2013-08 Faulkner County Business Journal

AUGUST 2013

Sales managers from left to right: Steve Ostrowski, Reid Bryant, Brett Berry, Jay Myers, Justin Kervin, Heath Boothby, Jeff Morrison, Karl Justice.

Crain Team’s growin’ DEDICATED TO CENTRAL ARKANSAS, CRAIN AUTOMOTIVE GROUP BREAKS GROUND ON NEW KIA DEALERSHIP FULL STORY, PAGE 4

2D — Sunday, August 11, 2013

Faulkner County Business Journal

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Conway Area Chamber named 2013 Chamber of the Year The American Chamber of Commerce Executives, an association of professionals who manage chambers of commerce, has named the Conway Area Chamber of Commerce the 2013 Chamber of the Year.

The Chamber of the Year award is the nation’s only award recognizing the dual role chambers have in creating both leading businesses and communities.

The award recognizes excellence in operations, member services and community leadership.

Contenders underwent a multi-step process that included the ACCE Operations Survey, an application and portfolio, and an in-person interview.

The operations survey pre-qualified applicants for the award.

More than 200 ACCEmember chambers of commerce were invited to compete following the review of data. These chambers were then grouped into four categories based on population in their service area, number of businesses in their service area, membership and annual revenue. Conway Area Chamber was one of three finalists in Category 3 — the second-largest category. The other finalists in this category were Christian County Chamber of Commerce in Kentucky and Michigan West Coast Chamber of Commerce.

Celebrate with us!

The awards program took place Wednesday, June 24, at ACCE’s annual convention in Oklahoma City. The entire Chamber staff was invited to attend the ceremony and witness their organization take home the top award. Brad Lacy, president and CEO, said the Conway Area Chamber’s investors and the city as a whole deserve for their Chamber to be the best.

“I can honestly say that Conway is the best city in Arkansas, and our Chamber has the best team in the business,” Lacy said. “The investments of time and re-

sources from our members, volunteers and community leaders make a difference in our ability to compete at a national level. We are honored that our peers in the chamber industry recognize the work we do every day.”

The awards program was also an occasion to recognize two Conway Area Chamber staff members who obtained the highest achievement in the chamber management profession. TJ Johnston, executive vice president, and Jamie Gates, senior vice president, earned their Certified Chamber Executive designation after completing a rigorous fourstep process. Johnston and Gates were two of 21 candidates nationwide in the CCE Class of 2013.

The Conway Area

Chamber was also recognized at the ACCE convention for receiving Awards of Excellence for outstanding communications efforts.

The 29th annual Awards for Communication Excellence program attracted 142 entries from chambers of all sizes across the U.S. A three-judge panel of chamber executives evaluated the entries and selected winners in four categories: advertising, electronic, publications and campaigns.

Conway Area Chamber received an award in the publications category for its 2011 “Hidden Treasures of Conway” annual report and in the advertising category for the Conway Development Corporation’s “Forward Together” invitation. Conway Chamber

was in the largest class for these awards and was recognized alongside larger organizations in Dallas, Kansas City, Milwaukee, Nashville, Oklahoma City and Tulsa.

About the American Chamber of Commerce Executives Established in 1914, ACCE is the only national association uniquely serving the professional development needs of individuals who manage chambers of commerce throughout the U.S. and several other countries. Representing 7,500 chamber professionals, ACCE enhances the knowledge, leadership skills and management effectiveness of chamber executives and their staffs through education, publications, research, benchmarking and best practices.

WHAT’S THAT GONNA BE?

Jeff D. Standridge, chairman of the Conway Area Chamber of Commerce board of directors requests the pleasure of your company at a

Chairman’s Toast to celebrate the national designation as

Thursday, August 22, 2013 from 3 p.m. until 4 p.m.

900 Oak Street Conway, Arkansas 501.327.7788

What’s That Gonna Be? Market Square South.

The 30,000 square foot Market Square South building will include commercial tenants on the ground floor and student residences on the upper two floors. The commercial tenants will include the new Conway office of Delta Trust and Bank, The Purple Cow, a popular 50’s style diner, and Conway Management, Inc., a hotel management

group.

Where is that? In the Village at Hendrix on the south side of the square.

When will it open? The project should be completed by the end of the year with commercial tenants opening for business in early 2014. Student residences should be ready by the beginning of the fall semester.

Who’s building it? Nabholz Contstruction.

