2014-01 Faulkner County Business Journal

JANUARY 2014

CONWAY WEALTH MANAGEMENT BACKED BY THE DESIRE TO HELP, GREG PILLOW RECOGNIZED THE IDEAL TIME TO FOUND CONWAY BUSINESS, STORY PAGE 4.

2D — Sunday, January 19, 2014

Faulkner County Business Journal

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Warren named director of membership at Chamber The Conway Area Chamber of Commerce has hired Jimmy Warren II as its director of membership. Warren is responsible for member relations; membership investments; and member programs, services and benefits.

A native of Crossett, Ark., Warren earned a bachelor’s degree in speech communication from Arkansas Tech University. He previously worked for Hewlett-Packard’s inside sales division for more than four years.

“Jimmy’s experience coupled his initiative, energy and drive will serve our Chamber members well,” said Lindsay Wygal, senior vice president of Chamber opera-

tions. “He is passionate about helping people and will be a great resource for businesses looking for ways to get the most out of their Chamber membership.”

Warren resides in Conway with his wife, Shakira, and their two daughters: Amaya, 6, and Alivia, 2. He said working at the Chamber gives him an opportunity to help make Conway an even better community in which his children can grow up.

“Being a father of two young daughters, I realize how the community you are raised in can impact your life,” he said.

“I want to make sure I dedicate my all and help in every possible way to make Conway better.”

Jimmy Warren

Conway to host simulcast of global leadership event Community business leaders can access the knowledge and experience of world-renowned leaders by attending Leadercast® at Central Baptist College in Conway on May 9, 2014.

The Leadercast event is broadcast live from Atlanta, Ga., to hundreds of sites around the world, including Conway. This year’s speaker lineup includes: • Andy Stanley, leadership author and communicator • Archbishop Desmond Tutu, Nobel laureate and human rights activist (live from Cape Town, South Africa) • Malcolm Gladwell,

journalist and best-selling author of The Tipping Point and Outliers • Randall Wallace, screenwriter, director, producer and songwriter (Braveheart, Secretariat) • Jack Welch, former CEO of General Electric • Laura Schroff, former ad sale executive and best-selling author of An Invisible Thread • Dr. Henry Cloud, clinical psychologist and leadership consultant • Simon Sinek, best-selling author of Start with Why and leadership expert • Laura Bush, First Lady of the United States, 2001-2009 (via exclusive

video interview) Last year, more than 100,000 leaders from 14 countries attended Leadercast. Now in its 15th year, this full-day, experiential conference is on track to reach its largest audience to date. This is the third consecutive year the Conway Area Chamber of Commerce has hosted a broadcast in Conway.

“Leadercast is an event that our organization has taken full advantage of for purposes of perspective,” said 2013 attendee Kevin Ward, general manager at Kimberly-Clark Corporation. “The experiences and viewpoints of the guest speakers have connected well with our

own leaders. The variety of speakers has been key; each resonates slightly differently for our participants.”

Leadercast exists to change positively the way the world thinks about leadership. This year’s theme — Beyond You — challenges leaders to focus outward rather than inward. Experience Leadercast live on May 9, 2014, and discover what it means to be a leader worth following.

For more information about Leadercast, visit www.leadercast.com. For local ticketing information, call 501-932-5411 or visit www.ConwayChamber.org.

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Sunday, January 19, 2014 — 3D

Faulkner County Business Journal

White earns public relations credential Adena White, director of communications for the Conway Area Chamber of Commerce, has successfully completed the Examination for Accreditation in Public Relations, entitling her to use the APR professional designation. The designation is granted by the Universal Accreditation Board (UAB), a consortium of nine professional communication organizations that directs this competency certification program.

The Accreditation program aims to improve the practice of public relations by assessing competence in 60 areas of knowledge, skills and abilities associated with the profession.

The Examination is designed for public relations professionals with five to seven years of job experience and/

Adena White

or a bachelor’s degree in a communication field.

