Gov. Mike Beebe said in late August he was optimistic Arkansas would soon see results from job recruitment efforts associated with the Wal-Mart manufacturing summit. The optimism was not unfounded.

Grant Tennille, executive director of the Arkansas Economic Development Commission, told The City Wire that an announcement is likely before the end of the month on one company planning to set up manufacturing operations in Northwest Arkansas. Tennille said a second company is “really, really close” to making a commitment to Arkansas.

Beebe was one of eight state governors to attend the “U.S. Manufacturing Summit” in Orlando, Fla., that was held Aug. 22-23. The event connected economic development officials from 36 states with about 600 Wal-Mart suppliers and retail vendors.

The summit was the first high-profile public event held by Wal-Mart following the Jan. 15, 2013, company pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods. Company officials have said they hope to boost U.S. manufacturing – often referred to as “onshoring” – by purchasing more sporting goods, apparel basics, storage products, paper products, textiles, furniture and higher-end appliances.

Tennille said the two manufacturing companies are in the plastics extrusion/molding sector and “do a lot of high-volume work” for Bentonville-based Wal-Mart Stores Inc. And while there will be a “relatively smaller number of jobs” with the two deals, Tennille said they are “good-paying jobs.” He also said the jobs number could grow if and when the companies move more of their operations to the U.S.

Some operations – especially those that are high-volume providers to Wal-Mart or suppliers to the retailer – that move back the U.S. will have to do so in a way as not to disrupt the supply chain.

“Hopefully, as they are able to move that (production) back in stages, then we are able to see that (jobs number) grow,” Tennille explained.

Beebe, following a Tuesday jobs announcement in Fort Smith, said he spoke Monday afternoon to representatives of the company planning to move some production to Arkansas.

“Oh yeah,” Beebe said emphatically when asked if the Wal-Mart onshoring effort will produce results for Arkansas. Later in the interview, Beebe said, “I’m very proud of Wal-Mart and Bill Simon.”

Simon is the president and CEO of Walmart U.S.

Tennille is not surprised two announcements may happen in the next few weeks. He said Wal-Mart is working with suppliers and in some cases agreeing to longer-term contracts for companies that move production back to the U.S.

“I’m not surprised that we’re getting results so quickly because what Wal-Mart is doing is not window dressing. This is real. They are looking at all suppliers, from top to bottom, and figuring out what may work. ... They might, just as an example, move them (supplier) from a one-year to a three-year contract if they bring some of that (production) back over here,” Tennille explained.

Randy Hargrove, director of national media relations for Wal-Mart, confirmed that the retailer is working with suppliers to incentivize onshoring. Hargrove provided the following statement to The City Wire:
“We can collaborate with manufacturers, make longer term product commitments on basic goods and help connect them with the best resources so they can make the most informed decisions about capital investments. One of the benefits to producing closer to home is responding to trends and seasonal business trends and customer demand changes. Having that flexibility is great for the customer, supplier and meeting customer needs.”

Tuesday delivered a visible beginning of the end for the 188th Fighter Wing mission in Fort Smith as two A-10 war planes departed the Fort Smith Regional Airport for a new home at Moody Air Force Base in Georgia.

The 188th is in the early stages of a conversion from A-10s to a remotely piloted aircraft and Intelligence mission.

“Over the course of the coming months, the 188th will lose two aircraft per month until June 2014, when the final two are slated to depart. Tail Nos. A0644 and A0614 were the first two to leave on Tuesday. Those two A-10s will join Moody AFB’s 75th Fighter Squadron. Two 75th pilots arrived in Fort Smith via commercial flights and flew the former 188th jets back to Moody AFB,” noted a statement from the 188th.

The next two A-10s are set to leave in October.

Broad cuts in U.S. defense spending – possibly up to $500 billion over 10 years – include the removal of the 20 A-10 Thunderbolt fighter planes from the 188th Fighter Wing in Fort Smith.

With the loss of the A-10 mission and the new MQ9 (drone) mission, along with the relocation of the 123rd Intelligence Squadron from Little Rock Air Force Base to Fort Smith and other shifts, Fort Smith's base should only see a small reduction in individuals stationed at the site, according to 188th commander Col. Mark Anderson.

Anderson said during a Sept. 6 address to members of the Fort Smith Regional Chamber of Commerce that 977 positions are based at the 188th, which will be reduced to 960 positions as a result of the realignment.

While the number of positions will not see drastic changes, the types of positions will be vastly different. For example, Anderson said the base will lose all aircraft maintenance jobs and most aviation support positions as the drone mission will not require "guys with wrenches" to be on site and servicing the drones.

