2013-11 Faulkner County Business Journal

Page 1

NOVEMBER 2013

FAR FROM ORDINARY

HURLEY CHIROPRACTIC AND WELLNESS CENTER BENDS EXPECTATIONS ABOUT CHIROPRACTIC CARE


2E — Sunday, November 17, 2013

Faulkner County Business Journal

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13-in-13 program to conclude with CBC visit By ELISE WILLIAMS

The Conway Area Chamber of Commerce’s 13-in-13 program will take participants to Central Baptist College on Dec. 5, from 9-11:30 a.m. The program is free to the employees of Chamber member businesses. Space is available on a first-come, first-served

basis. This yearlong program provides individuals with an opportunity to get an inside look into 13 businesses that have had a significant role in developing Conway’s economy. At each visit, 13 attendees will learn about the history and oper-

A&J Collision to host Business After Hours By ELISE WILLIAMS

Business After Hours, the Conway Area Chamber of Commerce’s quarterly networking event, will be hosted by A & J Collision Repair on Dec. 9. The event will be held at 1215 Thomas G. Wilson Drive from 5-6:30 p.m. A & J Collision Repair has been voted one of the best body shops in the Faulkner County Best of Readers’ Choice Award for the past seven years. In addition, the company has received the Good Housekeeping Seal of Approval and became the first in the state to use Envirobase, an environment-friendly paint, in 2007. Attendees of the event are encouraged to bring business cards, as Business After Hours allows members to network, strengthen professional relationships and develop new opportunities to work with fellow Chamber members. The event is free to Chamber members and their employees. Complimentary hors d’oeuvres will be served. For more information about Business After Hours, call the Chamber 501-327-7788.

ations of some of Conway’s largest employers. Previous visits have included Acxiom, Kimberly-Clark, HewlettPackard, Southwestern Energy, RockTenn, Nabholz, the University of Central Arkansas, Virco, Snap-on, Conway Public School District, Conway Regional Health System

and The Village at Hendrix. Central Baptist College will be the final 13in-13 visit of the year. Guests will receive updates on the Vision 2020 campaign, academic offerings, information on the PACE and online degree programs, and a campus tour, which will

include a sneak peek of the Story Library. The program will conclude with a groundbreaking of the new Residence Hall. Central Baptist College is a private, liberal arts college with an enrollment of more than 800 as well as 10 intercollegiate sports teams par-

ticipating in the NAIA and the MCAC conference. CBC is a community of learners committed to the integration of Christian faith and academic excellence. For more information or to make a reservation, email Lindsay Wygal at Lindsay@ConwayArkansas.org.

Downtown Conway kicks off holiday festivities It’s beginning to look a lot like Christmas in downtown Conway. The Conway Downtown Partnership kicked off the holiday season with a window-unveiling ceremony Saturday, Nov. 9, at 6 p.m. Window shoppers strolled down city sidewalks lined with garland-wrapped lampposts to see how area merchants have adorned their storefronts in preparation for Christmas Open House the following day. Christmas Open House took place from 1-4 p.m. on Sunday, Nov. 10. Kim Williams, executive director of the Conway Downtown Partnership, said the event drew the largest crowd she has seen in the past four years. “While low turnout in previous years can be attributed to inclement weather, I think the variety and caliber of shops has improved the turnout,” Williams said. “It was a beautiful day, so that obviously helped, but the core and strength of the stores downtown is even better than before. People were excited to be out shopping and were excited about the decorations and the progress being made at Rogers Plaza.”

A Lynns View Photography

Williams said many downtown merchants reported the best Christmas Open House they have had in years. “Some stores were so packed that you couldn’t get into the door.