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Faulkner County Business Journal

Grimes earns IOM recognition Laura Grimes, chief financial officer at the Conway Area Chamber of Commerce, received the IOM recognition from Institute for Organization Management, a four-year professional development program of the U.S. Chamber of Commerce Foundation.

As a graduate of Institute, Grimes has completed 96 hours of course instruction in nonprofit management.

The curriculum consists of four weeklong sessions offered annually at five locations across the country. Participants learn from university professors, industry experts and leading practitioners in the chamber and association industries. Courses topics include advocacy, membership, media training, finance, legal issues, human resources and other facets of running a nonprofit organization.

Grimes, who has an accounting background, said that program was

Russell Lahodny photo

Chief financial officer Laura Grimes earned her IOM recognition from Institute for Organization Management. She is pictured with fellow Conway Area Chamber staff members Brad Lacy, Mary Margaret Satterfield, Whitney Cummings and Aaron Throneberry.

an opportunity to learn more about the Chamber industry as a whole. It also connected her with other professionals who share similar experiences.

“After my four years in the Institute for Organization Management program, I walked away

with more knowledge about the Chamber industry as well as great ideas and best practices to take back to my organization,” Grimes said.

“The program was also an opportunity to connect with and learn from other chamber, association and nonprofit pro-

fessionals.”

Grimes joins Conway Area Chamber colleagues Brad Lacy, president and CEO, and TJ Johnston, executive vice president, in earning the IOM recognition. For more information about the program, visit Institute.USChamber.com.

Southern Bancorp CEO, Hendrix alum to speak at gala Darrin Williams, CEO of Southern Bancorp Inc., 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. 12, at 6:30 p.m. in McCastlain Hall on the UCA campus.

Williams took over as CEO of Southern Bancorp in February 2013.

Prior to joining Southern, he was the managing partner of Williams Carney Williams Bates Pulliam & Bowman PLLC. Williams obtained his law degree from Vanderbilt University School of Law

and received his bachelor’s degree from Hendrix College. Williams is a current member of the Arkansas General Assembly. He is a state representative for District 36, which includes part of Pulaski County.

The MED awards gala is an opportunity to celebrate the achievements of minority entrepreneurs and the individuals and organizations committed

to advancing minority business enterprise. The nomination process for the five categories has ended, and the recipients will be announced prior to the event.

Limited tables are available. For information, contact Whitney Cummings, director of membership development, at 501-932-5411 or at Whitney@ConwayArkansas.org.

Sunday, August 11, 2013 — 3D

Nabholz, UCA next stops for 13-in-13 program The Conway Area Chamber of Commerce’s 13-in-13 program will take participants to Nabholz Construction Services and the University of Central Arkansas this month. The Nabholz visit is scheduled for Wednesday, Aug. 21, from 11 a.m. until 1 p.m., and the tour of UCA will take place Thursday, Aug. 29, from 2:50-5 p.m.

The 13-in-13 program gives individuals an inside look into 13 businesses that have had a significant role in developing Conway’s economy. At each visit, 13 attendees will gain insight into the history and operations of some of Conway’s largest employers.

Previous visits have included Acxiom, Kimberly-Clark, HewlettPackard, Southwestern Energy and RockTenn.

“The 13-in-13 program gives people a unique opportunity to learn more about the community where they live and work,” said Lindsay Wygal, senior vice president of Chamber operations. “It’s a value-added benefit to our members and an opportunity to get a behind-the-scenes look at the organizations that have helped shape the Conway economy.”

Conway-based Nabholz has three distinct brands operating in 10 locations throughout five states. The company offers more than 15 different services and

has been behind a number of projects, including the installation of an oscillating orchestra pit for Miami’s New World Symphony.

The UCA visit will include a campus lecture and a guided tour of the university’s landmarks, halls and newest facilities. Participants will learn more about the history of the fouryear, public institution and will tour the newest building on campus, Bear Hall. Bear Hall is home to the EPIC Residential College (Entrepreneurship, Public Scholarship, Innovation and Community Engagement) and the luxury sky boxes overlooking Estes Stadium. As part of the tour, visitors will receive complimentary general-admission tickets to UCA’s opening home football game. The game begins at 7 p.m. on Aug. 29.

Future visits with the following businesses are scheduled for this year: Central Baptist College, Conway Public Schools, Conway Regional Health System, Snap-on Equipment, The Village at Hendrix and Virco Manufacturing.

The 13-in-13 program is free to the employees of Chamber member businesses. Space is available on a firstcome, first-served basis.