“While we’re sad that our A-10s had to go, we’re getting a cutting edge mission that will feature a substantial Intelligence and RPA mission. It’s definitely bittersweet,” Anderson said in the 188th statement issued Tuesday (Sept. 10).

The 188th statement included the following history with the A-10.
• The 188th received its Warthogs in April 2007.

• The 188th deployed 10 A-10s and nearly 300 Airmen to Kandahar Air Base, Afghanistan in 2010.

• The 188th logged the largest deployment in unit history in 2012 when it sent 10 A-10s and nearly 400 Airmen to Bagram Airfield, Afghanistan.

• While in Bagram, the 188th set deployment records in combat sorties (1,850), combat flying hours (8,000), precision guided munitions drops (375), 30mm Gatling gun rounds fired (60,000) and rockets launched (210). The 188th provided vital close-air support to nearly 500 troops in contact on the battlefield with an astounding zero air tasking orders missed.

• While deployed to Bagram, the 188th maintained an 87 percent mission capable rate.

• During its last deployment, the 188th was heavily tasked, flying in three months at Bagram what would typically take two years to accomplish in a home station training environment in Fort Smith.

• The 188th consistently led all five A-10 Air National Guard units in all key metrics, including mission capable and fully mission capable rates.

188THHISTORY

According to the 188th website, the unit began in October 1953 as the 184th Tactical Reconnaissance Squadron.

The unit has been home to nine aircraft types, beginning with the RB-26, a twin-engine modified bomber. The unit converted in 1956 to the RF-80, a jet aircraft, when the unit was assigned a daylight reconnaissance mission.

The RF-84F arrived in 1957, and was replaced in 1970 by the RF-101 (Voodoo).

In 1972 the unit’s recon mission ended with the arrival of the F-100 Super Sabre. The unit was recast as the 188th Tactical Fighter Group. In 1979, the “Flying Razorbacks” handle was adopted by the 188th when it received the F-4C Phantom.

In 1988 the F-16A Fighting Falcon replaced the F-4C, and in 2000 the F-16s were upgraded to the F-16 A variant.

A last-minute decision by the Base Realignment and Closure Committee in 2005 replaced the F-16 with the A-10. On April 14, 2007, the 188th received its first A-10.

Citizens of Fort Smith may not notice anything different, but following today's (Sept. 10) Board of Directors study session, the city will begin attempts to incorporate compressed natural gas vehicles into the city's moving fleet as older vehicles are aged out and replaced.

The consensus by the Board came after a pilot program was conducted across various city departments, including the fire department, customer service department, police department and transit department.

Results for the various departments have been mixed, according to Deputy City Administrator Jeff Dingman. In a memo the Board, Dingman said the cost of converting the fire department's 2012 Chevrolet Silverado 1500 pickup was $5,250, with an expected break-even after 33 months of use.

"The Fire Department reports that its performance experience has been very good," he wrote. "They have had no maintenance issues with the vehicle, and do not notice a performance difference in either responsiveness of fuel economy whether the vehicle is operating on gasoline or CNG, averaging 15 miles per gallon regardless of fuel. It takes approximately eight minutes to refuel the pickup."

While the fuel economy does not appear to be any better on the Fire Department vehicle, Dingman did point out that the using natural gas has increased how long the truck can go between oil changes, from 3,000 miles using conventional fuel to 5,000 miles between changes using CNG.

On the other side of the CNG issue is the police department, which did report performance issues.

"The police department reportedly observed a reduction of power when operating on CNG," Dingman wrote. "CNG works for performing normal driving activities but does not allow an officer to initiate a swift response to a fleeing suspect when the situation requires, especially as compared to the gasoline-powered vehicles. The lack of responsiveness for quick acceleration motivates the operator to switch to gasoline for full power. Switching to gasoline for this reason, or for issues with fuel capacity noted above, reduces the efficiency of the CNG system and extends the payout period for the conversion cost."

Overall, the police department said not much was learned from the test vehicle, a 2010 Chevrolet Tahoe police pursuit vehicle, noting that without some sort of modifications to be more conducive to the demands of police patrols, CNG vehicles are not as reliable as gasoline-powered cruisers.

Even though the results were mixed, city directors present at today's study session were clear in their desire to continue pursuing CNG-powered vehicles.

"I think this is the wave of the future and to me, it's about clean energy," Director Pam Weber said. "Ultimately, this is an economic development tool, not only for our country but for our region because we are sitting on a very large natural gas deposit here in the Arkoma Basin."

Michael Callan, president of Arkansas-Oklahoma Gas, was on hand and told Weber and the rest of the board that the cost for fueling a CNG-powered vehicle was around $1 per gallon, versus $3.34 per gallon using conventional unleaded gasoline. With those costs reduced, plus the fewer needed oil changes on converted vehicles, he reiterated that conversions usually pay for themselves in about four years.

