Various transport tonnage and shipment reports indicate that the U.S. economy is recovering from heavy winter weather in January and early February, with economists remaining optimistic about gains – even if slight – in the U.S. economy during 2014.

The American Trucking Associations’ Truck Tonnage Index was up 2.8% in February after a 4.5% decline in January. For the first two months of 2014, the index is up 2.3% compared to the same period in 2013.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, was 4.5% below the previous month.

“It is pretty clear that winter weather had a negative impact on truck tonnage during February,” ATA Chief Economist Bob Costello said in his report. “However, the impact wasn’t as bad as in January because of the backlog in freight due to the number of storms that hit over the January and February period.”

Apart from weather disruptions, Costello said economic conditions look good for the U.S. trucking industry.

“The fundamentals for truck freight continue to look good. Several other economic indicators also snapped back in February. We have a hole to dig out of from such a bad January, but I feel like we are moving in the right direction again. I remain optimistic for 2014,” 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.

An industry report from Baird is also optimistic about the industry, noting that February numbers show a 3% year-over-year growth in freight rates. The growth was above Baird expectations. The report also noted that many trucking and transportation companies may show first quarter losses because of the weather issues.

“However, we expect outlooks to be very constructive given better-than-expected core pricing growth and the likelihood of solid freight volume trends in upcoming months after severe weather disruptions (presumably) normalize,” Baird noted in its report on the truck, intermodal and rail sectors.

The Cass Freight Index also showed freight activity in February recovering from the January disruptions. February shipments were up 7.3% compared to January, but were down 0.4% compared to February 2013. Total expenditures on freight reversed a two-month decline with an increase of 6.8% in February. The expenditures index was up 6.4% from this time last year, 15.8% from February 2011, and was the highest February gain for the Cass index.

Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., has said ongoing trends between shipments and rates indicate potential price inflation for the consumer.

“Expenditures have grown at a faster rate than shipment volume, and the economy has yet to feel the rate increases that should be coming later this year when capacity tightens and carriers take back the reigns for rate control,” Wilson noted.

Her optimism about the economy was “uttered with an abundance of caution and recognition that there are still many potholes to deal with.” Following are other notes from Wilson about economic conditions.

• There are still some strong headwinds to overcome in the freight sector, the most obvious being the nearly imperceptible growth in volumes.

• The global marketplace remains weak, so exports are lagging expectations.

• While unemployment continues to fall, the number of new jobs created each month is not enough to sustain the economy. As the Federal Reserve reduces its bond purchases, interest rates will continue to rise, which will have repercussions in the freight sector.

• The inventory levels that are now higher than our previous crisis level, when carrying costs were minimal, will become more burdensome and probably lead to a drawdown similar to that during the recession.

• Trucking capacity is at exactly the right level for the existing volume of freight, but will quickly be inadequate later this year if the predictions of a robust 2014 materialize. Obtaining credit to purchase new vehicles will become tighter, probably squeezing out smaller and marginal trucking companies that don’t have the capital to expand their fleet, or almost as important, modernize their fleets. Continue to expect a bumpy ride.

Enplanements in Northwest Arkansas and Fort Smith are off to a good start in 2014, while traffic out of the Bill & Hillary Clinton National Airport (Little Rock) continues a decline that saw traffic dip 5.45% in all of 2013.

Traffic increases at XNA and Fort Smith during the first two months of 2014 came against thousands of U.S. flight cancellations during the period because of winter storms.

Travelers flying out of XNA during February totaled 40,873, up 5.05% compared to the 38,908 during February 2013. For the first two months of 2014, enplanements at XNA total 82,456, up 6.16% compared to the same period in 2013. The early 2014 traffic is up 4.1% compared to the same period in 2007, the year that XNA reached its record enplanement of 598,886.

For all of 2013, XNA enplanements totaled 579,679, up 2.58% compared to the same period in 2012. The enplanement growth remained stable through the year, with enplanements up 2.42% at the end of the first quarter of 2013.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

American Airlines remains the dominant carrier at XNA with around 43% of all enplanements during 2013. Delta is second with around 27% of enplanements followed by United Airline at around 15%. The airport has more than 10 service connections with five carriers.

XNA officials recently approved upgrades and renovations to better manage the continued growth of traffic at the airport. Fort Smith-based SSI Inc. was hired in December for 2014 work that will focus on terminal lobby renovations. The work will include new counter tops at airline and rental car spaces, new carpeting and a new public address system.

Later in 2014, bathrooms and other spaces on the second floor are scheduled for renovations.

“Lots of remodeling is scheduled for this year, but it will be beautiful once completed. Thanks for your patience during these projects,” noted an XNA statement.

FORT SMITH TRAFFIC
The Fort Smith Regional Airport, served by flights from Atlanta and Dallas-Fort Worth, posted February enplanements of 6,212, up 3.8% compared to February 2013.

Enplanements for the first two months of 2014 total 13,034, up 9.16% compared to the same period in 2013.

For all of 2013, enplanements at the airport totaled 84,520, down 2.46% compared to the same period in 2012. The decline ended three consecutive years of enplanement gains at the airport.

With 7,836 enplanements for the first two months of 2014, American Airlines accounts for 60.1% of commercial traffic out of Fort Smith. Delta Air Lines had the remaining market share for the first two months of 2014.

Enplanements at the Fort Smith Regional Airport totaled 86,653 during 2012, just ahead of the 86,234 in 2011, and marked three consecutive years of enplanement gains.

LITTLE ROCK NUMBERS
Enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport) were 69,459 in February, down 6.87% compared to February 2013. Enplanements for the first two months of 2014 were 143,098, down 6.67% compared to the same period of 2013.

With 48,433 enplanements during January and February, Southwest posted the most enplanements of the eight carriers operating out of Little Rock.

Enplanements in 2013 totaled 1.085 million, down 5.45% compared to 2012. Enplanements in 2012 totaled 1.147 million, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines at Arkansas’ largest commercial field.

U.S. TOURISM, TRAVEL TRENDS
Early 2014 gains at Fort Smith and Northwest Arkansas follow a national trend of travel and tourism increases during the fourth quarter of 2013.

The U.S. Bureau of Economic Analysis reported Thursday (March 20) that “real spending” on travel and tourism grew at an annual rate of 4.2% in the fourth quarter, up from a revised 3.1% in the third quarter. The fourth quarter growth was better than the overall U.S. GDP increase of 2.4% during the fourth quarter.

“For the year, real spending on travel and tourism increased 3.6 percent in 2013 after increasing 2.8 percent in 2012. By comparison, real GDP increased 1.9 percent in 2013 after increasing 2.8 percent in 2012,” noted the BEA report.

Employment in the travel and tourism industries was up 2.8% in the fourth quarter of 2013 after rising a revised 1.8% in the third quarter. By comparison, overall U.S. employment increased 1.8% in the fourth quarter. For the year, employment in the travel and tourism industries increased 2.2% in 2013 after increasing 2.7% in 2012. Overall U.S. employment increased 1.7% in 2013 and in 2012.

Notes from the BEA report also included:
• In the fourth quarter of 2013, total current-dollar tourism-related spending was $1.5 trillion and consisted of $915 billion (59%) of direct tourism spending — goods and services sold directly to visitors — and $625 billion (41%) of indirect tourism-related spending — goods and services used to produce what visitors purchase.

• Total tourism-related employment  was 8.1 million jobs in the fourth quarter of 2013 and consisted of 5.8 million (71%) direct tourism jobs — jobs where workers produce goods and services sold directly to visitors — and 2.3 million (29%) indirect tourism-related jobs — jobs where workers produce goods and services used to produce what visitors purchase.