I only wish that more restaurants would have been open to take advantage of the great crowds.” On Saturday, Nov. 23, the City of Conway will light its

new Christmas tree at Rogers Plaza. Standing at 54 feet tall, it will be the largest Christmas tree in Arkansas. Festivities will begin at 4 p.m. and will include songs by adult and children’s choirs and photo opportunities with Santa. The evening’s festivities will conclude with the dedication and lighting of the Christmas tree. The Christmas Parade will take place Saturday, Dec. 14, at 6 p.m. in downtown Conway and is sponsored by the American Cancer Society Relay For Life of Faulkner County. Entry forms are available for pickup at the Conway Area Chamber of Commerce, located at 900 Oak Street. A $10 entry fee serves as a donation to Relay For Life of Faulkner County. For more information about the parade, contact Deidra Porter at 501908-6617. Kim Williams said residents and visitors alike are sure to get into the holiday spirit when they come downtown. “Seeing the garlandwrapped lampposts and the largest Christmas tree in the state will make this one of the most exciting Christmas seasons downtown Conway has experienced.”


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Faulkner County Business Journal

Sunday, November 17, 2013 — 3E

Honorees named for second Women in Business event Photos by Strain Photography

The Conway Area Chamber of Commerce’s second annual Women in Business Awards will take place Tuesday, Dec. 3, at the Conway Expo Center and Fairgrounds. The event will begin with a panel discussion at 9 a.m. followed by the awards luncheon at 11:30 a.m. Terri Jordan, vice president of technology for Microsoft Retail Stores, will be the guest speaker. At the Women in Business event, five individuals will receive the “Outstanding Woman in Business” award. The honorees embody high standards of excellence, dedication and accomplishment to their respective organizations, industries and to the business community. Of the five recipients, one will receive the prestigious “Diamond Achievement Award.” This award recognizes an individual who has inspired and empowered many generations of women and who has had a positive impact on those in her profession and in the community. The award finalists are as follows:

Jackie Fliss, Independent Living Services Inc.

Jackie Fliss is executive director of Independent Living Services Inc., one of the largest nonprofit organizations in central Arkansas. The agency and its more than 350 employees serve an eight-county area and

Jackie Fliss

support the needs of more than 200 people with developmental and intellectual disabilities. Fliss said she hopes the award will shine a light on Independent Living Services and its mission. “It’s always an honor to be recognized for your contribution to the community,” Fliss said. “However, I would like for the community to recognize the number of jobs and the financial impact Independent Living Services has on Conway and Faulkner County.” Leading an organization of that magnitude while raising a family has required Fliss to remain flexible and shift priorities in order to achieve a healthy balance between her personal and professional life. She and her husband of 27 years have two sons, both of whom graduated from the University of Central Arkansas. “When my sons were younger and very involved in activities and school, our family concentrated on family meals together at the dining room table with no interrup-

tions. I attended every band concert, play performance, karate demonstration and award ceremony. At work, I worked hard and focused on building teams to help build ILS.” Fliss is a member of the Developmental Disabilities Provider Association and currently serves on the board of directors of the Faulkner County Council on Developmental Disabilities. She also serves on the advisory board of Conway Locally Grown and is a member of the Rotary Club of Conway.

Crystal Kemp, Conway Corporation

Crystal Kemp

Bethlehem House and is a member of the Conway Kiwanis Club. She served as the Kiwanis Club’s first woman president in 2000 and was named Kiwanian of the Year that same year. Kemp is a 1995 graduate of the Faulkner County Leadership Institute. “I believe giving back helps keep things in balance,” Kemp said. “The time I spend volunteering at Bethlehem House, at church, with Girls Scouts and with the Faulkner County Youth Leadership Institute helps me focus on others and shows me how stepping outside of ‘my own little world’ stretches me and reminds me of the things that matter most. “I am blessed to live and work in a great community with awesome people and have wonderful support from family and friends. I am thankful every day for these things.”

