NORTH METRO
DECEMBER 2018
BUSINESS JOURNAL
Log Cabin Democrat • Find our online edition at www.thecabin.net
NORTH METRO BUSINESS JOURNAL
Editorial
The year-end gift of perspective “Over the span of less than three weeks, the north metro witnessed three announcements from major employers that could have a significant effect on our local economy: KimberlyClark would undertake a global “restructuring”, Acxiom was separating business functions to maintain “optionality”, and Southwestern Energy is considering “strategic alternatives” that include selling the Fayetteville Shale assets.” -- from the March North Metro Business Journal editorial We now have the benefit of almost nine months of observation. And while the dust isn’t settled on all three of these announcements, we do have some resolution, and we have a lot to be thankful for. In July, after much speculation, it was announced that Interpublic Group (NYSE: IPG) would purchase the bulk of Acxiom. The small part of the company that wasn’t purchased primarily employed people in other parts of the country. We now know, that at least in the short term, the purchase has been a good thing for Conway. Employee headcount is up. There are almost 40 open positions advertised. And IPG leadership has been publicly celebrating the work done by Arkansas associates. In September, Southwestern Energy (NYSE: SWN) announced the sale of their Fayetteville Shale assets to Flywheel Energy. The sale effectively removed Southwestern Energy from Arkansas. Flywheel Energy, is a private company headquartered in Oklahoma City. The purchase of the Fayetteville Shale is the largest investment in the history of the young company. The $2 billion purchase was financed with private equity. While the Fayetteville shale was steady and produced cash flow for Southwestern Energy, at today’s gas prices it couldn’t provide what was needed to compete in the dynamic, capital intensive world of publicly traded energy companies. However, that steady cash flow (and potential for growth) is attractive to more patient private equity funds. The result for our economy is that the majority of people who were working for SWN in March are now employed by Flywheel. Another positive outcome for the north metro economy. That brings us to Kimberly-Clark. Since the announcement of a global restructuring earlier this year the Conway facility has been on a roller coaster ride. First it looked like it would dodge the bullet of consolidation. Then it was announced that a sister facility in Wisconsin would likely remain open at Conway’s expense. Now it looks like the state of Wisconsin may not make good on a deal to save that facility. What ultimately happens remains to be seen. However, the last nine months have shown us that frequently there is good on the other side of business uncertainty. And for that, we are grateful.
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NORTH METRO BUSINESS JOURNAL
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Central Tube and Bar Announces Conway Facility Expansion CONWAY, Ark., - Central Tube and Bar has expanded their Conway facilities to include a new 72,000-square-foot facility in addition to their existing corporate headquarters and fabrication facility on Middle Road. As part of the new expansion, Central Tube and Bar has also added a new BLM LT7 tube laser, the company’s 7th laser. “We started in Conway over twenty years ago and it feels great to be reinvesting in our community with this expansion,” said Dustin Ward, President of Central Tube and Bar. “Doubling our facilities allows us to add skilled jobs to the local economy and serve more customers’ tube, bar, and metal supply and fabrication needs.” Previous to the expansion, the building located on Robins Street was used by KimberlyClark. Central Tube and Bar has been operating since November 1 from the new facility after some updates to the space and installation of the new tube laser. The expansion is a sign of manufacturing supply chains returning to United States, as the quality and consistency of components from overseas suppliers has decreased. In tandem
with rising costs and increasing supply chain risks due to tariffs, many companies are looking to American suppliers like Central Tube and Bar to fulfill part orders. Parts manufactured at the new Conway facility include components for heavy truck, bus, hospitality, aerospace, manufacturing, and energy industries. “We’re excited to focus on continued growth as more manufacturing is brought back stateside for higher quality, more efficient and accurate value-added component fabrication,” Ward said. “This new facility helps us achieve our goals of providing a better product and service than our competitors, both here and abroad.” About Central Tube and Bar Central Tube and Bar is a leading distributor and processor of highquality carbon, alloy, aluminum & stainless tube, carbon and alloy bar, and other steel products. Headquartered in Conway, Arkansas and with locations across the mid-south, Central Tube and Bar serves some of the largest OEMs and fabricators in the heavy truck, bus, hospitality, aerospace, manufacturing, and energy industries.