For more information or to make a reservation, email Lindsay Wygal at Lindsay@ConwayArkansas.org.

4D — Sunday, August 11, 2013

Faulkner County Business Journal

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COVER STORY

Crain Team continues to grow

Devoted to central arkansas, automotive group breaks ground on kia dealership

T

he Crain Companies began as “Paul Crain Wholesale” in Searcy, Arkansas in the early 1950’s. “Mr. Paul,” Larry Crain Sr.’s father, started out “peddling” tire repair items, health and beauty aids, fishing tackle and other general merchandise out of the trunk of his car. His customers were primarily small town “mom and pop” grocery stores and service stations.

His business grew first into a van and later to a small “warehouse” (also his garage) and association with other peddlers, namely Hartsell Capps and Wendal Pettus. The seat-of-the-pants operation grew up to the time Larry Crain, Sr. came on the scene in 1966. Larry had graduated from the University of Arkansas with an accounting degree, passed the CPA exam and worked three years for the Peat Marwick Mitchell accounting firm and decided he wanted to go into business for himself.

In 1966, the company, then known as Crain Sales Company, built a new sprawling (10,000 square feet) headquarters on Highway 36 in Searcy, which in an expanded form (50,000 square feet), served as the company’s headquarters and main distribution facility until July 1992 when the compa-

‘We are looking forward to continued growth in the Conway area.’

— Chris Crain President, Crain Automotive Team ny moved to a new office and warehouse in North Little Rock.

Beginning in the early 1980s, the company saw an industry trend and customer need for free-standing auto stores and opened its first KarPro auto parts store in Searcy. During the 80s and up until 2000 the company expanded by acquisition and new locations to more than 16 locations. In September 2000 a majority of the automotive parts distribution facility was merged into the O’Reilly Auto Parts operation.

Third generation

Crains joined the family business after graduation from the University of Arkansas — first Larry Crain, Jr. in 1985, then Chris Crain in 1994.

In 1990 The Crain Companies purchased a Ford Dealership in Benton, Ark., and renamed it Freeway Ford Lincoln Mercury. In 1992 a sister dealership in Memphis was purchased and operated as Midway Ford. In 1999 Crain acquired the Landers North Facility from United Auto Group and was awarded the Kia franchise. Later that year Crain acquired Service Chevrolet Oldsmobile from Cliff Peck, and Crain sold Midway Ford in Memphis to United Auto Group to focus on growing the Central Arkansas market.

Crain began operating all dealerships under the Crain Automotive Team umbrella as Crain dealerships. Throughout the next decade Crain further expanded the dealership operations to include multiple dealership locations and an RV store. Led by company president Chris Crain, in January of this year

The Crain Automotive Team recently broke ground on a new Kia dealership in Conway, the second Kia store for the company.

the Crain Team acquired two Hyundai dealerships in Northwest Arkansas, marking their first venture in that part of the state. Many stores have recently been relocated or renovated to meet the changing needs of its valued customers.

Of all the dealership operations one of the most successful franchises are Crain Buick GMC on Museum Road in Conway. Purchased from Jody Brown 11 years ago, Crain Buick GMC has grown to one of the Top 12 Buick GMC dealers in the nation. The GM Giant is led by General Manager Jay Myers. “One of the things we pride ourselves on is

that we don’t just work in Conway and Faulkner County, this is home, our kids go to school here, play little league and soccer here; we invest in this community because it’s important to us.”

The Crain Team presence in the area is hard to miss. Whether you’re at a UCA football or basketball game, Toad Suck Dayz, the Boys and Girls Clubs of Faulkner County, Soaring Wings Ranch, Relay for Life or countless other community events, you’ve noticed the Crain Team.

Earlier this week Crain broke ground on the all new Crain Kia of Conway. The project is expected to be complet-

ed in the spring of 2014.

“We’re excited about Kia” said Myers. “Not only does Kia back every vehicle with a 10 year, 100,000 mile warranty, they are some of the safest and most fuel efficient vehicles on the road.”

The new Kia store will be the second Kia store for the Crain Automotive Team. “We believe in the Kia brand and their vision. The product is fantastic; it’s safe, offers the latest in technology and is competitively priced,” said Chris Crain. He continued, “We are looking forward to continued growth in the Conway area. It’s an exciting time for the city and for the Crain Team.”