Crystal Kemp is manager of marketing and public relations for Conway Corporation. As the mother of two daughters, a longtime troop leader for Faulkner County Girl Scouts and a member of the steering committee for the Faulkner County Youth Leadership Institute, Kemp is passionate about empowering young people to reach their potential. “As a troop leader, I love watching the girls grow in their confidence and leadership as they accomplish their goals and learn about the impact they can have through service,” she said. “As a mother, I want my daughters to find their passion and to know that their thoughts and ideas are important; Candace Meeks, they should share them Simmons First National confidently.” Bank Kemp also serves on Candace Meeks, assisthe board of directors for tant vice president and

regional sales manager for Simmons First National Bank, has plugged into the Conway community since moving to the city 13 years ago. When she was still in college, Meeks volunteered on the Conway Area Chamber of Commerce’s education committee, where she served for six years, and later volunteered on the Paint the Town Purple committee. She also participated in Junior Achievement, a national youth organization that delivers hands-on curriculum to students of all ages. “I try to do my part to make a difference for others,” she said. Meeks currently serves as vice president of United Way of Central Arkansas and is on the boards of the Conway Regional Women’s Council and Women’s Inc. Magazine. She is a 2013 graduate of the Faulkner County Leadership Institute. “Simmons First does an incredible job of encouraging associates to get involved in the community in which they live. I am forever grateful to Simmons for allowing me this time to participate in worthwhile organizations.” Meeks said keeping herself busy in her personal and professional life has been therapeutic; she lost her husband in the spring of 2011. “I enjoy being out in the public, meeting new people and building those partnerships. I love to get to know people around me and hear their stories,”

Candace Meeks

she said. Meeks hopes to instill in her two young sons a willingness to give back to their community. “Being involved in so many community activities has given me the opportunity to include my boys in the hopes that they will have a servant heart as they grow into leaders. I couldn’t do any of this without my daily walk with God and my family’s assistance.”

Michelle Parsley, RE/MAX of Conway – Team Parsley

Michelle Parsley has been a real estate agent for 30 years and has spent the past 13 years with RE/MAX of Conway. She is the head of Team Parsley real estate and works alongside her husband, Bill, and one of her daughters, Elizabeth. Parsley said being passionate about one’s work is important, especially in the real estate industry. “It is all about knowing your product, and knowing your product leads to customer sat-

WIB < 6E


4E — Sunday, November 17, 2013

COVER STORY

Faulkner County Business Journal

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Far from ordinary

Hurley Chiropractic and Wellness Center Bends Expectations about Chiropractic Care

H

urley Chiropractic and Wellness Center is not a traditional chiropractic clinic. Extended hours, a strong community presence and a suite of health-and-wellness services have contributed to its success. Dr. Christine Hurley said the practice has experienced consistent and significant growth since opening the Conway clinic in 1999. And it hasn’t slowed down. “In the last eight years, we’ve not had a year with less than a 30 percent increase. We went from being about a $200,000-a-year company to making over $2.5 million.” Dr. Hurley has been practicing chiropractic care for nearly 20 years. After obtaining her Doctor of Chiropractic degree from Logan College of Chiropractic in St. Louis, she purchased a clinic in Perryville and began seeing patients on Valentine’s Day in 1994. She and her husband lived in Conway and became involved in the community. “Pretty soon we had kids in dance and gymnastics and got to know people from church. The next natural segue was to open in Conway.” While she was pregnant with her third child, Dr. Hurley opened a second clinic in Conway. “I always try to do more than I probably should at one time,” she said.

The clinic was an immediate success; Dr. Hurley’s previously established connections gained her several new patients. The current office at 813 Oak Street is the third facility for the Conway clinic since Dr. Hurley began practicing in the city 14 years ago. “We have been successful in Conway since day one,” she said. “We’ve been in three different spots just because of growth. We had to have more space and finally found our way to this corner. We’ll see what happens from here.” Hurley Chiropractic now has 35 team members — including seven doctors. “My vision was to serve as many people as I could, and I realize that my two hands couldn’t serve all those people,”

said Dr. Hurley. She has opened two additional locations in Maumelle and Centerton and plans to open more. “Our goal is to continue to grow in this area. We still look forward to putting some smaller clinics, potentially, in Vilonia, Greenbrier, Morrilton, west Little Rock and North Little Rock. It’ll take us a little while, but we’re working on it.” Dr. Hurley attributes Hurley Chiropractic’s extraordinary success to marketing. “It’s not common for chiropractors to have multimillion-dollar practices. It’s definitely not common to have more than one practice, and it’s not common to have a lot of doctors,” she said. “So I think we just have some uncommon business prac-