• The leading contributors to the acceleration in the fourth quarter were “traveler accommodations,” and “food services and drinking places.” “Traveler accommodations” accelerated, increasing 14.5% in the fourth quarter after increasing 3.3% in the third quarter. “Food services and drinking places” also accelerated in the fourth quarter, increasing 7.7% after no change in the third quarter.

An amazing interest in Wal-Mart’s push for convenience, money for ‘Bags for Books,’ more Clinton disclosures and a talking baby are part of the Northwest Arkansas Friday Wire for March 21.

NOTES & ANALYSIS
• Crazy for convenience
Apparently, size does matter.

Bentonville-based Wal-Mart Stores Inc. unveiled its new convenience store– Walmart to Go – format this week and judging by the media and retail industry reaction it seemed that Wal-Mart announced it was selling dimes for 5 cents.

This little (relatively speaking) 5,000-square-foot format now open in Bentonville just a short Ford pickup drive from the corporate headquarters is Wal-Mart’s effort to capture more of the $415 billion “quick-trip” market consumers make between their big grocery and shopping runs.

Traffic on The City Wire from our coverage of the new format was unreal, and about more than 10 times the traffic from the recent news of a new CEO for the world’s largest retailer. We offer three basic reasons that incredible attention was given to the opening of what is essentially nothing more than a convenience store.
• The retail industry is convinced Wal-Mart is serious about capturing market share through smaller format stores;
• Smaller format store companies – Dollar General, Family Dollar, etc. – are concerned that Wal-Mart is serious about the small-format move; and
• Regional convenience store companies and their suppliers are worried that this move by Wal-Mart could put them out of business.

The retail sector can be fickle, but if Wal-Mart decides to focus its economic power on this new format, the Walmart to Go concept could be Here to Stay.

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 ...

• Gaming software lessons
There’s hardly a single minute of downtime in a busy Walmart distribution center (DC), so the the three minutes it takes to recharge a forklift battery is not wasted because the retail giant works with Waterloo, Ontario-based Axonify to reinforce safety education through a gaming application.

• Trucking exec money
Top executives at Lowell-based J.B. Hunt Transport Services enjoyed big compensation boosts in 2013, with CEO John Roberts III posting an almost 20% gain in base pay, stock awards and other benefits.

• Minimum wage support
Arkansas Economic Development Commission director Grant Tennille says he’s supportive of efforts to raise the state minimum wage to $8.50 per hour, calling it a “jobs creator.”

NUMBERS ON THE WIRE
$78.58 million: Value of home sales in Benton and Washington counties during January and February, ahead of the $73.17 million during the same period of 2013.

60: Consecutive months that the Arkansas jobless rate has been at or above 7%. The January rate was 7.3%.

$15,000: Fundraising goal for the Northwest Arkansas Bags for Books event, which supports a literacy program by the United Way of Northwest Arkansas through the Dolly Parton Imagination Library.

OUTSIDE THE WIRE
• More Clinton disclosures
President Barack Obama's White House has moved to extend the review of roughly 8,000 pages of Clinton White House documents withheld under confidentiality provisions which expired early last year, according to a statement issued by the National Archives.

• Have we heard the last of the E-Trade talking baby?
Digital discount broker E*Trade Financial Corp on Thursday bid farewell to the precocious baby who starred in the television commercials advertising its trading platform for the last seven years.

• Why people bet on the favorite
Everybody likes to cheer for the underdog, but hardly anyone bets on the underdog to win. We tend to put our money on the favorite most of the time. In fact, we bet on the favorite far more frequently than we should. To understand why, you have to understand some of the basic functions and malfunctions of human decision-making.

WORD ON THE WIRE
“Sam’s model was ‘Try it, fix it, then do it.’ he fostered a learning environment and back then we tried lots of ideas. Of course we were able to keep it quieter than they can today. ... The Wal-Mart culture has a low resistance to change and to stay relevant they are constantly testing and tweaking ideas to align with what customers want.”
– Andy Wilson, former executive officer with Wal-Mart Stores Inc., about the corporate culture at the retailer with respect to innovation

“We wrote 18 contracts in February. I had one weekend that although I didn’t even leave my house due to the snow and ice and I still sold three homes. People that relocate to our area don’t stop looking because of the weather and luckily I have a lot of listings that these buyers have been looking at online for several weeks prior to their house hunting trip.”
– Nicky Dou, a Realtor with Keller Williams in Bentonville, about the impact of winter weather on home sales in Northwest Arkansas

Manufacturing jobs, controversy surrounding a nursing home company owner, campaign money, more Clinton disclosures and a talking baby are part of the March 21 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Long road back
For those who believe manufacturing recruitment should capture a bulk of our incentive structures and energies because that’s the best bet for the future health of the Fort Smith regional economy, well, good luck with that.

Just to return to the regional manufacturing jobs employment of 10 years ago would require a more than 5% gain in manufacturing jobs per year for the next 10 years. And that would only get us near 28,500 jobs, well below the record level for area manufacturing employment.

Preliminary estimates from the U.S. Bureau of Labor Statistics show 18,200 manufacturing jobs in the Fort Smith metro area in January. That’s down from 18,400 in December and down from 18,300 in January 2013.

The estimated January manufacturing employment also is down 36.1% compared to January 2004 employment of 28,500. The January employment is the second-lowest employment level in the sector in modern history. The lowest level was 18,100 which was recorded in February 2013.

Average annual employment in the sector in 2013 was at a multi-decade low of 18,300. The record average annual sector employment was 31,700 in 1999. The average fell below 30,000 in 2002, fell below 25,000 in 2009 and fell below 20,000 in 2012.

The region is long overdue for an aggressive and consistent economic development strategy that looks beyond what worked in 1970.

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 ...

• New complaint filed in Maggio case may involve Fort Smith businessman
Attorneys for the family of a Faulkner County woman who died in April 2008 due to what the family alleged was neglect and negligence have added even more fuel to the fire in the case of Circuit Judge Mike Maggio – fuel that could mean trouble for Fort Smith businessman Michael Morton.

• Campaign finances
The race for the U.S. Senate is not the only big senate race happening in the Natural State and political observers are starting to take notice. The District 9 Senate Republican primary, which will pit incumbent Sen. Bruce Holland of Greenwood against Rep. Terry Rice of Waldron, will take place May 20 and already tens of thousands of dollars are pouring into the race.

• Minimum wage support
Arkansas Economic Development Commission director Grant Tennille says he’s supportive of efforts to raise the state minimum wage to $8.50 per hour, calling it a “jobs creator.”

NUMBERS ON THE WIRE
126.01%: The increase in home sales values in Crawford County in February 2014 compared to the same month last year. During the same period, Sebastian County saw a drop of more than 20%.

$600,000: The amount spent on the Senate District 21 special election held earlier this year in Jonesboro. Consultants who spoke with The City Wire said a competitive primary in Senate District 9 between Sen. Bruce Holland, R-Greenwood, and Rep. Terry Rice, R-Waldron, would likely be an expensive race, as well. It's a trend they said was becoming more the norm across Arkansas.

60: Consecutive months that the Arkansas jobless rate has been at or above 7%. The January rate was 7.3%.

OUTSIDE THE WIRE
• More Clinton disclosures
President Barack Obama's White House has moved to extend the review of roughly 8,000 pages of Clinton White House documents withheld under confidentiality provisions which expired early last year, according to a statement issued by the National Archives.

