2012-08 Faulkner County Business Journal by Conway Area Chamber of Commerce

AUGUST 2012

â&#x20AC;&#x2DC;DREAM BIGâ&#x20AC;&#x2122;

with unique suite of products and services, first service bank has made a lasting impression

First Service Bank has grown substantially since they were founded 50 years ago in Dermott. Headquartered in Faulkner County, the bank now serves Greenbrier, Conway, Flippin, Yellville, Dermott, Clinton, Mountain View and Shirley. FULL STORY, PAGE 4.

Sponsorships, Booth Space Available for Business Expo, Taste of Conway

The Conway Area Chamber of Commerce invites area businesses to participate in the 2012 Business Expo. The event will take place Thursday, Oct. 4, at the Conway Expo Center and Fairgrounds. Southwestern Energy is the presenting sponsor. Business Expo comprises a breakfast, a business-tobusiness trade show and Taste of Conway. Bart Shaw, vice president of operations at the Conway Area Chamber of Commerce, said this setup provides businesses with varied opportunities to network with other professionals and exhibit their products and services to a diverse and captive audience. “Business Expo’s threepronged approach is what sets it apart from other expos in the

central Arkansas area,” Shaw said. “First, the Business Expo Breakfast is attended by more than 150 representatives from Conway’s business community, including many decision makers. Second, the trade show provides exhibitors with both immediate and deferred sales opportunities and business-tobusiness networking. Finally, Taste of Conway attracts more than 500 potential customers to Business Expo. “We anticipate approximately 1,000 people will come to Business Expo throughout the day.”

Business Expo kicks off at 8 a.m. with the Business Expo Breakfast, presented by Conway Corporation. The breakfast has been part of Business Expo for three years and traditionally has served as an occasion for the Conway Area Chamber of Commerce to announce substantial economic development and community initiatives. In 2010, the Chamber unveiled Conway2025 at this event, and in 2011, the Chamber revealed the design of the Interstate 40 corridor. This year, Brad Lacy, presi-

dent and CEO of the Conway Area Chamber of Commerce, will introduce a new education program for Conway at the breakfast. Tickets are required to attend the breakfast and can be purchased for $10 at the Conway Area Chamber of Commerce. The Business Expo and Retail Showcase, a businessto-business trade show, begins at 9 a.m. and lasts until 3 p.m. Product demonstrations, business-to-business networking and the actual selling of products and services — all done on the Expo floor — can ultimately increase sales and sales leads for exhibitors. This year’s theme is “Build Your Business,” sponsored by The Home Depot. Taste of Conway, presented

by Arvest Bank, gives the community the chance to sample some of the best food Conway has to offer. The event takes place from 5 to 7:30 p.m. on the floor of Business Expo, giving food service providers the opportunity to get in front of more than 500 company representatives and community members. Restaurants, caterers, food and drink distributors and other food service providers that are members of the Chamber are eligible to participate in Taste of Conway at no cost. Sponsorships and booth space are available for the 2012 Business Expo and Taste of Conway. Contact the Chamber at (501) 327-7788 or visit ConwayArkansas.org to learn more about sponsorship and exhibition opportunities.

CONWAY Convention and Visitors Bureau reaches out to back-to-school shoppers

As the back-to-school season officially kicks off this month, tens of thousands of central Arkansas residents are getting a gentle reminder of all Conway has to offer. The Conway Convention and Visitors Bureau invited almost 39,000 households in Beebe, Cabot, Maumelle, Searcy and Russellville to make Conway their one-stop shop for school supplies and clothing. The Convention and Visitors Bureau sent a mailer detailing the broad range of shopping options Conway offers. Conway Chamber Director of Destination Marketing, Rachel Earls said the Convention and Visitors Bureau wanted to

target “swing shoppers” who might be tempted to shop in

2 | FAULKNER COUNTY BUSINESS JOURNAL

other communities. “We chose these specific

communities because we feel that they have a choice about

where to do their shopping and we want them to think of Conway first.” The Bureau also included a special promotion that helped the mail piece stand out in a crowded mailbox. One lucky winner was promised $1,000 in goods and services that will make the school year easier at home — things like oil changes, prepared meals, dry cleaning and meals out. “We did a similar campaign during the holidays and the response was great. We want to constantly remind central Arkansas that Conway businesses can meet all of their needs” said Earls.