tion is open from 7 a.m. until 8 p.m. on weekdays and from 8 a.m. until 2 p.m. on Saturday. “We set up our structure so that we can be here from early in the morning until late in the evening. We work through lunch, and we’re available on Saturday; you just can’t get that in a small clinic.” Gone are the days when patients only visited the chiropractor for neck and back pain. Hurley Chiropractic offers a number of health-and-wellness services that fall into five focus areas: chiropractic adjustments and treatments, massage therapy, personal training, the H2Works! tices as far as chiropractic weight-loss program, and itself goes. We have confi- sleep consultation. dence and are not afraid to share our message.” Services Those who attend comHurley Chiropractic ofmunity events are likely fers complete chiropracto see Hurley Chiropractic tic care for the entire famteam members on-site giv- ily, including newborns ing massages or distribut- and the elderly. This is ing literature. “We found made possible through out quickly that our best ProAdjuster Technology, bet was to meet with peo- a computerized adjusting ple face-to-face,” said Dr. instrument that gives paHurley. “One of our best tients consistent and commarketing tools start- fortable adjusting without ed with LEADS groups bending or popping. at the Chamber and con“The ProAdjuster is a necting to events. From high-tech instrument that there, we branched out to gives patients the option charitable organizations to have a very light adand became involved in justment without some of the Lions Club and Con- the fear that people traway Rotary.” ditionally have,” Dr. HurIn addition to having a ley said. “Adjusting trigstrong community pres- gers the body to build up ence, Hurley Chiroprac- the immune system. We tic has unconventional have had much success hours. The Conway loca- treating patients suffer-

ing from sinus and ear infections and asthma.” The second focus area is massage therapy. Certified massage therapists and a chiropractor tailor a treatment plan based on an individual’s needs — whether it is low back pain, neck pain or sciatic nerve irritation. “The massages available at our clinic are more like therapeutic muscle work as guided by what the person needs after being evaluated by a doctor,” Dr. Hurley said. As a wellness center, Hurley Chiropractic emphasizes improving one’s health in an effort to reduce the risk of pain and illness before it starts. For this reason, the clinic offers personal training at its on-site gym as well as a weight-loss program called H2Works! (Hurley Health). Dr. Hurley said both the personal training program and the weight-loss program are tailored to the individual. “Wherever the person is at, that’s where we start. If you need want to get stronger, lose a little or a lot of weight, or simply go from sit to stand, we help you through whatever that challenge is.” Finally, Hurley Chiropractic offers sleep consultation and is able to offer solutions to sleep problems. To schedule an appointment or a consultation for any of these services, visit HurleyChiropractic.com or call 501-513-3322.



6E — Sunday, November 17, 2013

Faulkner County Business Journal

To subscribe call (501) 329-2927 • Log Cabin Democrat

TOP 5 RESIDENTIAL HOME SALES 1. PRICE

ADDRESS

B/B/H SUB

SQ. FT. $/SQ. FT.

BUILT

$324,393

835 Reynolds Ave.

4/2/1

2,058

2013

PRICE

ADDRESS

B/B/H SUB

$309,500

2560 Pinnacle Ridge 3/2/1

Village at Hendrix

$157.63

2. Pinnacle Ridge

SQ. FT. $/SQ. FT.

BUILT

3,040

2001

$101.81

3. PRICE

ADDRESS

B/B/H SUB

$284,500

1035 Edinburgh Dr. 3/2/0

Turnberry

SQ. FT. $/SQ. FT.

BUILT

2,151

2013

$132.26

4. PRICE

ADDRESS

B/B/H SUB

SQ. FT. $/SQ. FT.

