n EDITORIAL
What if they threw an election and nobody came?
W
e would be pleasantly surprised if any of our readers were aware that there was a statewide election underway. We would be absolutely shocked to hear that any of you had voted in it. The first three days of early voting netted a whopping 130 votes. The low turnout is not a surprise; the subject matter is a little mundane and the campaign is being run on a shoestring. At issue is a $1 billion interstate rehabilitation program. A vote FOR the proposal will give the state of Arkansas
the authority to issue something known as GARVEE Bonds to help finance the work. GARVEE bonds are a federal program that lets us bond interstate work with the annual proceeds from interstate maintenance funds allocated for Arkansas. It’s an advance on Arkansas’s highway allowance. The alternative to a bonded construction program is a piecemeal approach cobbled together over time. That will cost more and take longer. This isn’t a new approach to interstate maintenance. In 1999, Arkansas voters
passed 4-to-1 an identical measure that reconstructed more than 350 miles of interstate. Those bonds are expiring and it’s time to renew our commitment to quality infrastructure. This program will focus on the rehabilitation of almost 300 miles of interstate highways. It’s also an identical twelve year financing plan. Have we changed so much since 1999 that we can’t even agree to take care of our busiest roads? We hope not. It’s hard to tell people with a straight face that a $1 billion construction program
doesn’t cost anything. Of course it does. It costs $1 billion. But a vote FOR the proposal does not mean that any taxes will go up. The program is funded by our rightful share of federal highway money and an existing four cent tax on diesel. We aren’t talking about new revenue. We’re talking about controlling construction costs and fixing some of our crumbling infrastructure now. There are interstates throughout Arkansas that simply cannot wait ten more years for attention. This program isn’t going to
add one mile of new roads in Arkansas. This is solely about taking care of what we have. Rehabilitating our interstate system is in all of our best interest. It’s good for business, tourism, industry and your car. This proposal has broad support from each political party and will save Arkansas money. It’s a nobrainer in our opinion. But it won’t pass if people don’t go vote FOR it. Early voting is open Monday at the courthouse and Tuesday is Election Day. Go vote FOR the 2011 Interstate Rehabilitation Program.
Morrilton AND Conway team up for economic development efforts Morrilton may still be 20 miles west of Conway, but starting next year the two city’s economic development futures will be more closely linked than ever. Early last month, more than 50 residents and business leaders gathered in downtown Morrilton to celebrate the announcement of a unique economic development partnership that will hopefully bring more jobs and economic activity to central Arkansas. The Conway County Economic Development Corporation (CCEDC) and the Morrilton Area Chamber of Commerce formalized a contract with the Conway Development Corporation to provide economic development services for Conway County. Previously, the CCEDC had handled all economic development responses for Conway County and Morrilton. CCEDC Chairman Fred Briggler said that Morrilton’s economic development efforts were at a crossroads and that now was the time for a new era. “At a time when we are making a leadership and management change, we have an opportunity to join forces with what we believe is the state’s top economic development team.” John Gibson, 2 | FAULKNER COUNTY BUSINESS JOURNAL
Brad Lacy (right) watches as Becki Griffey and Barry McKuin of Morrilton sign an agreement with the Conway Development Corp to partner on economic development. The three year agreement begins in 2012
President of the CCEDC and Morrilton Chamber announced his plans for retirement earlier this year. Becki Griffey, Chairman of the Morrilton Area Chamber says that the partnership goes beyond just respond-
ing to pending economic development projects. “This agreement increases the availability and diversity of workforce and sites. As we hire a new Chamber President, that person and their team
will have full access to a successful group of consultants.” The Conway Development Corporation will be responsible for the initial response to inquiries from economic development agencies or site selectors. They will actively market Morrilton’s industrial sites, workforce and expansion opportunities. Griffey says that the arrangement is groundbreaking for Arkansas, but not unprecedented. “We will have assistance in our community development and economic development efforts, but the Morrilton team will still be the face of Morrilton. Best of all, we will be working with people who truly want to partner with us. Ultimately, we all benefit.” Conway Development Corporation President Brad Lacy says that the decision to formalize the partnership was an easy one. “We’re honored at the opportunity to help grow central Arkansas’s economy by growing Morrilton. We don’t compete against each other. We complement each other. The best thing for Conway is to have a thriving neighbor of 7,000 to 10,000. They bring our own community tremendous opportunity.” The three-year agreement will go into effect January 1, 2012.
