Wal-Mart CEOs Doug McMillon and Bill Simon are hosting a special gala this evening, May 15 at Crystal Bridges Museum in Bentonville. The event honors 14 Medal of Honor recipients who are visiting the area this week. The gala is also a fundraising effort for the Congressional Medal of Honor Society and Foundation.

President George W. Bush will be in attendance and receive the Society's highest award—the Patriot Award. The gala is being emceed by Governor Mike Huckabee, according Wal-Mart corporate spokesman David Tovar.

With President Obama presenting the Medal of Honor this week to Army Sergeant Kyle White for his actions in combat in Afghanistan, the Society now consists of the 78 living recipients of the Medal of Honor.

The signature effort of the Medal of Honor Foundation is a character-building program designed to educate youth on courage, commitment, sacrifice, patriotism, integrity and citizenship. 

“As a company, we are passionate about supporting veterans and celebrating our country’s heroes. What a phenomenal opportunity to honor those that sacrificed so much so we can enjoy the freedoms we have today,” Tovar noted in an e-mail.

Northwest Arkansas real estate agents report an active sales market but numbers from MountData.com indicate a slowing pace across the two-country area. There were 575 total transactions in Benton and Washington counties to start the spring selling season. Unit sales in April slid 6.35% from the 614 reported a year ago.

Paul Bynum, analyst with MountData.com, said sales are strong but the numbers are compared to highly robust year in 2013.

Benton County fared better than its neighbor with 382 sales, which was three more than sold a year ago. Total volume sales were flat at $73.253 million. Washington County sales totaled $33.361 million in volume, down 26% from a year ago. Unit sales fell 17.8% to 193 homes sold in the county.

Real estate veteran George Faucette told The City Wire that April has been his firm's strongest month this year. He said sales were mixed during the past four months with January sales higher and February sales lower year-over-year. He also noted that new written business, while moving up nicely year to date, was down when compared to 2013. Faucette is the co-owner and CEO of the local Coldwell Banker franchise.

"Our sales have been really strong through the first half of May, but we are not quite on par with last year. I think by mid-summer the market will catch up with the better 2013 numbers. One of my agents in Rogers told me today she has already sold more homes this year than she did in all of 2013. Some agents are doing quite well in this market," Faucette said.

Harold Crye, CEO of Crye-Leike Real Estate, said his firm’s NWA home sales totaled $38.5 million during April. Sales compared to $37.4 million a year ago. Through the first four months of 2014, Crye said his NWA agents have sold 745 properties valued at $112 million. This gives the firm roughly a 37% market share in terms of units sold.

MountData reports there have been 2,002 units sold during the first four months of this year with a total volume of roughly $357 million, down about 3% from a year ago. It took an average of 64 days to sell a home and the sales to list price ratio was 97.8%, which is an improvement for sellers.

CASH, QUICK CLOSINGS
Helen Dankser, an agent with Crye-Leike in Bella Vista, said she wrote nine contracts in April and that included one cash deal that closed within eight days of listing. 

“I showed the home the morning after it was listed the prior afternoon. There were five other appointments that same day. My buyers offered $1,000 over asking price with a clean cash deal and the sellers took it immediately. They didn’t entertain any other offers,” Dansker said.

She also is working on another cash deal now in Bella Vista, which is set to close May 20. Dansker said the home was on the market about one week. While inventory is a little tighter than in past years, Dankser said there are plenty of homes for buyers to chose from in most price categories. She said inventory is tight enough where multiple offers are prompting buyers to pay more than asking price.

“I have a closing toward this end of this month. My seller got two offers, one for $5,000 over asking and one for $500 over asking. The seller took the $500 over deal because it  did not have contingencies like the other deal,” she said.

Through four months of sales in 2014 the median asking price is $144,400 in Benton County, down 3% from a year ago. Prices were lower in Washington County with a median reading of $126,506 through April, down 6% from a year ago, according to MountData.com.

Pricing per square foot moved up from $80 to $82 in Benton County through April. In Washington County the median price per square foot was $85.5, up slightly from a year ago.

Vicki Briolat, an agent with Crye-Leike in Bentonville, said she closed nearly $1 million in sales last month. Those included a couple relocating here from Benton, a couple moving to a larger home in Fayetteville after selling their home in Elkins and a seller relocating outside the region.

“Our office is busy, not frantic, but it’s a nice pace we can live with,” Briolat said.

HOME SALES (January through April)
Benton County
Sales Volume
2014:  $230.943 million
2013:  $233.089 million
-0.90%

Units Sold
2014: 1,281
2013: 1,291
-0.85%

Median Sales Price
2014: $144,400
2013: $148,975
-3.07%

Washington County
Sales Volume
2014: $126.506 million
2013: $134.750 million
-6.11%

Units Sold
2014: 721
2013: 781
-7.68%

Median Sales Price
2014: $145,725
2013: $145,000
0.5%

Van Buren-based USA Truck has earned repeat accolades as an Alcoa Tier 1 Core Carrier of the Year for commendable dry van service in North America.

Alcoa, a global leader in lightweight metals engineering and manufacturing, annually recognizes its core carriers in a variety of categories. Carriers are measured against seven key metrics including overall volume, shipment acceptance percentage, scope and sustainability, and data accuracy.

Alcoa’s 13 Tier 1 carriers transported 50% of Alcoa’s North American motor carrier business in 2013.

“We have enjoyed a long-lasting partnership with Alcoa, and this award, for the second year in a row, demonstrates USA Truck’s commitment to delivering on our promise of consistency and service,” Jaimey Malone, vice president of Sales for USA Truck, said in a statement. “I am proud of every USA Truck driver team member who made this possible, and I am proud of our enterprise team for managing their business in a way that compelled Alcoa to recognize our performance again.”

Iconic investor Warren Buffett acquired 8.57 million more shares of Wal-Mart stock during the quarter ended March 31, according to a report filed with regulators on Thursday (May 15).

Buffett’s Berkshire Hathaway raised its stake 17% to 58.05 million shares of Wal-Mart during the first quarter. Buffett’s investment in Wal-Mart is valued at $4.46 billion.

Wal-Mart has become Berkshire’s fifth largest U.S. stock holding.

Darden Restaurants announced it will sell its Red Lobster business and certain other related assets and assumed liabilities to Golden Gate Capital for $2.1 billion in cash.   

Darden expects to receive net cash proceeds, after tax and transaction costs, of approximately $1.6 billion, of which approximately $1.0 billion will be used to retire outstanding debt. The remaining net proceeds of approximately $500 million to $600 million will be deployed for a new share repurchase program of up to $700 million in fiscal 2015. 

"Over the past months, we have had extensive conversations with our shareholders about Darden and the company's strategic direction. By enabling us to bolster the company's financial foundation and increase our focus on the Olive Garden brand renaissance program, we believe this agreement addresses key issues that our shareholders have raised, including the need to preserve the company's dividend and regain momentum at Olive Garden," said Clarence Otis, CEO of Darden.

In addition to strengthening the company's credit metrics, the sale of Red Lobster will  lower the company’s debt levels and reduce the outstanding share count. Darden expects to maintain its quarterly dividend of 55 cents per share, or $2.20 annually, after the sale is complete.

