SEPTEMBER 2014
‘A People Business’ REGION’S BUSINESS MODEL REVOLVES AROUND CUSTOMER RELATIONSHIPS, COMMUNITY INVOLVEMENT
(From left): Jason Culpepper, City President; Chris Hall, Financial Consultant; Nancy Sims, Consumer Sales Manager; Chad Oglesby, Private Wealth Management Advisor; Maria Pruitt, Greenbrier Branch Manager; Bucky Croom, Trust Advisor; Raven Morgan, Conway West/Industrial Branch Manager; Kevin Rodgers, Institutional Trust; Tiffany Duhamel, Mortgage Loan Officer; Rodney Abston, Commercial & Industrial; and Bryan Castleberry, Merchant Services.
2C — Monday, September 1, 2014
Faulkner County Business Journal
Chamber now accepting nominations for upcoming Women in Business awards The Conway Area A panel of Chamber Chamber of Commerce’s executives outside the third annual Women in state of Arkansas will Business Awards will select the award recipitake place Tuesday, Dec. ents. 9, at the Conway Expo At the December Center and Fairgrounds. event, four individuals The awards luncheon will receive the “Outbegins at 11:30 a.m. standing Woman in The Women in BusiBusiness Award.” Those FE AT ness Awards honor inwill embody UR selected I dividuals in the Conway NG high standards of excelarea who have excelled lence, dedication and acin leadership and com- complishment to their munity service and respective organizawho have inspired oth- tions, industries and to ers on both a personal the business communiand professional level. ty. The Chamber is acceptThe “Diamond ing nominations for the Achievement Award” awards now through will be presented to an Tuesday, Sept. 30. individual with at least
25 years of professional experience. This award recognizes a woman 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. To submit nominations for the Outstanding Woman in Business awards and/or the Diamond Achievement award, visit ConwayChamber.org and click on the Women in Business banner. For questions about the call for nominations, call 501-327-7788.
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Annual guide targets new movers, select households Production is underway for the Conway Area Chamber of Commerce’s community profile and resource guide, an annual quality-of-life and local reference publication. The guide will be available in print and online and is scheduled to be released in November. “This publication is the most comprehensive guide to the Conway area economy and lifestyle,” said senior vice president Jamie Gates. “The useful, locally written content combined with our distribution strategy makes it a great source for Conway residents, both new and established.” The publication will be mailed to every household
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Finding the time to network with other professionals, promote your business, and attract and retain new customers is a juggling act. Find balance at the Conway Area Chamber of Commerce’s Business Expo, where you can gain a competitive advantage while developing new relationships – all under one roof! To register or for more info: ConwayChamber.org | 501-327-7788 #ConwayBusinessExpo
REGISTER AT CONWAYCHAMBER.ORG BY TUESDAY, SEPTEMBER 30.
of a qualifying income relocating within Conway’s traditional trade area. It is also mailed to new residents each quarter. Gates said that by identifying households seeking new business relationships or households with high incomes, the guide could help participating businesses increase their profits. “Research tells us that relocating families’ spending may increase sevenfold their first six months in a home,” Gates said. “During this time, these families will also establish permanent business relationships with health care and finance professionals, insurance agents, and more. It’s a critical time to gain their attention.” The Chamber also sends the guide to “pre-locators,” classified as prospective residents and companies who contact
the Chamber seeking information about the community. “We fulfill dozens of requests each year from prospective residents,” Gates said. Approximately 4,000 high-income households in Conway and surrounding communities that rely on Conway for goods and services will receive the guide in their mailboxes. Some of the area’s highest income households are located more than 30 miles away. The digital version of the publication will be hosted online on the Chamber’s website and will be promoted via targeted marketing campaigns on Facebook and banner ads on mobile devices. Any business is welcome to advertise in the guide. Those interested can call the Chamber at 501-327-7788.
Consulate of Mexico in Little Rock to host celebration in Conway The Consulate of Mexico in Little Rock will host a performance at the University of Central Arkansas on Saturday, Sept. 13, to commemorate the 204th anniversary of Mexico’s Independence. The celebration is open to the public and will take place at 6:30 p.m. in Reynolds Performance Hall. This year’s event is titled “Wonders of Mex-
ico” and will highlight through music and dance the country’s culture, traditions and the historic relevance of the battle that led to Mexico’s independence. Tickets are $12 and may be reserved in advance by emailing IndependenciaDeMexico204@ gmail.com or calling Ashley Simmons at 501-3726933, ext. 223.
