JULY 2012
Conway-based US Compounding is preparing to move into a larger, newly renovated space for its pharmaceutical compounding operation. FULL STORY, PAGE 4.
Crain Buick GMC, Log Cabin DEMOCRAT To Host Business After Hours Events
Employees of Chamber member businesses have the opportunity to attend two Business After Hours events this quarter. The first networking event will take place at Crain Buick GMC on Monday, July 16, from
5-6:30 p.m. The auto dealership is located at 1003 North Museum Road in Conway. Door prizes will be available and include free service at Crain Automotive, a golf bag, a duffle bag and more. The Log Cabin Democrat will
host the quarter’s second Business After Hours on Thursday, August 9, from 5-6:30 p.m. at its new location in the Federal Plaza. The 25,000-square-foot, two-story building is located at 1111 Main Street. The Federal Plaza also houses the U.S.
Post Office and Privacy Star. Attendees are welcome to tour the newly renovated facility. Business After Hours allows representatives from member businesses to strengthen professional relationships and develop new opportunities to work
with fellow Chamber members. The events are free to employees of Chamber member businesses. Complimentary hors d’oeuvres will be provided. For more information about Business After Hours, call the Chamber 501-327-7788.
Lunch & Learn TARGETS Taxes for Small Businesses
What’s that gonna be? Superior Chevrolet After 30 years on Oak Street, Conway’s Chevrolet dealership is moving. The 30,000 square foot facility will have two customer lounges, a gourmet snack bar and cappuccino machine and first class service area. The dealership has an open floor plan with 2 | FAULKNER COUNTY BUSINESS JOURNAL
glass viewing area of the service area. The service department will feature imported ceramic tile floor. The lot will have approximately 450 new and used vehicles to choose from.
Where is that? On Exchange Avenue next to Superior Dodge. (south of Acxiom) When will it open? Jan. 1, 2013
Bo Conner of Conner & Sartain, CPA, P.A. will discuss taxes for small businesses at the Conway Area Chamber of Commerce’s upcoming Small Business Lunch & Learn. The session is free to employees of Chamber member businesses and will take place Tuesday, July 31, from 11:30 a.m. until 1 p.m. Conner, a certified public accountant, has 38 years of tax experience. During the Small Business Lunch & Learn, he will discuss in detail the past, present and future of business tax and individual income tax. The Small Business Lunch & Learn session is sponsored by Conner & Sartain, CPA, P.A. and will take place at the Conway Chamber building located at 900 Oak Street. Seating is limited to the first 40 participants. To register for the Small Business Lunch & Learn, visit ConwayArkCC.org/events. For questions or additional information, contact Whitney Farris, director of communications, at 501-932-5411.
Conway Economy at a Glance Unemployment Rate May 2012 US ...............................8.2% Arkansas.......................7.3% Faulkner County ......... 6.5% Conway.........................6.6% Sales Tax Collections Conway* April 2012................... $1,950,077 2011................... $1,816,799 Percent Change (7.3%) Year to Date (April) 2012................... $7,519,904 2011................... $6,894,073 Percent Change (9.1%) Annual* 2011................. $22,366,464 2010................. $21,868,102 Percent Change (2.3%) *Tax Rate 1.75% Faulkner County* April 2012...................... $734,063 2011...................... $673,246 Percent Change (9.0%) Year to Date (April) 2012................... $2,839,698 2011................... $2,552,409 Percent Change (11.3%) Annual* 2011................... $8,279,301 2010................... $7,834,226 Percent Change (5.7%) *Tax Rate (0.5%) Restaurant Sales* May 2012................. $13,949,523 2011................. $12,947,793 Percent Change (7.7%) Year to Date (May) 2012................. $67,665,507 2011................. $61,738,928 Percent Change (9.6%) Annual Sales 2011............... $151,462,797 2010............... $139,864,203 Percent Change (8.3%) *Includes mixed drink sales Hotel Sales May 2012................... $1,978,419 2011................... $1,921,058 Percent Change (3.0%) Year to Date (May) 2012................... $8,276,529 2011................... $7,612,542 Percent Change 8.7% Annual Sales 2011................. $18,662,136 2010 ............... $17,590,242 Percent Change 6.1% Conway Building