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DECEMBER 2018
NORTH METRO BUSINESS JOURNAL
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Melvin’s Painting In 2005, after two years of painting for other painting contractors, Melvin Gonzalez opened Melvin’s Painting—a residential painting company that focused primarily on new construction. Almost immediately, Gonzalez hired four more employees and one of central Arkansas’s most successful painting companies was born. But as anyone familiar with residential construction knows—difficult times were on the horizon for the fastgrowing company. “In the years following 2008, when new home construction slowed down, it was tough,” said Gonzalez. “That experience is what led us to grow our repainting business. When the economy changes or interest rates rise many people choose to reinvest in their existing homes.” Today, Melvin’s Painting is a 44-employee company that on any given day is painting new and existing homes within 50 miles of their offices in Conway. Today 95% of their business is residential and it’s split between 60% new construction and 40% repainting. Gonzalez says that the repainting business is their new focus. That focus has allowed the company to keep a close watch on timely trends in home updates. “We’re seeing more people going to paint grade ceilings. We’re painting more floors. More cabinets. And our exterior
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NORTH METRO BUSINESS JOURNAL
panting business is growing as more homeowners are painting brick.” Gonzalez says that the last three years have represented the most rapid growth for his business. He credits a growing overall economy with much of the growth. But another idea may explain how a 13-year-old company is recently experiencing their most growth. “Whenever we get a new job, we’re immediately trying to earn their repeat business.” A significant portion of the company’s work is coming from those repeat customers or direct referrals. “We try our best to offer more for less,” said Gonzalez. He says little things like working with the customer on ways to save money have helped the company earn the reputation it has today. These days Gonzalez stays busiest estimating jobs and leading the company in his role as president. The business is a family affair with wife Karen handling payroll, financials, and many office functions. Melvin’s Painting also employs at least seven other family members. That family approach to business creates a culture that retains employees at an impressive rate. “Finding the right people is a challenge in any business,” says Gonzalez. “We’ve been blessed. More
Melvin’s Tips for Savings Gonzalez says that there are a number of ways homeowners can save money when planning an interior or exterior paint job. Knowing what to ask for or offer is the key to getting your best deal. - Limit the number of colors used. Ideally use one color for multiple rooms. - A willingness to make the home unoccupied or vacant during painting can cut costs from 15%-20% - Only paint walls (ceilings and cabinets benefit from paint but walls offer the biggest “bang for your buck.”) - Combine interior and exterior paint jobs. Doing both at the same time means less travel and setup for the crew. It will save time and money. - Do your interior paint jobs in the winter. Because exterior jobs aren’t an option many painters price more competitively during cold weather months. - Melvin’s Painting offers specials for landlords and people who own multiple properties. To contact Melvin’s Painting for a free estimate or consultation call 501.514.2570.
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NORTH METRO BUSINESS JOURNAL
DECEMBER 2018
Iluminate Carriage Rides • Nov. 24- Jan. 1 Nightly beginning at 4:30 p.m. Last Day of Operation: January 1
Ferris Wheel • Nov. 24 - Dec. 30 Monday - Thursday: 5:00 p.m. - 9:00 p.m. Friday and Saturday: 5:00 p.m. - 10:00 p.m. Sunday: Closed Closed: December 24 - 26 Last Day of Operation: December 30
Brothers’ Engine No. 1 Train Rides Wednesday - Saturday: 5:30 p.m. - 8:30 p.m. Presenting Sponsors
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Underwriters
About You Magazine
Delta Dental • Magie Smith Charton Eye Associates NABCO • Oral Surgery of Central Arkansas
Supporting Sponsors Containers and Mobile Storage • Safely Tucked Away Mini Storage CenterPoint Energy • Palmer Music Co • Sonic
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than 70% of our people stay with the company.” Gonzalez says that an increase in the price of materials is another challenge he has seen over the last 15 years. “Tape, brushes, and especially paint have all increased in price. It’s forced us to be creative in ways to keep costs down for our customers.” Melvin’s Painting has grown by setting themselves apart with regard to value, service, and quality. Gonzalez leads the company with a willingness to adapt to changes in the economy and painting industry. So, it’s no surprise that some future goals for the company are unconventional. “We really want to open an office location— maybe in downtown Conway,” said Gonzalez. “We want our clients to be able to do business in a professional setting that’s convenient for them and allows us to showcase samples and finishes.” Gonzalez says that rather than extend the geographic reach of the company he wants to become the “painting contractor of choice” for homes within and closer to Faulkner County. And while those goals lay somewhere in the future, his most important goal hasn’t changed since the day he opened the company more than a decade ago. “A happy customer.”
