2013-03 Faulkner County Business Journal

MARCH 2013

A NEW DIRECTION Linn’s Auto Refocuses with Launch of Three New Companies, STORY PAGE 4

CONWAY AREA CHAMBER OF COMMERCE ANNUAL MEETING 2013 Approximately 900 business and community leaders attended the Conway Area Chamber of Commerce’s 2013 Annual Meeting at the University of Central Arkansas’ HPER Center.

Annual Meeting attendees were the first to hear the Toad Suck Daze entertainment announcement and view the 2012 annual report.

The Annual Meeting awards recognized individuals and businesses that have made a difference in Conway and Faulkner County over the past year.

Community members submitted nominations, and a panel of chamber executives from across the nation selected the following award recipients.

More information about the award winners can be found in the April issue of 501 Life magazine.

Business Executive of the Year: Terry Kimbrow, president, Central Baptist College 2 | FAULKNER COUNTY BUSINESS JOURNAL

Scott Howe, president and CEO of Acxiom Corporation, was the featured guest at the Conway Area Chamber of Commerce’s Annual Meeting. In a conversation with THV 11’s Melissa DunbarGates, Howe said Acxiom’s Conway location was poised for growth. “There would not be an Acxiom without the people of Conway,” he said.

Distinguished Service Award: Hal Crafton, co-founder, RushHal Properties

Good Neighbor Award: Billie Carter, engineer/vice president, Conway Firefighters Local 4016

Business of the Year – Hospitality Category: Stoby’s Restaurant and pattiCakes Bakery, owned and operated by Patti and David Stobaugh

Business of the Year – Large Employer Category: HewlettPackard

Business of the Year – Nonprofit Category: Boys and Girls Club of Faulkner County

Business of the Year – Retailer Category: Arkansas Golf Center, owned and operated by Brannon and Sarah Watson

Business of the Year – Small Business Category: Conway Copies, owned and operated by Greg and Karen Lamb

Young Business Leader of the Year: Travis Walls, controller, Arkansas Roofing Kompany

Toad Suck Daze corporate t-shirt order deadline approaching

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he Conway Area Chamber of Commerce is currently accepting corporate orders for 2013 Toad Suck Daze t-shirts. Corporate orders must be for a minimum of ten shirts.

CONWAY REGIONAL Women’s Council to host State of Health Luncheon

A

s part of the Conway Regional Women’s Council Program Series, the Arkansas Department of Health is presenting the annual State of Health Luncheon on Thursday, March 28, from 11:30 a.m. until 1 p.m.

The shirts range in price from $13 to $18 depending on size. The shirts can be customized to include a business logo on the sleeve for no additional cost. “Toad Suck Daze t-shirts are great for casual Fridays,” said Conway Area Chamber Director of Events Mary Margaret Satterfield. “It’s a fun way for local businesses to show their support for the festival and support our mission.”

Proceeds from the Toad Suck Daze festival and all t-shirt sales benefit college scholarships and education initiatives. The deadline for corporate orders is Friday, March 22nd. To pre-order t-shirts for your business or organization email Mary Margaret Satterfield at mary@ConwayArkansas.org or call 501.932.5412.

The event will take place in the Student Center Ballroom at the University of Central Arkansas.

The State of Health Luncheon will discuss the overall health of the community and the impact of health care reform. Featured speakers are Jim Lambert, president and CEO of Conway Regional Health System, and Dr. Joseph Bates, deputy state health officer, chief science officer and science advisory committee chair at the Arkansas Department of Health.

Reserved tables of eight are $200. Space is limited, so reservations must be made by Monday, March 25. For more information, call 501-513-5191 or email foundation@conwayregional.org.

Kimberly-Clark Ranks Among ‘World’s Most Ethical Companies’ for Second Consecutive Year

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he Ethisphere Institute – a research-based, international think-tank – has ranked Kimberly-Clark Corporation (NYSE: KMB) among the “World’s Most Ethical Companies” for the second year in a row.