Candidates who successfully complete the process, which includes presenting his or her portfolio to a Readiness Review panel of three Accredited peers and

sitting for a computerbased Examination, are granted the APR. The computer-based portion of the Examination is administered throughout the year at more than 300 Prometric Testing Centers. The

Readiness Review is conducted prior to the computer-based portion of the Examination by a panel of three Accredited members of one or more of the nine organizations participating in the UAB. Professionals earning

the APR must maintain their credential through continuing professional development, providing leadership to the profession, and serving their local communities.

“By earning the APR, Adena has demonstrated a commitment to the public relations profession and a strong code of ethics,” said Jamie Gates, senior vice president at the Conway Area Chamber of Commerce.

“This achievement is a public recognition of all the things she has done to strengthen our organization.”

White is a member of the Public Relations Society of America. She is serving a three-year term on the board of directors for the Arkansas Chapter of PRSA. About the Universal Accreditation Board The UAB was estab-

lished in 1998 by a coalition of public relations professional organizations that today includes the Public Relations Society of America, the Agricultural Relations Council, Asociación de Relacionistas Profesionales de Puerto Rico, Florida Public Relations Association, Maine Public Relations Council, National School Public Relations Association, Religion Communicators Council, Southern Public Relations Federation, and Texas Public Relations Association.

Each organization contributes resources and senior-level volunteer members who represent all segments of the public relations profession. For more information about the UAB and the APR designation, visit www.praccreditation.org.

Save the date for upcoming Chamber events The Conway Area Chamber of Commerce products and services to hundreds of potential has secured dates for several of its 2014 events. customers.

Events at the Chamber serve four primary purposes: Connect Fun and informal networking events such as Honor Bowling for Business and Business After Hours Awards programs such as Annual Meeting, give individuals the opportunity to develop relaAcademic Signing Day, Minority Enterprise De- tionships with others in the Conway-area busivelopment Awards Gala, and Women in Busi- ness community. ness celebrate achievements and recognize the contributions of individuals and businesses in Grow the Conway area.

CEO Luncheons and Leadercast feature local and internationally known leaders who inPromote form and inspire business professionals by sharBusiness Expo and Taste of Conway as well ing their experiences and advice. as the Teacher Breakfast and Education Fair Visit ConwayChamber.org for the latest inare business-to-business and industry-specif- formation about upcoming events hosted by the ic trade shows that allow companies to exhibit Conway Area Chamber of Commerce.

UPCOMING EVENTS March 20

Annual Meeting

May 2-4

Toad Suck Daze

May 9

Leadercast

May 15

Academic Signing Day

Oct. 9

Business Expo & Taste of Conway

Oct. 16

Conway Downtown Partnership Annual Meeting

Dec. 9

Women in Business

4D — Sunday, January 19, 2014

COVER STORY

Faulkner County Business Journal

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‘THE BEST WAY TO SERVE’

CONWAY WEALTH MANAGEMENT HELPS CLIENTS REACH FINANCIAL GOALS A desire to help people was one of the reasons Greg Pillow, CFP®, became a financial advisor and, ultimately, a Certified Financial Planner™.

He began his career 15 years ago with Edward Jones Investments and later worked for Merrill Lynch. In 2010, Pillow and a colleague formed an independent practice.

“After Merrill Lynch merged with Bank of America, we saw that as a good opportunity to open our own business,” Pillow said. “I recognized that becoming an independent financial advisor was the best way to serve my clients.”

In what Pillow describes as a “natural evolution,” he embarked on his own and opened Conway Wealth Management on July 1, 2013.

The business is located at 707 Parkway St., Suite 104, in downtown Conway. Since opening, Pillow has helped existing clients and several new families pursue their financial goals.