Investors were not impressed with the deal, shares of Darden Restaurants tumbled more than 4% to $48.51 on Friday (May 16) following the news.

"Red Lobster is an exceptionally strong brand with an unparalleled market position in seafood casual dining," said Josh Olshansky, managing director at Golden Gate Capital."Red Lobster is exactly the type of company in which we seek to invest given its great brand profile and strong management team. We see significant opportunities for future growth by partnering with Kim Lopdrup and the management team to support the long-term success of Red Lobster."

Darden expects the sale of the Red Lobster business, which was unanimously approved by Darden's board to close in the first fiscal quarter of 2015.

The deal is subject to customary closing conditions and regulatory approvals and is not subject to a shareholder approval condition or a financing condition. 

Golden Gate Capital has obtained committed debt financing from Deutsche Bank AG, Jefferies and GE Capital, and has fully executed a separate $1.5 billion sale-leaseback agreement with American Realty Capital Properties Inc., the proceeds of which will be used to support the financing of Golden Gate Capital's purchase of Red Lobster.

Arkansas’ jobless rate during April fell to 6.6% thanks to an estimated increase of 7,762 employed Arkansans and a more than 12% decline in the number of unemployed. However, the state’s labor force size continues to decline and remains well below pre-recession levels.

The April rate of 6.6% was below the March rate of 6.9% and below the April 2013 rate of 7.5%, according to the report issued Friday (May 16) by the U.S. Bureau of Labor Statistics. The April figures are subject to revision.

Year-over-year, the state’s tourism sector gained an estimated 3,200 jobs, the Trade, Transportation and Utilities sector was up 1,400 jobs, the Education and Health Services sector was up 1,500 jobs, and the construction sector was up 1,900 jobs.

Arkansas’ labor force was an estimated 1.322 million in April, below the 1.33 million in March, and down 0.33% compared to 1.367 million in April 2013. The year-over-year comparison shows an estimated 4,474 fewer Arkansans in the labor force. There are 39,959 fewer Arkansans in the labor force compared to April 2007, a decline of almost 3%.

Greg Kaza, director of the Arkansas Policy Foundation and an economic researcher, welcomed the job growth, but said ongoing shrinkage in the labor force is a problem.

“Arkansas' unemployment rate continues to fall as the U.S. expansion enters its sixth year next month (June). The civilian labor force's decline is troubling for this stage of the business cycle, and should be a subject for further inquiry,” Kaza said in a statement.

The number of employed in Arkansas during April was 1.235 million, below March employment of 1.238 million, and up an estimated 7.762 jobs compared to the 1.227 million in April 2013.

The number of unemployed was an estimated 86,726 during April, down from the 91,773 in March, and well below the 98,962 in April 2013.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to a revised 7.5% during 2012. The initial annual average jobless rate for Arkansas during 2013 is 7.5%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during April was an estimated 242,700, down from 243,600 in March and ahead of the 241,300 during April 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during April totaled 154,500, up compared to 153,900 in March and above the 152,500 in April 2013. Employment in the manufacturing sector fell in 2013 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during April was 215,800, up from 215,300 in March and below the 215,900 during April 2013.

The state’s Education and Health Services sector during April had 173,500 jobs, down from the 173,800 during March and up from 172,000 during April 2013. Employment in the sector is up more than 22% compared to April 2004.

Arkansas’ tourism sector (leisure & hospitality) employed 107,800 during April, down from 109,100 during March, and above the 104,600 during April 2013. The March employment level set a new record for the sector.

The construction sector employed an estimated 47,600 in April, up from 47,500 in March and above the 45,700 in April 2013. The sector is off the employment high of 57,600 reached in March 2007.

NATIONAL, REGIONAL DATA
The BLS report also noted that 47 states had unemployment rate decreases from a year earlier, and one state had and increase and two states had no change. The national jobless rate during April was 6.3%, and was down from the 7.5% in April 2013.

Rhode Island had the highest unemployment rate among the states in April at 8.3%. North Dakota again had the lowest jobless rate at 2.6%.

The April jobless rate in Oklahoma was 4.6%, down compared to 4.9% in March and down from 5.3% in April 2013.

Missouri’s jobless rate during April was 6.6%, down from 6.7% in March and unchanged compared to April 2013.

Wal-Mart hopes to help consumers save money on their fuel purchases starting Sunday, May 18, just ahead of the Memorial Day weekend and the official summer kickoff.

AAA expects 31.8 million American’s will travel by car this Memorial Day, up from 31.4 million last year and marking the second highest Memorial Day travel since 2000.

The retail giant has offered this Gas Rollback program for several years which allows consumers up to 15 cents per gallon savings on their fuel purchases at Walmart or Murphy USA Stations through September 8. The savings are gleaned when the consumer uses a Walmart credit card, Walmart Money Card, Associate Pay Card, or a Walmart Bluebird card to purchase the fuel.

Consumers using a Walmart gift card can get a 10-cent per gallon savings. Last year, Walmart said it helped customers save more than $98 million on 975 million gallons of gasoline sold.

The program is available in 21 states including Arkansas. Local gas prices have risen 32 cents per gallon since January, according to gasbuddy.com

Dana Mather will continue as the acting director of Main Street Rogers for the time being as the organization’s board has postponed its search for a full-time executive director.

Mather has been serving in an interim capacity since the Kerry Jensen resigned the post in November and was a finalist for the position before the board suspended the search.

The board voted earlier this week to appoint Mather as acting director as the organization works on its master plan for redeveloping downtown. Mather previously worked as event coordinator before stepping into the interim executive role.

The Dixie plant in Fort Smith, one of the first manufacturing operations to move to the city after World War II, is receiving a $40 million equipment and facility upgrade for a new plate line expected to begin production in 2015.

Officials with Atlanta-based Georgia Pacific, the parent company of Dixie, announced the expansion Thursday (May 29), saying that employment at the plant will exceed 350 once the new line is fully operational. The company did not provide details on how many jobs will be added as a result of the investment.

"Georgia-Pacific already has invested more than $30 million since 2012. This latest investment will further modernize the plant and improve its long-term competitiveness in plate manufacturing while meeting the growing demands of our consumers and customers," Larry Balch, Dixie plant director, said in a statement. "We appreciate all the support we have received from our local and state economic development partners in making this investment a reality."

The company said work on the capacity expansion has begun.

According to the GP statement, the investment at the Fort Smith plant is part of more than $100 million of planned investments at other Georgia-Pacific facilities in Arkansas during 2014. GP is a privately held company owned by Koch Industries. GP employs 2,400 in Arkansas with salary and benefits of $179 million, noted the company statement.

"We appreciate Georgia-Pacific's latest Arkansas expansion and its continued confidence in the Fort Smith workforce," Gov. Mike Beebe said in the statement. "The company's investments in Sebastian County and across Arkansas repeatedly showcase our role in American manufacturing."

Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce, told The City Wire that the investment “helps secure their presence” in Fort Smith. He also said the investment by GP in the Dixie plant also preserves a link to the city’s manufacturing history.

"Georgia-Pacific has been an outstanding corporate citizen in Fort Smith since the facility was built in 1948. This expansion illustrates their commitment to Fort Smith for many years to come," Allen said in the GP statement.