• Have we heard the last of the E-Trade talking baby?
Digital discount broker E*Trade Financial Corp on Thursday bid farewell to the precocious baby who starred in the television commercials advertising its trading platform for the last seven years.

• Why people bet on the favorite
Everybody likes to cheer for the underdog, but hardly anyone bets on the underdog to win. We tend to put our money on the favorite most of the time. In fact, we bet on the favorite far more frequently than we should. To understand why, you have to understand some of the basic functions and malfunctions of human decision-making.

WORD ON THE WIRE
"The concerns that have been brought to my attention by many citizens in the Fianna Hills area are the other potential developments that are being asked in the PZD. These other potential developments are something that I am going to research and get a better understanding on how they could affect the existing homeowner property values."
– Fort Smith Vice Mayor Kevin Settle, addressing the proposed planned zoning district for the Fianna Hills Country Club renovation

"When I talk to people about quality of life, they talk about police, fire and ambulance. They have never spoke to me about the golf course. Police, fire and ambulance. Every time you lose $184,000 a year, it comes from police, fire and ambulance. It's money that you can't spend on that. So I would think when businesses talk about quality of life, they talk about police, fire and ambulance. I mean, he talks about families coming here. Would that not be something families would be interested in?"
– Sebastian County Justice of the Peace Shawn Looper, refuting an assertion by Fort Smith Area Chamber of Commerce President and CEO Tim Allen that the county's golf course at Ben Geren Regional Park was among the amenities that helps sell the region to businesses

Sizeable shifts in the size of the workforce and the number of employed — potentially related to winter weather impacts on reporting – pushed the January Northwest Arkansas jobless rate to 5.9%, up from 4.9% in December and unchanged compared to January 2013. However, January marked 18 consecutive months the metro rate has been at or below 6%.

Metro employment of 216,656 was down from the 227,109 in December, and was down 1.29% compared to January 2013, according to figures released Friday (March 21) by the U.S. Bureau of Labor Statistics.

Only one of the eight metro areas (Memphis-West Memphis) in or connected to Arkansas had a jobless rate decline in January compared to December. Two areas had jobless rate increases compared to January 2013, three had declines and three areas were unchanged. For perspective, 98.6% of the 372 U.S. metro areas had year-over-year-over-year jobless rate declines in January, while 37.5% of Arkansas’ eight metro areas posted year-over-year declines.

During January, the lowest metro jobless rate in the state was in Northwest Arkansas and the highest rate was 10.8% in the Pine Bluff area.

The federal BLS issued this statement with its January labor report: “Effective with this release, nonfarm payroll estimates for states and metropolitan areas have been revised as a result of annual benchmark processing to reflect 2013 employment counts primarily from the BLS Quarterly Census of Employment and Wages (QCEW), as well as updated seasonal adjustment factors. Not seasonally adjusted data back to April 2012 were revised. Seasonally adjusted data from January 1990 were subject to revision.”

NWA METRO NUMBERS
The size of the Northwest Arkansas regional workforce during January was estimated at 230,145, down from the 238,877 during December, and below the 233,300 during January 2013. June 2014 was the first month the region’s workforce topped 240,000. The average annual monthly labor size was 234,792 during 2012, 229,950 during 2011 and 226,593 during 2010.

Following are other key figures from the BLS metro report.
• Unemployed persons in the region totaled 13,489 during January, a big jump from the 11,768 during December but below the 13,807 during January 2013.

• The Northwest Arkansas manufacturing sector employed an estimated 26,300 in January, down from 26,400 in December, and down from the 26,400 during January 2013. Sector employment is down almost 22% from more than a decade ago when January 2004 manufacturing employment in the metro area stood at 33,700.

• Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 48,300 in January, down from a revised 49,600 during December, and up from the 49,200 during January 2013. The sector reached record employment of 50,500 in December 2006.

• Employment in the region’s tourism industry was 20,700 during January, down from 21,100 in December and up from 19,700 during January 2013. Employment in the sector set a record of 22,000 in June 2013.

• In Education & Health Services, employment was 24,500 during January, down from 24,800 during December and up from 23,700 during January 2013.

• In the Government sector, employment was 30,900 during January, down from 32,300 in December and up compared to 30,000 during January 2013.

NATIONAL NUMBERS
Unemployment rates were lower in January than a year earlier in 367 of the 372 metropolitan areas, higher in three areas, and unchanged in two areas, noted the broad BLS report.

The U.S. unemployment rate in January was 6.6%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.3% in January, down from 7.4% in December and down from 7.5% in January 2013.

Oklahoma’s jobless rate during January was 5.2%, down from 5.4% in December, and down compared to 5.4% in January 2013. The Missouri jobless rate during January was 6%, unchanged from December and better than the 6.7% in January 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
January 2014: 5.9%
December 2013: 4.9%
January 2013: 5.9%

Fort Smith
January 2014: 7.8%
December 2013: 7.6%
January 2013: 8.7%

Hot Springs
January 2014: 8.1%
December 2013: 7.5%
January 2013: 8.4%

Jonesboro
January 2014: 7.8%
December 2013: 6.6%
January 2013: 7.8%

Little Rock-North Little Rock-Conway
January 2014: 7.1%
December 2013: 6.2%
January 2013: 7.1%

Memphis-West Memphis
January 2014: 8.4%
December 2013: 8.6%
January 2013: 9.7%

Pine Bluff
January 2014: 10.8%
December 2013: 9.8%
January 2013: 10.5%

Texarkana
January 2014: 7.3%
December 2013: 6.8%
January 2013: 7.2%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2012: 5.6%
2011: 6.2%
2010: 6.4%
2009: 6.2%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

Swings in the workforce size and number of employed — potentially related to winter weather impacts on reporting – pushed the January Fort Smith metro jobless rate to 7.8%, ahead of the 7.6% in December but well below the 8.7% in January 2013. The metro rate has been at or above 7% for 61 consecutive months.

Metro employment of 117,794 was down from the revised 122,466 in December, and was down 1.7% from the 119,845 in January 2013, according to figures released Friday (March 21) by the U.S. Bureau of Labor Statistics.

Only one of the eight metro areas (Memphis-West Memphis) in or connected to Arkansas had a jobless rate decline in January compared to December. Two areas had jobless rate increases compared to January 2013, three had declines and three areas were unchanged. For perspective, 98.6% of the 372 U.S. metro areas had year-over-year-over-year jobless rate declines in January, while 37.5% of Arkansas’ eight metro areas posted year-over-year declines.

During January, the lowest metro jobless rate in the state was 5.9% in Northwest Arkansas and the highest rate was 10.8% in the Pine Bluff area.

The federal BLS issued this statement with its January labor report: “Effective with this release, nonfarm payroll estimates for states and metropolitan areas have been revised as a result of annual benchmark processing to reflect 2013 employment counts primarily from the BLS Quarterly Census of Employment and Wages (QCEW), as well as updated seasonal adjustment factors. Not seasonally adjusted data back to April 2012 were revised. Seasonally adjusted data from January 1990 were subject to revision.”

FORT SMITH METRO NUMBERS
The size of the Fort Smith regional workforce during January was 127,708, down from 132,560 during December, and down 2.74% compared to the 131,316 during January 2013. The labor force reached a revised high of 140,253 in June 2007.

Unemployed persons in the region totaled an estimated 9,914 during January, down from the 10,094 during December, and more than 13% below the 11,471 during January 2013.

