a highly successful real estate developer and businessman, died in early February. He was 94.

• Robert Owen “Bob” McBride, the longtime owner of Fayetteville-based McBride Distributing Inc., died April 4 in his Fayetteville home. He was 72.

• The famed hotel developer John Q. Hammons died May 27 in Springfield, Mo., the home of his company that developed 210 properties in 40 states. He was 94.

Link here for the top five stories of 2012.

The big Fort Smith regional news stories during 2013 included major moves in the regional medical community, major interstate construction, ups and downs with two local trucking companies, and the effort to build a water park.

Following are the top five regional stories – in terms of socio-economic impact – during the previous year.

5. Cleaning up Whirlpool
A March 2013 push by Whirlpool to ban groundwater wells near their shuttered Fort Smith manufacturing plant began a complicated and often heated series of events that saw Erin Brockovich visit Fort Smith. Whirlpool closed the refrigerator manufacturing plant – which at one time employed as many as 4,600 – in mid-2012.

The focus was on how to best clean up a toxic plume of chemicals, namely trichloroethylene (TCE), that Whirlpool admits leaking into the groundwater during the 1980s. Brockovich, the famous corporate-pollution fighter, eventually decided to not get involved in Fort Smith.

Officials with the Arkansas Department of Environmental Quality faced angry Fort Smith residents on Nov. 12 as they presented official recommendations to Whirlpool on how to clean up the TCE.

The ADEQ released its final Remedial Action Decision Document (RADD) for Corrective Action on Dec. 27 that requires Whirlpool to spend at least $6 million to clean up pollution at its shuttered Fort Smith plant. 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 Feb. 15, May 15, Aug. 15, and Nov. 15 as well as annual progress reports on Jan. 15.

4. New contracts and hostile takeover attempts
The Fort Smith region benefits from the corporate jobs created by Fort Smith-based Arkansas Best Corp., and Van Buren-based USA Truck – respectively, a major national less-than-truckload carrier and a truckload carrier that operates with more than 2,200 trucks. ABF Freight is the primary subsidiary of Arkansas Best.

After several delays and votes, a labor agreement between Arkansas Best Corp. and the International Brotherhood of Teamsters was fully ratified in October, with savings from wage and benefit reductions possibly helping the company to avoid three consecutive years of losses.

The five-year contract – set to expire on March 31, 2018 – between Arkansas Best and the Teamsters was approved June 27, but some supplemental provisions were rejected. Officials with both sides negotiated the rejected provisions, and the seven “local/area supplements” were again placed on the local ballots for approval. All but one of the supplements were approved, and on Tuesday the union members of the Central cartage voted to not strike. Following that vote, the Teamsters’ negotiating committee voted to ratify the agreement.

The contract covers about 7,500 employees of ABF Freight System who are members of the union. Most of those workers are drivers.

USA Truck officials spent most of the latter half of 2013 fighting off a hostile takeover attempt. Phoenix-based Knight Transportation made public its bid for USA Truck on Sept. 26. The $9 per share bid at the time was a 39% premium from USA Truck’s share price on Sept. 25. The share purchase and assumption of liabilities creates a $242 million deal. At risk in a deal with Knight would be some or all of the 500 jobs at USA Truck’s corporate headquarters in Van Buren.

The USA Truck management and Board of Directors have rejected the offer, saying it “substantially undervalues” the company and does not reflect the value of potential gains from ongoing turnaround initiatives. The attempt by Knight remains open into 2014.

Full-year financials released Jan. 31 showed a $17.54 million loss for 2012, marking four consecutive years of losses for USA Truck. In February, John Simone was hired by the board to turn around the struggling company. Former CEO Cliff Beckham was moved to the chief financial officer position.

3. $78 million Interstate 540 renovation
Work began in January on the major highway artery into Fort Smith that carries more than 50,000 cars day. The more than $78 million upgrade of Interstate 540 resulted in traffic congestion on the main Interstate corridor through the city.

As part of the 2011 Interstate Rehabilitation Program (IRP) passed by 80% of Arkansas voters, Kiewit Infrastructure South will begin work on seven miles of improvements to Interstate 540 (I-540) from Interstate 40 (I-40) to Highway 22.

Construction has included “rubblizing” the existing I-540 lanes, and replacing nine bridges. It will also include the modification to four bridge structures. The nine bridges include the Highway 22 bridge at Rogers Avenue as well as those at Grand Avenue, Clayton Branch, and the Union Pacific Railroad Overpass.

The Arkansas Highway & Transportation Department expects the contract to be completed “sometime in April or May of 2014” or July 2014 at the latest.

2. The effort to build a water park
Officials with the city of Fort Smith and Sebastian County struggled through 2013 to agree on the budget and amenities for a water park approved by voters in March 2012.

After a year of off and on discussions between the two governments, a joint resolution was approved approved Jan. 6 that would add a wave pool to the Ben Geren Aquatics Center while moving a dive well to near the bottom of the governments' priority list for water park amenities, essentially killing a part of the project that had been the focus of much contention just 11 months ago.

Voters had initially approved an $8 million park, but planning after the vote saw the price rise to $8.8 million, then ultimately the two governments approved a $10.9 million facility. In addition to the wave pool, the facility will now consist of three bodies of waters, a 500 foot lazy river and four water slides for a total footprint of more than 20,000 square feet, making it the largest water park in the region.

There were several times during the process when members of the Fort Smith Board and the Sebastian County Quorum Court were split on the park and the park’s future was uncertain.

1. Changes in the regional health care industry
News from the regional health care sector hit frequently in 2013 with new jobs, changes in owners, new investment and lawsuits between former partners often driving the headlines.

• Health Management additions, changes
Naples, Fla.-based Health Management Associates (HMA) announced in April it would build a regional service center in Fort Smith and employ more than 500 with average annual salaries potentially exceeding $40,000. At the time, HMA was the parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren. The facility opened in September.

In July, a $7.6 billion deal from Franklin, Tenn.-based Community Health to buy HMA was announced. The offer was approved by an HMA Board that was then ousted in a proxy fight pushed by New York City-based Glenview Management. On Sept. 25, the newly installed HMA Board announced a review of the offer. Glenview had previously said the $13.78 per share offer was too low. Ultimately, the new HMA Board approved of the deal. The HMA Board now believes the deal is good for HMA shareholders.

On Jan. 8, both sides said the deal would close by month’s end – barring a rejection from federal regulators.