Any boost to manufacturing jobs in the Fort Smith region is welcome news. The Fort Smith area manufacturing sector employed an estimated 18,200 in April, unchanged compared to March, and below the 18,300 in April 2013. Sector employment is down almost 36% from a decade ago when April 2004 manufacturing employment in the metro area stood at 28,400. Peak employment in the region’s manufacturing sector was first reached in July 2000 when manufacturing jobs totaled 31,700.

Georgia-Pacific is one of the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, office papers, cellulose, specialty fibers, nonwoven fabrics, building products and related chemicals. Familiar brands include Quilted Northern, Brawny, and the Dixie line of paper plates and cups. The company employs approximately 35,000 people directly, and creates nearly 130,000 jobs indirectly.

The lines between supplier and retailer are becoming more blurred in a world in which technology blends the various ways – aka, omni-channels – in which consumers and retailers interact.

Jim Tompkins, CEO of Tompkins International, has said the blurring will increase as suppliers delve into retail ventures of their own, whether online or with limited brick and mortar sites.

Ken Nisch, chairman of JGA, shared recently during his talk at the SHOP Conference at the University of Arkansas that more consumer product brands are dabbling in retail store ventures to build loyalty and connect with consumers one-to-one. He said perhaps Apple does it better than anyone, but McCormick, Hershey, Jockey & Choboni are among supplier brands gleaning new insights through retail ventures.

SPICE IT UP 
The McCormick World of Flavor retail venue opened in August 2012 in Baltimore’s Inner Harbor. McCormick executives pondered the idea for more than 25 years, and finally built the story to help share the company’s 125-year-old story, said Jim Lynn, McCormick spokesman.

Nisch, whose firm designs retail stores, said the McCormick venture blends history, culinary and cultural aspects in a way that is resonating with consumers. While the product company has no plans for any other outlets, it notes that the insights it gets from this one venue have been well worth the effort.

Experts said product suppliers and/or manufacturers don’t go into their own retail venture for the sake of just adding sales. Carol Spieckerman, CEO of NewMarketBuilders, said it’s more about giving suppliers an outlet to tell their brand story in a cohesive and compelling way rather than relying solely on the merchandising whims of their retail partners.

“Many companies are still referred to as ‘manufacturers’ or ‘retailers’ when in fact, an increasing number of them operate multiple business models and no longer have a single identity. Going forward, multi-model companies that operate wholesale, owned retail and direct-to-consumer businesses will be the rule rather than the exception,” Spieckerman said.

She adds that suppliers like Chobani are leveraging spin-off concepts to showcase usage occasions for their products. The showcasing also reinforces a company or product culture.

SHARED CULTURE
Nestled in the heart of Soho, New York, Choboni Soho operates a Mediterranean yogurt bar that allows its signature Greek yogurt to take center stage. The yogurt is prepared fresh daily in-house and then paired with hand selected ingredients like pistachio and chocolate or cucumber and olive oil.

“It’s not just the creations that are unique. The retail concept’s design reflects the pure quality of Chobani Greek Yogurt and our Mediterranean roots,” said Peter McGuinness chief marketing and brand officer.

“When we first opened Chobani SoHo in 2012, we pushed the boundaries of what Greek Yogurt could be, and our expanded menu continues that journey with the addition of sandwiches, soups, desserts and more," Hamdi Ulukaya, CEO and founder of Chobani, said recently when the venue was expanded. 

The new menu developed by Ulukaya features sweet and savory Chobani Greek Yogurt creations, plus a series of inventive items for any time of day, including soups, sandwiches and desserts.

CATEGORY INNOVATION
Spieckerman said other manufacturers like Jockey are involved in their own retail venture to create impact around an important category.

The Jockey Bra store in Schaumburg, Ill., is a manufacturer’s  innovative approach to help woman find bras that fit properly. Nisch said this retail store is more like a showroom with various experience zones within it.

He said Jockey focuses on the everyday bra, with just three colors and five styles that come in 55 sizesbased on their own standard fitting guidelines. Shoppers can get the sizing kit and fit themselves at home with online assistance or come into the store for a personal fitting. But the store itself is designed like a showroom, with a spa feel. 

Jockey’s objective with their physical store was to create an innovative new bra shopping experience store. They accomplished this through direct consumer contact, online and brick & mortar. The store design allowed for individualized consultations and retail. It also provided a solution to the frustration associated with traditional bra shopping.

Nisch said Jockey’s willingness to move toward to the edge with its store concept helped it create a “breakthrough moment” for the consumer. He said Jockey is able to expand its reach with a hub-and-spoke concept with pop-up stores that facilitate the one flagship store.

One observation by Jockey after opening the store last summer, was that many woman want to do the fitting in the privacy of their home, but then they talk a friend into coming to the store for a fitting and they tag along providing opportunities for another sale.

HERSHEY EXPERIENCE
Hershey has been involved in retail and experience branding for years creating a chocolate wonderland its home base in Hershey, Penn. The chocolate maker opened its seventh retail experience outlet last year in Las Vegas adding its global presence with other locations in Hershey, Penn., New York, Chicago, Niagara Falls, Canada, Shanghai and Dubai.

Nische said the latest Hershey Chocolate World store in Las Vegas inside the New York-New York Hotel and Casino aims to link consumers to the brand experience, going way beyond the typical candy store. The guests will enter an engaging and interactive space where they can taste new treats, personalize sweet gifts and create keepsake photo. The venue will open this summer.

The venue offers guests the change to create their own Hershey happiness through a variety of interactive experiences such as customized candy wrapper and personalizing Hershey Kisses plumes, according to a corporate statement.

RETAILER ACCEPTANCE
In the past, Spieckerman said retailers were hostile toward wholesale partners that attempted to create an owned retail presence, and particularly those that ventured into direct-to-consumer businesses. Things have changed.

“As I tell my brand marketing clients on a regular basis, brand ubiquity is the new exclusivity as media fragmentation and shoppers’ short attention spans favor omnipresence over limited distribution, Spieckerman said.

She adds that retailers have become “much more open to this concept, if only because they are embracing it themselves by making their private brands available to other retailers.”

“Retailers too, have evolved into multi-model companies and they understand the importance of wide brand presence. These days, exclusivity is a ticket to obscurity,” Spieckerman said.

She said now that “owned retail” is no longer an unmentionable with retailers, suppliers have an opportunity to share insights from their owned retail operations – and smart suppliers will do that. 

“Unfortunately, many companies operate their wholesale and retail divisions in silos, with wholesale teams not made privy to owned retail insights. Operating this way prevents preventing them from fully leveraging their multi-model assets,” Spieckerman added.

There has been a lot of buzz about the new Arkansas Regional Innovation Hub set to launch later this year in North Little Rock. The public-private partnership is a model that its executive director said was not specific to just central Arkansas, but could work in other regions of the state, including Fort Smith.

Warwick Sabin, a Little Rock state representative who became executive director of the non-profit in September 2013, said the innovation hub is about helping entrepreneurs be successful at home in Arkansas by giving them the tools necessary to achieve success.

"The Arkansas Regional Innovation Hub is designed to promote more entrepreneurship and startup business development in Arkansas," he said. "And it does that by providing resources, equipment, tools, access to programming and networking opportunities and really trying to connect and align all of these entities that are doing good work in this area in our state."