Conway Wealth Management offers a number of products and services for individuals and businesses, including comprehensive financial planning, retirement planning, investment management, estate planning, business succession planning and business retirement planning. The firm also assists clients with the

Conway Wealth Management’s Greg Pillow, Rita Stapleton and Jessie Hogan.

purchase and evaluation of life insurance, longterm-care insurance and disability insurance.

“A common misconception for our industry is that financial planners trade stocks all day.

Yes, we can buy stocks and bonds for people, but that’s not the only thing we do,” Pillow said.

“What we do is try to help our clients improve their financial situations.”

Client needs range from making a budget and balancing accounts to deciding how to pursue major purchasing and in-

vestment decisions. “Our primary focus is helping people with investments.

I specialize in retirement planning for individuals and small business owners,” Pillow said. “Much of our work, however, is an education process. We spend a lot of time helping people decide whether or not they should refinance their mortgage or if they should buy or lease a vehicle.”

Conway Wealth Management’s clients have access to Web-based financial planning software that allows them to

get a holistic view of their assets. Pillow said the tool enables his clients to aggregate their accounts and manage their finances at their fingertips.

“If they choose to, clients are able to use this technology to see their retirement and other investments at work. They can also set it up so that they can view and organize information about their mortgage, car loans, bank accounts and insurance. Not all financial advisors use this tool.”

Pillow said that as an independent wealth

management company, Conway Wealth Management has the flexibility to offer clients the solutions that best meet their needs. “We determine — at a local level — what’s right for each family’s situation,” he said. “Unlike some of the major firms, we do not have proprietary products we are encouraged to sell.”

One important thing Conway Wealth Management does have in common with major brokerage firms is investor protection. ProEquities, Inc., a broker-dealer

contracted with Conway Wealth Management, gives the firm access to mutual funds, annuities and direct investments. It also helps Conway Wealth Management meet regulatory obligations as well as providing fraud protection through the Securities Investor Protection Corporation, aka SIPC. Pillow, office administrator Rita Stapleton and receptionist Jessie Hogan make up the staff at Conway Wealth Management. “I’ve worked with Rita since 2010.

She plays a vital role in running the office and her banking background comes in handy in making sure everything gets processed,” Pillow said.

“She also does an excellent job working with clients.”

A graduate of the University of Central Arkansas, Pillow said Conway is a great place to do business. “Conway is a progressive town that’s full of good people. The entities representing Conway have worked together well to create a business-friendly environment.”

Disclaimer: Advisory Services offered through Investment Advisors, a division of ProEquities, Inc., a Registered Investment Advisor. Securities offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC. Conway Wealth Management is Independent of ProEquities, Inc.

6D — Sunday, January 19, 2014

Faulkner County Business Journal

Conway Economy at a Glance Unemployment Rate* November US ..............................7.0% Arkansas..............................7.5% Faulkner County ................ 6.8% Conway 6.9% *Faulkner County & Conway not Seasonally Adjusted Sales Tax Collections Conway* October 2013 ....................$1,938,156 2012 ....................$1,849,793 Percent Change 4.8% Year to date (October) 2013 ..................$19,072,232 2012 ..................$18,926,125 Percent Change 0.8% Annual 2012 ..................$22,944,163 2011 ..................$22,366,464 Percent Change 2.6% *Tax Rate 1.75% Faulkner County* October 2013 .......................$711,487 2012 .......................$681,433 Percent Change 4.4% Year to Date (October) 2013 ....................$7,082,557 2012 ....................$7,039,323 Percent Change 0.6% Annual* 2012 ....................$8,465,686 2011 ....................$8,279,301 Percent Change 2.3% *Tax Rate 0.5% Restaurant Sales* November 2013 ..................$13,422,740 2012 ..................$12,724,484 Percent Change 5.5% Year to Date (November) 2013 ................$137,612,171 2012 ................$135,096,301 Percent Change 1.9% Annual Sales 2012 ................$151,611,408 2011 ................$147,820,786 Percent Change 2.6% *Including mixed drink sales