• Cooper Clinic-Mercy lawsuit
A lawsuit filed Aug. 2 by Fort Smith-based Cooper Clinic against Mercy Fort Smith and St. Louis-based Sisters of Mercy Health System not only more fully reveals a contentious relationship between former medical sector partners, it may signal an end to the hospital-clinic relationships that have been part of area medicine for almost a century.

In the 17-page complaint filed in Sebastian County Circuit Court, Cooper Clinic officials allege that Mercy and its parent company used their economic power to recruit 15 physicians away from Cooper and to the Mercy Clinic between Oct. 31, 2010 and Aug. 1, 2013. Mercy has denied any wrongdoing. The case has carried over into 2014.

• Mercy investments
Work continued during 2013 on a plan announced August 2011 by the St. Louis-based Sisters of Mercy to invest $192 million in the Fort Smith area as part of a 10-year plan to invest $4.8 billion in its operations in Arkansas, Kansas, Missouri and Oklahoma.

Part of that investment was completion of the $42 million Mercy Orthopedic Hospital in Fort Smith that was estimated to add 100 jobs. Also, Mercy formally opened its $10 million Heart and Vascular Center on Feb. 20. The 16,000-square-foot center was built within renovated space within Mercy’s primary hospital in Fort Smith.

The hospital also broke ground in late 2014 on a new $2.34 million clinic to be built a 3700 Cliff Drive in Fort Smith.

OTHER NOTABLES
• The 188th Fighter Wing began converting from its A-10 support mission to a drone and recon mission.

“The new missions: The good thing is we have a mission-a great mission-one that will keep the majority of jobs in the Fort Smith community.  This mission will be RPA and intelligence.  In both areas, we will have  daily engagement in some of the most important and contested regions of the world,” noted a memo from 188th commander Col. Mark Anderson to members of the unit.

• Crawford County Sheriff Ron Brown began the push for a $24 million new jail that would increase the county’s capacity from 88 inmate beds to 317. Members of the Quorum Court were cool to the idea, and a plan to pay for the jail has not yet been approved.

• There are no new jobs planned, but officials with SGL Carbon announced April 17 a $26 million upgrade to their facility in Ozark. The German-based company employs more than 90 people in the Ozark plant, which produces high-power graphic electrodes that create heat in electric arc furnaces used in steel mills. Work on the expansion is expected to be complete by June 2015.

• On May 14, Sebastian County voters overwhelmingly approved renewal of the 1% countywide sales tax, with 78.87% voting for the tax to be in place for another 10 years. Leaders from across Sebastian County had urged voters to renew a 1% sales tax that funds operations in 11 cities across the county, as well as providing county services, such as funding for the county jail.

• An iconic building in downtown Fort Smith that has alternated between consideration for renovation and demolition will soon become the headquarters of Fort Smith-based Propak Logistics. The historic and white tiled Friedman-Mincer building – also known as the OTASCO building – at the intersection of Garrison Avenue and Towson Avenue in downtown Fort Smith was built in 1911.

Steve Clark, founder and president of Propak, finalized on May 21 the transaction to buy the property. With an acquisition and renovation estimate of about $2 million, Clark plans to convert the three-story, 24,000-square-foot building into offices for the about 40 employees of Propak. The company provides logistics, transportation and supply-chain management services.

• Tampa, Fla.-based Sykes added about 200 jobs to its call center in Fort Smith. Employment at the center, housed in a portion of what was once Phoenix Village Mall, is estimated at 600.

• Up to 90 new jobs were expected to come to Fort Smith thanks to continued expansion at the Gerber plant on the city's north side. The company, which has expanding its operations to add a cereal line in Fort Smith, asked for and was granted June 4 by the Fort Smith Board of Directors an amendment to a resolution passed in 2010 providing the company industrial development revenue bonds. The original bond package totaled $90 million while the project taking place at Gerber has grown so much, the company requested an additional $60 million, bringing the total bonds issued to $150 million.

• After more than 30 minutes of discussion at their regular meeting, the Fort Smith Board of Directors on Aug. 20 reversed a city policy in place more than 45 years and gave the city administrator position the hire-fire authority over department heads. The only positions not under the city administrator authority are the internal auditor and district court clerk. The Fort Smith police chief and fire chief fall under the city administrators new authority.

• Immaculate Conception School is the first elementary school in Fort Smith, public or private, and the first Catholic school in Arkansas to receive the prestigious National Blue Ribbon School award. Immaculate Conception has 309 students, including pre-school, Blentlinger said. The school has 22 certified teachers and a total faculty/staff count of 43.

The National Blue Ribbon Schools Program is part of a larger U.S. Department of Education effort to identify and disseminate knowledge about best school leadership and teaching practices. The other Arkansas schools named as a 2013 Blue Ribbon School were Bergman Elementary School (Bergman, Ark.), Central Park at Morning Star Elementary (Bentonville Public School District), and Ellen Smith Elementary School (Conway Public School District).

• A U.S. pet industry that has grown an estimated 22% in the past four years may have helped Mars Petcare officials decide on a $50 million expansion of their Fort Smith manufacturing operation that will add 42 jobs. Officials with Mars Petcare – based in Brussels, Belgium, with a U.S. headquarters located south of Nashville, Tenn. – announced Oct. 23 that they planned to add new equipment and a new line to the Fort Smith operation they opened in September 2009.

• Supporters and officials of the University of Arkansas at Fort Smith pushed beyond a capital campaign goal of $50 million by raising $56.895 million for the UAFS Foundation. More than 200 university supporters and UAFS faculty and staff gathered Sept. 10 on the campus to celebrate the completion of the fundraising effort.

“I hope you feel great about your decision to help thousands of University of Arkansas at Fort Smith students, many of whom you will never know,” said Neal Pendergraft, UAFS Foundation Board member and co-chair of the Giving Opportunity campaign.

• 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. According to Foundation Chairman Kyle Parker, the foundation now has around $50 million and the board is investigating the feasibility of an osteopathic medical school that would, once fully operational, serve 600 students. Efforts to build the school were announced Dec. 18.

Notable deaths included:
• Former Arkansas Sen. Bill Walters of Greenwood, who served in the Senate for 18 years, has died from complications related to his battle with pancreatic cancer. He was 69.

• The famed hotel developer John Q. Hammons died May 27 in Springfield, Mo., the home of his company that developed 210 properties in 40 states. He was 94.