Conway Economy at a Glance Unemployment Rate June 2012 US ...............................8.2% Arkansas.......................7.2% Faulkner County ......... 6.5% Conway.........................6.5% Sales Tax Collections Conway* May 2012................... $1,863,254 2011................... $1,911,022 Percent Change (2.5%) Year to Date (May) 2012................... $9,333,158 2011................... $8,808,075 Percent Change (6.6%) Annual* 2011................. $22,366,464 2010................. $21,868,102 Percent Change (2.3%) *Tax Rate 1.75% Faulkner County* May 2012...................... $686,672 2011...................... $682,182 Percent Change (0.6%) Year to Date (May) 2012................... $3,526,070 2011................... $3,234,591 Percent Change (9.0%) Annual* 2011................... $8,279,301 2010................... $7,834,226 Percent Change (5.7%) *Tax Rate (0.5%) Restaurant Sales* May 2012................. $13,899,493 2011................. $12,631,975 Percent Change (10.0%) Year to Date (June) 2012................. $81,757,540 2011................. $74,370,903 Percent Change (9.9%) Annual Sales 2011............... $151,462,797 2010............... $139,864,203 Percent Change (8.3%) *Includes mixed drink sales Hotel Sales June 2012................... $1,959,078 2011................... $1,898,253 Percent Change (3.2%) Year to Date (June) 2012................. $10,225,010 2011................... $9,510,794 Percent Change 7.5% Annual Sales 2011................. $18,662,136 2010 ............... $17,590,242 Percent Change 6.1% Conway Building

Permits Single Family Homes Permits Issued January — July 2012.................. 106 permits 2011.................... 90 permits 2010..................164 Permits Percent Change 2011-12 (17.8%) Annual 2011..................153 Permits 2010 ................ 223 Permits Percent Change (-31.4%) Average Construction Cost* Year to Date (July) 2012...................... $209,530 2011..................... $201,013 2010...................... $169,337 Percent Change 2011-12 (4.2%) *Not including land or lot improvements Average Square Footage* Year to Date (June) 2012............................ 2,897 2011............................ 2,820 2010............................ 2,605 Percent Change 2011-12 (2.7%) * Total under roof Lottery Sales Faulkner County July 2012................... $1,290,928 2011................... $1,346,046 Percent Change (-4.1%) 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 July

Faulkner County 2012.......................... $7,469 2011.......................... 19,485 Percent Change (38.3%) Conway 2012.......................... $9,231 2011........................ $24,242 Percent Change (-38.0%) Year to Date (Jan.-July) Faulkner County 2012........................ $95,881 2011...................... $129,915 Percent Change (-26.2%) Conway 2012...................... $118,538 2011...................... $162,534 Percent Change (-27.0%) 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* May 2012 ........................... $1.94 2011 ........................... $4.12 2010 ........................... $4.24 2009............................ $3.23 2008............................ $9.96 2007............................ $6.75 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