Callan said while he is a big proponent of CNG, he would advise against converting aged vehicles within the city fleet, instead focusing on new vehicles, namely trucks, that can be sent from a factory with the CNG conversion already completed and that include warrantees.

City Administrator Ray Gosack said as the 2014 budgeting process moved forward, he would make sure that a focus on CNG vehicle purchases was a part of the city's fleet replacement plans. But he cautioned that a large influx of CNG-powered vehicles may still be a long way off due to the fact that the city must work within budget constraints. Already this year, all departments have had to reduce budgets by 4% due to a reduction in sales tax revenues.

In other business, the Board discussed placing on the agenda at the next regular Board meeting an update to the city's current policy for the consideration of payment of claims related to sanitary sewer back-ups. Currently, the city will reimburse homeowners up to $500 to cover a deductible associated with a homeowner's insurance claim. The proposal would increase the maximum payment to $1,000 to keep with the rise in insurance deductibles.

The U.S. Marshals Museum Board of Directors on Tuesday (Sept. 10) approved a plan to move the museum site about 2,000 feet north on the Arkansas River bank in order to provide more space for the more than 52,000-square foot building.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the national museum. The cost to build the museum — including exhibit work — is estimated at around $53 million. Although the announcement was made in 2007, formal fundraising activities did not begin until the latter part of 2009.

Pat Mickle, with the Fort Smith-based engineering firm of Mickle Wagner Coleman, and Reese Rowland with Little Rock-based architectural firm of Polk Stanley Wilcox, presented the case as to why a move slightly up the river makes sense.

The primary reason is that the new site is almost double the size of the original tract near the Harry E. Kelley Park, and allows for more parking and more area in which landscaping can be used to better present the building, Mickle said. The move is made possible because the family of Robbie Westphal agreed to increasing the size of the land donated to the museum effort. Mickle and Rowland said visitor history at the Crystal Bridges Museum of American Art in Bentonville and the Clinton Presidential Library in Little Rock suggested that estimated visitor counts for the Marshals Museum may have been too low, thus the need to plan for more space.

Mickle said discussions to move the site arose when the families who own land on the riverfront – the Westphal family and the Richard Griffin family – began working with the city to ensure the highest and best use of the property.

“The Westphal family has been generous enough to say, ‘This is what we want to do,’” Mickle explained.

Bennie Westphal and Robin Clegg, son and daughter of Robbie Westphal, attended the board meeting. Bennie is a member of the museum board.

Rowland said the new site could provide up to 200 parking spaces, provides more incentive for higher-use ancillary development on both sides of Riverfront Drive, creates a more “pedestrian-friendly” path up the riverfront, will allow for better views of the river from inside the completed museum and allows for future physical expansion of the museum if needed. The old site provided little to no space for expansion.

“The other site was great, but this site is much better,” Rowland said.

Bennie Westphal said the family was happy to change the location.

“It needs to be done right. ... This museum is going to be an asset to this city long after we’re gone,” Westphal told the board. “I think my father would be very proud of this day.”

Rick Griffin said the goal of the change is to ensure “the entire area develops correctly,” and he praised city officials for helping landowners and museum officials with that goal.

“I really want to give a shout out to the city. They have bent over backwards to work with us on this,” Griffin said.

The board unanimously approved the process to deed the first location back to the Westphal family in exchange for the new property.

Griffin said the move marked a “momentous day” because it allows the construction planning process to begin.

Museum officials have said they hope to break ground on Sept. 24, 2014, the 225th anniversary of the U.S. Marshals founding by President George Washington.

Jim Dunn, president and CEO of the U.S. Marshals Museum, said in mid-August that the museum effort needs between $10 million and $15 million more to reach the “threshold” of between $30 million and $35 million needed to break ground and begin construction. Dunn is confident they will meet the September 2014 date.

Gov. Mike Beebe said Wednesday (Sept. 11) that any short-term solution to a $53 million shortfall in the Public School Health Insurance program must be tied to a long-term solution that could include reducing or repealing recently passed tax cuts.

Beebe, interviewed by Roby Brock in the latest installment of “Talk Politics,” said any money placed in a short-term fix must be “a bridge to get to the long-term solutions.”

Also during the interview, Beebe commented on his plans when he leaves the governor’s office, political ethics, working with Wal-Mart to bring manufacturing jobs to Arkansas, and the presumptive gubernatorial battle between Democratic candidate Mike Ross and Republican Asa Hutchinson.

TEACHER INSURANCE ISSUE
The $53 million deficit is threatening near 50% increases in premiums to be paid by teachers and other plan participants, and lawmakers face growing pressure from teachers and other school employees to address the problem. The Joint Education and Insurance committees met Sept. 9 to debate options for closing the gap, including a call for a special session from one state senator.