• Popular and acclaimed artist John Bell Jr. died Nov. 8 at his Fort Smith home. He was 76.

• Eddie Christian Sr., a Fort Smith attorney known in wide legal circles as one of the best defense attorneys in the nation, died in mid December following a fight with cancer. He was 72.

• David Banks, the former president and CEO of what was for many years Fort Smith-based Beverly Enterprises, has died in late December. He was 76.

Link here for the top stories of 2012.

The anticipated list of branch closures resulting from Simmons First National’s acquisition of Little Rock-based Metropolitan National bank was made public by the Office of the Comptroller of the Currency this week.


Pine Bluff-based Simmons filed applications to close 27 branches of the pro forma bank with the regulatory agency on Dec. 19, in addition to one other application to close the Simmons branch in Bella Vista, which was recently shuttered. The 27 branches are slated to cease operations on March 22.


A total of 12 branches in Northwest Arkansas made the closure list, including the Simmons branch in Bella Vista.

NWA CLOSURES
Metropolitan National branches
• 300 Walton Boulevard, Bentonville
• 200 Hudson Road, Rogers
• 2691 Mission Boulevard, Fayetteville
• 4000 Great House Road, Springdale
• 3701 Pinnacle Hills Parkway, Rogers
• 4201 Pleasant Crossing, Rogers
• 1950 Pleasant Street, Springdale

Simmons First National branches
• 2971 North College Avenue, Fayetteville
• 5105 South Thompson Avenue, Springdale
• 703 East Douglas, Prairie Grove
• 405 Town Center, Bella Vista (recently closed)
• 3210 South Walton Boulevard, Bentonville

Simmons chose not to release the total of anticipated lost jobs resulting from these branch closures, deferring comment until next week when the holding company will report earnings on Jan. 23. 


The branch closures come as no surprise. CEO George Makris told investors and analysts in September that there would be branch consolidation in Northwest Arkansas and Little Rock. He said the banks’ staffs would work together before the end of 2013 to assess the best course of action for the branch consolidation.
 Makris said the closings would likely take place before April as there is a 90-day notice period required before a branch closure can take place.

Metropolitan operates 12 branches in Northwest Arkansas, seven of which will be shuttered. Analysts have said Metropolitan was a real estate play in Northwest Arkansas given its physical property and inability to grow deposits to sustainable levels in this market.

Simmons operated 10 branches in Benton and Washington counties prior to the acquisition, having since opted to shutter five of those locations. The pro forma bank will wind up with 10 branches in Northwest Arkansas at these locations:
• 4033 North Shiloh Drive, Fayetteville
• 3971 West Wedington Drive, Fayetteville
• 3111 Martin Luther King Boulevard, Fayetteville
• 706 West Sunset Avenue, Springdale
• 2832 West Sunset, Springdale
• 3975 New Hope Road, Rogers
• 111 North 8th Street, Rogers
• 1411 South Walton Boulevard, Bentonville
• Highway 62 South, Lincoln
• 1002 S. Mount Olive Street, Siloam Springs

John Dominick, banking analyst and finance professor at the University of Arkansas, said staff cuts are a long-time coming given many of Metropolitan National’s local branches did not have enough deposits to feasibly support their existence.

Metropolitan noted in the bankruptcy proceedings that there were 438 employees between the two markets – Little Rock metro area and Northwest Arkansas. The bank had just under $1 billion in assets, which breaks down to about $2.25 million in assets per person. The industry benchmark is roughly $4 million in assets per person, with more efficient banks operators achieving $5 million per employee. Substantial staff cuts are likely if the Simmons seeks to normalize employees-per-assets in this pro forma bank, according to Dominick.

Metropolitan’s investment in Northwest Arkansas exceeded $30 million in branch infrastructure between 2005 and 2007. The branches in Benton and Washington counties had a book value of roughly $40 million, according to the bankruptcy filing. But deposits in those branches totaled just $70 million, making them expensive operations for a bank low on capital.

CENTRAL ARKANSAS

16 branch locations in central Arkansas were also tagged to close on March 22.
• Downtown Little Rock, 320 West Capitol Ave., Little Rock
• UAMS branch at 5000 West Markham Street, Little Rock
• 1717 Merrill Drive, Little Rock
• 1818 N. Taylor St., Little Rock
• 11000 Financial Center Parkway, Little Rock
• 11821 Colonel Glen Road, Little Rock
• Chenal Kroger Branch, 16105 Chenal Pkwy., Little Rock
• 3200 JFK Blvd., North LIttle Rock
• 3607 East Kiehl, Sherwood,
• 21 Bill Foster Memorial Hwy., Cabot
• 1025 Markham Street, Conway
• 820 Elsinger Blvd., Conway
• 2400 Donahey Ave., Conway
• 2895 Dave Ward Dr., Conway
• 1210 S. Rock Stree, Sheridan
• 2030 John Hardin Drive, Jacksonville

Keith Peterson has been named dean of workforce development at NorthWest Arkansas Community College and will begin his new duties on Jan. 21.

He will have the primary responsibility for providing strategic leadership, direction, and management for all efforts related to non-credit education and training as well as credit culinary and hospitality programming.

Peterson also will be responsible for providing administrative leadership in the development of workforce education that addresses the needs of local, regional and global businesses and industries.

The dean will report to Tim Cornelius, vice president of learning: global business, health professions, and external programs.

Peterson comes to the college from Northwest Technical Institute in Springdale, where he worked as vice president of instruction since May 2011. In that capacity, Peterson provided leadership to 45 full and part-time instructors. He also managed industry advisory boards and reviewed recommendations to provide maximum benefit for relevant industry and community demands.


Prior to the vice president role, Peterson served as resources coordinator at NTI. He also worked for five years as assessment and curriculum program supervisor for the Arkansas Department of Career Education.

“We are pleased to have someone with Keith’s experience and commitment to workforce training and career education,” Cornelius said. “His ability to foster relationships with the business community and to meet the needs of a rapidly changing work environment will be invaluable to the College’s workforce education initiatives.”

NanoMech announced it has purchased its existing factory and will build an adjoining  25,000 square-foot facility in east Springdale, tripling its size and making room for more than two dozen new jobs by late summer.

“The new factory and expanded headquarters will provide for approximately 25 to 50 new jobs for world-class scientists and support staff,” said CEO Jim Phillips said in a statement. “The space will also allow us to meet current demand for our products while advancing ongoing research and development efforts.”