It does that through four key elements — the Art Connection, the Launch Pad, the Silver Mine and the STEAM Lab. ARHub.org explains each element:
• The Art Connection: "The IN place for North Little Rock teens, with studios where they can put their artistic abilities into profit mode."
• The Launch Pad: "The IN place for makers, tinkerers, inventors, innovators and even small and big companies looking for a cool place try out ideas and make new things."
• The Silver Mine: "The IN place for incubation, acceleration and co-working, and for finding all the support you need to morph great ideas into profitable business ventures."
• The STEAM Lab: "This super hot place IN the middle of the Argenta Innovation Center (the ARHI's headquarters in North Little Rock), incorporates elements of science, technology, engineering, arts and mathematics. It's perfect for training, networking and hobnobbing with other makers, doers, engineers and artists."

The ARIH is similar to other business incubators across the nation, and according to Sabin — an Arkansas alum who earned his masters degree at Oxford University before returning to the Natural State — the goal is to retain Arkansas talent as well as attract new talent to the state.

"And one of the biggest problems we've had over the years is keeping our most talented people in this state because either they feel like they don't have access to educational opportunities, or they feel like they don't have access to capital and they have to go outside the state to get the investment capital they need to make their idea a reality,” Sabin explained. “But if we can create an environment here where through education and access to resources, people are developing their native talents and then we're able to retain them because we're giving them the opportunity to create a business or work with a company that does what they're interested in, when they're successful, that will serve to attract talent and that virtuous cycle continues."

Overall, Sabin said if the ARIH is successful with individuals who may join the non-profit and make use of its resources, it will do more than benefit ARIH and participating entrepreneurs, it will be a boon to the Arkansas economy.

‘WHAT PROGRESSIVE CITIES DO’
And it is that long-term benefit to the economy that has Fort Smith business and community leaders interested in seeing something similar spring up in the western Arkansas region.

Steve Clark, founder and CEO of Fort Smith-based Propak Logistics, said cities like Fort Smith cannot ignore what other cities are doing to attract business, including the development of business incubators such as the Innovation Hub.

"I think I'd approach it from the angle that cities that want to refer to themselves as progressive, they do what progressive cities do," he said, adding that the challenge is getting the right group to back such an idea locally.

"The difficulty is where does something like this fit? Is it the Chamber? I can argue it doesn't fit there. Their job is to recruit existing businesses to Fort Smith. Does it fit at the university? Not really. They find themselves in the theoretical and not the practical."

Sabin said the ARIH was its own entity, but had also formed partnerships with a variety of groups, namely Arkansas Manufacturing Solutions. Additional funding and support has come from the Wingate Foundation, Delta Regional Authority, the Arkansas Economic Development Commission, as well as the North Little Rock Economic Development Commission. He also said the key is unity instead of division.

"Even if you're a community that doesn't have a lot of resources, you can accomplish things by forging partnerships across mutual interests that exist among organizations, municipalities, counties and states. I think there's an imperative to do that because we need to make the most of what we have. Whatever I think of Arkansas, I think that we're a state of 3 million people, which is smaller than most metropolitan areas around the country. And we cannot afford to divide ourselves up on the basis of geography or any other distinctions that may exist. We work a lot better when we take advantage of all the resources that exist within the state, when we hold hands and work together."

POTENTIAL OBSTACLES
While Fort Smith businessmen are interested in trying to get something like the ARIH launched in the region, they know it will not be an easy task. The memory of the region's last effort at a similar effort at the University of Arkansas at Fort Smith still lingers.

Dr. Paul Beran, chancellor of UAFS, acknowledged the lack of success with the university's now-shuttered Innovation and Entrepreneurship Center and said efforts in the last few years to re-launch the IEC have been unsuccessful.

"The vision was that somehow the IEC was going to be a generator of ideas and thus (bring investment in) new small business thus jobs, but it never really panned out that way. Frankly, as far as the university's piece in this, I did a very extensive community-wide conversation about this two years ago in which we talked about the IEC and what it would take to recreate the IEC in a more meaningful way for the community. And frankly, the conversation stopped and there has never been any more mention of it."

He said success for a business incubator depended on more than one entity to house such a facility and to fund it, as well, and he said so far, no one has stepped up to the plate.

"Always follow the money and you will find why something's happening or why it's not happening," he said.

LEADERSHIP NEEDED
Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce, spoke along the same lines and said to his knowledge, there's been no meaningful action to move forward with any proposals or plans for any sort of business incubator in the region.

"We do need to pursue starting up some sort of innovation system and I've heard of some different meetings about getting it going, but I haven't seen anyone willing to step up and get it going,” Allen said.

Clark said while that may be true at this point, it was not due to a lack of will.

"Everything rises and falls on leadership. Typically these are a cooperative arrangement between public and private (entities). I know there is interest with private. I can't speak for (the public sector). ... I think there's definite interest. Do I think that the business community will step up? I absolutely believe the business community will step up."

As for timing, Beran — who said the university would welcome efforts to create a business incubator to the area — cautioned individuals expecting a group of leaders to step up tomorrow to create an organization out of nothing, calling it a "pollyannish approach" to business innovation.

That said, Allen "would like to think that it would be sooner rather than later."

"However, I'm not quite sure I know the answer to the question. Maybe we'll get to the point where we're not willing to settle for the status quo. Maybe we'll realize that we're losing some of our young and creative minds and maybe when we get to that point, people will say it's time to do it and do it now. I'm not sure if that's in the next year or two or five. It's happening all around us and I think we should explore the opportunity more and have some serious talks about it."

Clark said whatever discussions there are about how to launch in the Fort Smith area a business incubator similar to the Innovation Hub, the region does not have the time to wait.

"I think in the end, the message is (that) we can't be disappointed when we don't get what we want if we're not doing the things necessary to be heard. We need to emphasize that Fort Smith is willing to invest in the infrastructure for a healthy entrepreneur ecosystem. If we want to be seen as relevant in terms of talent, (attracting) and keeping our best and brightest, I think we have to find our position on this field as it relates to entrepreneurship, not just saying we're going to help for the sake of entrepreneurship, but a definitive plan and definition of success."

The local construction sector in Benton and Washington counties is building new roads, trail infrastructure and several large commercial projects, but new home starts declined sharply in April.

The four largest cities in the region issued a combined $45.209 million in new commercial and residential building permits last month, down 24.5% from the $59.923 million reported a year ago.

Residential permits for new home starts among the four cities were valued at $34.539 million, down 11.7% from the $39.116 million in the same month last year. During April, the four cities issued a combined 142 permits for new homes. Fayetteville saw a 81% increase in the number of new residential permits at 49. New home starts (29) were off by 58% in Bentonville, compared to a year ago. The cities of Rogers and Springdale each reported steady permit numbers with a year ago.

April Residential Permits (New Construction)
Bentonville: 29 homes at $8.471 million, down 57%
Fayetteville: 49 homes at $12.825 million, up 113%
Rogers: 40 homes at $7.044 million, down 4%
Springdale: 24 homes at $6.199 million, up 5.24%

Brent Hanby, co-owner of Encore Flooring & Building Products in Springdale, said his business is bustling.

“Every homebuilder and remodeler I speak with tell me they are swamped with work for the next 120 days or so. I know the new home inventory is pretty low based on the last numbers I saw,” Hanby said. “I look for this momentum to carry through the back-half of the year.”