Hotel Sales November 2013 ....................$1,277,117 2012 ....................$1,206,392 Percent Change 5.9% Year to Date (November) 2013 ..................$17,480,219 2012 ..................$17,526,682 Percent Change -0.3% 2012

Annual Sales ..................$18,683,676

2011 ..................$18,662,136 Percent Change 0.1% Conway Building Permits Single Family Homes Annual 2013 ...................147 Permits 2012 ...................186 Permits 2011 ...................153 Permits Percent Change 2012-13 -21.0% Average Construction Cost* Annual 2013 .......................$228,275 2012 .......................$207,537 2011 ......................$204,387 Percent Change 2012-13 10.0% *Not including land or lot improvements Average Square Footage* Annual 2013 .............................3,002 2012 .............................2,910 2011 .............................2,814 Percent Change 2012-13 3.2%

Construction industry still in the tank

By Roger Lewis

While national indicators show that the economy is slowly recovering, the economy of Conway and Faulkner County appears stagnant. Sales tax collections are up less than one percent, the unemployment rate has increased to state and national levels, and construction is at a 10-year low.

The construction industry and particularly home construction is an important engine in our local economy. Home construction generates jobs, retail sales, and sales tax and real estate tax revenue.

Table 1 shows statistics for single-family home construction in Conway for the most recent six years.

In 2013 only 147 building permits were issued. Not only was this the lowest since the recession started in 2008, it is the lowest since 1992 when I began tracking this data.

Average Construction Cost Per Square Foot* Annual 2013 ...........................$76.04 2012 ...........................$71.33 2011 ...........................$72.64 Percent Change 8i2012-13 6.6%% * Total under roof Lottery Sales Faulkner County

Annual 2013 ..................$17,038,277 2012 ..................$16,943,909 2011 ..................$16,768,678 Percent Change 2012-13 .06% Total State Annual 2013 ................$432,932,799 2012 ................$452,245,215 2011 ................$474,879,701 Percent Change 2012-13 -4.3% Natural Gas Severance Tax Distribution Conway Annual 2013 .......................$276,523 2012 .......................$162,457 2011 .......................$254,822 Percent Change 2012-13 70.2% Faulkner County Annual 2013 .......................$224,455 2012 .......................$131,418 2011 .......................$204,052 Percent Change 2012-13 70.8%

Information provided by pulseofconway.com

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Other trends are apparent in Table 1: houses are getting larger (up 7%), more costly (11% increase), and consequently more valuable (up 18%). These trends imply that fewer entry-level homes are being constructed. In fact, only 19 houses had construction costs of $100,000 or less. These19 represent just 13% of the houses constructed.

Another factor that has raised the price of housing in Conway is that infrastructure development costs have escalated. The average construction cost of $228,278 for homes built in 2013 does not include the cost of the lot. Lots run from $35,000 to as high as $100,000. This puts the average cost of a newly constructed home into the $250 - $300 thousand range, which is well above the budget of many buyers, particularly first time homeowners.

When other residential units (duplexes and apartments) are added to the picture, 2013 remains a disappointment. Except for 2011, the 299 total family units built in 2013 were the lowest since 1992.

The national picture, however, is fairly rosy. The National Association of Home Builders forecast a 17% increase in single-family home construction in 2013 and a 24% increase in 2014. According to

NAHB Chief Economist David Crowe last fall, “The previous three months for new-home sales have all been revised up, and the final quarter of 2013 is shaping up to be the best quarter since the second quarter of 2008. Historically low interest rates, affordable home prices and a healing economy are bringing buyers back into the marketplace.” This is not the story in Conway Arkansas.

Why is Conway lagging in home construction when it has been so robust in previous years? There is no single answer; a combination of factors is at work. Although interest rates have remained low, it is more difficult to qualify for loans so many first time home shoppers are shut out of the market. The increased regulation of the home mortgage industry was a result of the mortgage crises of 2008. Also, the population of Conway is not expanding at the same rate as earlier. From 2000 to 2010 the population increased from 43,167 to 58,908, an average increase of 1574 per year. From 2010 to 2012 the population increased to 61,246, an average of 1169 per year. Local economic events have contributed: a moderating natural gas industry and layoffs at Acxiom and Hewlett Packard. Finally, the recession has produced a less mobile population, nationwide.