Incorporating cutting edge assembly lines and laboratories, this new expanded facility will also furnish the latest technologies in security, environmental and safety systems for handling advanced manufacturing and military projects. 

A secure wall and security fencing enclosing the campus are also part of the building plans. While the new facility will connect to the existing building, the company has purchased the adjacent 7.3 acre tract for future development providing the company with the ability to expand on a contiguous 9 acre campus. 

NanoMech chose Miller Boskus Lack Architects, P.A. of Fayetteville to design the new headquarters factory and labs. The architectural plans are complete and construction is expected to be begin in the coming weeks. The new factory and headquarters is expected to be fully operational by later this summer.
 
”This advanced facility will allow us to accelerate the development and commercialization of innovative products that people have only dreamed of before,” said Dr. Ajay P. Malshe, NanoMech Founder and chief technology officer said. “Aggressive demand for our technology suggests the need for rapid scale-up production to meet government and private sector orders for our breakthrough products”.
 
NanoMech, founded in 2002, is the result of a successful public/private partnership (PPP) between the private sector, Arkansas, the University of Arkansas, and the federal government. State and city officials worked alongside company leadership to make the company’s new global campus become a reality.
 
“Projects like the NanoMech expansion show that the city is open for business and interested in helping companies grow and expand,” said Springdale Mayor Doug Sprouse.

Gov. Mike Beebe and Grant Tennille, executive director of the Arkansas Economic Development Commission, have actively supported technology growth in Northwest Arkansas, according to the release from NanoMech. They regularly cite the partnership between NanoMech, the University of Arkansas and the private sector as a model for public/private partnership (PPP) success. 
 
“NanoMech is at the forefront of an industry estimated to have a multi-trillion dollar impact on the global economy over the next decade,” Tennille said in the statement. “This expansion signifies to the industry that NanoMech is one of the world’s leading companies and we believe they will continue to create important, knowledge-based jobs and attract the best scientists from the international stage.”

The days of meter readers venturing out in the elements to measure energy consumption has become a thing of the past, at least at two providers of energy in the Fort Smith area. Smart meter use remains limited in Northwest Arkansas.

Arkansas Valley Electric Cooperative Corporation and Oklahoma Gas and Electric confirm they have rolled out new smart grid technology that, among other things, eliminates the need for a meter reader to visit each customer's locale simply to collect information on energy usage.

"Our smart technology is fully deployed, so each one of our customers today has a new digital meter, a communicating meter," said Brian Alford of Oklahoma City-based OG&E.

According to Alford, digital meters that communicate back to a home base or corporate office communicate not just how much energy was used during a given billing period, but also peak usage times.

"With the smart technology, customers now have access to more information about their energy usage, how they're using energy, what that energy is costing and how it gives them information in real time to make changes rather than seeing a (large) bill show up at the end of the month."

POWER CONSUMPTION DECLINE
Since the rollout, which started in October 2009 and was completed toward the end of 2011, Alford said customers have saved 120 megawatts of power. For residential customers in Arkansas, he said that equals about $83 for the entire summer, averaging about $20 per month in savings.

Greg Davis of Arkansas Valley Electric Cooperative said members of the cooperative posted a reduced level of energy usage for the first time in 2012, about nine years after AVECC began a phased rollout of the system.

"2012 was the first year that we saw consumption go down. It was minuscule, but that's huge considering that for the 76 years we've been in business, it's done nothing but go up," he said. "Again, we still had more customers coming in (to the system), but there was less usage for the first time ever."

With customers now able to see in real time how they are consuming energy and are able to take steps to reduce consumption, Alford said it should help utilities like OG&E delay the construction of new power generation facilities, again saving customers money.

"Our goal is to not have to add any additional incremental fossil fuel generation," he said. "We're wanting to push the need for new power plants to at least 2020. To do that, we have to reduce demand on our system and to do that, we have (given) our customers the tools and technology to do that."

STIMULUS FUNDING
Giving customers those tools did not come without a cost, though OG&E found a way to provide the technology without passing on costs to its customers. Alford said OG&E spent approximately $130 million in stimulus funding provided by the U.S. Department of Energy in order to deploy the smart grid technology.

At AVECC, Manager of Engineering Shawn Walling said it was hard to pinpoint the exact costs since it spanned over several years, but he said it ranged between $5 million and $10 million for the much-smaller cooperative.

Davis said even with the costs, it would save money not only through reductions in energy consumption, but also through reducing the amount of cost associated with sending employees into the field to do the readings now that everything could be read digitally.

LIMITED SMART METER USE BY SWEPCO
Peter Main, a spokesman for Southwestern Electric Power Company (SWEPCO), said his company had only rolled out a limited number of features associated with smart grid technology.

"I guess in terms of meters, we do have a portion of our customer meter base that are one way meters that are read remotely," he said. "They use automated meter reading technology, or AMR. These are one-way meters, strictly for gathering the meter data. They're not true smart meters, which would be two-way communication. So we do have a portion of our system with AMR technology."

Main said the total number of customers on SWEPCO's system in Northwest Arkansas and the Fort Smith regions would be "about 20% of our customers," adding Eureka Springs in Carroll County was the one city "where most of the community is on the system."

Main said there are no plans to expand the smart grid in the area, adding that to do such an investment would be an inestimable task at this point.

SMART METER CHALLENGES
A recent study from Navigant Research highlighted some of the increased costs to local utilities for not just the meters and other external infrastructure, but also IT systems needed to complement the external infrastructure upgrades. The study explained many of the challenges utilities faced, largely explaining why there could be differences in smart grid technologies between utilities, even in areas like Fort Smith and Northwest Arkansas that are served by utilities with vastly different levels of smart grid availability.

Alford said unlike SWEPCO, OG&E's entire system was automated — largely due to the stimulus funds — providing additional cost savings for not only customers, but also his utility, which now has the ability to turn electricity service on or off from a distance, again saving his crews trips into the field.

With two of the area's energy providers fully transitioned to the new technology that has already started yielding lower energy usage, Walling of AVECC said local energy customers have likely seen the last "game change" for the next several years, saying, "As far as a game changer down the road, I don't see one right now."

Supermarkets are the great-grandparents of all modern retail. And while they face on onslaught of increased competition. experts don’t expect them to become extinct anytime soon.