To compile its rankings, Ethisphere reviewed hundreds of candidates and a record number of applications using its proprietary process. Those

companies that excel beyond their industry peers are named to the exclusive list of “World’s Most Ethical Companies.” This year’s list, the largest since the award’s inception in 2007, includes organizations from 36 industries and more than 100 countries.

Kimberly-Clark repeats on the list for the first time in 2013 after its debut appearance in 2012.

According to the press release, Kimberly-Clark has received multiple honors and awards for its governance, citizenship and sustainability

practices over the past year.

In addition to the Ethisphere ranking, the Great Place to Work Institute ranked KimberlyClark No. 4 among the “World’s Best Multinational Workplaces” in 2012. Kimberly-Clark was named the No. 1 consumer goods company in Newsweek’s “2012 Green Rankings” and No. 56 overall among the 500 biggest U.S. companies. The company was No. 18 among Corporate Responsibility Magazine’s “100 Best Corporate Citizens 2012,” which was its fourth straight year in the top 20.

Kimberly-Clark has more than 140 locations in 61 countries around the world.

Since 1968, the Conway location has manufactured a variety of personal hygiene products.

With more than 600 employees at its Conway location, Kimberly-Clark is one of the city’s largest employers.

About Kimberly-Clark Kimberly-Clark and its well-known global brands are an indispensable part of life

for people in more than 175 countries.

Every day, nearly a quarter of the world’s population trust K-C’s brands and the solutions they provide to enhance their health, hygiene and well-being.

With brands such as Kleenex, Scott, HUGGIES, Pull-Ups, Kotex and Depend, KimberlyClark holds No. 1 or No. 2 share positions in more than 80 countries.

To keep up with the latest K-C news and to learn more about the Company’s 141-year history of innovation, visit www. kimberly-clark.com.

FAULKNER COUNTY BUSINESS JOURNAL | 3

COVER STORY

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IN A NEW DIRECTION

Linn’s Auto Refocuses with Launch of Three New Companies

inn’s Auto has been serving the automotive needs of central Arkansas for more than 47 years. From salvage vehicles to parts and rebuilders, Linn’s Auto in Conway has always been in the automobile industry.

Last year, however, unexpected insurance company changes caused owners Danny Linn, Linda Linn, Susan Linn-McCoy and Christy Priester to consider closing the business’s doors.

After serious consideration, the owners, along with the support of long-time employees Roger Riggs and Pete Deden, decided to take Linn’s in a new direction instead of closing the business.

“We just couldn’t let go!” said Susan Linn-McCoy. “The community has been so good to us for so many years that we knew we had the opportunity to offer products and services the community needs.”

While Linn’s isn’t working 4 | FAULKNER COUNTY BUSINESS JOURNAL

with insurance companies any longer, they are still in the auto business with the three new businesses they opened over the last 10 months: Oak Street Auto Sales, U-Pull-It of Conway, and Just Scrap It! Metal Recycling.

Oak Street Auto Sales opened in May of 2012 and is a pre-owned auto dealership offering late model, high-quality cars, trucks and SUVs. They offer guaranteed financing regardless of credit history.

Good credit, bad credit or no credit at all, they can find a way to help people get into the car they need. Located just one mile east of I-40 on Oak Street in Conway, this lot has a great selection to choose from.

Unlike some other pre-owned car dealers, Oak Street Auto Sales has its very own service department to make sure automobiles purchased from Oak Street Auto Sales continue to run well throughout the term of purchase and beyond.

U-Pull-It of Conway is located at the same location as Linn’s Auto has been for 47 years – 850 Simon Road in Conway. U-Pull-It opened in September 2012, and is

designed for the budgetconscious, do-it-yourself crowd.

They have more than five acres of cars, trucks, minivans and SUVs, so customers are almost guaranteed to find the parts they need. Pulling their own parts can save up to 70 percent off retail. U-Pull-It puts new inventory out weekly so there is always something new to see.

Just Scrap It! Metal Recycling is located behind U-Pull-It of Conway. As a metal recycling facility, they

pay cash for all kinds of metal from tin and aluminum to copper, old car bodies and brass. “Everyone has some scrap metal lying around their shop or garage. Instead of throwing it away, they bring it to us and we buy it from them.