Paul Bynum, analyst with MountData.com, reports that there were 393 new homes listed for sale in the local multiple listing service as the end of March. The new home inventory was up from 273 a year ago. Bynum estimated 5.9 months of supply in new inventory at the end of the first quarter. He said that reading is up from 4.5 months a year ago because there are more new homes for sale. 

Bynum also noted that a balanced market occurs when there is between five and six month supply of homes. He said the new home market was sound heading into the month April in terms of sales.

“Through the first quarter of this year new construction had a sales volume of $48 Million, up 3% over 2013. Units sold totaled 201, up 6% and the median sale price is $217,044, down 3% from 2013,” Bynum said. 

Local builders told The City Wire earlier this year that they expected to keep pace with 2013 numbers. They continue working to get some spec homes finished for showing, because the homes were selling faster than they could finish them. Hanby said labor and ready-to-build-on lots are in shorter supply in the residential sector given there are more builders working this year. 

“I am hearing some developers began to plan for new subdivisions in desirable areas because the available lot supply has been absorbed. I continue to be amazed with all the new construction I see out toward Goshen in the Waterford Estates subdivision. It’s been years since this area has been this active,” Hanby said.

Waterford Estates features custom homes beginning at $280,000 built by Riggins Construction. The brick homes range in size from 2,300 square feet to 3,000 square feet with custom details.

COMMERCIAL SECTOR
The local commercial construction sector continues to show signs of new life after several years of relatively slow growth.

Bentonville has three new commercial projects permitted last month valued at $4.201 million. The projects include a new Walgreens drug store on Walton Boulevard, a strip shopping center along South Walton Boulevard and a small industrial office building. Permits issued by Bentonville in April of last year totaled $7.748 million.

Fayetteville reported one new commercial permit in April, a new CVS Drug store under construction at 2402 N. College Ave. This project is valued at $1.461 million. A year ago, the city did not issue commercial permits in April.

Springdale had two new permits for commercial use issued last month. Popeyes Chicken is under construction on West Sunset, near the entrance to Arvest Ball Park. O’Reilly Auto Parts obtained a permit for work valued at $807,905 for a new store at 3049 E. Robinson Ave.

Rogers issued a handful of new commercial permits totaling $3.869 million in April. Permits were down from $9.536 million in the year-ago period. A large industrial warehouse located at 1300 W. Hudson Road was valued at $1.4 million. The Mercy Clinic at 613 N. Second St., has a permit value of $1.34 million. There was also five permits for multifamily housing units to be built at 2007 S. Dixieland Road.

The Health Department recently issued the following permits for new businesses planned in two-county area. These permits precede the city permit step by roughly three months.
Kum & Go Store — Main Street & Broyles in Farmington
Dunkin Donuts — 1805 W. Martin Luther King Boulevard, Fayetteville
Bone Heads Restaurant — 1404 Moberly Lane in Bentonville.
Walmart Neighborhood Market — East Central Avenue in Centerton
Planet Fitness — 216 Westpark Drive, Bentonville
Crossings Nail Salon — 2600 W. Pleasant Crossing in Rogers
SNAP Fitness — 2600 W. Pleasant Crossing in Rogers

Alexander Greene, the former head of U.S. private equity at Brookfield Asset Management, has been appointed to the Board of Directors at Van Buren-based USA Truck.

Greene’s appointment expands the Board to 10 members.

"I have known and worked with Alex for many years, and we are delighted to have him join our Board,” Board Chairman Robert Peiser said in a statement. “We believe the financial, business and strategic acumen he has demonstrated throughout his distinguished career will be extremely valuable to USA Truck as we work to further improve the Company's financial performance and create long-term shareholder value."

Prior to joining Brookfield, Greene served as an investment banker to large- and mid-cap businesses, boards of directors and other constituencies, focusing on leveraged finance, merger and acquisition and recapitalization transactions.

His positions included managing director and co-head of Carlyle Strategic Partners and as a managing director of Wasserstein Perella & Co.

Greene also is a director of CWC Energy Services, a provider of drilling and service rigs and other services to oil and gas producers in Canada. He previously served on the Board of Longview Fibre Paper & Packaging, Inc.

Van Buren-based Knesek Guns Inc. was recognized with the “E” Award from the U.S. Department of Commerce. The award, which was presented to Knesek employees by U.S. Secretary of Commerce Penny Pritzker on May 28, is given to companies “making a significant contribution to the expansion of U.S. exports,” according to a Knesek statement.

A total of 65 U.S. companies were presented with the President’s “E” Award this year, and Knesek was the only Arkansas company to receive an “E” award in the 2014 cycle.

Knesek Guns is a wholesaler and retailer of military and law enforcement type weapons. The company focuses on military and law enforcement weapons, optics, ammunition, and firearm accessories.

“Our continued focus on international sales has provided a great opportunity for us to support United States manufacturers of firearms and various defense articles” stated Max Rodriguez, senior vice president of KGI, said in the statement. “When we first began exporting, we only offered a few lines and our client base was quite limited, but in recent years we have grown to offer a full catalog of products and are exporting to a lot of new markets around the world.”

Four years of successive export growth and an applicant’s demonstration of an innovative international marketing plan that led to the increase in exports is a significant factor in making the award.

President John Kennedy revived the World War II “E” symbol of excellence to honor and provide recognition to America's exporters.

“Knesek Guns has demonstrated a sustained commitment to export expansion. The “E” Awards Committee was very impressed with Knesek Guns’ sales into 76 international markets. The company’s creative marketing of products previously found only in the United States was also particularly impressive,” Secretary Pritzker noted in a letter to the company announcing its selection as an award recipient.

Fort Smith-based ArcBest Corp. – formerly known as Arkansas Best Corp. – is expanding its corporate presence in the region with a $30 million plan that will see the construction of a new office building and data center at Chaffee Crossing and the addition of an estimated 975 corporate jobs by 2021.

Officials with the transportation holding company and state and local officials gathered Friday (May 30) afternoon at the Fort Smith Convention Center to make the announcement. Executives with ArcBest said holding company corporate offices and ABF Logistics employees will locate in a new office building planned for construction at Chaffee Crossing near the scenic area of the McClure Amphitheater.

“We need room to expand,” ArcBest President and CEO Judy McReynolds told the large crowd gathered at the Fort Smith Convention Center for the announcement.

Walter Echols, a vice president at ArcBest and head of real estate for the company, said the new corporate building could be between 120,000-square-feet and 150,000-square-feet. Designs are in early stages, and he is not sure if the structure will be a basement and three floors or a basement and four floors. Part of the design goal is to build a structure that blends in with the location at Chaffee Crossing near the scenic area of the McClure Amphitheater.

“We really want to tie it in aesthetically to the ridge line there,” Echols explained.

Construction on the new office complex is set to begin this fall.

The company will retain its high-profile, 195,000-square-feet corporate headquarter building on Old Greenwood Road in Fort Smith. That facility, which opened in early 1995, is expected to provide space for the consolidation of ABF Freight and ArcBest Technologies offices. Moving corporate and logistics jobs out of the existing corporate headquarters will allow room for expansion at ABF Freight and ArcBest.