Lunch & Learn to Explore Direct Mail The Conway Area Chamber of Commerce will host a Small Business Lunch & Learn on Tuesday, Nov. 15, from 11:30 a.m. to 1 p.m. ECS Printing and the U.S. Postal Service will explain the Every Door Direct Mail service and how it can benefit businesses.
The nearly 94-year-old Halter Building was remodeled in 2006 into a mixed-use development with space for retail, a restaurant and professional offices, as well as loft-style apartments on the third floor. This year’s CDP annual luncheon will take place Nov. 29 at Michelangelo’s Seafood and Pasta, located inside the Halter building.
Annual Luncheon to Celebrate Downtown Conway’s Decade of Growth
Gov. Beebe to Deliver Keynote Address Since the inception of the Conway Downtown Partnership a decade ago, smart growth has been the cornerstone of the organization’s mission. On Tuesday, Nov. 29, at 11:30 a.m., the CDP’s annual luncheon will take a look back at the progress over the last 10 years and a look forward at future developments. Gov. Mike Beebe will be the keynote speaker. The event is open to the public and will take place at Michelangelo’s Seafood and Pasta in downtown Conway. Tickets are on sale now. To date, there has been more than $80 million in-
vested in downtown revitalization. The latest projects include the expansion and renovation of the Federal Building at Main and Front Streets and the renovation of the former Smith Ford car dealership. The Federal Building is a 25,000-square-foot, twostory building built in 1969 that Nabholz Properties recently purchased from the U.S. Postal Service. The U.S. Postal Service will lease back approximately 5,000 square feet, with the rest of the space available for lease. The $2.8 million project includes complete renovation of the first and second floors and a 1,200-square-foot addition to the west side of the building. Construction on the Federal Plaza should be
complete by the end of this year and will provide new or relocating businesses with a unique place to set up shop in downtown Conway. The renovated Smith Ford car dealership, also scheduled to be completed by the end of the year, will house a piano lounge and event space. This $1.5 million project will extend the Front Street Entertainment District, providing an additional place for residents and visitors to enjoy a night out. The transformation of downtown does not end with the buildings. Over the past 10 years, over $1.1 million in public way improvements have been completed. These improvements include new sidewalks with brick pavers, landscaping, streetlights and improvements to underground infrastructure.
The City of Conway, Conway Corporation, the CDP and the Conway Development Corporation are working currently to redevelop the Markham Street Corridor, which will be a direct link between downtown Conway and The Village at Hendrix. The goal of the corridor is to create a livable and walkable neighborhood where residents can retreat at the end of the day. This will establish downtown Conway as more than just a place of business, but a place to call home. Seating is limited at the annual luncheon, so reservations are required. Tickets are $25 per person; tables of four, six, and eight are also available. For reservations, email Kim Williams at Kim@ConwayArkansas.org.
Roger Lewis, owner of ECS Printing, said that EDDM service is an inexpensive and targeted way for businesses to promote their products and services in nearby neighborhoods. “EDDM service allows small businesses to experience the benefits of direct mail without buying or maintaining mailing lists,” Lewis said. “It is a low-cost way to mail to a targeted area and reach new and existing customers.” Through EDDM service, businesses and nonprofits can mail to every residence on a specified mail route for less than 15 and 7 cents, respectively. The mailing piece has to be larger than a postcard; a typical size is 7 x 8.5 inches. Lewis said that ECS Printing recently mailed more than 22,000 promotional mailing pieces for Ace Hardware, Anytime Fitness and Calvert Enterprises. “We are able to design, print and mail promotional pieces for businesses and will meet all the requirements of the post office,” he said. More information about EDDM service will be available at the Small Business Lunch & Learn. The session is sponsored by Central Baptist College and will take place at the Conway Chamber building located at 900 Oak Street. The Lunch & Learn is $15 for Chamber members and $25 for nonmembers. Seating is limited to the first 50 participants. To register, call Whitney Farris at the Conway Area Chamber of Commerce at 501-932-5411 or email Whitney@ConwayArkansas.org. Payment must be received upon reservation. Major credit cards and debit cards are accepted.