The Fort Smith area manufacturing sector employed an estimated 18,200 in January, down from 18,400 in December, and below the 18,300 during January 2013. Sector employment is down more than 36% from a decade ago when January 2004 manufacturing employment in the metro area stood at 28,500. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 24,200 in January, down from the 24,800 in December, and above the 23,500 during January 2013. Employment in the sector reached a high of 25,700 in December 2007.

Employment in the region’s tourism industry was 9,100 during January, down from 9,200 in December and above the 8,700 in January 2013. The sector reached an employment high of 9,800 in August 2008.

In Education & Health Services, employment was 16,400 during January, down from 16,600 in December and below the 16,900 during January 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

In the Government sector, employment was 18,800 during January, down from 19,400 in December and up compared to 18,600 in January 2013.

NATIONAL NUMBERS
Unemployment rates were lower in January than a year earlier in 367 of the 372 metropolitan areas, higher in three areas, and unchanged in two areas, noted the broad BLS report.

The U.S. unemployment rate in January was 6.6%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.3% in January, down from 7.4% in December and down from 7.5% in January 2013.

Oklahoma’s jobless rate during January was 5.2%, down from 5.4% in December, and down compared to 5.4% in January 2013. The Missouri jobless rate during January was 6%, unchanged from December and better than the 6.7% in January 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
January 2014: 5.9%
December 2013: 4.9%
January 2013: 5.9%

Fort Smith
January 2014: 7.8%
December 2013: 7.6%
January 2013: 8.7%

Hot Springs
January 2014: 8.1%
December 2013: 7.5%
January 2013: 8.4%

Jonesboro
January 2014: 7.8%
December 2013: 6.6%
January 2013: 7.8%

Little Rock-North Little Rock-Conway
January 2014: 7.1%
December 2013: 6.2%
January 2013: 7.1%

Memphis-West Memphis
January 2014: 8.4%
December 2013: 8.6%
January 2013: 9.7%

Pine Bluff
January 2014: 10.8%
December 2013: 9.8%
January 2013: 10.5%

Texarkana
January 2014: 7.3%
December 2013: 6.8%
January 2013: 7.2%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 8.1%
2008: 5%
2007: 5.2%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

Arvest Equipment Finance, a division of Arvest Bank, tallied $132.3 million in loans and leases during 2013, up 8.1% from the prior year. The equipment finance division has grown its loans and leases from $54.9 million in 2009, according to the release.

In 2013, AEF ranked among the top 100 largest equipment finance and leasing companies in the United States by MonitorDaily, a trade publication for the industry.
 
“Financing equipment is a great option for business owners as it gives them flexibility and the option to preserve resources for other needs. Here, we are in the fortunate position of having close relationships with Arvest lenders, and so we’ve been able to successfully inform customers about the benefits of using AEF,” said CEO Kyle W. Gilliam.

He said one of these benefits is the ability to finance up to 100% of the cost of equipment with no down payment.

The Equipment Leasing and Financing Association (ELFA) predicts that a majority of U.S. businesses will use some form of financing for equipment acquisition in 2014.

Wal-Mart execs keenly focused on improving comparable sales and driving top line revenue are testing a new “Savings Catcher” pricing tool as a way to drive in-store traffic and hammer home the low price message.

Duncan Mac Naughton, chief merchandising officer for Walmart U.S., said Savings Catcher is one of the new data innovations they are eager to share with consumers. Mac Naughton said recently that Savings Catcher is being tested in seven cities: Charlotte, N.C.; Dallas; Lexington, Ky.; Atlanta; Minneapolis, Minn.; Huntsville, Ala.; and San Diego.

“We know we have to innovate to make savings easy for our customers. We still match prices at the register but Savings Catcher goes bit further,” Mac Naughton said.

The system is simple. A customer who shops at a Walmart store in the test cities will have bar code and “TC number” on the bottom of their receipt. The number is entered into the Walmart website for the program.

According to to Mac Naughton, the system then analyzes all grocery advertisements in the area, and if other retailers had a lower price the difference is credited to the shopper on a Walmart gift card.

The program only pertains to grocery. It does not include general merchandise or electronics, which is one of the several ways Wal-Mart has protected itself with this program, according to analysts.

ANALYSTS REACTION
“At first glance I like the program. Psychologically, it could resonate with the customers. It should also help to drive in-store traffic. It will be interesting to see if the program is expanded,” said Jason Long, CEO of Shift Marketing Group.

He said it hasn’t been that long ago that Walmart was the clear leader in low prices in the minds of most consumers. But Dollar Stores, Aldi and aggressive pricing from Kroger, HEB and other grocers have nipped away at that image.

Because Wal-Mart is controlling the eligibility of various items, promotional situations and advertising scenarios, any comparisons will most likely reinforce Walmart’s value proposition rather than compromise it, said Carol Spieckerman, CEO of NewMarketBuilders. She also said the program brings the customer into the relationship.

“The genius of Walmart’s Savings Catcher program is that it adds a new dimension to its price match guarantee while continuing to make it incumbent upon shoppers to take the initiative. Walmart can satisfy shoppers who are truly price sensitive and message value and price transparency to everyone else without lowering prices across the board. It offers the best of both worlds,” Spieckerman said.

Long said it’s obvious the retailer is insulating itself against major risks by having the consumer take the initiative to sign up and then take an extra minute or two scan the bar code into the phone or key in the numbers on the website.

Walmart also is limiting the price match to branded only grocery items that are published as “on sale” by the competitors. For instance, if the everyday low price on a particular item is cheaper at a competitor and it’s not published in the sales circular, Walmart’s system may not compare that item.

While Walmart is comparing against other low cost grocers such as Aldi, only branded products are eligible. Most of the items sold at Aldi are private label. Other retailers included in the comparison are numerous traditional full-service grocers and higher-priced convenience pharmacies such as Walgreens and CVS that use loyalty discounts. Target, Dollar Store and Dollar Tree were also listed as competitors in the program.

However, Walmart said it will reward coupon users when a competitor is found to have lower on-sale prices. For instance, if a shopper buys Oreo cookies at Wal-Mart for $2.50 and uses a 25-cent coupon for a total cost of $2.25 and a competitor advertises those same cookies at $2 on sale, Savings Catcher will refund 50 cents back to the Wal-Mart shopper in a gift card (Walmart).

Long said given the restraints on the price checks (branded, on-sale groceries) it could take quite a lot of time to build up any meaningful credit. Even so, he said consumers like to spend cash back. 

“If they have $3 on a card, they are apt to come into a store and spend that and more,” Long said.

Stephen Quinn, executive vice president of marketing at Walmart U.S.  said recently that Wal-Mart was committed to “show customers even more savings, and prove it to them (more) than we been able to do in the past.”

DATA WIN
Wal-Mart’s continued investments in @WalmartLabs, is giving the retailer a leg up against some of its competitors.

Long and Spieckerman said Savings Catcher offers data-gathering benefits for the mass retailer that can be leveraged to help consumers realize savings while also showing Wal-Mart exactly what items certain customers are buying. Spieckerman has said Wal-Mart’s continued investments into data-rich technology startups gives the retailer enormous insight and future omnichannel opportunities.

“Any time a customer enters a receipt number, Wal-Mart will gather data that will enable it to further refine its value proposition and localized pricing strategies. Another example of a multi-benefit program from Wal-Mart,” said Spieckerman.

With Savings Catcher, Walmart is taking its data capabilities and putting it in the hands of consumers, according to Kantar Retail.

“They have the data capabilities, why not use it to their advantage,” said Leon Nicholas, senior vice president of retail insights for Kantar Retail.