Permits Single Family Homes Permits Issued January — June 2012.................... 86 permits 2011.................... 82 permits 2010..................137 Permits Percent Change 2011-12 (4.9%) Annual 2011..................153 Permits 2010 ................ 223 Permits Percent Change (-31.4%) Average Construction Cost* Year to Date (June) 2012...................... $205,683 2011..................... $206,204 2010...................... $169,337 Percent Change 2011-12 (-0.3%) *Not including land or lot improvements Average Square Footage* Year to Date (June) 2012............................ 2,979 2011............................ 2,843 2010............................ 2,558 Percent Change 2011-12 (4.8%) * Total under roof Lottery Sales Faulkner County June 2012................... $1,363,920 2011................... $1,505,821 Percent Change (-9.4%) January — June 2012............... $246,594,684 2011............... $247,397,659 2010............... $240,635,674 Percent Change 2011-12 (-0.3%) Annual 2011................. $16,788,678 2010................. $17,540,450 Percent Change (-4.3%) Total State June 2012................. $34,570,424 2011................. $37,935,482 2012................. $35,359,397 Percent Change 2011-12 (-8.9%) Annual 2011 .............. $474,879,701 2010............... $459,916,256 Percent Change (3.3%) Natural Gas Severance Tax Distribution June
Faulkner County 2012........................ $10,028 2011.......................... 16,127 Percent Change (-37.8%) Conway 2012........................ $12,394 2011........................ $20,064 Percent Change (-38.2%) Year to Date (Jan.-June) Faulkner County 2012........................ $78,897 2011........................ $93,228 Percent Change (-15.4%) Conway 2012........................ $97,548 2011...................... $116,951 Percent Change (-16.6%) Annual Faulkner County 2011...................... $204,052 2010...................... $171,543 Percent Change (19.0%) Conway 2011...................... $254,822 2010...................... $221,225 Percent Change (15.2%) Wellhead Price per MCF* April 2012 ........................... $1.89 2011 ........................... $4.00 2010 ........................... $4.10 2009............................ $3.18 2008............................ $8.87 2007............................ $6.26 Yearly Average 2011 ......................... $3.95. 2010 ......................... $4.48. 2009 ......................... $3.67 2008.......................... $7.97 2007.......................... $6.25 2006 ......................... $6.39 2005 ......................... $7.33 2004 ......................... $5.46 2003 ......................... $4.88 2002 ......................... $2.95 *MCF=1000 cubic feet Number of Active Wells* Faulkner County............. 316 Total in Field . ............. 4,133 *As of June 31, 2012 Estimated Life Time Value of Production* Total Field.. $11,382,327,198 *As of November 31, 2011.
Information provided by pulseofconway.com
Diverse Economy Is Faulkner’s Strength
By Roger Lewis
“The great recession,” as recent economic times are labeled, began in 2008 and peaked in 2009, as measured by unemployment and low national gross domestic production (GDP). While these measures showed improvement in 2011 and 2012, a sluggish economy still remains and economists predict that recovery will continue at a slow pace for several years. Conway and Faulkner County have been spared much of the devastating effects of this recession when compared to other communities throughout the nation. Never-the-less, it has had an effect. Housing construction is languishing, natural gas exploration has been waning and unemployment is inching up. The May 2012 unemployment rate for Faulkner County was 6.5% compared to a national rate of 7.9% and Arkansas rate of 7.3%. This made our rate the 8th lowest among cities and counties in the state. Faulkner County’s rate peaked at 8.3% in February 2010. Conway’s rate is generally lower than Faulkner County’s, but for May 2012, Conway’s rate of 6.6% was slightly higher. Conway’s unemployment rate has increased slightly over the past 12 months from 6.3% in May 2011. Housing construction in Conway remains flat with 86 permits for single family houses issued this year through June compared to 82 in 2011 and 137 in 2010 for the same period. No permits have been issued for apartment complexes this year and only one permit was issued in all of 2011 and that for a small complex. This is a steep decline compared to the 668 units in 2009 and 846 in 2008. Not surprisingly, the number of construction jobs fell from 3008 in 2007 to 2542 for 2011, a 15% decline. Natural gas wellhead prices fell to $1.89 per thousand cubic feet (MCF) in April 2012, the lowest since 1999. The all time high was $10.79 per MCF for the month of July 2009. The state severance tax revenue for 2012 is down 29% over the same period last year. The Fayetteville shale gas production has remained flat and companies have curtailed