Destination Conway

By Roger Lewis and Chris Spatz

Years ago Conway had one substantial hotel (The Bachelor Hotel across from the train station), a flophouse or two (weekly rates) and a couple of tourist courts. The tourist courts advertised themselves as “modern cabins,” which meant they had indoor plumbing. Today, those few businesses are gone, replaced by 23 hotels that have 1,425 rooms and produce an estimated $19 million in annual revenue. In the jargon of the hotel industry, that $19 million comes from sales of more than 600,000 person nights. Hotels are part of the leisure and hospitality industry, and in Faulkner County this industry produces $100 million annually — a critical part of our economy. A look at our more recent history reveals significant ups and downs. In 2007, Conway had 17 hotels and $14.9 million in sales. The next year, 2008, showed an increase to 19 hotels and sales up almost 20% to $17.5 million. In that year hotels appeared to be a growth industry; but then the recession hit. Although two more hotels opened in 2009, revenue bottomed out at $16.4 million, a 6.2% decrease. The next year there was one new hotel and sales reached $17.6 million, just slightly above the 2007 figure. In both 2010 and 2011 one new hotel opened. The latest annual revenue figure is for 2011, which is $18.6 million, up 6.1% from 2010. With sales up 7.5% through June compared to the first half of

2011, 2012 looks promising. An estimate of $20 million is reasonable. Most of any new hotel’s revenues are siphoned from existing hotels. Because new hotels are more attractive and revenue growth has not kept pace, several hotels experienced revenue decreases. For 15 of the 17 hotels that existed in 2007, revenue declined 47%. Declines ranged from 14 to 51%. The revenue pie got sliced into more pieces, but the pie did not grow. Hotel sales data is derived from the 2% Advertising and Promotion Tax (A&P) Conway collects on hotel rooms. These data may slightly understate actual sales, because rooms rented for 30 days is considered a residence and the A&P tax is not applicable. For example, companies associated with the natural gas industry have a few long-term room leases with hotels. On the other hand, the A&P tax is applicable when an apartment complex rents a unit for less than 30 days, but that occurs infrequently. May and June produce the highest hotel revenues, and December and January produce the lowest. Nationally, however, August is the best month. Our educational institutions with their graduation exercises, camps and competitions may be the major factor that leads to our higher May and June sales. Several features make Conway a good climate for hotels. It has a central location in the state — 30 miles from Little Rock. It is at the junction of Interstate 40, U.S. Highway 65 and US Highway 64 and thus an

attractive stop for travelers. Added amenities include an abundance of restaurants and shopping opportunities. Conway’s three Colleges significantly impact the hotel industry because numerous conferences, athletic and special events are hosted by these institutions. Baseball, softball and soccer fields owned by the city are sites for regional competitions and playoffs. These events often require overnight lodging. The estimate of the number of person nights derives from the American Hotel and Lodging Association’s 2011 published annual occupancy rate of 60%, 1,425 rooms in Conway and the average of two occupants per room. This computation yields 612,150 person nights. Hotels are part of the leisure and hospitality business sector that produce 11% of Faulkner County’s jobs. This sector includes lodging, food service and entertainment. The 2011 Annual Report of the Arkansas Department of Parks and Tourism lists $81 million in travel expenditures for Faulkner County. This figure is for tourists and excludes overnight stays for crews such as truck drivers and workers or domestic travel for work or education. When these exclusions are not considered, the expenditures likely exceed $100 million. These expenditures provide employment and produces tax revenue and it all comes from visitors outside our county. You can obtain more information on the economy of Conway and Faulkner County by going to the Pulse of Conway website (www. pulseofconway.com).

FAULKNER COUNTY BUSINESS JOURNAL | 3

FIRST SERVICE BANK

the bank that stands apart in business for 50 years, faulkner county-based financial institution is anything but average

Early one morning there was a peculiar sight outside of First Service Bank’s new Conway location: Two gentlemen stood outside their car, gazing up at the enormous American flag that has become a signature of First Service Bank locations. When greeted by an employee walking in for a day of work, the men explained that they were passing through town when they spotted the flag and decided to stop and take a look. One of the men had recently returned home from military service in Iraq. Amazed that these men would drive out of their way to stop and admire the flag, it was noted by the employee that day that the large flags that fly over each First Service Bank location do more than display a landmark; they also reinforce the ideals of patriotism and community enrichment. First Service Bank is known for its large flags, but through the course of its 50-year history, the bank has also become known for something more basic and vital: commitment to the communities it serves. The bank has a firm foundation in community involvement, and with a new location in Conway, it is expanding this service in Faulkner County. Upon the grand opening of its Conway location, the bank decided to do something special to engage young customers and help them accomplish their small business dreams. To this end, the bank created custom-built lemonade stands, complete with all necessary supplies, that kids of all ages can check out from the Conway