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DECEMBER 2018
NORTH METRO BUSINESS JOURNAL
North Metro Economy at a Glance Population US ..........................325,719,178 Arkansas .....................3,004,279 Conway ...........................65,782 Cleburne County...............25,048 Conway County................20,916 Faulkner County.............123,654 Perry County....................10,348 Van Buren County.............16,506 Unemployment Rate September-2018 Seasonally Adjusted US ..................................... 3.7% Arkansas ............................ 3.5% Not Seasonally Adjusted US ..................................... 3.6% Arkansas............................ 3.3% Conway.............................. 3.0% Cleburne County ................ 4.1% Conway County ................. 3.8% Faulkner County ................ 2.9% Perry County ...................... 3.6% Van Buren County .............. 4.6% Bank Deposits June Conway County 2018...........................$1,827,728 2017...........................$1,686,727 Percent Change ............... 8.36% Cleburne County 2018..............................$554,248 2017..............................$524,244 Percent Change ............... 5.72%
Conway County 2018..............................$358,473 2017..............................$382,665 Percent Change ..............-6.32% Faulkner County 2018...........................$2,192,595 2017...........................$2,052,122 Percent Change ............... 6.85% Perry County 2018................................$72,986 2017................................$71,596 Percent Change ............... 1.94% Van Buren County 2018..............................$276,171 2017..............................$277,646 Percent Change ..............-0.53%
Faulkner County 2018.............................$811,805 2017.............................$778,472 Percent Change................ 4.28% Tax Rate ........................... 0.50% Perry County 2018.............................$133,246 2017.............................$144,003 Percent Change...............-7.47% Tax Rate ........................... 2.50% Van Buren County 2018.............................$341,093 2017.............................$330,731 Percent Change................ 3.13% Tax Rate ........................... 2.00%
Restaurant Sales* Year to Date (September) Sales & Use Tax Collections Conway November 2018......................$149,149,618 Conway 2017......................$139,677,250 2018..........................$2,651,851 Percent Change................ 6.78% 2017..........................$2,110,260 *Includes mixed drink sales Percent Change.............. 25.66% Tax Rate ......................... 2.125% Hotel Sales Year to Date (September) Cleburne County Conway 2018.............................$443,193 2018........................$13,734,785 2017.............................$482,345 2017........................$13,942,729 Percent Change...............-8.12% Percent Change...............-1.49% Tax Rate ........................... 1.63% Residential Building Conway County Permits 2018.............................$438,049 Year to Date (October) 2017.............................$501,209 Conway Percent Change.............-12.60% 2018......................................161 Tax Rate ........................... 1.75% 2017......................................122 Percent Change.............. 31.97%
Residential Units Sold (New and Existing) Year to Date (November) Conway 2018......................................800 2017....................................1034 Percent Change ............-22.63%
Percent Change ............-21.43% Year to Date (September) Cleburne County 2018........................$69,271,160 2017........................$52,250,810 Percent Change ............. 32.57%
Conway County 2018.............................$113,833 2017...............................$95,206 Percent Change ............. 19.56%
Year to Date (September) Cleburne County 2018......................................365 2017......................................310 Percent Change ............. 17.74%
Conway County 2018........................$11,838,632 2017..........................$9,139,776 Percent Change ............. 29.53%
Faulkner County 2018.............................$176,282 2017.............................$173,897 Percent Change................ 1.37%
Faulkner County 2018......................$228,461,472 2017......................$239,977,860 Percent Change ..............-4.80%
Perry County 2018.............................$130,511 2017.............................$109,654 Percent Change ............. 19.02%
Perry County 2018..........................$5,872,995 2017..........................$4,386,160 Percent Change ............. 33.90%