The pie chart that illustrates Faulkner County’s business segments represents a near perfect example of a well balanced, diversified economy. We are truly blessed. much of their exploration because of the low market price. In spite of Faulkner County’s job losses in construction and natural gas industries, the total number of employees in 2011 (40,192) was up slightly from to 2007 (39,200). The average annual wage over these four years increased 11.2% from $33,045 to $36,758. Fortunately Faulkner County does not have a dominant industry. The economies of communities that have a dominant industry such as forest products or a large manufacturing facility, collapse when these industries shutter or have massive layoffs. Faulkner County’s diverse economy is our strength that insulates us from downturns in one or two business sectors. The pie chart shows our evenly, distributed diversity. In 2011, 2717 firms, classified into twelve business segments, employed 40,192 people. The largest sector, education and government, provided 18% percent of the employment. The 73 entities in this sector include colleges, school systems, municipalities and state government and they account for 7,301 jobs. The vast majority of these are very stable jobs in the public sector. The next largest employer is Wholesale-retail trade with 16% of the job market. With 560 firms and 6,306 jobs it is the largest within the private sector. These employers in this sector range from small businesses with one or two employees to very large employers such as Walmart.
The professional and business services sector includes lawyers, accountants, insurance agents and realtors. The 392 firms employed 6,173 people and account for 15% of the employment. The fourth business segment in order of number employed is Health Services, which employs 13% of the work force. This segment includes clinics, physician offices and nursing homes with 402 entities employing 5,092 people. The largest employer is Conway Regional Health System. Leisure and Hospitality is a growing segment of Faulkner County’s economy. Its 25 hotels and approximately 200 restaurants employ 4,472 people who make up 11% of the workforce. The top five business sectors account for 29,344 jobs which amounts to 73% of the employment numbers. Manufacturing was once a dominant business sector in Faulkner County, but now accounts for only 8% of the employment. The decline in manufacturing jobs is a national trend. Surprisingly, the natural gas industry, reported in the Natural Resource and Mining Segment, accounts for only 4% of the employment. This percentage is misleading, however, because many of the jobs created by that industry are reported in other business segments. You can obtain more information by going to the Pulse of Conway website (www.pulseofconway.com).
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us compounding
EXPANDING STAFF AND SERVICES World-Class Compounding Pharmacy BEEFS UP Conway Headquarters WITH MORE THAN 16,000 SQUARE FEET
Conway-based US Compounding is preparing to move into a larger, newly renovated space for its pharmaceutical compounding operation. The compounding pharmacy will open for business at its new location in east Conway on Monday, Aug. 20. The facility encompasses more than 16,000 square feet and is located at 1270 Don’s Lane. Nabholz Construction is the general contractor for the $5 million renovation project. Sara Parsley, marketing and IT director, said US Compounding has outgrown its current space. The new facility will quadruple the total amount of space for the company’s Conway headquarters and will increase the size of the laboratory significantly. “We are currently operating in a 3,000- to 4,000-squarefoot facility, and our laboratory is only 1,000 square feet. In our new building, the lab alone is 8,000 square feet,” Parsley said. “This expansion gives us plenty of space to accommodate our growing staff and variety of compounding services.” Compounding Services As a compounding-only pharmacy, US Compounding specializes in customizing medications to fit the unique needs of individual patients. The pharmacy works closely with physicians and surgery centers to provide customized compounds for a wide variety of needs. “Compounding is such a rewarding sector of pharmacy,” said pharmacist Kristen Riddle, part-owner and director of clinical services. “We are able to assist a wide spectrum of
The laboratory in US Compounding’s new facility provides eight times more space than the laboratory in the former location.