First Service Bank’s Faulkner County lending team (seated, left to right): Marilyn Battles, Faulkner County Market President; Donny Bradley, Conway Market President. (standing, left to right) Laveane Lovelady, Greenbrier Assistant Vice President/Loan Officer; Robin Hackett, Secondary Mortgage Department Loan Officer; Jill Patton, Secondary Mortgage Department Loan Officer; David Heffington, Greenbrier Market President; Deana Moses, Vice President/Senior Operations Officer/Loan Officer/Branch Manager; Sharon Duncan, Secondary Mortgage Department Manager/Senior Loan Officer.

his entire Faulkner County team truly represents the very best banking talent in the region.

—David Heffington

and Greenbrier First Service Bank locations. The stands are loaned out at no charge and offer kids of all ages the opportunity to experience their first small business operation. “Our hope is that these lemonade stands will set the stage for kids to experience what it takes to run your own business, and that they will have some fun while doing it,” said

4 | FAULKNER COUNTY BUSINESS JOURNAL

Donny Bradley, president of the Conway location. One of the stands will be donated to the Boys and Girls Club of Faulkner County. “We hope that school groups will utilize the stand for class fundraisers and projects,” Bradley said. The bank offers a completely free savings account called the Johnny Appleseed Savings Account, and the hope is that kids will open one of these accounts and deposit into it the profits earned from their work at the lemonade stand. “We would like to help kids understand that when you work hard and save your money, your dreams can come true, whether that dream is owning a home or starting your own business,” Bradley said. This

“dream big” theme is reflected in the bank’s new advertising campaign. First Service Bank has grown substantially since they were founded 50 years ago in Dermott. Headquartered in Faulkner County, the bank now serves Greenbrier, Conway, Flippin, Yellville, Dermott, Clinton, Marshall, Mountain View and Shirley. Although the bank’s reach has expanded substantially, their values have remained the same. Service and focus on the customers’ needs are still No. 1. Donny Bradley, Conway market president, and David Heffington, Greenbrier market president, are especially proud of the teams assembled to serve Faulkner County. The

seasoned staff includes longstanding residents and banking notables in both Greenbrier and Conway, such as Deana Moses, vice president, senior operations officer, loan officer and branch manager; Sharon Duncan, secondary mortgage department manager and senior loan officer; and the Greenbrier team with Marilyn Battles, Faulkner County market president; Laveane Lovelady, assistant vice president and loan officer; Robin Hackett, secondary mortgage department loan officer; and Jill Patton, secondary mortgage department loan officer. The entire team has a diverse background and possesses expertise ranging from retail loans to mortgages, and the entire mortgage team is based in Faulkner County. “This entire Faulkner County team truly represents the very best banking talent in the region, and I am thrilled to have all of these skill sets within this bank,” David Heffington said. “This is a competitive market. We realize we must do things to stand apart. We have done that with our unique suite of products and services, and also with a rewards program you simply don’t see at other banks,” added Heffington. It is a fact that 50 years of operation is a huge accomplishment for any business, particularly in banking. First Service Bank’s growth in Faulkner County will certainly leave a lasting, positive mark on the community. And, hopefully, they will do so for 50 years to come.