The public school health insurance plan, which provides coverage for roughly 47,000 teachers and school personnel in Arkansas, has been troubled for months. Lawmakers were made aware of the problem as early as December 2012, according to minutes from an insurance subcommittee meeting. Toward the end of the session, the issue was debated with lawmakers and Beebe agreed to move $8 million in general improvement funds to handle several catastrophic claims that hit the system.

Beebe on Wednesday said the premium increases are “awfully high,” and teachers will get “hit with catastrophic increases” if the Legislature waits until the fiscal session in early 2014 to address the issue. However, Beebe stopped short of advocating for a special session, saying that it was his job to gather and present options to the Legislature so a consensus could be reached before a session is called.

“If you can agree on that (consensus solution), then you can get in and out in three days” and not waste taxpayer dollars on an extended special session, Beebe said.

What are some options? While declining to say which option he thought best, Beebe’s options include reducing or halting tax cuts approved in the recent session, pulling money from other funds, increasing state control of how school districts allocate money for insurance and reviewing the system for possible changes.

“How did we get here? The system has more claims paid out than money coming in. ... It’s a business. It’s an actuarial function,” Beebe said.

A specific example Beebe mentioned as a source of money for a short-term solution is an about $200 million fund that supports the National School Lunch Act program. The NSLA money supports programs and direct services to benefit low-income students in public schools.

“That’s just one of the options. Now, a lot of superintendents don’t want to do that,” Beebe said.

ETHICS ISSUES
In the recent year, several elected officials have faced ethical and criminal procedures that either forced them out of office or forced them to drop out of political races.

Arkansas Treasurer Martha Shoffner (D) was forced to resign after it was revealed she accepted bribes. Sen. Paul Bookout, D-Jonesboro, resigned from office after it was discovered he used campaign funds for personal gain. Lt. Gov. Mark Darr (R) dropped out of the 4th Congressional District race after Matt Campbell with the Blue Hog Report blog reported on discrepancies and expenses in Darr’s campaign finance reports related to campaign debt from his Lt. Governor’s race.

Beebe told Brock that “progress on that (ethics reform) should continue,” but laws will never prevent unethical behavior.

“I don’t know you ever legislate ethics, ultimately,” Beebe said.

As to whether Darr should follow Bookout’s action and resign from office, Beebe noted that what is “good for the goose is good for the gander.”

“If it’s true, it’s wrong and there have to be consequences,” Beebe said of the allegations against Darr.

OTHER ISSUES
• 2014 Governor’s race, elections
Beebe has endorsed Ross and plans to actively campaign for Ross, but said he believed Hutchinson “would be more pragmatic than a lot of people think he would be.” He pointed to Hutchinson’s support of Arkansas’ private option plan that will regulate how the state spends money under the new federal healthcare system (Obamacare).

However, Beebe said he is actively campaigning for Ross because he trusts that Ross will follow an education and economic development focus that has been the core of Beebe’s time in office.

Beebe also said he may campaign in some legislative races, but not during the primary election cycle.

• Working with Wal-Mart
Beebe said state officials are now working with three companies that may locate in Arkansas as a result of the effort by Bentonville-based Wal-Mart Stores Inc. to return manufacturing to the U.S.

Beebe was one of eight state governors to attend the “U.S. Manufacturing Summit” in Orlando, Fla., that was held Aug. 22-23. The event connected economic development officials from 36 states with about 600 Wal-Mart suppliers and retail vendors.

The summit was the first high-profile public event held by Wal-Mart following the Jan. 15, 2013, company pledge to purchase in the next 10 years an additional $50 billion in U.S.-made goods.

One reason Beebe is confident Arkansas will benefit from the effort is because “we’re seeing more and more patriotism” among American consumers when making choices between domestic- and foreign-produced goods.

• Retirement plans
Beebe, who will leave office in January 2015 after two four-year terms, quickly rejected the notion he could be selected by Hillary Clinton as a running mate in the 2016 presidential election.

“Number one she wouldn’t ask me, and number two Ginger (Beebe’s wife) wouldn’t let me,” Beebe said.

Beebe said his several decades of service as a state senator, Attorney General, and Governor has “been a good ride,” and he’s grateful for the opportunity to serve. He did say that with or without term limits, “eight years is enough for any governor.”

What will he do?

“I may teach a college course, may serve on a board or two,” Beebe said, and added with a laugh that his wife told him he couldn’t just stay at home.

He has several options, but said, “I’m going to wait a little while (after leaving office) and make that decision.”

Sticking with its low price strategy, Walmart U.S. CEO Bill Simon said the back half of this fiscal year will deliver improved financial results, led by rapid growth and strong comparable sales from the Neighborhood Market formats and several other initiatives on tap at the nation’s largest retailer.