BUILT

$275,000

1465 S. Salem Rd.

4/2/1

2,618

2009

PRICE

ADDRESS

B/B/H SUB

SQ. FT. $/SQ. FT.

BUILT

$257,000

1570 Gardenia

3/2/0

2,388

2005

Southwind

$105.04

5.

WIB from 3E isfaction. Ninety percent of my business is based on referrals. By striving for 100 percent, the referrals will happen. If I love what I do, the rest will fall into place.” She uses her passion for real estate to serve as a mentor for new agents and urges others to do the same. “By sharing advice and tips with others in the business, we will develop and build a reputable profession. Find a mentor along the way, and be a mentor to those who are new to the business.” Parsley is involved in a number of community organizations. She is on the fundraising committee for the Senior Ac-

MIchelle Parsley

tivity and Wellness Center and is involved with Renewal Ranch, City of Hope Outreach, International Friendship Outreach, and Chase Race and Paws.

Michelle Phillips, Michelle M. Phillips, CPA, PA

Michelle Phillips, CPA opened Michelle M. Phillips, CPA, PA in August 2009. The certified public accountant and smallbusiness owner said that the key to her success is taking calculated risks. “Don’t be afraid to take risks. Of course, those risks should be wellplanned, but the rewards can be life-changing,” she said. “Along these same lines, don’t expect things to be easy and do expect to work hard.” Phillips said organization, planning and prioritizing are essential for maintaining a healthy balance between her personal and professional life. She and her husband, Larry, have two daughters. “I have a strong work

Michelle Phillips

ethic, but I believe in having fun and enjoying life because life is just too short and precious. It’s also important for me to surround myself with people of great character and integrity. These individuals motivate me to continually improve who I am and my contribu-

Southwind II

tions to others.” Phillips has served on the boards of directors for the Conway Noon Rotary Club, the Conway Regional Women’s Council and the Conway Area Chamber of Commerce. She is a 2010 graduate of the Faulkner County Leadership Institute and serves as an auditor for the UCA Scholarship Pageant. “Conway is an amazing and unique city, and I am deeply grateful for all those who have helped me and inspired me in my professional career,” Phillips said.

$107.62

merce, said although a large number of Chamber member businesses are owned by women, there had not been an event focused exclusively on the achievements of local businesswomen until last year. “The Chamber has been happy to fill that void,” he said. “We have assembled a strong and diverse committee to help ensure this event continues to be a success. Congratulations to all the honorees.” To reserve a table, please visit ConwayChamber.org and click on the Women in BusiAbout Women in ness icon. For more inforBusiness mation, contact Whitney Brad Lacy, president Cummings at Whitney@ and CEO of the Conway ConwayArkansas.org or Area Chamber of Com- 501-932-5411.


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Conway Economy at a Glance

Unemployment Rate* August US........................................ 7.3% Arkansas.............................. 7.3% Faulkner County ................ 6.8% Conway................................ 7.0% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* August 2013.......................... $1,914,161 2012.......................... $1,948,705 Percent Change -1.8% Year to date (August) 2013........................ $15,270,628 2012........................ $15,146,342 Percent Change 0.8% Annual 2012........................ $22,944,163 2011........................ $22,366,464 Percent Change 2.6% *Tax Rate 1.75% Faulkner County* August 2013............................. $712,406 2012............................. $717,141 Percent Change -0.7% Year to Date (August) 2013.......................... $5,657,225 2012.......................... $5,651,282 Percent Change 0.1% Annual* 2012.......................... $8,465,686 2011.......................... $8,279,301 Percent Change 2.3% *Tax Rate 0.5% Restaurant Sales* September 2013........................ $13,593,366 2012........................ $13,068,751 Percent Change 4.0% Year to Date (September) 2013...................... $123,874,813 2012...................... $121,775,330 Percent Change 1.7% Annual Sales 2012...................... $153,412,988 2011...................... $144,646,055 Percent Change 6.1% *Including mixed drink sales Hotel Sales September 2013.......................... $1,353,740 2012.......................... $1,384,490 Percent Change -2.2% Year to Date (September) 2013........................ $14,720,468 2012........................ $14,838,007 Percent Change -0.8% Annual Sales 2012........................ $18,683,676 2011........................ $18,662,136 Percent Change 0.1% Conway Building Permits Single Family Homes Year to Date (October) 2013......................... 128 Permits 2012......................... 147 Permits Percent Change -12.9% Annual 2012......................... 186 Permits 2011......................... 153 Permits Percent Change 21.6% Average Construction Cost* Year to Date (October) 2013............................. $226,647 2012............................. $208,888 Percent Change 8.5% Annual 2012............................. $207,537 2011............................ $204,387 Percent Change 1.5%. *Not including land or lot im-