“That anticipated growth, combined with space enabled by the new facility, supports the creation of 975 new jobs in Fort Smith through 2021,” noted the ArcBest statement.

There are now between 1,300 and 1,400 ArcBest corporate jobs in the Fort Smith area. 

‘BETTER THAN MIDDLE-CLASS JOBS’
Grant Tennille, executive director of the Arkansas Economic Development Commission, attended the announcement event.

“Two days, two great announcements in Fort Smith,” Tennille said in his opening statement, referring to the news on Thursday (May 28) that Georgia-Pacific is investing $40 million in its Fort Smith Dixie plant.

Tennille said the investments by ArcBest and Georgia-Pacific show a faith in the people and institutions of the region, and are proof that the regional economy “can come back from tough times.” He said the regional economy will benefit greatly from the “better than middle-class jobs” – in terms of salary and benefits – that will come from the ArcBest expansion.

“The best way to grow the economy is to partner with your existing companies,” Tennille said, adding that he believes the region has the workforce and the educational institutions to provide the high-skill jobs needed to be competitive in job recruitment and retention.

Tennille also confirmed that ArcBest consolidating its “intensive” data center operations in Fort Smith sends a message to the corporate world that the ever-changing data-driven environment can find a home in Arkansas.

“We’re supporting some of the most data-intensive environments in Arkansas ... that’s a fantastic message for the state,” Tennille said.

With similar “big data” operations with Bentonville-based Wal-Mart Stores Inc., Springdale-based Tyson Foods and Lowell-based J.B. Hunt, he said the challenge of Arkansas leaders is in providing the educational offerings to feed talented people into those jobs.

Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce, said the ArcBest decision “is a testament to Fort Smith’s diverse economy.”

“They (ArcBest) know first-hand that quality of place, affordability and the tremendous asset we have in (the) University of Arkansas – Fort Smith make Fort Smith a place worth investing in,” Allen said in a statement.

HISTORIC GROWTH
Arkansas Best began as a small local freight hauler –  OK Transfer – in 1923 operating in the Fort Smith area. With a market cap of around $1.12 billion, the company now employs more than 11,000 and has grown organically and through acquisitions to provide global shipping and logistics services. Fort Smith attorney Robert A. Young Jr. bought the a small regional trucking company in 1951 and through several acquisitions grew the company to a national freight carrier.

“He would have been excited about it,” ArcBest Board Chairman Robert A. Young III, said when asked what his father, Robert A. Young Jr., would have thought about the expansion news. “And he would have loved to see the growth that has allowed this to happen. ... I’ve often said I’d like to have him back for 15 minutes to see it now.”

Young III, also said he father would be pleased to see company diversify with logistics, moving operations and other non-asset (non trucking) businesses.

“He would have understood that thoroughly. He was very much a forward thinker,” Young said.

SUBSIDIARY GROWTH
ArcBest’s largest subsidiary is less-than-truckload carrier ABF Freight System. The non-asset subsidiaries are Panther Premium Logistics, ABF Logistics, FleetNet, ABF Moving and ArcBest Technologies (formerly known as Data-Tronic.). ArcBest officials have said growth in the non-asset businesses are necessary to diversify the company’s revenue stream and to help reach a goal of $3 billion in revenue in 2014.

The non-asset based businesses in the ArcBest portfolio generated $4.459 million in operating income during the quarter, a big improvement over the $134,000 during the first quarter of 2013. Total revenue during the quarter was $577.904 million, 10.98% better than the first quarter of 2013 and well ahead of the consensus estimate of $551.35 million.

However, the company reported a loss of $5.2 million during the quarter, thanks primarily to an unusual number of severe winter weather days. However, the loss was better than the $13.395 million loss the company recorded in the first quarter of 2013. The tough first quarter follows a positive financial performance in 2013. Net income during 2013 for ArcBest was $15.8 million, much better than the $7.7 million loss in 2012 and the most the company has earned in a year since 2008.

Shares of ArcBest (NASDAQ: ARCB) closed Friday (May 30) at $42.77, down $1.01. During the past 52 weeks the price has ranged from a $44.63 to a $17.68 low.

ARCBEST PRESS RELEASE
Fort Smith, Ark., May 30, 2014 – ArcBest Corporation (Nasdaq: ARCB) today announced that it is under contract to purchase 40 acres of land at Chaffee Crossing, Fort Smith, Ark., for construction of a new corporate headquarters facility as the company continues plans for significant growth at all of its operating subsidiaries.

ArcBest, a holistic provider of transportation and logistics solutions, has exceeded the capacity at its current Fort Smith general office on Old Greenwood Road and has been leasing supplemental office space at a separate location since early 2012. The company has since outgrown the capacity at that location, which currently houses the ABF Logisticssm subsidiary personnel, as well.

ArcBest has previously announced its goal to grow total corporate revenue to $3 billion by the end of 2015, with $1 billion coming from its emerging businesses. In 2013, revenue grew 11 percent to $2.3 billion.

“As one of the area’s largest corporate employers with a bright future and growth plans ahead of us, we are excited to announce construction of this new facility in Fort Smith,” said ArcBest President and CEO Judy R. McReynolds. “With plans for growth at all of our operating companies, including ABF Freightsm, ABF Logisticssm, Panther Premium Logisticssm and FleetNet America®, it is important that we develop additional space to accommodate these expanding businesses. Our decision to build a new facility in Fort Smith for the ArcBest and ABF Logistics companies underscores our long commitment to this area, and we are grateful for the commitment from the city, the Fort Smith Chamber of Commerce and the state to help us meet our needs.”

Future plans include relocating ArcBest corporate and administrative functions and ABF Logistics personnel to the newly constructed office building which is anticipated to be smaller than the existing 195,000-square-foot corporate center facility on Old Greenwood Road.

ABF Freight System Inc., the company’s flagship subsidiary, is expected to remain located at the larger existing facility, along with ArcBest Technologies, the company’s IT solutions group. This will allow for minimal disruption to operations at these organizations when construction work gets underway at the Chaffee Crossing location. In addition, the eventual relocation of ArcBest and ABF Logistics employees creates room for growth and expansion at ABF Freight and ArcBest Technologies at the existing facility.

That anticipated growth, combined with space enabled by the new facility, supports the creation of 975 new jobs in Fort Smith through 2021.

“This announcement underscores that Fort Smith is a great American city from which to run a business with solutions that span the globe,” said Grant Tennille, executive director of the Arkansas Economic Development Commission. “We thank ArcBest for expanding their Fort Smith headquarters, which will benefit the region for years to come, and for making a vote of confidence in the strength of Sebastian County’s workforce through this action.”

Fort Smith Mayor Sandy Sanders said the new facility marked another important note in the long history for ArcBest in Fort Smith.

“For 90 years ArcBest has been an outstanding Fort Smith company, providing substantial employment opportunities for people in this area, and throughout the nation,” said Mayor Sanders. “This announcement is not only great news for the company, but for Fort Smith and the many people who will gain jobs as a result of this continued growth.”

Officials from the Chamber of Commerce also applauded the announcement.