6D — Sunday, August 11, 2013

Faulkner County Business Journal

Sponsorships, booth space available for Business Expo, Taste of Conway

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CVB launches back-to-school shopping campaign As the back-to-school season officially kicks off this month, tens of thousands of central Arkansas residents may experience an unexplained urge to shop in Conway. “We want to deliver the message multiple times in a variety of formats.” said Conway Chamber Director of Destination Marketing Rachel Earls. The chamber is executing a marketing campaign on behalf of the Conway Convention and Visitors Bureau.

The campaign is focused on almost 39,000 households in Beebe, Cabot, Maumelle, Searcy and Russellville. Earls said that the Convention and Visitors Bureau wanted to target “swing shoppers” who might be tempted to shop in

#CON0000000817-01 (9col, 9in x 6.5in) 08/06/2013 10:30 EST

other communities. “We chose these specific communities because they have a choice about where to do their shopping and we want them to think of Conway first.”

The CVB has done similar campaigns in previous years that primarily relied on direct mail. This year’s campaign has evolved to include digital marketing products from the Log Cabin Democrat and KATV. “The Log Cabin created a plan to

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reach and track shoppers online in our target areas,” said Earls. “We’re also going to “take over” the KATV news app for a day and finally follow up with direct mail.”

Earls said that the hope is for some area residents to see the campaign in each format multiple times.

The Bureau also included a special promotion to help the mail piece stand out in a crowded mailbox. One lucky winner is promised a $1,000 VISA gift card to jump start their shopping. “Historically, we’ve had a great response and we think the online component will help. We want to constantly remind central Arkansas that Conway businesses can meet all of their needs,” said Earls.

The Conway Area Chamber of Commerce invites area businesses to participate in the 2013 Business Expo. The event will take place Thursday, Oct. 10, at the Conway Expo Center and Fairgrounds. Southwestern Energy is the presenting sponsor.

Business Expo includes a breakfast, a business-to-business trade show and Taste of Conway. Mary Margaret Satterfield, director of events at the Conway Area Chamber of Commerce, said that this setup provides businesses with varied opportunities to network with other professionals and exhibit their products and services to a diverse and captive audience.

“The variety of events is what really sets it apart from other expos in the central Arkansas,” Satterfield said. “First, the Business Expo Breakfast is attended by more than 150 leaders from Conway’s business community. Second, the trade show provides more than 120 exhibitors with sales opportunities and business-to-business networking. Finally, Taste of Conway attracts more than 500 potential customers to Business Expo.

“We anticipate more than 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.

Since 2010, the chamber has

unveiled the Conway2025 results, the Interstate 40 corridor design and the Lifelong Learners Pre-K initiative.

The Business Expo and Retail Showcase, a business-tobusiness 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, according to Satterfield.

Chick-Fil-A will host a lunch presentation at this year’s Expo. Alan Kizer from ChickFil-A will present a seminar on customer service. “Chick-Fil-A has become synonymous with outstanding customer service,” said Satterfield. “We’re excited to have Alan share those best practices with our business community.”

Taste of Conway gives the community a 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 2013 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.

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Conway Economy at a Glance Unemployment Rate June 2013 US . ........................ 7.6% Arkansas................. 7.2% Faulkner County ... 6.9% Conway................... 6.7% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* May 2013............. $2,029,242 2012............. $1,863,254 Percent Change 8.9% Annual* 2012........... $22,944,163 2011........... $22,366,464 Percent Change 2.6% *Tax Rate 1.75% Faulkner County* May 2013................ $744,590 2012................ $686,072 Percent Change 8.5% Annual* 2012............. $8,465,686 2011............. $8,279,301 Percent Change 2.3% *Tax Rate 0.5% Restaurant Sales* June 2013........... $14,206,824 2012........... $13,839,197 Percent Change 2.7% Annual Sales 2012......... $153,412,988 2011......... $144,646,055 Percent Change 6.1% *Including mixed drink sales Hotel Sales June 2013............. $1,914,234 2012............. $1,959,078 Percent Change -2.3% Annual Sales 2012........... $18,683,676 2011........... $18,662,136 Percent Change .12% Conway Building Permits Single Family Homes Year to Date July 2013.............. 90 Permits

