New Yorkers were recently asked what state was home to the No. 1 Fortune 500 company in the world. Few gave the correct answer: Arkansas, Wal-Mart's base.
Arkansas is corporate headquarters of four other Fortune companies, a fact that surprises most business people. Numerous divisions and facilities of other major companies such as General Dynamics and Frito Lay have a presence in the state.
A growing, diversified economy includes agriculture, aerospace, biotech, high tech, transportation/distribution, and advanced manufacturing. Almost 22 percent of Arkansas workers are employed in manufacturing, higher than the 14 percent reported nationally. In the 1990s, business and health services increased by 40 percent.
Regardless of size or industry, companies point to the same reasons for choosing Arkansas: its pro-business environment, quality of life, responsiveness, and location.
The cost of doing business in Arkansas is "business-friendly."
A Governing magazine study reported that Arkansas is 11th of 50 states in energy costs, tax rates, and labor costs. The Arkansas Department of Economic Development assists businesses in dealing with specific needs. The department will conduct a cost-benefit analysis and may design a tailored incentive package.
Packages may include Advantage Arkansas, the Arkansas Enterprise Zone program; Invest Ark, Economic Investment Tax Credit Act, and the Create Rebate Program. Other available incentive programs include biotechnology development and training, child care facility tax incentives, emerging technology development, tourism development, and motion picture incentives.
Arkansas is the center of the United States, halfway between the Atlantic and Pacific and the mid-point between Toronto and Mexico City, making it an ideal point for distribution centers.
Location was one reason Goody's Family Clothing, Inc. chose Russellville as the home for a new 235,000 square foot distribution center. The $18 million center serves 71 Goody's stores west of the Mississippi and employs 112 people.
Mike Bryant, vice president of distribution and logistics noted that, in addition to the ideal location, the people in Russellville were a deciding factor. "We looked at a lot of sites and we're happy to be here." He described the current work force as excellent.
Russellville was also the choice for Joe Paulk Co.'s new facility. A national distributor of products for the correctional commissary industry and convenience stores, the new location will have 30,000 square feet of storage space and 40,000 square feet of office space.
With a population of approximately 25,000, Russellville is an incredibly diverse community that includes blue collar workers as well as nuclear physicists. The work force supports the diversity of the business community. More than 38 manufacturers are located here as well as major corporations such as ConAgra, with a single facility employing 1,200, and Tyson Foods, the town's largest employer with a work force numbering 2,600.
Arkansas Technical University is based in Russellville, adding to the intellectual energy and cultural offerings of the town. The state's fastest-growing higher education institution, it boasts 5,500 full-time students.
A Commitment to Learning
More than 95 percent of the state's residents live within 30 miles of one of Arkansas' 23 technical and community colleges, making them ideal partners for developing the work force. A Workforce Readiness Curriculum was recently created which is particularly effective with welfare-to-work individuals. Customized training programs are available to companies.
To support the growing needs of advanced manufacturing, computer/information technology, and biotech, the state instituted its Arkansas Technical Careers Student Loan Forgiveness Program. The program eliminates or forgives the loans of students in these fields who work in the state after graduation.
The state provides a 30 percent income tax credit for reimbursements companies make for approved educational expenses. Companies must meet certain criteria to be eligible for the credit and employees must pursue study at an approved post-secondary educational institution.
Like Goody's, the quality of the work force was a major factor for GC Services in selecting Arkansas for expansion.
In April, GC Services announced it would open an office in Little Rock to handle the accounts receivable management services of an international client, creating 400 jobs.
Frank Taylor, president and COO of GC Services Limited Partnership, explained, "Having access to an enthusiastic and educated work force is of critical important in our site selection process. The work ethic and commitment to quality found in the Little Rock area is a perfect match for GC Services."
Nestle USA selected Jonosboro as the site for its new frozen foods manufacturing facility, investing $165 million in design and construction. Production of Stouffer's and Lean Cuisine brands is slated to start in the first half of 2003. The 325,000 square foot facility's design will allow for future expansion.
"The site in Jonosboro offered the best combination of an enthusiastic work force, competitive operating costs, a central U.S. location and a strong emphasis on quality of life," says Jay Weaver, vice president of operations for Nestle USA's Prepared Foods Division. "By quality of life, I mean the quality of the residential neighborhoods, the schools, and the medical institutions."
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