Simon spoke to investors Wednesday at the Goldman Sachs retail conference in New York.

“We will continue to deliver low prices on the things people want. We did so on adult beverage alcohol products and have since gained marketshare in this category,” Simon said in his opening remarks. “We know being aggressive on price is key to driving store traffic.”

He said the rapid scale up in the Neighborhood Market format to 500 stores in the next 18 months is key to the company’s growth strategy as these stores are delivering mid single-digit positive same-store sales in a category that returned a 60% net sales growth in the past two years. The Neighborhood Markets are also key in the company’s ability to accelerate its online sales with the site-to-store pick-up option which is gaining traction, according to Simon.

Simon also said the Neighborhood Market and smaller format stores are stocked more heavily with general merchandise than in years past. He said the company’s Presidential Towers store in Chicago at any time could contain up to 30% of general merchandise from the site-to-store option.

“Our customers are using this option, many times ordering online then paying with a credit card when they pick it up in the store,” Simon added.

Wal-Mart also is using more stores to fill online orders, after piloting that program in recent months. He said the number of stores filling online orders are in the double digits and growing. The locker tests have also been well received as Simon told investors it’s been interesting to see the users’ inclinations to repeat purchases.

When asked about price leadership, he said Wal-Mart gets better separation from competitors when prices are moving up or down related to inflation or deflation. Simon said when prices are moving higher Wal-Mart can hold prices down longer because of the scale on which it procures product. Likewise, he said when prices are moving down, Wal-Mart can drop the prices ahead of other retailers because it moves more product faster.

He said Wal-Mart will lower the price if that added value pushes more sales, otherwise it doesn’t make sense.

PRODUCE GAINS
Simon said Wal-Mart will continue to capitalize on the success it is seeing in its fresh produce category spurred on by its “fresh audit” initiative that has improved the quality while also produced a 10% price gap between major competitors leading to solid marketshare gains in the past two quarters.

Carol Spieckerman, CEO of New Market Builders in Bentonville, has said the “fresh” category is an important element from big box retailers to convenient stores. She said companies that can figure out to deliver the freshest product for the best prices in convenient formats are bound to capture marketshare. Spieckerman said “fresh” is also an important traffic driver, but the one thing a retailer can’t afford to do is to disappoint a shopper who goes into a store looking for fresh items that are not there.

Wal-Mart’s “fresh audit” program uses a third party auditor who routinely checks on every store selling fresh produce. Simon said the auditor checks for quality and other specifications and scores the products according. He said if an auditor is checking tomatoes and three of them fail to meet the guidelines, that whole product group receives a failing score. If three different products fail, the entire store has failed.

“We are teaching the test and we expect them to pass. Our stores have a mid-90% pass rate,” Simon said, adding that the pass rate is 20% higher than the competition.

The results have meant improved comp sales of roughly 5.5% to 6% over the past two quarters. Comp sales in the fresh produce category rose from 1% to 6% in the year-over-year period, according to Wal-Mart.

HOME & APPAREL
Simon said the story of the year could be improving momentum seen in the retailer’s home and apparel divisions.

“We have always had strong basics and we continue add exciting national brands to our assortment mix. In the third quarter you will see Calphalon and Russell Athletics as two new brands. Russell athletic wear, new to the stores, is already selling very well,” he said.

The company also is offering Sealy mattress sets in a select number of stores. The product has been sold at Sam’s Club and online, but twin, full and queen mattress sets are now sold inside various supercenter locations.

When asked about its competitors, Simon praised Costco on its merchandising efforts, saying the retailer had long recognized the value of having veteran merchants. He said retaining retail experience is why Wal-Mart recently restructured the buyers’ salary and bonus incentives.

“It takes some time, particularly in the home and apparel categories to understand that those markets fully,” Simon said.

The buyers need to merchandise through several seasons, year over year to spot the trends, he added.

It was 12 years ago today that terrorists hijacked and crashed commercial airliners into the World Trade Center in New York, the Pentagon near Washington, and a field near Shanksville, Pa.

Close to 3,000 people died in the attacks of Sept. 11, 2001, which permanently changed the skyline of lower Manhattan and scarred the psyche of Americans and the world.

Groups across the Fort Smith area today (Sept. 11) remembered the lives lost, honoring their memories with moments of silence and ringing of bells.

In Fort Smith, Fire Chief Mike Richards lead the city's remembrance ceremony which started precisely at 9:28 a.m., the moment the north tower of the World Trade Center collapsed, filling the already smoky New York skyline with tons of soot, ash, melted metal and other debris.