2012............ 106 Permits Percent Change -15.1% Average Construction Cost* Year to Date July 2013................ $229,098 2012................ $209,530 Percent Change 9.3% Average Square Footage* Year to Date July 2013...................... 2,994 2012...................... 2,897 Percent Change 3.3% Average Construction Cost Per Square Ft.* Year to Date July 2013.................... $76.52 2012.................... $72.33 Percent Change 5.8% Annual 2012............ 186 Permits 2011............ 153 Permits Percent Change 21.6% Average Construction Cost* Annual 2012................ $207,537 2011............... $204,387 Percent Change 1.5%. *Not including land or lot improvements Average Square Footage* Annual 2012...................... 2,910 2011...................... 2,814 Percent Change 3.4% Average Construction Cost Per Square Ft.* Annual 2012.................... $71.33 2011.................... $72.63 Percent Change -1.8% * Total under roof Lottery Sales Faulkner County July 2013............. $1,126.010 2012............. $1,276,389 Percent Change -11.8% Year to Date (July) 2013............. $9,736,630 2012........... $10,441,637 Percent Change -6.8%

Total State July 2013........... $32,483,166 2012........... $33,367,514 Percent Change -2.7% Year to Date (July) 2013......... $266,770,722 2012 ........ $279,962,196 Percent Change -4.7% Natural Gas Severance Tax Distribution June Conway 2013.................. $25,186 2012.................. $12,394 Percent Change 103.2% Faulkner County 2013.................. $20,448 2012.................. $10,028 Percent Change 103.9% Annual Conway 2012................ $162,457 2011................ $254,822 Percent Change -36.2% Faulkner County 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 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

Sunday, August 11, 2013 — 7D

Faulkner County Business Journal

Where do Faulkner County residents work?

By Roger Lewis

While driving to Little Rock in morning rush hour traffic, you might wonder just how many people from Conway work in the Little Rock area. This number can be estimated from several sources. The Arkansas Department of Work Force Services notes that during 2012 an average of 54,700 Faulkner County residents were employed. Of those, 40,607 were employed by 2,760 firms in Faulkner County (based on 2012 employment and earnings data).

Thus, at least 14,000 workers are employed outside the county. Some of them must be driving with you during that morning rush hour.

Commuting to Faulkner County

Of course, some of the 40,607 workers in Faulkner County commute here from other counties, which means that even more than 14,000 Faulkner County’s workers commute to work outside the county. A considerable number of employees of our larger firms, Axiom, Conway Regional, Kimberly Clark, Hewlett Packard and UCA, commute here from outside the county.

Data collected several years ago by the census bureau and extrapolated to current workforce numbers provides a reasonably accurate picture of commuting practices. From this analysis, approximately 8,600 workers commute to Faulkner County (this does not include college students).

About 250 of these commute from out of state, leaving 8350

workers who come from other Arkansas counties. Although 46 counties are represented by the commuters, 6830 of them come from the Conway County (2075), Pulaski County (1760), Perry County (1115), Van Buren County (930), White County (500), and Cleburne County (450).

The same data indicates that approximately 15,100 workers commute from Faulkner County to other places. Although their destinations include 36 counties, the bulk of them (12,400) go to Pulaski County. This leaves 31,000 employees that I call native employees — they live here — work here.

The word commute is a broad term and does not necessarily mean a daily drive. In addition the data on origin of workers includes workers from distant counties, other states and even countries. These workers may travel weekly or monthly or perhaps reside temporarily. These characteristics fit many who work in the gas exploration industry.

Traveling to and from Little Rock has been a nightmare for years. In the 1950s and 1960s, before Interstate 40 was built, the commute was on a twolane highway through Mayflower, Palarm and North Little Rock. It often required an hour or more. The highway infrastructure has had major improvements to keep up with the growing population. The four-lane I-40 was a god-send for commuters and made commuting much easier. Then, the I-430 bypass around west Little Rock and I-630 through the center of Little Rock helped re-

lieve the logjam. The intersection of I-430 and I-630 in Little Rock, now under construction, is the most ambitious and expensive intersection ever built in Arkansas.

Now I-40 from Conway to the I-430 junction is being widened to six lanes to serve a traffic volume that averages more than 71,000 vehicles per day between Conway and that junction.

We are a mobile society when it comes to the work place, which brings up another question. Do we need a mass transit system? Yes, but it will be many years before something like a light rail system will be built in central Arkansas. However, I believe it will happen, maybe when the traffic volume on I-40 from Conway to Little Rock exceeds one million vehicles per day. In the meantime we certainly could use some public transportation within Conway and to the Little Rock area. The only transportation we now have in Conway is a few taxis, a couple of medical paratransit providers and vans that serve state employees and clients of non-profit entities. We have no scheduled public transportation system. If you need public transportation to get to work in Conway, forget it. However, I predict that in just a few years we will have some form of public transportation in Conway.

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).