Then the metal is recycled so it is better for the environment and the economy,” said Stephen Christie, Non-Ferrous Specialist with Just Scrap it!

Since opening in November 2012, Just Scrap It! has received a very warm reception

from the central Arkansas community.

“It’s just amazing how excited people in the community have been about this business opening,” said employee Kris Hesson. “Every day, people tell us how happy they are that we’re here.”

With these three new businesses, and the continued commitment of the Linn family, Linn’s Auto is positioned to continue serving the diverse community in central Arkansas for another 47 years.

TOP 5 RESIDENTIAL HOME SALES Old Morrilton Hwy

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Meadowlake Rd

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4530 Bay Hill Drive

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Donaghey Ave

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Cadron Valley Country Club

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Centennial Valley Golf Club

Gatlin Park

Hendrix College

Salem Rd

Donaghey Ave

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60

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Conway Laurel Park

Caldwell St

60

Oak

Conway Country Club

Oak

St60

60

65

Central Baptist College

Highway 60 W

S Salem Rd

60

286

University Of Central Arkansas

Dave Ward Dr 286

286

14 Hilton Drive

NOW accepting applications for Academic Signing Day Each year, Conway Academic Signing Day recognizes a select few of the highachieving graduating seniors in the city who have received significant academic awards and substantial scholarships.

The Conway Area Chamber of Commerce is now accepting applications from the class of 2013.

The purpose of the event is to recognize a select few of Conway’s high-achieving graduating seniors who have received significant academic awards and substantial scholarships. Mary Margaret Satterfield, director of events at the Conway Area Chamber, said Academic Signing Day gives high academic achievers and their support systems the recognition they deserve.

“Academic Signing Day is based loosely on letter of intent ceremonies for athletic scholarship recipients,” Satterfield said. “It gives us an opportunity to gain insight into the collegiate destinations and academic achievements of Conway graduates.”

Graduating seniors from Conway High School-West, St. Joseph High School, Con-

way Christian High School, and those home-schooled in the Conway School District are eligible to apply. Other qualifications include having a cumulative GPA of 3.8 or higher on a 4.0 scale and being recognized in one of these five areas: • the recipient of a top scholarship from the four-year accredited college or university of their choice; • a National Merit Scholar or National Merit Finalist designation; • acceptance into a U.S. Service Academy; • the winner of a state or national scholarship program; and • the recipient of a Governor’s Distinguished Scholarship or Governor’s Scholarship.

The application is available online at www.conwayarkansas.org/signing, and the deadline to apply is Friday, April 12, at 5 p.m.

For more information, students may contact their high school counselor or Mary Margaret Satterfield at 501932-5412 or Mary@ConwayArkansas.org.

What’s that gonna be?

Tupelo Bayou Site One Reservoir

3265 Majestic Circle 2820 Glohaven Drive Carter Lake

PRICE

ADDRESS

$998,000 14 Hilton

CITY

BED/BA/HB SUBDIVISION

Conway 5/7/1

SQ. FT. $/SQ. FT. BUILT

Hilton Estates

6,300

$158.41

2010

$570,000 3265 Majestic Circle Conway 5/4/1

Cresthaven

6,100

$93.44

2002

$386,500 5220 Bay Town

Conway 4/2/1

Fairways at Centennial 3,166

$122.08

2006

$350,000 2820 Glohaven

Conway 5/3/1

$314,000 4530 Bay Hill Drive Conway 4/3/1

6 | FAULKNER COUNTY BUSINESS JOURNAL

Cresthaven

3,500

$100.00

2007

Centennial Valley

3,600

$87.22

2001

Neighborhood Market by Walmart The Neighborhood Market by Walmart is a 22,000 square foot store that will offer grocery, pharmacy and other shopping products. The site will be linked to the Tucker Creek trail and features extensive landscaping. This is the second Neighborhood Market in central Arkansas.

Where is that? On the northwest corner of the Prince and Farris roundabout.

When is it gonna open? Estimated to open at the end of July.