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Wonder State Thinks Outside the Box In September 1988, Wonder State Box Company Inc. was started in Conway, Ark., and became the third facility within the SMC Packaging Group. SMC Packaging Group currently has five locations, and its headquarters is located at Southern Missouri Containers in Springfield, Mo. SMC Packaging Group is a full-service provider of corrugated packaging, point of purchase displays, protective shipping cartons and other packaging supplies, including tape, stretch film and bubble wrap. To corrugate means to form or shape a material, such as paper, into wrinkles, folds, or alternating ridges and grooves. When it comes to the corrugated packaging industry, there are three basic types of corrugated packaging plants. At an integrated corrugated packaging plant, the process begins with the forest. They convert trees to rolls of paper, which are then corrugated into sheets. Sheets are alreadycombined pieces of corrugated board. The sheets are made into finished corrugated products, such as boxes, shipping containers and point of purchase displays. The second type of corrugated packaging plant is independent corrugated converters. These facilities purchase rolls and corrugate them into sheets, which are converted into boxes and other corrugated products. Southern Missouri Container is an independent corrugated converter. Sheet plants, the third type of corrugated packaging plant, purchase sheets and convert them into boxes. SMC Packaging affiliates Wonder State Box Company in Conway and Arrowhead Containers in Kansas City, Mo., are sheet plants. “With Wonder State, you
get the best of all three,” said Brad Tabor, general manager at Wonder State Box. “You have the resources of an integrated plant, the control as an independent converter, the speed and flexibility of a sheet plant, and the creativity of an independent business.” The Wonder State Box plant occupies 103,000 square feet of space and employs 40 people. It offers a complete line of customized corrugated products and services primarily to manufacturing companies. SMC Packaging’s specialty graphics division is headquartered in the Conway facility, which regularly produces high-end digital projects for retailers and distributors. “We can see a project from concept to mock-ups to design to production,” Tabor said. “We
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can create all graphics. We can design the packaging. We can also laminate and do full-scale mock-ups. “Wonder State Box has a full-line of converting equipment, a graphic designer, a structural designer, and two computer-aided design tables,” Tabor added. Todd Tipton, customer service manager at Wonder State Box, said that high-end graphic capabilities and a staff experienced in various facets of the packaging industry set SMC Packaging and Wonder State Box apart. “Our staff really differentiates us from other packaging manufacturers,” he said. “We have experienced staff members with extensive packaging backgrounds, whether it is in sales, design, shipping and delivery, or customer service.” Tipton added that having a skilled staff enables the organization to react
S
olving problems is one of our specialties. We take pride in not only providing a quality product but in problem-solving and creativity in design as well.
and respond professionally to issues their customers may face. “Solving problems is one of our specialties,” Tipton said. “We take pride in not only providing a quality product but in problem-solving and creativity in design as well.” While problem-solving happens is an everyday occurrence at Wonder State Box, one particular example involving a longtime customer stands out.