“The ArcBest announcement today is a testament to Fort Smith’s diverse economy,” said Tim Allen, CEO and President of the Fort Smith Regional Chamber of Commerce. “ArcBest is expanding in Fort Smith because they are committed to the River Valley, as they have been for more than 90 years. They know first-hand that quality of place, affordability and the tremendous asset we have in University of Arkansas – Fort Smith  make Fort Smith a place worth investing in. ArcBest is a long-standing pillar of this community. It is refreshing to know that they have been a significant part of Fort Smith’s history and will continue to be part of our future.”

Wal-Mart Stores announced Friday (May 30) that Shelley Broader, president and CEO of Walmart Canada, has been promoted to executive vice president, president and CEO of Walmart EMEA. 


In her new role, Broader will lead Walmart's retail operations and oversee business development in Europe, the Middle East, Sub-Saharan Africa and Canada and will report directly to David Cheesewright, president and CEO, Walmart International. 


The company will announce Broader's successor at a later date. She will continue to have responsibility for the Canadian market — along with Europe, the Middle East and Sub-Saharan Africa — until her successor is in place.  


Broader, who will assume her new role effective June 1, joined Walmart Canada as chief merchandising officer in December 2010 and was promoted to president and CEO of Walmart Canada in September 2011. She joined Wal-Mart with more than 20 years of leadership experience across the North American retail industry which included key leadership roles with retailers Michael's and Hannaford Bros.


"Shelley has been a strong leader since joining Walmart Canada and is the ideal person to leverage the tremendous potential the EMEA region holds for our company," said Cheesewright. "Shelley's leadership of our business in Canada during a time of increased competition underscores her knowledge of the retail environment which will serve her well in her new role."

Gov. Mike Beebe typically travels to a community when a $30 million deal that could create almost 1,000 jobs is being announced. But he did not attend such an announcement Friday in Fort Smith because the company expanding in Fort Smith is also the company that may move up to 400 jobs from North Little Rock to Memphis.

Officials with Fort Smith-based ArcBest Corp. announced Friday (May 30) the expansion of their corporate presence in the region with a $30 million plan that will see the construction of a new office building and data center at Chaffee Crossing and the addition of an estimated 975 corporate jobs by 2021.

News of the corporate expansion in Fort Smith comes as the company is considering consolidation of a majority of its North Little Rock terminal operation to a planned $20.5 million terminal expansion in Memphis. The move could cut up to 400 jobs from the North Little Rock operation.

As part of a cost-cutting move, ArcBest consolidated or closed eight terminals in 2013 and did the same with 22 terminals in the first quarter of 2014. ABF Freight now operates with 247 freight service centers.

“While there can be no assurances, annual expense savings associated with these network changes, which will fluctuate based on business levels and the profile and geographic mix of freight, are currently estimated to be in a range of $10 million to $12 million,” the company noted in its first quarter 10-Q filing with the U.S. Securities and Exchange Commission.

Grant Tennille, executive director of the Arkansas Economic Development Commission, attended the announcement in Fort Smith, and told The City Wire that it would have been “odd” for Beebe to be in Fort Smith as North Little Rock faces a major job loss. Tennille said the state is fighting to keep the jobs in Arkansas.

"Over the last year, ArcBest has either been consolidating or closing about two dozen of these terminals around the region," Tennille said in a Friday morning television interview with Roby Brock of Talk Business & Politics. "They have looked at whether or not the math makes sense for them to close North Little Rock and move those operations to Memphis. They have not made a final decision. We are working closely with them and have been talking about putting a retention package on the table to keep them here."

“The Governor feels fairly strongly that he represents all the constituents of Arkansas ... and he felt like it would just be odd” to be in Fort Smith celebrating new jobs while central Arkansas may soon lose up to 400 jobs, Tennille told The City Wire.

Tennille stressed that ArcBest was “not being punished” for its plans to move the jobs, and that Beebe realizes ArcBest has to make decisions that are in the best interests of the company and its shareholders. He also said Beebe is supportive of several efforts that may result in creating more jobs in the Fort Smith area.

“I am completely certain ... that I’ll be back here before the end of the year,” Tennille said.

A statement from Beebe’s office to Talk Business & Politics – a content partner with The City Wire– confirmed Tennille’s assessment of why Beebe did not attend ArcBest’s announcement.

"While we’re excited about ArcBest’s new headquarters and new jobs in Fort Smith, we’re still monitoring the potential (and unrelated) shutdown of another ArcBest-owned facility in North Little Rock," said Beebe spokesman Matt DeCample. "With those employees facing possible layoffs, Governor Beebe felt it wouldn’t be appropriate for him to personally be part of today’s announcement."

In the interview Talk Business & Politics, Tennille said the "real story" is the explosion of growth in technology jobs emerging from existing Arkansas firms not traditionally thought of as data driven.

"The real story is we keep seeing these businesses that historically we thought of as one thing – a trucking company – it's getting ready to hire 1,000 data analysts. Data is driving everything," said Tennille, who hinted that more announcements of this caliber may be in the works.

More than 40 state business leaders met with Gov. Mike Beebe at the Governor’s mansion last week to discuss job openings, skills gaps, and the need for more coordination among workforce agencies, schools and private enterprise to lower unemployment and thwart a workforce exodus expected in the coming years.

The primary concern is the state’s manufacturing base, which currently employs about 154,000 workers as of April 2014.

The national average for manufacturing wages is roughly $40,000 a year, while the state average is $36,000. However, there are a number of manufacturing incomes in Arkansas that can reach the high five-figure or low six-figure range.

Randy Zook with the Arkansas State Chamber of Commerce, who organized the Governor’s mansion meeting, contends that Arkansas companies have tens of thousands of job openings, but not enough workers to match them. He suggests that the situation could worsen if major problems aren’t quickly addressed.

There has been a rebirth in U.S. manufacturing in recent years, although Arkansas’ manufacturing sector has been sluggish compared to other states. New manufacturing jobs are less blue-collar and more high-tech in nature; however, traditional manufacturing job openings are expected to grow due to forthcoming retirements from the baby boomer generation.

Other factors such as disinterest from younger generations, a lack of key skills, and fewer job candidates have Zook and manufacturers clamoring for more coordination between education/training programs and existing industries.

Earlier this year in the state’s fiscal session, State Sen. Jane English secured a commitment from Beebe and her fellow legislators to overhaul Arkansas’ workforce training efforts in exchange for her vote on the Private Option renewal funding. Two months later, officials say progress is being made, but nothing concrete has been presented publicly in terms of change.

Privately, there are worries that government bureaucracy combined with self-preservation among the state’s educational institutions — from high school through college — can’t pivot quickly enough to address a workforce situation looming towards a “crisis” point.

“Businesses’ role is to communicate needs clearly. The state’s role is to be responsive,” says Arkansas Economic Development Commission director Grant Tennille, who was present at the mansion meeting.

Talk Business & Politics asked Tennille, Zook and the two major party candidates for Governor if the state needs a “workforce czar” — an individual with the authority to cut bureaucratic red tape who could also flex enough political muscle to make changes quickly, efficiently, and in the best interests of industry.

Tennille said he thinks the current construction of the Governor’s Workforce Cabinet are “in lockstep” to make the changes promised to Sen. English during the fiscal session. He is not sold on the notion of a workforce czar.

“I hesitate to introduce new bureaucracy to anything,” he said. “I think that the next Governor can serve ably as the workforce czar as long as he makes his priorities very clear to his cabinet level directors and commits to knocking down any barriers that might crop up. I think that one of our challenges right now is the communication between the policy makers at the 10,000-foot level and the people on the ground locally. I think that’s where the meat of this problem lies.”