Conway Economy at a Glance Unemployment Rate December 2012 US . ........................ 7.8% Arkansas................. 7.1% Faulkner County..... 6.6% Conway................... 6.3% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* December 2012............. $2,164,894 2011............. $2,321,068 Percent Change -6.73% Annual* 2012........... $22,944,163 2011........... $22,366,464 2010........... $21,868,102 Percent Change (20132012) 2.6% *Tax Rate 1.75% Faulkner County* December 2012................ $765,541 2011................ $834,052 Percent Change -8.2% Annual* 2012............. $8,465,686 2011............. $8,279,301 2010............. $7,834,226 Percent Change (20132012) 2.3% *Tax Rate 0.5% Restaurant Sales* January 2013........... $12,623,587 2012........... $12,303,653 Percent Change (20132012) 2.6% Annual Sales 2012......... $153,412,988 2011......... $144,646,055 2010......... $134,082,891 Percent Change (201211) 6.1% *Not including mixed drink sales Hotel Sales January 2013............. $1,032,478 2012............. $1,357,319 2011............. $1,125,729 Percent Change (20122012) -23.9% Annual Sales 2012........... $18,683,676 2011........... $18,662,136 2010 ......... $17,590,242 Percent Change (201211) .12% Conway Building Permits Single Family Homes February 2013.............. 13 Permits 2012.............. 13 Permits 2011.............. 11 Permits 2010 ............ 19 Permits Percent Change (201312) 0%

Average Construction Cost* February 2013................ $264,515 2012................ $215,468 2011............... $188,718 Percent Change (201312) 22.8% Average Square Footage* February 2013...................... 3,245 2012...................... 2,914 2011...................... 2,509 Percent Change (201312) 11.4% Average Construction Cost Per Square Ft.* February 2013.................... $81.51 2012.................... $73.94 2011.................... $75.22 Percent Change (201312) 10.2% Annual 2012............ 186 Permits 2011............ 153 Permits 2010 .......... 223 Permits Percent Change (201211) 21.6% Average Construction Cost* Annual 2012................ $207,537 2011............... $204,387 2010................ $182,340 Percent Change (2012 -11) 1.5%. *Not including land or lot improvements Average Square Footage* Annual 2012...................... 2,910 2011...................... 2,814 2010...................... 2,722 Percent Change (201211) 3.4% Average Construction Cost Per Square Ft.* Annual 2012.................... $71.32 2011.................... $72.63 2010.................... $66.99 Percent Change (201312) -1.8% * Total under roof Lottery Sales Faulkner County February 2013............. $1,486,983 2012............. $1,776,507 2011............. $1,365,858 2010............. $1,771,377 Percent Change (201312) -16.3% Annual 2012........... $18,393,242 2011........... $16,788,678 2010........... $17,540,450 Percent Change (2012-

11) 9.6% Total State February 2012........... $40,574,842 2011........... $48,236,552 2010........... $44,982,226 Percent Change (201211) -15.9% Annual 2012 ........ $452,245,217 2011 ........ $474,879,701 2010......... $459,916,256 Percent Change (20212011) -4.8% Natural Gas Severance Tax Distribution February Faulkner County 2013.................. $14,395 2012.................... 13,599 Percent Change 5.9% Conway 2013.................. $17,789 2012.................. $16,844 Percent Change 5.6% Annual Faulkner County 2012................ $131,418 2011................ $204,052 Percent Change -35.6% Conway 2012................ $162,457 2011................ $254,822 Percent Change -36.2% Wellhead Price per MCF* December 2012 ..................... $3.35 2011 ..................... $3.14 2010 ..................... $4.68 2009...................... $4.66 2008...................... $5.94 2007...................... $6.87 Yearly Average 2012......................$2.66 2011......................$3.95 2010......................$4.48 2009......................$3.67 2008......................$7.97 2007......................$6.25 2006......................$6.39 2005......................$7.33 2004......................$5.46 2003......................$4.88 2002......................$2.95 *MCF=1000 cubic feet Number of Active Wells* Faulkner County....... 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

Education and the Conway/ Faulkner County Workforce

By Roger Lewis

Conway and Faulkner County have a highly educated work force. Of those in the U.S. aged 24 to 65, 27 % hold at least a bachelors degree. For Conway the percentage is 35%. The Faulkner County percentage is 27%, matching the national percentage. For Arkansas the number is 19%. One of the facts of economic life is that education and employment are closely related. (Among the states Arkansas is next to the bottom; only West Virginia has a lower percentage of college graduates -17%.)