Log Cabin Democrat • Find our online edition at www.thecabin.net
Faulkner County Business Journal
New speaker booked for awards gala Sericia Cole, executive director of the Mosaic Templars Cultural Center, will be the keynote speaker at the Conway Area Chamber of Commerce’s Minority Enterprise Development awards gala. The event will take place Thursday, Sept. 18, at 6:30 p.m. in the Student Center Ballroom on the University of Central Arkansas campus. Retired NBA player and coach Sidney Moncrief was originally slated to speak at the ceremony but canceled due to a scheduling conflict. Sericia Cole became executive director of Mosaic Templars in July 2012. The museum’s mission is to collect, preserve, interpret and celebrate Arkansas’s African American history, culture and community from 1870 to the present. Prior to her role at Mosaic Templars Cultural Center, Cole served as Gov. Mike Beebe’s director of external affairs, where she traveled the state addressing issues
related to minority communities, faith-based groups, and volunteer and community initiatives. One of the signature service components she helped craft on behalf of the Governor was his “Beebe Cares” program. Through this program, the governor’s office coordinated projects to serve the community, including back-to-school drives and adopting families at the holidays. Cole also worked at Philander Smith College as director of public relations and remains as PR/ marketing counsel to the private, historically black institution. In 2004, she helped launch the Little Rock/North Little Rock chapter of City Year Inc., as she simultaneously served as founding editor-in-chief of PowerPlay magazine, a general interest magazine highlighting African Americans in Arkansas. The magazine re-launched in Arkansas as a quarterly in January of this year. The MED awards gala is an opportunity to cel-
Sericia Cole
ebrate the achievements of minority entrepreneurs and the individuals and organizations committed to advancing minority-owned businesses. The nomination process for the five categories of awards has ended, and the recipients are as follows: Advocate for Opportunity: Faulkner County Branch of the NAACP Outstanding Minority Business of the Year:
Sandstone Real Estate Group Outstanding Young Minority Business Professional: Osmar Garcia, First Security Bank Lifetime Achievement Award: Dr. Lloyd Hervey, Philander Smith College Limited tables are available for the MED awards gala. Those interested in attending should visit ConwayChamber.org or call 501327-7788.
Monday, September 1, 2014 — 3C
Chamber, Acxiom to provide consumer data to small businesses The Conway Area Chamber of Commerce recently formed a partnership with Acxiom (NYSE MKT:ACXM) to provide small-to-medium size businesses consumer data designed to generate sales and digital traffic. “This is another example of how our organization and members benefit from having a global marketing leader in our own backyard,” said Jamie Gates, senior vice president of the Conway Area Chamber of Commerce. “This partnership will let us deliver FORTUNE 500 level insight to businesses of any size.” The chamber will be able to help businesses order customized mailing lists and sales leads; enhance and maintain their existing databases; and, analyze their existing and highest potential customer portfolio. “These technical capabilities are no longer re-
served for big business,” said Gates. The chamber will also be able to execute mobile marketing campaigns on smartphones and tablets. “We live in an increasingly digital and mobile world, where consumers are checking their smartphones 150 times per day,” said Jeff Standridge, vice president and head of Acxiom’s small and medium business strategy. “Now, businesses of any size can target customers on mobile and social with the same precision they’ve been able to achieve for years with direct mail.” Gates says the chamber now can create and manage campaigns nationwide. Businesses that are considering direct mail, mobile marketing or database enhancement should contact Jamie Gates at 501-9325401 or email Jamie@ conwayarkansas.org.
Lacy joins Association of Chamber of Commerce Executives board Alexandria, Va. — The Association of Chamber of Commerce Executives (ACCE) announces that Brad Lacy, CCE, IOM, president and CEO of the Conway Area Chamber of Commerce, was recently elected to the association’s board of directors. Lacy, who will serve as chair of the association’s Chamber of the Year award program,
was officially welcomed to the board during ACCE’s annual convention in Cincinnati, Aug. 12-15. “Brad’s successful leadership of the Conway Area Chamber, combined with his excellent contribution to ACCE and to other boards, will be of great value to our organization,” said ACCE President Mick
Fleming. Lacy began his economic development career in 1997 with the Arkansas Economic Development Commission as a community development consultant and later as a project manager, where he worked to recruit companies to the state. He has served as the president and CEO of
the Conway Development Corporation (CDC), the city of Conway’s nonprofit economic development entity, since 2000. In December 2006, Lacy became president and CEO of the Conway Area Chamber of Commerce.
serving the professional development needs of individuals managing chambers of commerce throughout the United States and Canada. This year, as ACCE marks 100 years of service to chamber leaders, the association repAbout ACCE resents more than 7,000 Established in 1914, chamber professionACCE is the only nation- als. ACCE enhances the al association uniquely knowledge, leadership
skills, and management effectiveness of chamber executives and their staffs through education, trend analysis, benchmarking, and best practices. ACCE promotes the highest standards of professional excellence and integrity within the chamber profession. For more information, visit ACCE.org.