That said, a recent report by Kantar Retail seeks to debunk several myths surrounding the grocery store industry, while another report from Catalina suggests that those retailers who survive will the be ones that cater to the individual shopper on a personal level. Kantar notes that supermarkets have undergone an evolutionary change during the past three decades and some of the industry norms may no longer be the rule.

Following are some new trends, according to Kantar.
• More than 5% of total supermarket sales growth will come from pure natural/organic formats, which continue to grow more than twice as fast as the rest of the “channel”.


• 47% of the growth in the “channel” will come from value-oriented operators, while more than will come from retailers who position themselves as premium


• Mainstream retailers have the slowest growth rate in the channel


• 7 of the top 15 supermarket retailers run multiple formats

Kantar said the myth that supermarkets will always lose share, simply isn’t true. The retail analysts project the compound annual growth rate for supermarkets to grow faster than supercenters over the next five years.

Using U.S. government statistics for edible and non-edible grocery, company figures and Kantar’s own research, the report suggests the supermarket industry is holding a 52% share in edibles with no projected losses through 2017. At the same time they see the non-edible product share growing from 37% to 38% by 2017 in the supermarket group.

Another myth Kantar disputes is that the circular drives the business. Kantar notes that the circular is not dead, and it’s not likely to become extinct entirely, but its impact is is lessened with the low price strategies used by many retailers. They also note that savvy consumers today may be more apt to use technology-based e-coupons, and digital forms of discounts which can be more easily tied to loyalty programs to targeted consumers.

Catalina Marketing, a shopper research firm, recently release a study that analyzed shopper habits over a 52-week period for some 32 million consumers. This study found that despite a time of unparalleled choice in the grocery store, consumers ignore all but a tiny fraction of available products:

• On average, during an entire year, consumers buy just 0.7% of available items.
• Even top shoppers, who account for 80% of all store purchases, buy just 1% of products available.

Catalina also notes that shoppers are selective about their purchases in every department in the store. An analysis of seven key departments showed that the average department shopper buys just 1.7% of dairy products and 0.2% of health and beauty care products over an entire year. WIth that background, Catalina claims that one-size-fits-all promotions do not typically resonate with a majority of shoppers.

Catalina examined a major retailer’s Memorial Day shopping circular and found that two-thirds of all shopping baskets didn’t include a single item among the 1,172 advertised. Looking at the following week circular from the same retailer, 74% of shopping baskets did not include a single item, the study notes.

The notion that the size of the box matters is quickly changing as various formats continue to evolve, according to Kantar. Wal-Mart, the supercenter king, has aggressively built out smaller format Walmart Neighhborhood Markets. Texas-based HEB and national grocery giant Kroger continue to erect stores much larger than the conventional grocery store, and urban retailers are building more hybrid stores.

This blurring of the lines is a reaction by grocers to compete head-to-head with mass retailers and dollar stores that inundated the U.S. landscape over the past decade with gigantic sprawling supercenters and smaller convenient store models that sell food and other consumables.

Kantar’s research indicates the smallest formats will record the biggest percentage sales by 2017, as consumers will likely want to spend less time shopping for groceries in smaller formats. The study found the small grocery format (under 20,000 square feet) recorded a compound annual growth rate of 3.3% in sales between 2007 and 2012. These small formats recorded $502 billion in sales in 2012, with the number expected to hit $635 billion by 2017.

Stores between 20,000 and 40,000 square feet reported a dip of 0.1% in sales from 2007 to 2012. Kantar expects this subgroup will see a 3.3% annual growth rate by 2017 to $363 billion in sales.

Those stores between 50,000 and 100,000 square feet posted a 1.7% annual growth rate in sales from 2007 to 2012. This group is expected to see sales top $298 billion by 2017, growing at 3.8% annually.

Supercenters between 100,000 and 150,000 square feet posted a 5-year growth of 0.7%, but are poised to reach $454 billion in sales by 2017, up 3.3% annually. The largest supercenters above 150,000 square feet posted a 5-year annual growth rate of 3.5% are expected to top $372 billion by 2017, up 3.1% annually.

The general counsel for the National Labor Relations Board filed a complaint Wednesday (Jan. 15) against Wal-Mart Stores alleging that more than 60 store supervisors and one corporate officer violated the rights of employees who participated in Black Friday (Nov. 22, 2012) protests at Walmart stores.

The NLRB initially asked Wal-Mart to settle the claim or risk a suit being filed in the coming weeks. Wal-Mart officials said they were looking into the next steps and would make a decision regarding the request for settlement. Also, the NLRB dismissed two of the initial complaints against Wal-Mart. However, talks about the remaining three complaints did not result in a settlement.

“The discussions have not been successful and a consolidated complaint has issued regarding some of the alleged violations of federal law,” noted the NLRB statement issued Wednesday. “More than 60 Walmart supervisors and one corporate officer are named in the complaint. Cases were consolidated to avoid unnecessary costs or delay. Walmart must respond to the complaint by January 28, 2014.”

Three violations of NLRB rules among stores in 14 states were cited.
• During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests.

• At stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington, Walmart unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests.

• At stores in California, Florida, Missouri and Texas, Walmart unlawfully threatened, surveilled, disciplined, and/or terminated employees in anticipation of or in response to employees’ other protected concerted activities.

Wal-Mart has said that about 117 workers were fired or disciplined for participating in the last year’s strike on Thanksgiving Day. Wal-Mart spokeswoman Brooke Buchanan previously told The City Wire that it acted within the law.

"We take this very seriously. We believe our actions were legal and justified," she said.

On Wednesday Buchanan continued the theme, adding that the “merits of the complaint” have not been debated and that the NLRB action “is just a procedural step.”

“Wal-Mart believes we acted respectfully and lawfully. We look forward to the opportunity to shed light on the facts,” Buchanan said Wednesday.

Sarita Gupta, executive director of the labor group Jobs With Justice, provided this media statement: "We’ve never seen a complaint against Walmart of this size or scope, and we’re glad the NLRB is taking action. Walmart’s attacks on its own employees cannot go unchecked."

An NLRB administrative law judge will now conduct a trial based on the allegations. The judge’s findings will then be sent to the five-members of the NLRB who will vote to adopt or reject the findings.

According to the NLRB website, the federal agency handles up to 30,000 charges per year from employees, unions and employers covering a range of unfair labor practices. The NLRB is not allowed to assess penalties, but can require reinstatement, backpay and other “make-whole remedies.”