Van Buren County 2018...............................$97,255 2017...............................$96,994 Percent Change ............... 0.27%
Conway County 2018......................................104 2017........................................96 Percent Change ............... 8.33% Faulkner County 2018....................................1296 2017....................................1380 Percent Change ..............-6.09% Perry County 2018........................................45 2017........................................40 Percent Change ............. 12.50% Van Buren County 2018......................................141 2017......................................190 Percent Change ............-25.79% Values of Residential Units Sold Year to Date (November) Conway 2018......................$144,942,938 2017......................$184,472,118
2017.............................$168,551 Percent Change ............. 12.60%
Van Buren County 2018........................$17,894,264 2017........................$18,428,860 Percent Change ..............-2.90% Average Price of Residential Units Sold (New and Existing) Year to Date (November) Conway 2018.............................$181,179 2017.............................$178,406 Percent Change .................1.55% Year to Date (September) Cleburne County 2018.............................$189,784
Proud sponsor of Pulse of Conway Sources: 2012-2016 ACS 5-Year Data Profiles, Arkansas Department of Workforce Services, C2ER, Sperling’s Best Places, Arkansas Department of Finance & Administration, Federal Deposit Insurance Corporation, Cooperative Arkansas Realtors’ Multiple Listing Services, Arkansas Realtors Association, and City of Conway.
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NORTH METRO BUSINESS JOURNAL
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“Women in Business” event honors nine Townsell recognized as “Diamond Achievement” winner leadership, and accomplishment to her field.
The Conway Area Chamber of Commerce recognized nine business leaders at their annual Women in Business awards luncheon. The event honors individuals in the Conway area who have excelled in leadership and community service and who have inspired others on both a personal and professional level.
• Mona Dixon - Chief Operating Officer and Director of Development for the AETN Foundation. • Kristy Carter - Director of Marketing for the Division of Outreach and Community Engagement at UCA. • Sarah Murphy - Superintendent and Administrator of the Conway Human Development Center.
Five individuals were selected for the Outstanding Woman in Business Award. The award recognizes those who embody high standards of excellence, dedication and accomplishment to their respective organizations, industries and to the business community. • Donna Blecher – General Manager Hilton Garden Inn • Vickey Kirkemier – Administrator for Salem Place Nursing and Rehab • Laine Berry – Owner of Laine Berry, Inc. (The Royal We, Inverness, Laine Berry Bridal) • Amy Denton – CEO of Pediatrics Plus • Andrea Woods – Executive Vice President and Corporate Counsel for Nabholz Construction hree women were recognized T as Outstanding Woman in Nonprofit. The award is presented to individuals who work within the fields of nonprofit, education, or government. These individuals embody a high standard of excellence, dedication,
The Diamond Achievement Award was presented to Donna Townsell. Townsell is the Senior Executive Vice President and Director of Investor Relations for Centennial Bank. The Diamond Achievement 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. Donna Townsell of Centennial Bank was named the “Diamond Achievement Award” winner at the 2018 Women In Business event hosted by the Conway Area Chamber of Commerce.
During Townsell’s time at Centennial Bank she has led a team that implemented more than 250 efficiency initiatives, ultimately achieving an industry leading efficiency ratio. She is a two-time winner of the Chairman’s Award and is a member of the National Investor Relations Institute. She has also been featured in the Independent Banker Magazine ‘Out of Office’ and in ‘The Girl Banker’ Blog. The Women in Business event was presented by H+N Architects and Conway OB/Gyn.
George Tobjy, a site selection consultant from KPMG, is interviewed by Melissa Gates during the Conway Development Corporation Annual Meeting. Tobjy discussed recent trends in economic development and offered an appraisal of Conway from a competitive standpoint. He described Conway as “a well-positioned and developing city in a cost effective and growing region.
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NORTH METRO BUSINESS JOURNAL
DECEMBER 2018 11