"2,977 people died that day in the largest single foreign attack on American soil," Richards told gathered dignitaries and citizens. "We must never forget. Therefore today, we gather to remember and pay respect to them and the first responders to let the world know how the United States of American will always stand up for freedom regardless of the cost. For those that sacrificed their lives in the name of freedom that day, and the years to follow, we will honor them with a special tribute that is very special to our service."

As the crowd listened on in silence, a bell was rung to remember those who with "honor, pride and respect" died that morning, he said.

City Director Philip Merry was at the ceremony and while fighting back tears, recalled that even facing certain death, the passengers of United Flight 93 took a vote before deciding to challenge the hijackers and attempt to take back the flight.

"Two years ago, I went to the (Sept. 11) service in Shanksville by myself and just went up to take it in and you have recordings up there and testimonials and whatnot that prove that the people on Flight 93, it wasn't just (Todd) Beamer, (Mark) Bingham, (Tom) Burnett and others being a hero," he said. "(T)hey took the time to vote before they did it."

Merry, who is friends with Burnett's wife, Deena, who has since remarried and lives in Little Rock, said that one act should remind Americans not only on Sept. 11, but every election day, about the freedoms American citizens have due to ordinary citizens being willing to stand up and give their lives for the cause of freedom.

In Van Buren, remembrance ceremonies were planned for noon at the Crawford County Courthouse. At that ceremony, survivor Dale Brunk, who was on the 61st floor of Tower 2 during the attack on the World Trade Center, will share his experience of surviving the attack as well as his hope and vision for how the country can continue to move forward, according to an announcement from Van Buren's Heritage United Methodist Church.

While remembrances were held in the Fort Smith area, fewer – if any local government – remembrances were observed in Northwest Arkansas, according to several individuals who spoke with The City Wire.

Officials representing the cities of Bentonville, Fayetteville and Rogers all confirmed that no events commemorating the attacks of Sept. 11 were scheduled and a representative from the Bentonville Chamber said she was unaware of any events scheduled in Northwest Arkansas.

The only publicized event marking the attacks was a blood drive taking place at the University of Arkansas. It was sponsored by the group Muslims for Life. On the organization's website, the group said the event was a way to honor those killed on Sept. 11 and also to emphasize a key Islamic teaching.

"To honor the victims of 9/11 and to emphasize Islam's essential teaching regarding the sanctity of life, the Ahmadiyya Muslim Community USA is organizing its THIRD annual 'Muslims for Life' Blood Drive between August 11, 2013 and October 11, 2013," the organization said. Attempts to reach a local representative of the organization were unsuccessful.

Members of the Arkansas Congressional delegation took time to remember the victims today, with U.S. Sen. John Boozman, R-Ark., calling on citizens to reflect and remember.

“We cannot, and must not, let the years that have passed erode the memory of the 9/11 terror attacks. Let us use this day to reflect and remember the victims and the heroes who sacrificed tremendously to keep us safe in the aftermath. We will never forget.”

U.S. Rep. Tom Cotton, R-Dardanelle, recalled the bravery of the victims that day.

"Today we pause to remember the lives tragically taken from us twelve years ago. It is impossible for us to forget that day—the pain and sadness will forever be etched on our hearts. But we also remember the heroism and selflessness of those who put their lives in danger to help their fellow countrymen.  We remember our unity and our strength and our country’s great resolve."

Recalling the horror of that day, U.S. Sen. Mark Pryor said first responders should continue to be thanked for their selfless service.

“Like most Americans, I still remember that fateful day—seeing the smoke rise out of the World Trade Center, the Pentagon, and Flight 93 and witnessing the pain on the faces of Americans who had lost family members, friends, and colleagues. We saw true heroism that day—and in the days, weeks, and years following. Today, we thank the troops, first responders, and families who have sacrificed so much for our nation and those who continue to put their lives on the line for our freedom. We must never forget and we must continue to take steps to protect our homeland.”

U.S. Rep. Steve Womack, R-Rogers, offered his prayers to the victims and those who have died in the fight against terrorism since the morning of Sept. 11.

“Today, we remember the innocent Americans who died in the horrific terrorist attacks on September 11th and the heroes that on that day – and for the twelve years since – have selflessly and readily fought to defend our freedoms and our people.  My thoughts and prayers and those of a grateful nation are with them and their loved ones.”

For anyone who has ever been involved with filmmaking, the process often times is long and tedious with hours spent filming a single scene and months of editing. Not to mention the writing of scripts and securing capital just to be able to get the project off the ground.

But a group of Fort Smith residents, along with about 29 other filmmaking crews across the state, have turned the filmmaking process upside down with their participation in the 48 Hour Film Project.

The project pits teams of filmmakers against each other in an attempt to write, shoot, edit and score a movie – all in two days. No more. No less.