Some experts believe it won’t be long until Savings Catcher will plug into Amazon. ASDA, Wal-Mart’s British retail banner, has been using this program for sometime. But there is no gift card option at ASDA.

Others wonder how else the retailer might use data it collects from shoppers who sign up. For instance, the retailer could use the data to make predictive shopping lists for specific customers, with the info delivered via smart phone when they enter a Walmart store. 

Or Walmart could send alerts for rollbacks or other reduced pricing on specific items they know the shopper regularly purchase. This type of individualized marketing is already active with Walmart.com.

One local chef is garnering national attention named among the best of the best. Matthew McClure of the Hive restaurant in Bentonville at the 21c Museum Hotel is one of the semifinalists for the 2014 Best Chef Award for the southern region by the James Beard Foundation.

The selection process began in October with an open call online allowing anyone to submit up to two entries per category. After receiving close to 40,000 submissions, the top restaurant and chef committees were composed of critics, writers, and editors, who created the list of semifinalists, culled from the open call, for each award, according to the Beard website.

The prestigious James Beard Restaurant Awards ceremony will be held in May 2 to May 5 in New York City.

Businesses across Benton and Washington counties collected 9.8% less in sales tax in January across the region’s four largest cities. Total sales tax revenue slid to $3.938 million in March, compared to $4.356 million reported by the same four cities in March 2013.

There is a two-month lag in the reporting from the time the sales are made and when the cities report the associated revenue. Fayetteville, Springdale, Bentonville and Rogers each collect a 2% local sales tax. One percent of that goes to repaying debt and 1% goes into the cities’ general funds. This report tracks the general fund revenue.

MARCH REVENUE (compared to year-ago)
Springdale: $813,815, up 4%
Rogers: $1.037 million, down 3%
Fayetteville: $1.325 million, down 7%
Bentonville: $762,246, down 29%

City administrators and mayors attribute the lower collections to snowy weather that kept more people at home or kept businesses closed for several days in January. Retailers from Wal-Mart to Macy’s said their sales suffered in January from cold, snowy weather that blanketed much of the country — Arkansas included.

Bentonville officials said the March report was a tough year-over-year comparison but trends should be good as long as revenue meets the $750,000 budgeted on a monthly basis. Springdale does not have the retail presence of Fayetteville or Rogers and tends to report more stable numbers on average.

The smaller towns of Lowell and Siloam Springs also reported double-digit declines in sales tax revenue this month. Siloam Springs collected $261,761, down 21% from $274,959 reported a year ago. Lowell city officials reported March revenue of $218,989, down 35% from the same month in 2013.

Consumer sentiment is also closely tied to sales revenue. Consumer sentiment dipped in January, as recent economic improvements did not translate to rosy consumer outlook. The final reading on the University of Michigan's overall index of consumer sentiment slipped to 81.2 in January, down from the 82.5 posted in December. Analysts were looking for a reading of 81.0 in the month. Lower income households (75,000 or less) were largely responsible for the negative outlook, according to the release.

Year-to-date collections among the region’s largest cities are trailing revenue reported in 2013, except Rogers — up just slightly.

SALES TAX COLLECTIONS (year-to-date)
Rogers
2014: $3.691 million
2013: $3.629 million
1.7%

Springdale
2014: $2.501 million
2013: $2.54 million
-1.54%

Fayetteville
2014: $4.502 million
2013: $4.632 million
-2.8%

Bentonville
2014: $2.335 million
2013: $2.791 million
-16.3%

Simmons First National Corp. will acquire Little Rock-based Delta Trust & Banking Corp. for roughly $66 million. The Pine Bluff-based bank said it has entered into a definitive agreement and plan of merger with Delta Trust.

According to the terms of the agreement, Simmons First will acquire all of the outstanding common stock of Delta Trust in a transaction valued at approximately $66 million, subject to potential adjustments. The transaction is expected to be accretive to the company’s diluted earnings per common share for the first 12 months after the transaction closes and thereafter.

The transaction is the second in less than a year for Simmons First, which acquired Little Rock-based Metropolitan National Bank in September 2013 for $53.6 million.

“French Hill and his team have developed a successful and well-respected financial services franchise. In addition to the growth opportunities afforded Simmons Bank, we look forward to expanding our Simmons Trust services, and offering investment management and insurance products throughout the markets we serve,” said George A. Makris, Jr, Simmons First Chairman and CEO. “We believe the acquisition will enhance our ability to offer a full range of financial services to our customers including wealth management, consumer and commercial financing needs, and asset protection.”

Delta Trust & Bank has assets of approximately $431 million; loans of $319 million; deposits of $377 million and total equity of $40.6 million. It has nine banking locations in Little Rock, northwest Arkansas, and south Arkansas, and is building a new location in Conway.

“We are excited that our expertise in the strategic areas of investment brokerage, trust administration and insurance sales along with our experienced commercial bankers in all three Arkansas markets are going to be able to join the dynamic, growing Simmons franchise,” said Delta Trust founder and CEO French Hill. Hill continued, “Our employees will have expanded career opportunities as Simmons expands its reach in Arkansas and its new locations in Missouri and Kansas.”

Completion of the transaction is expected in the third quarter of 2014.

Under the terms of the agreement, each outstanding share of common stock and equivalents of Delta Trust will be converted, at the election of each Delta Trust shareholder, into the right to receive shares of the company’s common stock or the right to receive cash, all subject to certain conditions and potential adjustments, provided that the cash portion of the merger consideration paid to Delta Trust shareholders will be limited to approximately $10 million.

The number of shares to be issued is fixed with an exchange ratio of 15.1428 shares of Simmons First (NASDAQ: SFNC) stock for each share of Delta Trust stock or cash of $545.14 per share of Delta Trust stock.

Shares of Simmons First closed trading on Monday (March 24) at $37.47 per share. The company’s stock has traded between $23.16 and $38.54 per share during the last year.

Tax filers the Fort Smith and Northwest Arkansas areas who have waited until the last few weeks of tax season do not have to go it alone.

According to Susan Reehl, program director for WestArk RSVP, programs like hers are available to provide assistance to low income and senior populations in need of tax preparation assistance.

"We have two types of IRS grants," Reehl explained. "Tax counseling for the elderly, which lets us help people 60 or older regardless of income, and then we have a grant to help people who make $52,000 (per year) or less."

She said WestARK RSVP is also able to assist active duty military regardless of income, as well as the unemployed. An additional service available to earners with an income up to $58,000 is free state and federal tax preparation and eFiling through the RSVP website. The website also has information about hours of service, locations and other information.

While assistance is available to many, Reehl said ministers and farmers could not be serviced by the organization.

Reehl said for those seeking assistance in person, a so-called "super site" is open in Fort Smith, while an elderly tax counseling center is open in Rogers. So far, those two centers have already helped local residents reclaim millions in tax refunds.

"As of Friday afternoon, we had done 2,143 federal tax returns. We have just gone over the $3 million mark in refunds. And we've done $1.151 million in earned income tax credits."

While the program is open for households earning up to $52,000, Reehl said RSVP's average adjusted gross income for this year was just under $17,500, while the senior program open to all incomes for individuals over 60 was averaging an AGI of about $22,000.

Volunteer Manager Trish Walker said one of the changes that has impacted refunds this year has been the change in standard deductions, making it more difficult for low income individuals to itemize and claim higher tax refunds.

"The standard deductions have gotten quite high now. The standard deduction is like $12,200 (for married couples). A single person is $6,100. The head of household is $8,950."