provements Average Square Footage* Year to date (October) 2013................................... 2,999 2012................................... 2,923 Percent Change 2.6% Annual 2012................................... 2,910 2011................................... 2,814 Percent Change 3.4% Average Construction Cost Per Square Foot.* Year to Date (October) 2013................................. $75.57 2012................................. $71.46 Percent Change 5.8% Annual 2012................................. $71.33 2011................................. $72.64 Percent Change -1.8% * Total under roof Lottery Sales Faulkner County October 2013.......................... $1,228,040 2012.......................... $1,253,191 Percent Change -2.0% Year to Date (October) 2013........................ $13,309,238 2012........................ $14,033,686 Percent Change -5.2% Total State Ocrober 2013........................ $33.037.800 2012........................ $33,691,499 Percent Change -1.9% Year to Date (October) 2013...................... $366,658,498 2012 ..................... $379,085,841 Percent Change -3.3% Natural Gas Severance Tax Distribution Conway October 2013............................... $23,286 2012............................... $15.635 Percent Change 48.9% Year to date (October) 2013............................. $233,512 2012............................. $145,360 Percent Change 60.6% Annual 2012............................. $162,457 2011............................. $254,822 Percent Change -36.2% Faulkner County October 2013............................... $18,905 2012............................... $12.657 Percent Change 49.4% Year to date (October) 2013............................. $127,818 2012............................... $88,412 Percent Change 44.6% Annual 2012............................. $131,418 2011............................. $204,052 Percent Change -35.6% Wellhead Price per MCF* Yearly Average 2012................................... $2.66 2011................................... $3.95 2010................................... $4.48 2009................................... $3.67 2008................................... $7.97 *MCF=1000 cubic feet Number of Active Wells* Faulkner County.................... 350 Total in Field ...................... 4,481 *As of December 12, 2012 Estimated Life Time Value of Production* Total Field......... $11,382,327,198 *As of September 30, 2012

Information provided by pulseofconway.com

Faulkner County Business Journal

Sunday, November 17, 2013 — 7E

Gasoline prices

By ROGER LEWIS In 1850 nobody cared a whit for oil that oozed up from the ground. There were no drilling rigs, no pipelines, no refineries, no ocean tankers, no oil spills, no law suits and no wars fought to secure oil fields or oil reserves. But in 1859 in Titusville, Pennsylvania Edwin Drake struck oil and changes began that have transformed our country and our planet. It was not until nearly 100 years later (1952) that oil consumption exceeded domestic production and the U S started to depend on importing oil to meet demands. Oil is used in the manufacture of products such as gasoline, heating oil, lamp oil, lubricants, plastics, Styrofoam, and many others. Today’s topic is gasoline. Gasoline prices are volatile and public awareness of those prices is acute. Price spikes and gradual reductions are sure to be discussed over coffee all over America. As I write this, gas prices are dropping. Gasoline prices are dropping for two reasons. A minor reason is that the blend of gasoline sold in the winter is cheaper to produce. In summer months, producers have to use additives so that tailpipe emissions meet EPA standards. Not needing these additives in the winter results in as much as a ten-cent per gallon reduction. These different blends of gasoline have little to do with the performance of your vehicle. The major reason for the drop in gas prices is the drop in the price of crude oil. Currently there is a glut of crude oil on the world market. The US is now oil independent, producing more than domes-