The project's website said the goal of the event is to promote filmmakers and also advance the art of filmmaking.

"Through its festival/competition, the Project encourages filmmakers and would-be filmmakers to get out there and make movies. The tight deadline of 48 hours puts the focus squarely on the filmmakers — emphasizing creativity and teamwork skills. While the time limit places an unusual restriction on the filmmakers, it is also liberating by putting an emphasis on 'doing' instead of 'talking.'"

Locally, groups competed in the Little Rock-area competition. The top films from each American competition site will be featured at an event in New Orleans next year called Filmapalooza. And though groups from around the world are competing in local competitions, only the best from the various worldwide locations will be chosen to compete for the ultimate $5,000 prize in at the Cannes Short Film Corner in Cannes, France, a city known the world over for its very own international film festival.

‘METAFLOOR’
In Fort Smith, a group of more than 20 individuals came together to compete, having to incorporate various components, according to Heather Carter, whose husband Jeff directed the final product, named "Metafloor."

"(It) had to have a plumber in the film named Annie or Andy Benoit, (it) had to have a horn of some kind visually in the film somewhere, (and it) had to have the line 'Tell me the truth' in the film somewhere," she said.

The film also had to be a science fiction flick, she said, adding that the group did not know any of what would appear in their film and what genre it would have to be until they picked up their information in Little Rock on Aug. 17.

So how does a group of actors, writers and cinematographers even begin to come up with a concept with so little to go on?

Charlie Ryan, an editor and director of cinematography for the short film, said the key to getting started was just figuring out what was available to the crew.

"The first thing you really have to think about is working around what you have. In a situation like that, you don't have time to put together a prop list and possibilities. You have to look at what you have," he said, adding that special effects and other features were not possibilities with only 48 hours to work with.

"The people in the room each had really good input and we each thought differently. Everyone brought something fresh to the table, especially (since) every (did not know) each other. It was really cool how it all worked together."

The group eventually decided on a short film that takes viewers on a journey.

"Metafloor is science fiction film about a man's elevator journey through the decisions he has made in his life," Carter said.

Ryan elaborated, saying that the film is about a man who makes a deal.

"He sells his soul and doesn't realize the consequences until it's too late," he said.

RAW AND INSPIRED
Levi Agee, the Little Rock City Producer for the 48 Hour Film Project and a programmer with the Little Rock Film Festival said the various films that result from the competition are unique stories moviegoers won't find anywhere else.

"I think it's a good display of all the ranges of talent in Little Rock and represents more than just filmmakers, but also hobbyists and people from all walks of life. You get a lot of good storytelling going on that you can't get in Hollywood or multiplexes," he said. "You can't get anything else like it anywhere else. It's raw. It's inspired. Despite the short time frame, there's a lot of effort and fun put into each project."

And even though each group only has 48 hours to create their film, Agee said the impact can go on for months, as happened with last year's winner, "La Petite More."

"(It) was about two singers who murdered their audience members who weren't paying attention. It was sort of a dark comedy, a music video done stylishly. It was a huge hit and I think the biggest reason was because a song performed in the film was extremely catchy. I remember people humming the song for months after it screened."

A FORT SMITH FILM FESTIVAL?
It is that kind of impact that the "Metafloor" crew, also known as the Fort Smith Mafia, is hoping to have when awards are given out Saturday (Sept. 14) in the three categories the short film are nominated in – best film, best cinematography and best editing. The award ceremony will be held in Little Rock. (Link here for the list of nominations.)

"Metafloor" Director Jeff Carter said competing this year was about more than winning a contest or awards. He decided to get involved in the competition as a way to bring awareness to filmmaking in Fort Smith and hopefully start a movement here at home, with the hope of bringing a film festival to downtown Fort Smith by Labor Day 2014.

It is projects like this that he hopes can bring a local interest to the field and make a festival next year a reality.

"We need a film festival in Fort Smith. We need to bring real actors, and Arkansas films, and we need to bring them to Fort Smith. That's what we need to do."

Foreclosure activity in Northwest Arkansas and the Fort Smith metro area was mixed in August, according to Irvine, Calif.-based RealtyTrac.

Benton and Washington counties had 136 foreclosure filings last month, down 28% from the prior month. Also In August, foreclosures rose 21% in Benton County from a year ago, while filings decreased 34% in Washington County compared to August 2012.

Jim Long, agent with Crye-Leike Real Estate, said the foreclosure listings have slowed somewhat in recent weeks. He said there are 373 foreclosed homes for sale in the Multiple Listing Service, which includes Northwest Arkansas as well as Crawford and Sebastian counties.

Foreclosure listings are down from 393 last month, but still considerably higher than six months ago, when the MLS showed 222 foreclosures for sale.