Zook said the idea has merit, particularly if there is going to be a fast transition.

“[It] depends on how fast you want things to get better,” said Zook. “Fast? I think it would be a very smart move to, perhaps, not put somebody in a new role but assign a role at a very high level within the Governor’s staff or the Governor himself.”

Mike Ross, the Democratic candidate for Governor, has proposed a reorganization of the Governor’s Workforce Cabinet, which includes AEDC, the Department of Workforce Services, Department Career of Education, Department of Higher Education, and other agencies.

Ross would rename the group as a “Cabinet for Economic Development” and previously said he would have John Burkhalter, a businessman and the Democratic nominee for Lt. Governor, as the chair of the effort if Burkhalter is elected.

“Instead of having a single czar, Mike Ross has already announced his plan to create the Governor’s Cabinet for Economic Development, a statewide coordinated effort made up of key agency representatives that will provide better coordination, increased communication and a stronger, more unified strategy for our state’s workforce services and economic development efforts,” said Ross spokesman Brad Howard. “This alliance will bring together all of our resources on a regular basis to help the state of Arkansas become more efficient, more effective and more productive – and create a better trained workforce that will help Arkansas attract more and better-paying jobs.”

Howard said Ross plans to announce additional workforce services and economic development plans in the coming weeks.

Ross’ rival, Republican gubernatorial nominee Asa Hutchinson has proposed a restructuring of the state’s workforce efforts through eight regional councils. Hutchinson’s plan would require high schools, two-year colleges, and local employers to assess jobs needs across their regions and coordinate a plan of action for educating potential workers for those available jobs.

“As I announced in March, increased emphasis on workforce training is essential to industrial recruitment and job growth in Arkansas. My plan includes streamlining workforce education to reduce duplication and to make sure tax dollars are targeted to education that matches the job creation priorities of the various regions of our state,” Hutchinson said.

“I will work with the legislature to meet these goals, but I would not designate a ‘workforce czar’ or assign the leadership role to the Lt. Governor. The Governor is the right person to lead this effort toward effective workforce education,” he added. “Improving workforce education is such a priority that the direct leadership of the Governor is essential to success.”

It’s no surprise to see Wal-Mart seeking inroads with Hachette Book Group given that the relationship between Amazon and the publisher is strained.

Hachette and Amazon have been unable to work out business challenges in recent months which delayed Amazon’s ability to offer new titles by J.K. Rowling and James Patterson, each published by Hachette.

Amazon has asked customers to prepare to wait two to four weeks for some titles in the James Patterson Alex Cross series. "The Silkworm," by Rowling, is also not available for pre-order on Amazon, while the feud with the publisher continues.

 Wal-Mart began offering almost 400 Hachette titles for 40% off, with delivery dates within one week. Walmart.com noted this deal prominently on it home page this past week.

The retailer reported Friday (May 30) that its physical book sales rose 70% during the week since the deals were first offered.

Michael Pietsch, CEO of Hachette Book Group, has noted that the dispute with Amazon presents a “challenging period” but the signs from other retailers are encouraging. 
Barnes and Noble's website is also offering discounts for Hachette books.

Wal-Mart shareholders week is a global affair with 5,000 delegates visiting from 27 countries and every state where Wal-Mart operates under 71 banners. The Wal-Mart representatives began arriving at Northwest Arkansas Airport on Saturday, and the company estimates that 14,000 will attend Friday’s (June 6) shareholders meeting.

The group from Massmart, Wal-Mart’s South African venture, sang, danced and waved their national flags as they made their way down the escalator into the main lobby area at the airport on Saturday. This is third year Massmart employees have traveled to Bentonville for the annual meetings.

“The associates chosen to attend have a full week of activities. The majority of them are arriving on Sunday (June 1). They are housed at the University of Arkansas and they will attend meetings and tour the area ahead of Friday’s annual shareholder event,” said Kayla Whaling, spokeswoman for Wal-Mart.

Wal-Mart said there will be 30 buses of delegates and media that will be shuttled around the region throughout the week. They visit stores, the Walmart Museum, the Bentonville Square, the University of Arkansas and other areas of interest.

Bentonville, Fayetteville and Rogers see the majority of the economic benefit from the annual event that will draw around 14,000 to Fayetteville for Friday’s (June 6) shareholder meeting at Bud Walton Arena.

The University of Arkansas expects to earn about $1.26 million for the week. That breaks down to $436,000 from the use of its dorm facilities, according to Steve Voorhies, manager of media relations at the UA. He said there will be 4,500 Wal-Mart guests staying on campus, as the retailer has reserved 2,250 room at a nightly rate of $28.

Food services for the week will also rake in about $500,000. Voorhies said there are other service fees that the UA collects for the week. Based on last year, he expects those services to total approximately $325,000 as follows:
• Police Department – $102,704;
• Facilities Management – $721;
• Parking and Transit – $106,571; and
• Athletic Department – $115,873.

He said the amount paid to the UA Athletic Department is strictly reimbursement of expenses because there is no rental fee charged.
 
“When you talk about benefit to the university it’s really not the dollars. It’s the exposure we get as people from all over the country and all over the world – shareholders and associates who spend time on campus and in Northwest Arkansas. They go away with a fresh perspective on the university, the region and the state,” Voorhies said.

Kathy Deck, director for the Center for Business and Economic Research at the University of Arkansas, said the biggest draw in terms of traffic is for the Friday meeting at Bud Walton Arena. However, she said it is unknown know how many people traveling here and plan for an overnight stay. She said the 5,000 or so Wal-Mart workers will be here for the full week, but because they stay at the university, hotels don’t see the benefit.

Between 50 and 100 members of the media also attend for part of the week. Some coming from as far away as Japan and the United Kingdom. The Embassy Suites in Rogers hosts a few meetings during the week and also benefits from the out-of-town media who stay there.

“We have not formally studied the economic impact from this week, but we know it always occurs in June and we think it is on par with a Razorback football game in terms of revenue generated,” Deck said.

On a greater scale, she said the week puts Northwest Arkansas in a positive light, the benefits are more reputational than economical.

“It opens this region up to the world,” Deck said. “For those in the global workforce this may be their first trip to the United States.”

SURPRISE ENTERTAINMENT
Shareholders never know who will show up to join the celebration during Friday’s meeting. In recent year’s they have been treated to musical performances from the likes of John Legend, Jennifer Hudson, Celine Dion, Lionel Richie, Mariah Carey, Josh Groben, Taylor Swift and the Zac Brown Band. 

All eyes will be peeled at the local Walmart stores Wednesday or Thursday afternoon, trying to spot the host for this year’s event. Past hosts include: Hugh Jackman, Ben Stiller, Jamie Lee Fox and Justin Timberlake. The host usually makes a video at a local Wal-Mart store which is shown during Friday’s meeting. All bets are on the new Walmart to Go convenience store in Bentonville as the site for this year’s host video.

The two free concerts already announced this year will feature Jason Aldean and Cole Swindell on Tuesday, June 3. Foreigner, Styx and Don Felder will take the stage at Bud Walton Arena on Wednesday, (June 4).