ad DEadline nears for CHAMBER’S resource guide

1301 Dogwood Trail 40

Old Morrilton Hwy

Gentry Lake

Robin

Cadron Valley Country Club

4405 Bay Hill Drive

319

ylin

Meadowlake Rd

Donaghey Ave

Gleason

65 65 64

4705 Bay Hill Drive Tyle

r St

Centennial Valley Golf Club Gatlin Park

Hendrix College

er S krid

Salem Rd

901 Reedy Road ce

Prin

266

Donaghey Ave

Gates said that an equally important, but difficult to find demographic is the “prelocator.” “We call a pre-locator someone who contacts the Chamber before they ever move to Arkansas. It may be Carol-dan Lake a move they make on their own, or we may be working with a local business to help with transition,” he explained. 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,” he said. Finally, the LEXICON will be mailed regionally to high-income households, not only in Conway but also 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. The deadline for purchase is Aug. 31. To receive more information about how your business may benefit from advertising, call Aaron Throneberry at the Chamber at (501) 327-7788, or email aaron@conwayarkansas.org.

Conway Laurel Park

Caldwell St

Oak

Conway Country Club

Oak St

St60

Central Baptist College

Highway 60 W

Oak Grov

S Salem Rd

University Of Central Arkansas

286

Dave Ward Dr

arkri

286

der

6 | FAULKNER COUNTY BUSINESS JOURNAL

Ha r

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 seeking new business relationships or households with high incomes, we can help businesses increase profits,” Gates said. 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” serves as the Chamber’s 2012-13 membership directory, quality of life publication and local reference guide. The guide will be a high-quality piece that features useful, locallywritten information for new residents and advertisements from businesses within Conway’s trade area. The guide is mailed to every household of a qualifying income level relocating within Conway’s traditional trade area. It is also 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 establish dozens of permanent business relationships, such as health care and finance professionals. It is a critical time to gain their attention,” Gates said.

TOP 5 RESIDENTIAL home sales

286

Tupelo Bayou Site One Reservoir

2905 Collins Drive Carter Lake

PRICE $435,000 $400,000 $399,900 $373,000 $325,000

ADDRESS 2905 Collins Drive 901 Reedy Road 4405 Bay Hill Drive 4705 Bay Hill Drive 1301 Dogwood Trail

CITY Conway Conway Conway Conway Conway

BED/BA/HB 5/3/2 4/3/0 4/4/3 4/4/0 4/3/1

SUBDIVISION Cresthaven n/a Centennial Valley Centennial Valley Quail Creek

SQ. FT. 4,100 3,863 4,644 3,196 5,000

$/SQ. FT. YEAR BUILT $116.83 2005 $103.55 1991 $88.07 2000 $124.84 2005 $67.00 1988

What’s that gonna be?

Tupelo Bayou Wastewater Treatment Plant The $66 million dollar Conway Corporation facility will treat 16 million gallons per day. When’s it gonna open? The plant will begin operation the 2nd quarter of 2014. Where is that? On Lollie Road, .3 miles south of Dave Ward Drive

CBC To Bring Nationwide Leadership Simulcast Central Baptist College is bringing a nationwide leadership-training program to Conway and the surrounding area. The EntreLeadership® Simulcast, featuring best-selling author Dave Ramsey, will be broadcast live from Nashville,

Tenn., on Friday, Sept. 21, from 8:45 a.m. until 4 p.m. CBC is co-sponsoring the event with Antioch Baptist Church, which will be the site of the virtual training. Antioch is located at 150 Amity Road in Conway. EntreLeadership® offers

practical business and leadership advice for individuals who want to develop their leadership abilities, business or organizational leaders who want to develop their teams, and entrepreneurs who want to build a business.

For $39, Ramsey will personally teach attendees how to become a leader others want to follow, make big goals and reach them, inspire their teams to take sales to the next level, and thrive in times of chaos. To register for the Entre-

Leadership® Simulcast, visit DaveRamsey.com/Simulcast. For more information about the event in Conway, contact Deanna Ott, director of public relations at Central Baptist College, at 501-205-8838 or dott@ cbc.edu.

FAULKNER COUNTY BUSINESS JOURNAL | 7