She said the difficulty is also because the deductions do not kick in until the total has surpassed the first 10% of income, while it was previously 7.5%. In addition to the standard deductions bringing both confusion and frustration, the Affordable Care Act (aka Obamacare) has brought a lot of confusion. According to Walker, many people have asked about penalties for not having insurance coverage.

"Obamacare will effect (tax filers) in (tax year) 2014, the tax return that you file beginning in 2015," she said. "If you can prove that you had some sort of insurance. If they have it through their employer, it will be coded with a 'DD.'"

Should tax filers not obtain health insurance before March 31 of this year, which is next Monday, she said the resulting tax penalties could leave many with an empty wallet.

"That penalty will either reduce the refund or could cause a balance due on the return."

Speaking of owing the IRS, Walker said filers expecting to owe taxes should not wait until April 14 or 15 to file their returns.

"If they suspect that they are going to owe, they don't need to wait until the last minute. What I've seen in a lot of situations is they owe federal, but get a refund on state," she said, adding that filing early could enable easier payment to the federal government by using the possible state refund.

Should someone owe the government money but is unable to pay, Walker did say that payment plans are available, which RSVP can notify filers of at the time of filing. She added that penalties will be assessed, though they can be greatly reduced should a filer be able to pay a large amount of the taxes due at the time they arrange payment.

Reehl said anyone seeking to use WestArk RSVP should bring all tax forms (i.e. W-2, 1099, etc.), as well as the Social Security card of anyone to be included on the tax return. Primary filers and their spouses should also bring a photo ID, as well. As for anyone fearing the tax filing process, Reehl said there was no need to stress.

"They get treated well. The volunteers are very kind and very accurate."

The consumer packaged goods (CPG) industry reported total sales growth of 1.5% in 2013, down from 2.8% in 2012 and lower than the 3.4% in 2011. Last year’s growth was nearly on par with the same increase coming out of the recession in 2010.

A recent study by Boston Consulting Group and IRI Worldwide notes that large CPG companies are ceding market share to midsize and small companies to the tune of $14 billion in lost sales since 2009. Last year small companies (less than $100 million in sales) collectively grew by 4.3%. At the same time large companies lost 0.5% in market share, mostly captured by the small companies.

The recent report notes that emergence of digital media has been an equalizer for small companies because it has reduced advertising costs. Smaller players also are benefiting from the rise of online and speciality retailers which offer new selling opportunities.

LARGE COMPANIES
Despite a decline in their overall share, large companies (more than $5 billion in sales) collectively performed better in 2013 than in 2012. Even so, just one in three reported gains in market share last year, according to the study. This was particularly true for the five top-ranked large companies listed here in random order: Hershey Company, Lorillard, Mondelez Interntional, Campbell Soup Company, and Procter & Gamble.

The study shows dollar sales growth among these five companies ranged from 6.1% to 1.2%; their volume sales growth ranged from 4.7% to 0.5%, and their market share percentage-points gains ranged from 1.2 to 0.2.

Gains were largely driven by a renewed focus on delivering volume growth instead of raising prices to achieve short-term gains in dollar sales, with tactics including garnering more shelf space with the right assortments and revenue management. The other top-10 large companies include: Johnson & Johnson, PepsiCo, Grupo Bimbo, Coca-Cola Company, and Kimberly Clark.

Four of these five large companies also posted dollar sales gains ranging from 2.4% to 0.5%. Coca-Cola was the exception with a 1% dip in dollar sales during 2013. J & J and Kimberly Clark posted volume gains of 3.2% and 0.7%, respectively. Coca-Cola realized a 0.2% gain in market share while PepsiCo’s share rose 0.1%. The study found the top 10 large companies had average sales growth of 1.7%, volume growth of 1.1% and a market share change 0.3%. 

MIDSIZE COMPANIES
Companies with sales ranging from $1 billion to $5 billion are considered midsize in the study. The top-performing midsize companies last year include:
• Green Mountain Coffee Roasters, 
• Chobani 
• McKee Foods, 
• Sterilite, 
• Monster Energy Company, 
• Gruma, 
• Red Bull, 
• Land O' Lakes,
• Link Snacks, and 
• Starbucks.

The study revealed that Green Mountain, Chobani and McKee posted double-digit dollar sales growth of 25%, 18.3% and 14.1%, respectively. Volume growth for these top performers was 24.9%, 22.6% and 10.1%, respectively. Four of the top five had market share gains of 2% or greater, with McKee at 2.7%. On average, the top 10 midsize companies had dollar sales growth of 10.9%, volume sales growth of 10.6%, and grew market share by 1.8%, according to the study.

SMALL COMPANIES
The top 10-performing small companies noted in the study include:
• Kind, 
• Paris Presents, 
• TalkingRain, 
• Old World Industries, 
• Idahoan, 
• Materne Industries, 
• All Market, Promotion in Motion, 
• NJoy, and 
• Aqua Star.  

Among these companies with less than $100 million in sales, three realized triple digit dollar sales gains. The study shows NJoy was up 126.9%, Kind increased 122.6% and TalkingRain dollar sales rose 103.6% from the prior year. Each of the other small companies posted double digit gains, the smallest being 11.8% by Idahoan.

LIkewise, volume sales gains rose by triple or double digits by all ten small companies. The only company to lose market share was NJoy, at a 1.7% dip. On average, the top 10 small companies had dollar sales growth of 54.9%, volume sales growth of 50.3%, and 2% gain in market share last year. 

The smaller companies' success at discovering new pockets of growth within mature categories underscores how crucial it is for companies to spot and timely capitalize on trends, noted the researchers.

The past few months have been a blur of activity for execs at Silicon Solar Solutions/Picasolar and Overwatch, both tagged as startups to watch in 2014 by The City Wire. Each of the two startups have been in the midst of product design and testing as they work to get their inventions to the manufacturing phase.

The startups also are working to secure more capital to see their products into production and manage long-distance relationships between principal members.

PICASOLARTESTS WELL
Flying high from a national SunShot grant, Douglas Hutchings, with Silicon Solar Solutions and its sister startup Picasolar, said their technology for the N-type solar cells came through the first battery of federal testing with strong results.

“We passed UV testing and that is a big milestone we are glad to have behind us,” said Hutchings. 

The startup received test results Monday (March 24) from the National Renewable Energy Laboratory. He said the improvements ranged from 4.41% to 9.67% with an average efficiency improvement of 7.6%. The goal was to be at 5% by October, which puts them ahead of schedule.

“There is still a lot more work to be done in terms of optimizing the process to be ready for high throughput, but this is definitely a big step in the right direction. These results were delayed significantly because a third party vendor broke several of our samples which caused all sorts of scrambling to catch back up,” Hutchings said.

The startup also is dealing with less than optimal communication among vital team members. One principal is sorting out some immigration related issues that is forcing him to work from abroad which is not ideal given the time zone differences. In the meantime, Hutchings said they are finalizing the paperwork to add a fairly high profile Arkansan to its board of directors.

“The individual is highly accomplished and should bring a lot to the team having held industry and political positions where he has been very successful. We should be collecting final signatures over the next couple of days so we can announce something,” Hutchings said.

The startup also continues to work on plans for local manufacturing of its solar equipment.

“We have engaged AEDC and other stakeholders within the state to start ironing out infrastructure needs. We recently recruited Rick Schwerdtfeger as chief operating officer who has built a $1 billion manufacturing company in the past at ARC Energy. We are leveraging his skills and prior experiences. Ultimately the facility would create around 113 jobs by 2017 if we are successful.” Hutchings said.