tic consumption. Crude oil in storage in the US is about twice the normal amount, as a result, prices sink. For every $1 change per barrel of oil, gasoline prices change about 2.5 cents per gallon. Gasoline prices are related to crude oil futures contracts. At present crude oil is approximately $93 per barrel, which is down more than $15 per barrel from several months ago. Six months future crude oil contracts are around $90 per barrel, so the low gasoline prices will be with us for a while. The American Automobile Association reported that the national average price of gasoline was $3.19 per gallon on November 14, 2013, down 25 cents per gallon from a year ago and down 15 cents a gallon from the previous month. Missouri was the state with the lowest average price at $2.85 per gallon. With the exception of Hawaii and Alaska the highest is California at $3.68 per gallon. Arkansas’s average was second lowest at $2.99 per gallon. Part of the fluctuation in gasoline prices among states is due to differences in taxes on motor fuel. Arkansas’s tax rate is 21.8 cents per gallon for gasoline (diesel is 22.8 cents). Among the states our gasoline tax ranks 15th lowest. New York State at 50.6 cents per gallon is the highest and Wyoming is the lowest at 14 cents. Our neighbor, Missouri, is the sixth lowest at 17.3 cents per gallon. In addition to state taxes there is a Federal tax of 18.4 cents per gallon that applies everywhere. The combined Federal and State tax on gasoline in Arkansas is 40.2 cents per gallon. Approximately 15 percent of

the price of gas in Conway goes for taxes. Within Arkansas there are regional variations around that $2.99 average. At times, the same brand of gasoline varies as much as 10 cents per gallon within a few miles. On the same day Walmart (Murphy Oil) advertised a gallon of gas for $2.85 in Conway, $2.90 in Morrilton, $2.82 in Fayetteville, $2.90 in Russellville, $2.87in Little Rock, and $2.94 in Heber Springs. This variation among regions within Arkansas must be due to local competition The Federal tax rate has not increased in 16 years although traffic has continued to grow. Although American motorists consume approximately 134 billion gallons of gasoline per year, usage has not grown in recent years and hence revenue is flat at a time when the need for and cost of infrastructure improvements have increased substantially. Increased fuel efficiency and to some extent changing driving habits due to the high cost of fuel have stifled revenue growth. In response, Arkansas passed a half-cent general sales tax increase last year to fund highway improvements. I believe that this is the first time that a statewide general sales tax has been used to fund Arkansas highways. It is interesting to look at inflation-adjusted gasoline prices over the past century. In 1918, when records were first kept, the nominal price of gasoline was about 25 cents per gallon. Adjusted to today’s prices, this amounts to about $3.87 per gallon, which is the most expensive in history. Over the years, inflation increased

but the nominal price of gasoline rose only slightly. In 1974 the nominal price was about 90 cents a gallon and the inflation-adjusted price was $2.00 per gallon. Then in 1981, because of conflicts in the Middle East and inflation, the nominal price of $1.35 per gallon adjusted to $3.47, the highest since 1918. The lowest price ever for gasoline (based on inflationadjusted prices) was in 1998 when the nominal price was $1.00 per gallon , making the inflation adjusted price $1.50 per gallon. Of course, today the nominal price is the actual price and at the end of 2012 it was $3.56 per gallon, still below the all time high of $3.87 in 1918, but the highest of any time between these dates. Since the end of 2012 prices have declined once again. The price of gasoline in Conway is around $2.85 per gallon. Low gasoline prices are the most effective nongovernment stimulus to the economy. Nearly every dollar not spent on gasoline by the general public finds its way to discretionary spending. American motorists consume approximately 134 billion gallons of gasoline per year. A one cent drop in the average gasoline price for the 134 billion gallons of gasoline consumed per year equates to over a billion dollars that is redirected in our economy. I thank my friend Chris Spatz for editing and helping me with this article. You can obtain more information on the economy of Conway and Faulkner County by going to the Pulse of Conway website (www.pulseofconway.com).



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