4C — Monday, September 1, 2014
COVER STORY
Faulkner County Business Journal
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‘A People Business’
Regions’ business model revolves around customer relationships, community involvement In the wake of the financial crisis of 2007 and 2008, the banking industry – large financial institutions in particular – suffered a loss of public trust. Many customers left the nation’s largest banks and moved their assets to smaller community banks. However, one larger bank that has focused, even before the crisis, on improving customer service, increasing community involvement, and better understanding the needs of customers, is Regions Bank – which is among the top 20 largest banks in the U.S. Regions has 1,700 branches across the U.S., including three in Conway, one in Vilonia and one in Greenbrier.
Customer Service
One of the most substantial initiatives Regions developed is Regions360. Regions360 is a company-wide process focused on building relationships and meeting customers’ needs. To understand Regions360, picture the customer as the center of a circle. The plan provides a 360-degree view of the customer and his or her financial situation. City president Jason Culpepper explains the process. “Regions360 provides our customers with a complete financial assessment and ensures they know all of what Regions has to offer – from personal checking and savings accounts to insurance to mortgage loans,” he said. “We try to have a deliberate, specific conversation with every client to ensure satisfaction.” Providing customers with a holistic view of their financial situation helps build long-last-
ing relationships and creates “shared value,” which is part of Regions’ mission. Culpepper said Regions360 differentiates Regions from its competitors because its associates act as proactive, trusted advisors. “After asking questions to determine a customer’s financial situation, we work as a team to meet his or her needs,” Culpepper said. “One of our greatest assets as a larger bank is having a team of specialists who are well-versed in their particular areas. Teamwork is critical in our world; no one is a jack-of-all-trades. This enables us to provide better service.” The Regions360 model encourages a consultative approach to banking. This leads to positive relationships with customers, which Culpepper said is at the heart of the industry. “Banking is ultimately a people business. Focusing more
on service and the overall customer experience increases customer satisfaction and loyalty, which leads to more referrals.” In addition to Regions360, Regions conducts more than 300,000 Gallup surveys annually to gather feedback about its customers’ transactions and most recent branch experiences. The company uses the survey results to tweak policies and even design new products. “These surveys help us capture the voice of our clients, which is crucial to our business,” Culpepper said. Regions’ efforts to listen to its customers have paid off: The bank was ranked No. 8 nationally in the 2014 Temkin Experience Ratings, tying with Starbucks, Kroger, Piggly Wiggly, Dairy Queen and Sam’s Club. The Temkin Experience Rankings are based on feedback of consumers’ recent interactions
with 268 companies representing 19 industries.
Community Involvement
Culpepper has worked for Regions for seven years. In his role as city president, he oversees Regions’ Faulkner County branches as well as its branches in Clinton, Fairfield Bay and Morrilton. When Culpepper took the city president position in 2012 and moved to Conway from Little Rock, he made increasing Regions’ involvement in the community a priority. “I wanted to make sure that we focused on becoming more active in our community,” he said. “We have increased our involvement with the chamber of commerce and try to touch as many local nonprofit organizations as we can. “We take great pride in Faulkner County, and we are committed to this community. We want to make sure we are
top of mind. If we can just be invited to the party, I like our chances.” Culpepper said Regions has a rich history in Conway dating back to a time when there were only two banks in the city. “Regions has such a strong legacy in Conway” he said. “Regions’ roots in Faulkner County go back to the early 1930’s, when First National Bank of Conway began. Because Conway is such a young, fast-growing town, many people may not realize our history here.” Another way Regions gets involved in the community is responding when tragedy strikes. The bank mobilized its central Arkansas employees when tornadoes came through Mayflower and Vilonia in April. Culpepper credits Regions’ strong team of branch managers for leading the response efforts. “Regions gives every associate one day per year to volunteer for a specific cause. Forty to 50 of our employees used their day in early May to assist with disaster relief efforts in Vilonia and Mayflower,” he said. “Our Main Street branch manager DeEnna Runyon helped designate our facility as a drop-off location for supplies. Being out in the community helping and just getting involved is at the core of what we do.” Culpepper said five values guide Regions: 1) Put people first; 2) Do what is right; 3) Focus on your customer; 4) Reach higher; and 5) Enjoy life. “These principles drive everything we do. When we make these basic values our focus, everything else just falls into place.”