Picasolar is actively engaging investors for its next round of funding. Hutchings said the group will make visits outside the state to find more funding sources. He said the company has received letters of intent from two customers wanting to purchase the new technology. The two sales, if made, exceed the company’s total projected sales through 2017. Hutchings said this shows investors there is good demand for their product, which is why the startup is eager to get this new technology to market. The Picasolar technology is part of the SunShot Incubator Program, sponsored by the U.S. Department of Energy.

“We successfully submitted another proposal for the next tier of the SunShot Incubator Program. ... We proposed a $1 million project to the Department of Energy and we should start receiving feed back in the coming month or so,” he said. 

OVERWATCH COMPLETES DESIGN
Josh Moody, CEO of Overwatch, told The City Wire the Bentonville-based startup is reeling with excitement as its gaming application is 90% complete.

“We have just finished the designs for our hardware case mount and are sending it to Cyber Gun this week (March 25),” Moody said. “Their manufacturer will likely tweak the design some and we expect to hear back in the next two to three weeks.”

After that, Moody said they will work on packaging, but in the meantime, the lean and long-distance team has focused on promotional marketing plans for a product launch in June. Moody is finishing up his senior year at Little Rock Catholic High School and working on the designs and marketing plan in his spare time. His partners, Joe Saumweber and Michael Paladino, of RevUnit in Bentonville, are providing the software engineering and technology services to Overwatch.

Moody said the software gaming application is nearing completion and will be distributed to the startup’s beta testers within the next month. 

“We have a lot to pull together for a June product launch,” Moody said. “We expect the hardware will be ready to ship to retail stores in June and we want to package the software application with the hardware case mounts.” 

Overwatch is closing up a funding round for $300,000 in capital, which Moody said is needed to get the product to market. He said the startup will likely get the full amount needed from Arkansas investors, but the company is not opposed to looking outside the state if necessary.

“We are in talks in now for the funds we need to cover the final expenses of getting this product launched into retail,” Moody said.

Jim Keenan, senior vice president of Enterprise Customer Solutions for Arkansas Best Corporation, will retire March 31, 2014, after 33 years of service with the company.

"Jim's many years of service at ABF Freight, in the areas of sales and pricing, contributed to the development of our sales approach and to the unique tools that allow our company to be a leader in the transportation industry," Arkansas Best President and Chief Executive Officer Judy McReynolds said in a statement. "He has been a valuable resource for our company and a dedicated employee.  We thank Jim and wish him and his wife Monika the very best in the coming years."

Keenan joined the company in 1981 as a result of ABF Freight's acquisition of East Texas Motor Freight.

During his years with ABF Freight he worked in the pricing department and held various leadership roles in the sales department, culminating as ABF Freight's senior vice president of Sales and Marketing. Additionally, for three years, he led the sales and marketing initiatives at an Arkansas Best subsidiary that was subsequently sold.

His existing role at Arkansas Best was created to coordinate the numerous supply chain services offered across ABF Freight, ABF Logistics and Panther Expedited Services.

High school students can meet Arkansas’ new digital learning requirement and earn college credit at the same time through an offering of NorthWest Arkansas Community College.

NWACC was one of 23 organizations recently designated as a digital learning approved provider by the Arkansas Department of Education. The development of the approved provider list follows the Arkansas General Assembly’s passage in 2013 of Act 1280. The legislation sought to expand digital learning opportunities to all Arkansas public school students and to remove any barriers to digital learning. 
 
Under the legislation, all public school districts and public charter schools shall provide at least one digital learning course to their students as either a primary or supplementary method of instruction. Starting with the ninth grade class of the 2014-15 school year, each high school student shall be required to take at least one digital learning course for credit to graduate.
 
Through NWACC’s Early College Experience program, qualified high school students can take college classes online that are coordinated through the student’s high school or by registering through the NWACC’s admissions office. 
 
To qualify to take online courses, high school students must demonstrate the ability to work at a college level through placement test scores such as ACT, SAT, PLAN, PSAT or EXPLORE.  The cutoff scores are determined by the Arkansas Department of Higher Education and the college. 
 
General education courses, including English, math, science and history, that count toward an associate’s degree are available online. In addition, a few career and technical courses are available to students in areas such as hospitality management and occupational safety and health.
 
NWACC is the only college in Benton and Washington counties on the approved provider list. The Northwest Arkansas Education Service Cooperative and Crystal Bridges Museum of American Art also are among the approved providers in the region.
 
More information on this and other NWACC programs is available online.
 

A Disney World theme park vacation may be every kid’s dream, but with the escalating costs of a one-day ticket such a fairy tale trip could be out of reach for many middle-class families.

Walt Disney World raised its daily ticket price to $99 in February, the second price hike in less than a year. The ticket costs have doubled in the past decade. Meanwhile, the median family income has declined 8% since 2007 to $51,017 in 2012, the latest available data by the U.S. Census Bureau. The median income in 2012 was at the same level it was in 1995, a setback of 17 years.

The theme park prices continue to rise annually, but Fiona O’Donnell, a leisure analyst with Mintel, said this year the price hike came earlier than expected. She doesn’t think the $4 increase will keep vacationers away.

Disney spokeswoman Kim Prunty, recently told CNBC that ticket pricing reflects the “high quality experiences” offered and the company’s ongoing investments in their park facilities.

“We offer a variety of ticket options that provide a great value and find that most guests select multi-day tickets that offer additional savings," she said.

Disney did not immediately respond to The City Wire’s request for comment made on Tuesday (March 25).

A three-day ticket costs $274 which is $91.34 per day for park patrons aged 10 and up. Children ages 3 to 9 would pay $255 for the same ticket, a daily average of $85, according to the Disney’s website. 

A family of four that includes two small children would plunk down $1,058 for three-day passes, and that doesn’t include parking, food or lodging. A one day trip to the Magic Kingdom would cost $384 for the same family. Analysts said if pricing put the parks out of reach for traditional clients, they will likely go far less often, perhaps once in a lifetime.

CONSUMER REACTION
Consumer sentiment has been mixed on the rate increase, according to several people interviewed by The City Wire. Carlos Collier, an avionics technician at the Tulsa International Airport, said “$500 for a family of five sounds a bit ridiculous to me.”

Mitch Clendening, a television news director in Houston, said the $99 ticket price is steep. But he added that he has taken his family to Disney several times via complementary passes made available to the media. Peggy Treiber of Fayetteville said she thought the price was a bit much until she got to Orlando.

“Now I would consider it too high if you went during spring break or on a holiday and ended up spending most of your time in line, other than that, not really.”

A February report from IBIS World notes that the amusement park industry has focused on growing in-the-park spending as a way to compensate for lighter crowds in recent years. The higher ticket prices also help to keep annual revenue constant as it may take some families several years to save up for their Disney vacation.

REVENUE REBOUND
The amusement park industry derives the majority of its revenue from ticket sales. In 2014, admissions and ticket upgrades are expected to account for 55% of industry revenue, according to the IBIS report. 

This segment has held a steady share of revenue in the five years prior to 2014, and it is expected to continue providing the majority of industry revenue in the five years to 2019, noted Andy Brennen, analyst and report author at IBIS World.

Walt Disney’s theme park segment revenue is on the rebound after a bumpy ride from 2008 to 2010. Segment revenue dipped 7.3% in 2008 to $5.12 billion. The following year revenue was flat. Ticket costs rose from $69 to $76 for a one-day pass during the same years.