In the past ten years, Faulkner County gained 7000 jobs, a 22% increase. More than half of these jobs, 3800, were in the education, health, and government sectors. The largest percentage increase was in Natural Resources (mainly natural gas exploration). The number of jobs there went from 56 to 2507.

Construction jobs, surprisingly, had a slight increase (2%), from 2452 to 2507. Although home construction plummeted, commercial construction was very strong. The manufacturing sector on the other hand lost 2800 jobs. Manufacturing has become much more efficient, which means increasing production with fewer workers. These workers must be more skilled than before so an educated workforce is essential for highly efficient manufacturing. The remainder of the employment increase in Faulkner County has been mostly in the service and trade industry.

As for unemployment, the rate in Conway and Faulkner County has been lower than the state and the nation for more than a decade. The 2012 unemployment rate for Faulkner County (6.6%) and Conway (6.4%) are significantly below the national average of 8.1% and also below

the Arkansas average of 7.3%.

In Arkansas the median unemployment percentage for 2012 was 7.9%. Northwest Arkansas’s Madison County had the lowest rate (4.4%) and Clay County in Northeast Arkansas was highest (11.8%). Faulkner County is 17 ranks from the lowest among the 75 counties.

Higher unemployment rates tend to be in the southeast part of the state, which is predominately dependent on agriculture. Lower rates are in are more populated and diversified areas of Central and Northwest Arkansas. As for size, Faulkner County is the 5th most populous county in the state.

Faulkner County’s low unemployment rate is partly due to its stable employers. Of the approximately 40,000 workers, nearly a third (31.5%) are in education, health services and government. These sectors include public and private colleges and schools, hospital and health facilities, and state agencies such as AETN and the Human Development Center.

These employers tend to be very stable and thus buffer large swings in employment that might occur in manufacturing, construction, and gas exploration industries.

For Arkansas’ economy to grow we need a better-educated workforce. That means more investment in higher education.

Unfortunately, the opposite has been happening. When you consider enrollment growth, inflation, and increased operating costs, the state’s funding of higher education has not kept pace. In the face of insufficient appropriations from the state, tuition at the public four-year institutions has increased dramatically over the past decade. A college education is much less affordable today than earlier. For the fiscal year 2000, the state’s appropriations

covered 57.6% of the education and general budget of Arkansas four-year public universities; tuition provided 33.7%. By the fiscal year 2010 this relationship had flipped. Tuition was 48.9% of the budget and state appropriations were 44.3%.

This change is even more dramatic at our University of Central Arkansas. Tuition at UCA is 53.8% of the budget and the state appropriation is only 43.9%. In actual dollars, UCA received a smaller state appropriation per student in 2012 than it did in 2000. Decades ago the state provided in the neighborhood of 75 to 80 percent of a university’s education and general budget; tuition provided less than 20%. A college education today has become much more expensive at Arkansas public institutions of higher education because of the lack of state support.

It was possible, not too many years ago, for a student to work summers and part-time during school to pay tuition. That time is long past. Now, it takes all of that from the student plus family resources and student loans for the majority of the students. An increase in scholarships and grants has helped, particularly the state Challenge Scholarship, but it does not cover everyone nor all the costs for the recipients.

The mood of the current legislature is to reduce taxes.

The fact is that many of the State’s expenditures are set by court orders, federal regulations, and mandates, which leaves little discretion for cutting expenditures. The agency that is affected most by a reduction in revenue is higher education and this is an area where we should be investing heavily and not stunting our future.

I thank my friend Chris Spatz for editing and helping me with this article.

FAULKNER COUNTY BUSINESS JOURNAL | 7