6C — Monday, September 1, 2014
Faulkner County Business Journal
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EDITORIAL
Bond rededication next step in Conway’s success WARNING: If you don’t like the growth the city has experienced and the overall direction it has taken for the last 15 years, then you won’t like the next five minutes either. Maybe it’s because football season is officially here, but we’re in pregame pep talk mode. Bigger isn’t always better. But today’s Conway is bigger and better than any time in history: more people, more jobs, more amenities and higher standards of private development and public investment. What’s amazing is the
most exciting days are still in front of us. By now, most Conway residents have heard that there are two major retail developments in the pipeline for our community. What many may not know is that in order to keep these projects moving forward and on schedule (opening mid- to late 2016), the city needs to rededicate a transportation bond issue. That election is Sept. 9 with early voting beginning on Sept. 2. If you can’t tell yet, we’re FOR it. Here’s why: • Rededicating these
bonds won’t raise your taxes. Voting against them won’t lower your taxes. • Rededicating these bonds will reduce traffic on Oak Street by building a new overpass connecting 6th Street and Conway Commons. • The two retail developments associated with this proposal could mean more than $100 million in new taxable sales. • The development proposed for the former airport site will have a positive impact on the surrounding neighborhoods.
Date set for airport grand opening After decades of studies and several years of construction, the new Conway airport will celebrate an official opening Friday, Sept. 5 at 1:30 p.m. The event will begin with a ceremonial “first landing” that will deliver the program speakers to the event. “This airport would not be open but for the work of residents and officials at every level of government,” said Jamie Gates, Sr. Vice President of the Conway Area Chamber of Commerce. “Our federal delegation worked seamlessly with local government as we navigated this lengthy, large and complicated project.” Senators Pryor, Boozman and Representative Tim Griffin will join Mayor Tab Townsell and local representatives in recog-
Contractors put the finishing touches on the new Conway airport terminal. The airport officially opens Friday, Sept. 5.
nizing the opening of the approximately $30 million project. The new airport features a 5,500-foot runway that can be extended in future years, new “T hangars” for local aircraft and space to accommodate seven corporate hangars. The new 6,300-square-foot terminal has a conference room and meeting space available by reservation. There are also multiple industrial sites ad-
joining the airport that will be marketed to aviation related industries. “We want the public and aviation community to know that this event is an opening, not an ending,” said Gates. “We’ve already identified a pipeline of opportunities for continued private and public investment. We finally have an airport that meets our community’s standards and that we can grow into.”
• Faulkner County has competed for and created jobs at a rate higher than all but a handful of counties around the country. Why let one penny of that payroll leave town to shop elsewhere? No plan is perfect, but this bond rededication and the associated retail developments are our best chance to capture
the dollars earned here and attract more spending regionally. Plus, these developments will absolutely contribute to our quality of life. Conway residents will no longer feel the need to leave our local economy to find the stores and restaurants they want. In 2014, cities compete—for jobs, for revenue, for investment. Ours
competes well. Let’s not stop. Every Conway resident living today was either born into or moved into a growing, vibrant community. It’s irresponsible to let that stop on our watch. It’s our time to take advantage of this unique opportunity. For these and many other reasons, we’re voting FOR the bond rededication.