Claridge Products and Equipment Inc. – a leading supplier of whiteboards, display cases and interactive digital surfaces – approached SMC Packaging Group and their other packaging supplier with an issue regarding whiteboards being damaged in transit. “We responded quickly and designed and developed unique packaging that solved their freight issues while reducing the labor and time involved in
packaging their larger products,” said Tipton. “We worked in coordination with FedEx’s testing facility to get the packaging approved and are now the sole provider of packaging for Claridge. “Our willingness to invest in our customers is a huge difference between us and any other packaging manufacturer,” Tipton said. SMC Packaging is leasing warehouse space in Harrison, Ark., where Claridge is located and now has a packaging facility there that serves that customer. “We assemble packaging for Claridge just minutes from their facility and meet their packaging requests daily,” Tipton said. As a small business, Wonder State Box is able to invest in their customers but is large enough to have the resources and expertise to solve any problem or fulfill any need
PRINCE STREET UNDERPASS
Construction is underway on the new four lane median divided Prince Street. The $3.5 million project will include three roundabouts and will remove the stoplights at Farris, Morningside and Salem. The section of Prince Street between Morningside and Western will be completed by the start of the 2012 school year and the entire project is scheduled to be complete by the end of 2012. The improvements also include an underpass for the Tucker Creek Walking Trail (pictured above). Construction on the section of trail south of Prince Street is scheduled to begin in late spring. FAULKNER COUNTY BUSINESS JOURNAL | 5
Chamber to Offer Speed Networking
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With this in mind, the Conway Area Chamber of Commerce is introducing a new networking event that will give employees of its member organizations an opportunity to connect with other professionals. Speed Networking is a twohour event that allows participants to meet or better acquaint themselves with other attendees quickly and efficiently. Participants will have two minutes to interact with other attendees one at a time before being paired with another individual. The group will be able to continue their conversations at a brief reception following the speed networking. The Chamber’s first Speed Networking event will take place Tuesday, Dec. 6, from 5 to 7:30 p.m. at A & J Collision Repair’s new location at 1215 Thomas G. Wilson Drive in Conway. Speed networking is open to all employees of Chamber member businesses and costs $10 to attend. To register, email Whitney Farris at Whitney@ ConwayArkansas.org by Tuesday, Nov. 29. Payment must be received upon reservation. Major credit cards and debit cards are accepted.
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Rx SKIN THERAPY to host Chamber ‘Business After Hours’
On Dec. 1, Chamber members are invited to an after hours event that may leave them feeling, and looking, a little younger.
Rx SKIN THERAPY is hosting the fourth quarter Business After Hours at their store located at 2125 College Avenue, Suite 2.
The Rx SKIN THERAPY skin care line was created by local pharmacist Kristen Riddle in 2007. Riddle developed the line after years of compounding problem-solving products with patients and physicians. She began to manufacture Rx SKIN THERAPY when she saw significant clinical successes. Today, the line includes 17
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products intended to improve the appearance of aging skin. They include cleansers, facial masques and exfoliants, moisturizers, and anti-aging and skin-rejuvenation products. Rx SKIN THERAPY products are available nationwide in more than 150 locations. Because the formulations are science-based and contain medicinal percentages of
cosmeceutical ingredients and botanicals, the products are significantly different than most similar products, which often include only trace amounts of these expensive ingredients and botanicals. Rx SKIN THERAPY products have been featured in a number of national publications such as Natural Health Magazine and Men’s Journal.
Attendees of the 5 p.m. event can take advantage of free skin consultations (value $40) and a 20% discount on skin care products. Business After Hours events are free to the employees of Chamber of Commerce member businesses. For more information about the event contact Mary Margaret Satterfield at (501) 932-5412.
CHAMBER TRIP
They say THE UNITED STATES doESN’T make stuff anymore BY ROGER LEWIS
A widely held view is that we no longer manufacture very much in America and that most manufacturing now happens in countries with low (cheap) labor costs. A look at the landscape of Conway — empty or converted buildings that were once manufacturing plants such as International bus factory, Nucor, Baldwin Piano, SAS shoes, and Universal Nolan — reinforces that perception. In small towns that dot the Arkansas map, garment factories are shuttered. In 2001 there were 105 businesses in Faulkner County classified as manufacturers by the Department of Labor. They employed 6,537 workers. By 2010 the number of manufacturers actually rose to 109 but the number of employees dropped by nearly 50% to 3,395. What happened in America?