A groundbreaking was held Wednesday (Jan. 15) on a new 12,200-square-foot office building at Chaffee Crossing that will be a regional office for APAC-Central Inc.

The $1.5 million building, located at 1010 Frontier Road in Barling, will be built by Chaffee Commercial Properties which is owned by Steve Beam and Rod Blake.

APAC-Central, formerly known as Arkhola Sand and Gravel, employs 675 people in two states. The new office will be house 25 people and will support 245 jobs in the Fort Smith area. For many year, Arkhola and APAC offices were located in downtown Fort Smith in the Ward-Garrison building.

The company began in Oklahoma in 1911, and was moved to the Fort Smith area in 1926. Arkhola sold to Oldcastle Materials in 2006, and was renamed APAC-Central, Inc. in 2009.

“This is the first private development to be built on Fort Chaffee Redevelopment Authority property inside the city limits of Barling and Barling officials have been great to work with,” Steve Beam said in a statement issued by the Fort Chaffee Redevelopment Authority. “We are very interested in building offices for other companies seeking long-term leases so we hope this is only the first of many.”

Park Estes, vice president of marketing and sales says APAC-Central, said the new office is in the middle of company operations in the area. Also, Estes said Arkhola has a history with the Chaffee area.

“Arkhola was the first company to pour concrete at Fort Chaffee in 1941. The land where our new office will be located was formerly part of Fort Chaffee,” Estes noted in the statement.

The city of Bella Vista is taking applications to fill several vacant positions on the planning commission and the board of zoning adjustment. Appointments will serve out the remainder of the position’s term.

The planning commission is a seven member panel that reviews development and subdivision petitions and hears appeals of the planning, building, and code enforcement department’s interpretation of the subdivision code.

Members of the commission are expected to attend two scheduled meetings per month if there is business to conduct. There are two positions open on the commission:

Position 2, Term Expiration October 2017
Position 5, Term Expiration October 2018

The board of zoning adjustment is a seven member panel that hears petitions for variances from the zoning code, interprets district boundaries of the zoning map.

Members of the board are expected to attend one scheduled meeting per month if there is business to conduct. There is one position open on the board:


Position 1, Term Expiration October 2016

Members of all city boards and commissions must be qualified electors residing in the city and can not hold any other municipal office or appointment. For those seeking appointment, a professional background in architecture, construction, law, civil engineering, real estate, surveying, or landscape architecture is desirable but not required.

Interested parties should stop by the planning departmental offices at 306 Town Center West between 8:00 a.m  and 4:30 p.m., Monday through Friday, to pick up an application.

Alternatively, the application may be downloaded at www.cityofbellavista.com. All applications should be returned by Feb. 5.

Irvine, Calif.-based RealtyTrac reports 1.361 million foreclosure filings on U.S. properties in 2013, down 26% from a year ago and some 53% lower than the $2.9 million peak hit in 2010. Filings were up almost 70% in Arkansas during the year.

The national pace hit its slowest stride since 2007, according to Daren Blomquist, vice president at RealtyTrac. The report also shows that 1.04% of U.S. housing units (one in every 96) had at least one foreclosure filing during the year, down from 1.39% of housing units in 2012.

“The shadow cast by the foreclosure crisis is shrinking as fewer distressed properties enter foreclosure and properties already in foreclosure are poised to exit in greater numbers in 2014 given the greater numbers of scheduled foreclosure auctions in 2013 in judicial states — which account for the bulk of U.S. foreclosure inventory,” Blomquist said.

One thing economists agree on is the local aspect of real estate and the differences that can exist between adjacent neighborhoods, much less adjacent counties.

Foreclosures accounted for less than 0.6% of households across the Natural State last year despite regular monthly ups and down in terms of new filings. There were 7,786 filings statewide in 2013, up 69.3% from the prior year.

NWA, FORT SMITH AREA ACTIVITY
In Northwest Arkansas the foreclosure market remains mixed with larger Benton County experiencing more activity in both sales and foreclosures than neighboring Washington County.

In December Benton County reported 53 new foreclosure filings, up 39% from a year ago. During that same period Washington County reported 11 foreclosure filings, down 63% from a year earlier.

South of the Bobby Hopper Tunnel on Interstate 540, Crawford and Sebastian counties each reported higher numbers in December. There were 20 new filings in larger Sebastian County, up 66% from a year ago, while Crawford County reported 13 new foreclosure filings, up 85.7% from December 2012.

Despite rising activity in three of the four regional counties, the number of foreclosure listings continues to decline. Jim Long, agent with Crye-Leike Real Estate said there are 322 listings in the two markets as of Jan. 15. The foreclosure listings totaled 360 in December, 368 in November and 354 in October.

Long said new foreclosure listings are slow to come back into the market. Johnnie Snell of Coldwell Banker works with foreclosures going back to FreddieMac as well as Fannie Mae and HUD. Snell said the properties that come on the market in decent shape sell quickly, which has prevented a growing surplus of foreclosed homes.

FULL YEAR
For the full year, Benton County reported 1,173 foreclosure filings, up 45.9% from 2012. That equaled one in every 78 households for the full year or 1.28% of total housing units.

In Washington County there were 524 foreclosure filings, rising 7.16% from last year. The foreclosure rate was one in every 165 households for the full year impacting roughly 0.6% of households in the county.

Sebastian County had 263 filings last year, which was one in every 206 households. A year ago there were 157 filings, falling 67.5% in the year-over-year period. RealtyTrac shows there are 54,279 households in the county and less than 0.5% are in default or jeopardy of foreclosure.

Crawford County reported 170 filings last year, up 75% from those recorded in 2012. Roughly one in every 152 households or 0.66% housing units had at least one foreclosure filing last year.

Blomquist said there continues to be ample investor demand willing to pay cash for homes at auction, which is helping to raise the values. Nationwide, foreclosure values rose 10% in 2013.

He said the cash availability could create an increase in foreclosure filings through the first half of 2014 in states like Arkansas where activity was held up by litigation.

FORECLOSURE FILING NUMBERS
Benton County
2013: 1,173
2012: 804

Washington County
2013: 524
2012: 489

Sebastian County
2013: 263
2012: 157

Crawford County
2013: 170
2012: 97

Home Bancshares, Inc., parent company of Centennial Bank, reported record net income for the year ended Dec. 31, 2013 of $66.5 million compared to $63 million for the year ended 2012.