Log Cabin Democrat • Find our online edition at www.thecabin.net
EconomyGlance Unemployment Rate
July Seasonally Adjusted US.................................................... 6.2% Arkansas....................................... 6.2% Not Seasonally Adjusted US.................................................... 6.5% Arkansas....................................... 6.7% Faulkner County ...................... 5.8% Conway......................................... 5.8%
Sales Tax Collections
Conway* June 2014.................................... $1,919,615 2013.................................... $2,009,749 Percent Change -4.5% Year to Date (June) 2014..................................$11,265.428 2013..................................$11,586,831 Percent Change -2.8% Annual 2013..................................$23,235,891 2012..................................$22,944,163 Percent Change 1.3% *Tax Rate 1.75% Faulkner County* June 2014........................................$726,685 2013........................................$727,944 Percent Change -0.2% Year to Date (June) 2014.................................... $4,213,946 2013.................................... $4,248,463 Percent Change -0.8% Annual 2013.................................... $8,588,835 2012.................................... $8,465,686 Percent Change 1.5% *Tax Rate 0.5%
Restaurant Sales*
May 2014..................................$15,433,794 2013..................................$14,451,246 Percent Change 6.8% Year to Date (May) 2014..................................$72,401,274 2013..................................$68,895,474 Percent Change % 5.1 Annual Sales 2013............................... $164,989,586 2012............................... $161,318,563 Percent Change 2.3% *Including mixed drink sales
Hotel Sales
May 2014.................................... $2,248,596 2013.................................... $2,096,535 Percent Change 7.3% Year to Date (May) 2014.................................... $8,213,315 2013.................................... $8,003,757 Percent Change 2.6% Annual Sales 2013..................................$18,556,911 2012..................................$18,683,676 Percent Change -0.7%
Conway Building Permits
Single Family Homes Year to Date (July) 2014..................................... 73 Permits 2013..................................... 90 Permits Percent Change -18.9% Annual 2013...................................147 Permits 2012...................................186 Permits 2011...................................153 Permits Percent Change 2013-2012 -21.0%
Average Construction Cost* Annual 2013........................................$228,275 2012........................................$207,537 2011....................................... $204,387 Percent Change 2013-2012 10.0% *Not including land or lot improvements Average Square Footage* Annual 2013............................................... 3,002 2012............................................... 2,910 2011............................................... 2,814 Percent Change 2013-2012 3.2% Average Construction Cost Per Square Foot* Annual 2013.............................................$76.04 2012.............................................$71.33 2011.............................................$72.64 Percent Change 8i2013-2012 6.6%% * Total under roof
Lottery Sales
Faulkner County July 2014.................................... $1,057,814 2013.................................... $1,126,010 Percent Change -6.1% Year to Date (July) 2014.................................... $8,570,818 2013.................................... $9,736,631 Percent Change -12.0% Annual 2013..................................$17,038,277 2012..................................$16,943,909 Percent Change .06% Total State July 2014..................................$30,630,211 2013..................................$32,483,166 Percent Change -5.7% Year to Date (July) 2014............................... $242,573,271 2013............................... $266,770,723 Percent Change -9.1% Annual 2013............................... $432,932,799 2012 ............................. $452,245,215 Percent Change -4.3%
Natural Gas
Severance Tax Distribution Conway Year to Date (August) 2014........................................$244,702 2013........................................$184,610 Percent Change 33.0% Annual 2013........................................$199,265 2012........................................$149,833 Percent Change 70.2% Faulkner County Year to Date (July) 2014........................................$169,829 2013........................................$127,818 Percent Change 32.9% Annual 2013........................................$224,455 2012........................................$131,418 Percent Change 70.8%
Faulkner County Business Journal
Monday, September 1, 2014 — 7C
Cool weather economics By Roger Lewis
Everyone has enjoyed the unseasonably cool weather that we have had from June through midAugust. Extreme weather — hot or cold, wet or dry — has an effect on the economy. Cool weather with above average rainfall drives electric and water bills down, and consumers love it. But revenues for utility companies, including Conway Corporation, are down. In addition, franchise fees and the sales tax revenue paid to the city, county and state on utilities are down. A franchise fee is a fee charged by the city for the use of public right of ways for building utility infrastructures and is collected from consumers based on consumption. When discussing the revenue decline with Conway Corporation officials, I was told this decline will not have much effect on the overall operation of the company except maybe in one area — the water division. The decline in electric sales is offset by lower costs for purchase electricity on the open market where the reduced demand because of the weather has driven down the wholesale price. However, in the water division, the operating costs do not go down significantly with less water usage. Sales tax and franchise fee collections are passed through and have no effect on the utility company. Conway Corporation sales tax collections on utilities is most likely the single largest source of sales tax revenue for Conway and Faulkner County. Conway’s sales tax revenue for June 2014 is down 4.5% from June 2013 and Faulkner County’s is down 0.2%. Revenue year-to-date for Conway is down 2.8% and Faulkner County is down 0.8%. July and August data are not available but expected to be down. Other business are also impacted by the cool weather. Air conditioners function better in cool
weather, operate for shorter periods, and consequently are less likely to break down, which impacts revenues of air conditoning service companies. When water in swimming pools is cooler than normal, fewer chemicals are required, which impacts pool supply and maintenance companies. The cost of chemicals for a home swimming pool could be down as much as 50% this year. Of course, there may be businesses that have a boost in sales because of cooler weather. The cool, wet weather has been generally good for farmers. Corn and soybean farmers are having
record yields. Hay has been plentiful, but the wet weather has hampered cutting and baling. One farmer told me that he usually gets three mowings a year, but because of the wet weather, he will only get two this year. Fortunately, the economies of Conway and Faulkner County are diverse and strong. Deviations to the economy caused by weather or other factors do not have a significant overall effect, but may have a significant impact certain businesses and industries. More information can be found at Pulse of Conway website, pulseofconway.com