Disney park revenue rebounded 9.6% in 2010 and 2011 to $5.66 billion and $6.2 billion, respectively. Last fiscal year revenue topped $6.5 billion, up 5.4% annually, according to  corporate filings.

INDUSTRY MARKET SHARE 
The amusement park industry is a $15.4 billion market this year, and profits are forecast at $1.6 billion up 4% since 2009, according the IBIS report. The Walt Disney Company has a 44.5% share of that market, well ahead of Universal Parks at 15%, Sea World at 10.6% and Six Flags at 7.9%.

The industry is increasingly dependent on U.S. residents and that is especially true again this year with continued global economic slowing. IBIS estimates about 80% of the industry’s total visits this year will be from domestic patrons.

The largest demographic of domestic visitors are children and teens — 25.6% of the market. The parents or these kids ages 35 to 54 represent about 21.6% of the visitors. Senior citizens represent about 19.2%.

Sales tax collections for the city of Fort Smith were down in both city and county sales taxes for a period that included the typically busy Christmas shopping season.

Each of the city's 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.456 million in the February report, down 2.74% from the same period in 2013.

The collections in the February report were 4.76% below budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in February are from taxes collected in December and transferred by merchants to the state in January.)

Collections so far in the 2014 reporting period of the two 1% taxes were $3.342 million, while the same period in 2013 saw collections of $3.426 million. The same period in 2012 saw $3.634 million and $3.315 million in 2011.

Total collections in the year 2013 of the two 1% taxes were $38.937 million. Collections in 2012 of the two 1% taxes totaled $39.21 million, slightly ahead of the $38.683 million during 2011. The 2011 collections were 3.9% above 2010 collections.

Fort Smith's share of the county 1% sales tax in the February report was $2.583 million, down 2.55% from last year's total during the same period of $2.651 million. The collection was down 3.01% compared to the revenue estimate.

The countywide tax generated $15.353 million for Fort Smith during 2013, up 0.49% compared to 2012 and down 1.99% compared to budget forecasts. The countywide tax generated $15.279 million in 2012, just ahead of the $15.15 million in 2011, but lower than the peak collection of $16.61 million in 2008.

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

POSSIBLE BUDGET CUTS
It was April of last year when discussion of budget cuts came to the forefront, with the city requesting a total cut of 4% from all city departments.

Deputy City Administrator Jeff Dingman said no discussions of budget cuts have taken place yet, as the sales tax report was just released late Tuesday (March 25).

He said while there is concern with the city's pair of 1% sales taxes showing declines in revenue, the city's real concern would be the countywide sales tax due to it's impact on the city's general budget.

"The county could (require us to trim budgets). It doesn't look great, but it certainly could be worse. But we haven't talked about the timing of when we might evaluate it for the purposes of budget reductions."

Dingman said it would take more time before the city administration makes recommendations for possible budget cuts, adding that it was too early to even know what those cuts could be.

"With just two months here in the bank, I don't know that we're ready to start making those decisions at this point. Like I said, we did it in April and May time frame (last year)," he explained. "As far as a set benchmark where we say we need to change something, I don't know that we have a set threshold."

PREVIOUS ANNUAL COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2013: $38.937 million
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

The Congressional delegations from Arkansas and Oklahoma released a letter Tuesday (March 26) requesting funding for a study that would allow the U.S. Army Corps of Engineers to fix a recurring problem versus "putting a band aid" on the problem.

The letter, signed by all of the congressmen and senators from both states minus U.S. Sen. Tom Coburn, R-Okla., was written to Jo Ellen Darcy, assistant secretary of the Army for Civil Works, and requests $100,000 so the U.S. Army Corps of Engineers can study an ongoing problem at the convergence of three rivers where the McClennan-Kerr Arkansas River Navigation System begins.

"The Three Rivers Study would investigate ongoing threats to navigation and bottonland hardwoods at the confluence of the Arkansas, Mississippi and White Rivers in southeastern Arkansas," the letter reads. "As we understand, the MKARNS is being threatened with a breach between navigation miles 3 and 8 on the White River."

The letter goes on to claim that should a breach occur on the MKARNS, it would halt navigation for more than 100 days while costing the economies of Arkansas, Oklahoma and Kansas in excess of $300 million, "including the loss of thousands of acres of wetlands."

Marty Shell, owner of Five Rivers Distribution on the Arkansas River in Van Buren, explained in simpler terms why the study was necessary.

"Through time, all rivers change course. You have high water and low water events that always want the Arkansas and White Rivers to merge into one another. The study is one that the Corps wants to do to stop the White and Arkansas from joining up with one another."

Shell added that while the majority of the Arkansas River is able to handle navigation, the last few miles before emptying into the Mississippi River have never been navigable, meaning that the White River is used. Should both bodies end up overflowing into one another, that would result in the disruption of commerce mentioned in the letter and the result could be a loss of business for himself and other businesses that rely on the flow of goods up and down the river.

The Corps now repairs any flood damage or other issues on a per-incident basis, which Shell said has been the status quo for "many years now."

"The Corps of Engineers spends $1.5 million a year putting in rock and stuff of that nature down there to stop it. But they are not solving the problem, they're just putting a band aid on it year by year. With O&M (operations and maintenance money) from the Corps, that is the money they give them to tackle this problem."

He said even if funding the study is approved, it will not fix the problem of the Corps not having the funding necessary to prevent the possible merging of the rivers.

"We can study it until the cows come home," he said. "But until we have a president and a House and a Senate who wants to distribute earmarks (to fund infrastructure investment), they can study it but not much is going to happen to it."

Shell said securing earmarks, which have largely been banned since Republicans took control of the U.S. House of Representatives in 2010, are what will move local economies along the river forward.

"Some call it earmarks, but I call it economic development. It is in your own backyard. When it's right here for us, it's economic development being spent right here in the state versus other states."

He said while a merging of the different bodies of water is unlikely in the next five to 10 years, he could see it possibly happening in the next 50 to 100 years, when the region will be even more reliant on river commerce and he said for that reason, it's time to stop putting band aids on the problem and instead heal the wound.

"The Little Rock District (of the Corps) does a great job. The Corps themselves does a great job. But they have their hands tied on what they can do. The administration and the federal government needs to realize they need (to invest) infrastructure dollars into a river system. ... For many years, we haven't put money back into the infrastructure of our country. It's time we wake up and realize if you don't put oil into an engine for 50 years, it won't run for you."

According to the letter signed by the two-state delegation, the MKARNS brings between $1.5 billion and $3 billion in trade transportation to Arkansas, Oklahoma and Kansas per year. They also said 42 different countries have been involved in trade of some sort along the navigation system.

A decision on whether to fund the study has not yet been announced.

Wal-Mart Stores Inc. issued an immediate recall of the My Sweet Love / My Sweet Baby Cuddle Care Dolls sold exclusively at its store since August 2012. The dolls were pulled from the retailer’s shelves because the circuit board in the chest cavity can overheat, posing a burn hazard to the consumer, according to the U.S. Consumer Product Safety Commission.

Wal-Mart has received 12 reports of incidents including two reports of burns or blisters to the thumb. There are an estimated 174,000 units in circulation.Consumers are asked to discontinue use immediately and return the product to Wal-Mart for a full $20 refund. This recall renders it illegal to resale the dolls.

The 16-inch is packaged with a toy medical check-up kit including a stethoscope, feeding spoon, thermometer and syringe. The doll is identified with UPC 6-04576-16800-5 and a date that begins with WM. That code is on the label sewn into the bottom of the doll.

The toys were manufactured in China by Tak Ngai Electronic Toys Co.