patients: from life-saving medications for children to women’s health solutions that dramatically increase their quality of life.” Individualized, compounded medications also are beneficial for customers who are allergic to gluten, casein, corn, lactose, dyes and other common allergens. In addition, compounded medications ensure that pediatric patients get the correct dosage by using child-friendly medication applications and better-tasting flavors. In the compounding lab, specially trained technicians and pharmacists use sophisticated equipment to combine raw drug ingredients into customized prescription compounds. Compounded medications range from quick-dissolve pills, topical creams, pediatric chewable tablets, injections, eye drops and more. While US Compounding does not compound pharmaceutical drugs that are available on the market, it does provide surgery centers with commercially available items that are on a national backorder. “We currently supply thou-
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sands of hospitals and surgery centers with critical medications that are temporarily backordered by the manufacturers,” said pharmacist Rebecca Mitchell, vice president of pharmacy operations. “These compounded medications are able to fill in the gaps for patients when off-the-shelf medication isn’t ideal or readily available.” Patients of the four-legged and winged variety also benefit from customized compounds. US Compounding’s veterinary pharmacy provides medications for large animals, such as thoroughbred racehorses and elephants, and small family pets. “At US Compounding, our veterinary specialists customize animal medication into petpreferred flavors and innovative dosage forms that are easier for owners to administer,” Mitchell said. “For example, if an animal has difficulty swallowing a pill, we can compound a cream that can be rubbed into its ear, or we can compound a paste that tastes like apples, beef, alfalfa and other pet-friendly flavors.” Mitchell likened the com-
pounding process to cooking, except far more complex. “To put it in the simplest terms, compounding is much like following a recipe,” Mitchell said. “However, the process is highly scientific, precise and is validated by a stringent quality assurance program.” US Compounding is accredited by the Pharmacy Compounding Accreditation Board – a voluntary, quality accreditation designation for the compounding industry. The PCAB designation places the pharmacy among the top 2 percent of compounding pharmacies in the nation. History and Growth Pharmacist Eddie Glover, president and CEO of US Compounding, founded the company in 1995 as College Pharmacy. At the time, the pharmacy had four employees, including a local sales representative for the states of Arkansas and Mississippi. The company dispensed commercially available medications until 2003, when it moved exclusively to compounding. US Compounding has grown exponentially in the last 15
years in terms of staff and sales. The company now has more than 50 employees at its Conway location and numerous distributors and sales representatives in 49 states, Washington, D.C., and Puerto Rico. In the past five years, topline sales have increased an average of 41 percent each year. In 2011, the National Community Pharmacists Association named Glover the Willard B. Simmons Independent Pharmacist of the Year. The award recognizes independent pharmacists who demonstrate exemplary leadership and commitment to independent pharmacy and to their communities. Glover predicts a bright future in Conway for US Compounding. “So much of our success can be attributed to the atmosphere and attitude of this city,” Glover said. “I don’t think there is a better community in the world to do business in than Conway, Arkansas.” Part-owner and pharmacist Larry Sparks agrees. “US Compounding has thrived in the atmosphere of Conway, and we look forward to prosperous growth in partnership with the city’s leadership.”
TOP 5 RESIDENTIAL home sales Tyle r St
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6 | FAULKNER COUNTY BUSINESS JOURNAL
SUBDIVISION Club Cove Spencer Mountain Wellington Dogwood Estates Chapel Hill
SQ. FT. 5,026 3,200 3,790 3,750 2,985
$/SQ. FT. YEAR BUILT $95.50 1996 $140.31 2011 $102.88 2000 $100.00 2005 $108.88 2007
286
Workers construct a new sidewalk on Donaghey Avenue that will extend from Tyler Street to Meadowlake Road. A second sidewalk has been installed on the south side of Siebenmorgen Road.