The Chamber recently sponsored a nine-day trip to China. Thirty-three participants visited four cities: Beijing, Shanghai, Suzhou and Hangzhou. Stops included the Great Wall, Temple of Heaven, Sacred Way of Ming Tomb, Tiananmen Square, the Forbidden City and silk, carpet, pearl and jade factories. The Chamber is currently scheduling international travel for next year.
A combination of factors caused the decline. In a global economy manufactured goods with a high labor cost relocate to low labor cost countries. Another factor is that we just don’t need as much stuff. Today’s manufactured items are of better quality and last longer — when was the last time you replaced a belt or spark plugs in your car? Item longevity leads to over capacity of manufacturing which results in a consolidation of facilities. Manufacturing is much more efficient and requires fewer people. Better transportation logistics permit outsourcing of components to highly efficient specialized manufacturers. Because of these factors we do not spend as much of our income on manufactured goods. Instead, we spend more on communication services — cell phones, cable TV, and the internet — entertainment and also on prepared foods (eating out). Manufacturing accounted for approximately 50% of our gross domestic production in 1950 but by 2009 it dropped to 9.2%. Over time manufacturing has become a small-
er portion of the global economy. It was replaced by services, information technology and entertainment. The following graph illustrates how manufacturing as a percentage of gross domestic production has declined worldwide and in the U.S John Keefe writing for CBS Money Watch cites data from IHS Global Insight, an economics consulting firm, on the ranking of manufacturing output of the leading economies, and to his surprise, the United States still manufactures more stuff than anyone else — $1.7 trillion in 2009, compared to $1.3 trillion from China. The United States manufactures more than Japan and Germany together. However, China is closing the gap and will overtake us in a few years. The United States is the world leader in many manufacturing sectors with companies like Caterpillar, Hewlett Packard and Boeing. The U.S. auto industry ranks 3rd in the world with approximately 7.8 million cars produced in 2010. The United States is the largest exporter of military arms with $1.22 trillion for 2010, accounts for 76% of total world market. The Federal Reserve Bank of Chicago in 1950 reported that 31% of non farm workers in the United States were employed in manufacturing. By 2009 that declined to 9.1%. Yet the value of goods produced has increased at an annual rate of 3.4% and has increased by 6-fold from 1950. This is a result of increased productivity. The increase in both the number and quality of machinery over time, along with technological improvements in production processes and inventory management, gave rise to greater
manufacturing output at lower unit cost. What took 1,000 workers to produce in 1950 could be produced by 184 workers in 2009. Faulkner County has been very fortunate to replace manufacturing jobs with jobs in other sectors. While manufacturing has had a 50% job loss in since 2001, total employment for Faulkner County has increased 18%. In 2001, 1919 firms employed 33,975 workers but in 2010 2700 firms employed 40,021. The largest gain was in the natural resources sector, the result of natural gas exploration. Natural resources had an approximate 1400% gain going from 7 firms in 2001 with 58 workers to 47 firms with 896 workers in 2010. Gas exploration has produced increases in other business sectors as well such as transportation (hauling sand, gravel and water) and other service industries. The second sector of largest gain was educational and health services which went from 222 employers with 3863 workers to 428 employers with 6017 workers. This gain of 2159 workers represents a 55% growth. Many of the employer gains were new clinics and doctor practices, many of the employee gains were in schools and colleges. To conclude: manufacturing in the United States has not declined as generally perceived. The United States remains the world leader in manufacturing for the time being, producing more durable goods than ever, but with much less labor. The dramatic increase in efficiency, productivity and quality caused the number of people employed in manufacturing to plummet. Manufactured goods shifted toward highend goods such as machinery, airplanes and supercomputers. Even though manufacturing increased, other business sectors, particularly health care, services, communication and energy production grew at a much more rapid rate which caused a dramatic decline in manufacturing‘s percentage of gross domestic production. This has happened both in the United States and worldwide More information on real estate can be found at www. pulseofconway.com.
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