But what about commercial construction? Is it down too? In a word, Yes. Table 2 shows the value of all construction for the past six years for both residential and commercial. This includes new construction, remodeling and additions. Table 2 shows that commercial construction in 2013 ($59.5 million) was back down to the level of 2008 ($58.9 million) after a 5-year upward trend that ended in 2012. An overall statistic is that the total residential and commercial construction in 2013 ($110 million) is only 78 percent of the total six years ago.

In 2012 the largest commercial permit was approximately $52 million at the new Conway Airport. In 2013 the largest project granted a permit was Faulkner County’s Criminal Justice System located on South German Lane ($10.6 million). Oth-

CONSTRUCTION < 7D

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Sunday, January 19, 2014 — 7D

Top 5 Residential Home Sales

Steve Mueller

SWN CEO Mueller featured guest at ’14 Annual Meeting

Price Address $432,500 60 Caney Creek Road $347,000 745 Bristol Lane $302,000 54 Hwy. 25 $296,000 2460 Ginger Kerry Lane $247,000 8 Trafalgar

Bed Bath Subdivision SqFt 4 4 n/a 5,130 4 3 Bristol Place 2,630 4 2.5 n/a 3,284 6 3 Dogwood Estates 3,367 4 3 Westminster 2,775

CONSTRUCTION from 6D er 2013 projects that ranged from $3 million to $5.5 million were: Hendrix Stadium ($3.0), CBC Library ($3.4), Crain KIA Dealership ($3.5), Hendrix Village Dorms ($4.2), Walmart Neighborhood Market ($4.9) and Second Baptist Church ($5.5).

The conclusion seems clear: The construction industry is still in the tank. Is 2013 the start of a downward trend or is it just one of the usual downs of our up-and-down economy? I am optimis-

Price/SqFt Yr Built $82.85 2000 $133.04 2013 $98.93 1973 $88.80 2001 $93.51 1991

tic that we will have an upward trend in construction as well as the economy in general. Conway and Faulkner County seems to lag behind economic trends. As the construction industry is rebounding nationally, we will follow.

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).

Steve Mueller, president and CEO of Southwestern Energy Company, will be the featured guest at the Conway Area Chamber of Commerce’s Annual Meeting, presented by HewlettPackard and the University of Central Arkansas.

The event is scheduled for Thursday, March 20, at 6:30 p.m. and will take place at the Conway Expo Center and Fairgrounds.

Muller joined SWN in

2008 as president and chief operating officer and was named CEO in May 2009. He has more than 30 years of experience in the oil and gas industry and serves on the boards of America’s Natural Gas Alliance, the American Exploration and Production Council, and the Independent Petroleum Association of America.

In addition to the CEO-level guest speaker, another highlight

is an awards presentation honoring individuals and businesses that have made a difference in Conway over the past year. The nomination process has closed and winners will be announced in February.

Tables and sponsorships start at $600 and individual tickets are $75. To reserve space, contact Mary Margaret Satterfield at Mary@ ConwayArkansas.org or 501-932-5412.

Downtown Partnership to host ‘Moonlight Madness’ More than 25 downtown stores and restaurants will participate in the Moonlight Madness shopping event on Friday, Jan. 31. Organized by the Conway Downtown Partnership, Moonlight Madness has

been a downtown tradition for more than 20 years.

Many storeowners will keep their doors open for extended hours — from 6 to 9 p.m. — and invite Friday-night shoppers and diners to

browse their selection and take advantage of special offers.

To stay informed about events happening downtown, visit the Conway Downtown Partnership’s website at DowntownConway.org.