For the fourth quarter of 2013, Conway-based Home Bancshares recorded quarterly net income of $13 million compared to $16.9 million of net income one year ago. The previously announced Liberty Bancshares acquisition was a huge driver of the record earnings. Centennial now operates the Liberty Bank locations in the Northwest Arkansas and Fort Smith areas.

“During the fourth quarter we made a game-changing purchase with the Liberty acquisition. It was a historical accomplishment for Home Bancshares to be able to complete Arkansas’s largest ever in-state bank acquisition plus convert the core operating systems in the same quarter. This impressive execution has the company in position to realize the anticipated cost savings, thereby rewarding our shareholders,” said John Allison, Chairman.

“Our team is focused on this important task and is working to recognize these enhancements as quickly as possible. I am looking forward to watching our team succeed in this process. As a result, I believe there is a bright future for us during 2014,” he added.

“We have been able to achieve many successes throughout the year that positioned us to be ready to handle the acquisition of Liberty,” CEO Randy Sims said in the statement. “As for the financial results, we are proud of the record profit reported for 2013. It was a truly remarkable financial performance year with the company reporting net income of $66.5 million and diluted earnings per share of $1.14 per share or net income of $77.7 million and diluted earnings per share of $1.33 excluding merger expenses. During the year we have been focused on our efficiency ratio and net interest margin. These efforts have paid off as we are pleased to report an impressive 45.49% core efficiency ratio and 5.19% net interest margin for the year.”

Financial highlights for the fourth quarter include:
• Net interest income for the fourth quarter of 2013 increased 62.4% to $67.1 million from $41.3 million during the fourth quarter of 2012.

• Non-interest income for the fourth quarter of 2013 of $12.2 million, compared to $16.2 million for the fourth quarter of 2012.

• Total covered loans were $282.5 million at Dec. 31, 2013 compared to $384.9 million at Dec. 31, 2012.

• Total deposits were $5.39 billion at Dec. 31, 2013 compared to $3.48 billion at Dec. 31, 2012.

• Total assets were $6.81 billion at Dec. 31, 2013 compared to $4.24 billion at Dec. 31, 2012.

Nationally known chief economist Rich Yamerone, of Bloomberg L.P. , said tracking ladies dress and make-up sales will offer insight into consumer spending and sentiment — responsible for 72% of the U.S. economy.

Yamerone was one of three economists featured at the 20th Annual University of Arkansas Forecast Luncheon held in Rogers on Thursday, (Jan. 16). About 1,000 attended this year’s event coming from Little Rock, Fort Smith and other areas across the Natural State.

TYSON’S TAKE
Tyson Foods CEO Donnie Smith moderated the event while also sharing his knowledge on the food business. As one of the region’s largest employers, Springdale-based Tyson Foods is also very aware of what U.S. consumers want and need. Smith said consumers are constantly redefining the concept of value.

“Consumers are walking a tightrope right now, they want what they want. They will trade down when they have to; but they expect the healthier food choices. They prefer fresh over frozen and they want to know it’s been produced responsibly,” Smith said.

‘DARK SIDE’
Yamerone took the stage and tried for some 30 minutes to convince the large crowd that the U.S. economy is treading on thin ice through two quarters and there are more caution signs ahead.

“How many of you think the U.S. is headed for another recession,” Yamerone asked the crowd.

After a showing of less than five hands, Yamerone said, “I see that two or three of you are right. I hope to bring the rest of you over to the dark side before I am finished.”

He said jobs are the key to a better economy and as he travels across the country talking with owners and managers businesses large and small, the one common complaint he hears is that mandated healthcare is stifling business expansion.

Smaller employers are reducing staffs to get below the 50 person cut-off to avoid the healthcare mandate, he said. Larger companies like Darden Restaurants —  300,000 employees — are simply reducing hours and hiring more people.

“What we have are more lower middle class consumers having to work two and three jobs in some cases to keep up. I don’t see this changing and it is doubtful many of the middle class manufacturing jobs that were lost post 2008 will ever return,” Yamerone said.

He said there are not enough workers in place or coming soon to peddle the economy forward at a pace needed to maintain stability.

WOMEN CONTROL THE FINANCES
In closing, Yamerone shared his “Fab Five” indicators for what to expect with the U.S. economy going forward.
• Dining out — trending down over the past two years
• Casino gambling — downward trend since 2006, buoyed recently largely from Chinese consumers
• Jewelry & watch sales — rose some in 2012 but trending flat since
• Cosmetics & perfume sales — trending lower since 2011
• Women’s dress sales — wide swings since 2011, but trending lower toward the end of 2013

“Women are the chief financial officers of the household. They pay the bills, do nearly all the shopping and keep the family finances afloat. When they see less money coming in, they will pull back on eating out and self purchases, like dresses, cosmetics and perfume. They won’t cut out the kid’s soccer — that’s why we all love mom so much,” Yamerone said.

In all seriousness, Yamerone said he recently met with the executive team from Lowe’s, the home improvement retailer. He said the Lowe’s executives wanted to hear from the ladies in the room because they said it’s mostly the females in the household that decide when there will be a kitchen remodel or other household purchase.

Ironically, many of the largest companies in Northwest Arkansas are largely dependent on U.S. consumer behavior in retail, supply chain and food processing. So what goes on in the rest of country is important to Northwest Arkansas and the rest of the state as well.

SLOW GROWTH
Kathy Deck, director for the Center for Business and Economic Research at the University of Arkansas, had better news for the group with respect to the state and regional economies. But even she took a pause of concern about the “dreadful” labor force numbers across the Natural State.

Deck said slow growth does not equal recession, even though it might feel like it for some.

The forecast for the Arkansas economy in 2014 looks a lot like the experiences of 2013, Deck said. The rate of job growth in the state will continue to be slow and Arkansas will struggle to reach its pre-recession employment peak.

Employment growth in Arkansas is not on pace to make up the recession’s shortfall in 2014 or 2015, although the national economy is likely to reestablish employment highs during that time, according to Deck. Highlights of her talk included:
• There were net job losses in the manufacturing, government, information and other service sectors in Arkansas in 2013.

• Despite these losses, the unemployment rate in Arkansas has fallen to 6.9% from its post-recession high of 9%.

• The Arkansas labor force has been declining on a year-over-year basis every month since July 2012, even though the U.S. labor force has grown.