City of Conway Installs New Sidewalks
Conway just became more pedestrian friendly thanks to the installation of new sidewalks. In June, the Conway City Council began accepting bids for this year’s sidewalk improvement projects. The work includes the construction of approximately 3,430 feet of five-foot-wide concrete sidewalks, along with wheelchair ramps and modular block walls. One new sidewalk is located along the south side of Siebenmorgen Road and extends from Bob Courtway Drive to Maddox Drive in Conway. Construction is currently underway on a second sidewalk located along the west side of Donaghey Avenue, extending from Tyler Street to Meadowlake Road. Five contractors bid on the project. The City Council accepted the low bid from
Paladino-Nash in the amount of $89,662. Jamie Gates, senior vice president of the Conway Area Chamber of Commerce and Conway Development Corporation, said that improvements like these bring the community another step closer to achieving some of the goals outlined in Conway2025 – the city’s long-range plan and official strategic vision. “One of the goals of Conway2025 is to have a comprehensive system of cycling lanes and sidewalks throughout the city,” Gates said. “Well-maintained sidewalks, together with cycling lanes, facilitate car-free travel for residents and ensure the safety of pedestrians and cyclists.” For more information about this and other street projects, contact the City of Conway at 501-450-6165.
‘LEXICON’ Guide will target high-value households, new movers for area businesses
Re-locators, pre-locators, small business owners and high-income households are the recipe for success for Conway area businesses. At least Jamie Gates, Sr. Vice President of the Conway Area Chamber of Commerce, thinks so: “By identifying households that are seeking new business relationships or households with high incomes, we can help businesses increase their profits.” The Conway Area Chamber does this through the publication and unique distribution strategy of the “LEXICON,” a resource guide for Conway residents new and old. The “LEXICON” will serve as the Chamber’s membership directory, quality of life publication and local reference guide. The guide will be a high-quality piece that features useful, locally written, information for new residents and advertisements from businesses within Conway’s trade area. The guide will be mailed to every household of a qualifying income level relocating within Conway’s traditional trade area. It is mailed to new residents quarterly. Gates said that contacting recently relocated families as quickly as possible should be a priority for any business. “Research tells us that relocating families’ spending may increase seven fold their first six months in a home. They will also establish dozens of permanent business relationships such as health care and finance professionals. It is a critical time to gain their attention.” Gates said that an equally important, but difficult to find, demographic is the “pre-locator.” “We call a pre-locator someone who contacts the Chamber before they ever come to Arkansas. It may be a move they make or their own, or we may
The Chamber’s “LEXICON” guide will market local businesses to visitors, high income households, new movers and those considering moving to Conway.
be working with a local business to help with transition.” Gates says that what makes these valuable households difficult to discover is that they haven’t officially made a move that would show up in any traditional marketing lists. “Pre-locators would be impossible for small businesses to identify on their own. These are names that we get by taking the
phone calls at the Chamber or by partnering with local industry. We fulfill hundreds of requests each year from prospective residents.” Finally, the LEXICON will be mailed regionally to highincome households, not only in Conway but in areas that rely on Conway for goods and services. More than 4,000 copies will be sent to the area’s highest
income households, some 30 or more miles away. The guide will also be distributed in local hotels. Any business is welcome to advertise in the Conway Explorer. To get information about how your business may benefit from advertising, call Aaron Throneberry at the Chamber at 501.327.7788 or email aaron@ conwayarkansas.org.
Teacher Fair offers chance to use market What business wouldn’t want two hours with 700 well paid, influential, well educated consumers in the midst of their careers? In Conway, the best chance to do just that might be participating in the Eighth Annual Teacher Breakfast and Education Fair. The Teacher Breakfast and Education Fair has established itself as the official start to the K-12 school year. On Friday, Aug. 17, hundreds of faculty and staff from Conway Public Schools, St. Joseph School and Conway Christian School will be treated to a breakfast and giveaways from area businesses. This year’s fair is presented by Conway Corporation. The event will be held in the cafeteria at Ruth Doyle Intermediate School on Padgett Road. Conway Chamber Director of Events Mary Margaret Satterfield said the event gives businesses an opportunity to thank our school employees but also market their goods and services. The Teacher Fair consists of a catered breakfast and “business expo” of approximately 70 vendors. Satterfield said that teachers, as a group, are sometimes overlooked as a business opportunity. Satterfield says that the event is filling up but that there are still booth spaces available. Booth space starts at $200. The deadline to register is Friday, August 3rd. For more information contact Mary Margaret Satterfield at Mary@ConwayArkansas. org.
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