• In 2013, employment growth picked up in the Fort Smith, Central Arkansas and Jonesboro metropolitan areas and continued to boom in Northwest Arkansas.

• In Northwest Arkansas, no sectors had employment declines on a year-over-year basis in 2013, and overall employment grew at 4.3%.

“We have seen Fort Smith begin to generate some positive growth and that area looks to be rebounding since the Whirlpool closure there,” Deck said.

The employment growth in Northwest Arkansas and Central Arkansas also has been healthy this past year, according to Deck. But those regional improvements are not enough to compensate for the large rural areas that continue to suffer, she said. Deck said the state, led somewhat by Northwest Arkansas, will need to see continued investment into start-ups and other entrepreneurial ventures. 

She said housing has been strong in Northwest the past two years and infrastructure spending is helping to spur some growth along with continued private investments.

“Take Crystal Bridges for instance, who would have ever thought a Frank Lloyd Wright home would make its way to Bentonville,” Deck said.

One other area posed to do well in Northwest Arkansas is the business and professional  sector. Deck said the University of Arkansas is graduating more accountants, engineers and architects, and companies are taking advantage of that local talent.

CHINA RULES
Yi Wen, economist with St. Louis Federal Reserve Bank, said China is in the midst a major revolution, much like the Industrial Revolution that took place in the 18th and 19th Centuries.

“Once a revolution of this magnitude begins it’s very difficult to stop,” Wen said during his remarks the forecast luncheon.

Though much has been said in recent months about a slowing in China’s economic output, Wen said he believes China will continue to post 7% to 8% annual grow rates for the next 20 years or so until the per capita income levels reach some 70% to 80% of those in the U.S.

He said China has its problems, like losing manufacturing jobs to Africa and other lower paying countries. But the housing market is doing well, as many Chinese consumers are investing in real estate seeking higher rates of return.

“In China, consumers must put 30% down on the purchase of a housing unit. If they buy two, the downpayment is 50%. In many cases the Chinese just pay cash for these investments, so there is little risk to the banking system with this rise in real estate,” Wen said.

The two largest companies in Northwest Arkansas continue to invest in China. Tyson Foods works to fully integrate chicken operations there and Wal-Mart has said it will add 110 new stores in China by 2016.

Whirlpool on Thursday (Jan. 16) released its annual report detailing the early stages of the cleanup trichloroethylene (TCE) at its former manufacturing facility on the south side of Fort Smith. TCE, a known carcinogen, had been used as a degreasing agent at the facility until the 1980s.

The annual report is the first released by the company as required by the Arkansas Department of Environmental Quality (ADEQ), which made it part of its final Remedial Action Decision Document (RADD) for Corrective Action. The RADD dictates how Whirlpool will cleanup pollution not just at its former manufacturing facility, but also in areas including a neighborhood that lie above a plume of TCE that leaked north of the facility.

The annual report, attributed to Jeff Noel, Whirlpool's corporate vice president of communications and public affairs, outlined the companies remediation efforts to what had occurred in 2013 and what is planned for 2014.

Much of the information from 2013 used the talking points the company has presented to the public previously (quoting from the document):
• Whirlpool reaffirmed its committed to remain in Fort Smith, working with area residents, the Directors and staff of the City of Fort Smith, the State of Arkansas and ADEQ until this situation is resolved.

• All 2013 monitoring activities continue to confirm there is no public health risk, no reason for public concern about vapor intrusion into any residence, and that the boundaries of the TCE plume have no expanded in eight years.

• Whirlpool took a series of steps under supervision from ADEQ to advance the project forward in 2013. This included semiannual groundwater monitoring in March and October, finalization of the Human Health Risk Assessment (HHRA) and the Risk management Plan (RMP), submission of the draft Final Remedy Work Plan (Work Plan) to implement the RMP, and commented design data acquisition for effectively implementing the remedy defined in the Remedial Action Decision Document (RADD).

• Whirlpool initiated extensive communication efforts to keep the community informed of important developments, including a new website devoted to this project, participation in two public meetings with the Fort Smith City Directors, and individual conversations with residents who contacted us directly with concerns or questions.

• Whirlpool will continue to push forward in 2014 with the implementation of the RADD issued December 27, 2013 by ADEQ with the most scientifically proven, effective manner possible. At each step along the way, we will continue the efforts initiated in 2013 to keep the Fort Smith community informed.

Noel also said his company, working with environmental consulting firm ENVIRON, had completed pre-design work on ways to implement the requirements of the RADD.

"The pre-design field work took place in September and December 2013. The goal of the pre-design field work is to complement the current site understanding in the source and treatment areas," he said. "The targeted investigative activities will provide a strong foundation for the development and implementation of a successful, full-scale system design to meet the requirements of the RADD."

There was less detail about the company's plans to comply with the recommendations of the RADD in 2014, stating that it would submit its work plan to ADEQ for approval "within 30 days of the approval of the Final RADD,"which was effective Dec. 27, 2013.

"Within 30 days of the approval of the Final RADD, Whirlpool will submit a revised Work Plan to ADEQ detailing how the remedy will be implemented and the schedule for completion," Noel said. "In addition, we will provide ADEQ quarterly reports on our progress that will be publicly available on our website."

Noel also noted the continued marketing of the Whirlpool site to potential buyers. News broke in October 2013 that Spartan Logistics would occupy about 100,000 square feet of the more than 600,000 square foot warehouse and distribution facility near Whirlpool's large manufacturing plant, leaving a lot of the former facility available for development.

"In light of the many attractive attributes of the property, including size, location and amenities of the 167 acre parcel, we remain confident in completing a transaction that will result in long term and productive development on the parcel."

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 Feb. 15, May 15, Aug. 15, and Nov. 15 as well as annual progress reports on Jan. 15.

Apollo Global Management said it will acquire CEC Entertainment, which operates 577 Chuck E. Cheese stores.

The deal is valued at $1.3 billion, including the assumption of CEC’s outstanding debt.

Apollo’s all cash offer of $54 per share represents a premium of about 25% over CEC’s closing share price on Jan. 7 and a premium of about 36% over the 12-month volume weighted average share price for the period ended Jan. 7.

“Apollo brings significant industry expertise and financial resources, and we look forward to working with them to further grow CEC domestically and internationally,” said Michael H. Magusiak, president and chief executive officer of Irving-based CEC.

CEC and its franchisees operate Chuck E. Cheese’s stores in 47 states and 10 foreign countries or territories.