Long sald in the past 10 days there have been 44 new listings of foreclosure.

“The good ones are sold fast,” he said.

In the Fort Smith area, the two counties reported 30 new foreclosure listings in August. In Crawford County, the 7 filings last month were down sharply from July and 12% lower than a year ago.

Sebastian County had 33 new filings in August, up 37% from the prior month and year-ago period.

Statewide, foreclosure filings rose 16% from a year ago with 638 new cases reported in August. Arkansas ranked No. 33 in foreclosure activity, down several places from prior months.

Throughout the U.S. foreclosure activity taped downward in August, led by fewer starts which are triggered by defaults. RealtyTrac reported 128,560 U.S. properties were in one of the three phases of foreclosure last month. That equates to one in every 1,019 homes.

Bank repossessions rose slowly in the four counties covered in this report, following a national trend. Local real estate agents agree that banks are slowing putting their backlog of foreclosed properties on the market and expect this will continue into next spring.
 
“The foreclosure floodwaters have receded in most parts of the country, but lenders and communities continue to clean up the damage left behind, which means the recent uptick in bank repossessions is a trend that will likely continue into next year,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile foreclosure flash floods will continue to hit some markets over the next few months as delayed foreclosure starts are quickly pushed into the pipeline.”

Economists with Wells Fargo Securities give housing a positive outlook, diminishing the impact of foreclosures through 2014. They site low overall home inventories and pent-up buyer demand which is pushing home values higher.

Real estate agents across the region concur with the Wells Fargo positive assessment. In Northwest Arkansas, agents report strong sales, heightened activity which is producing multiple offers and higher overall prices. Realtor Clif Warnock, principal broker at Warnock Real Estate in Fort Smith, said the recent jump in local home sales was due to increasing interest rates.


"The difference has been movement in those interest rates. It's not been good that interest rates have gone up slightly, but any movement in interest rates prompt people to take action," he said.


With interest rates still near historic lows, many buyers are not only jumping due to the expected rise in interest rates, but they are also jumping to buy more home at a lower monthly cost, Warnock said.


The agents were quick to put the foreclosures into perspective as they make up just a tiny fraction of the overall markets in Northwest Arkansas and the Fort Smith metro area.


In the Fort Smith area 0.06% of the households are distressed and facing possible foreclosure. Sebastian County has roughly 54,200 households. In Crawford County that distressed rate was 0.03% of its 25,790 households.

Benton County reports 0.04% of its 92,000 households are facing foreclosure. In Washington County foreclosures accounts for 0.06% of 86,500 households.

The flat-to-downward trend continued into July for hospitality tax collections in Fort Smith and Van Buren, although sector employment was up in July compared to July 2012.

Collections in Van Buren during the first seven months of 2013 total $251,764, down 0.02% from the $251,824 collected during the same period of 2012.

July collections were $36,380, down 2.6% from the $37,339 in July 2012. The city collects a 1% tax on lodging and a 1% prepared food tax.

“July numbers were significantly off from July of last year. Restaurant numbers are off by about 1% from last year and deli and convenience store prepared food sales are off by 4%,” said Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission.

However, hotel receipts were up 3.75%.

“People are still traveling, but are eating out less and not spending as much at fuel stops on food items. This has been the trend for most of 2013 and I see no indication that this spending pattern will change for the remainder of the year. I think the fall travel season will see a slight increase in the number of vacationers, but again their spending will be on the light side,” Koeth explained.

During 2012, Van Buren hospitality tax collections totaled $425,554, up 5.2% compared to the 2011 collections. Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The 2011 collections ended a two-year skid in Van Buren.

FORT SMITH
Collections in Fort Smith for the first seven months of 2013 totals $439,845, down 3.1% compared to the same period in 2012. The year-to-date decline has improved through the year. The first quarter collections were down more than 6% compared to the 2012 quarter.

July collections were $69,254, up 1.2% compared to July 2012. The city collects a 3% tax on lodging.

Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said it was the best month of collections for the year. The July revenue was supported by two large Jehovah’s Witnesses conferences, the AME 12th District Youth Conference and the Arkansas Sheriff’s Association annual convention.

During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period.

TOURISM EMPLOYMENT, ARKANSAS COLLECTIONS

Employment in the region’s tourism industry was 9,500 during July, down from 9,600 in June and above the 9,100 in July 2012. The sector reached an employment high of 9,800 in August 2008.

Average monthly employment in the Fort Smith metro tourism sector ended a two year decline in 2012. During 2007, 2008 and 2009, the average monthly employment was 9,300. That fell to 8,700 during 2010, 8,500 during 2011, but rose to 9,000 during 2012. The sector reached an employment high of 9,800 in November 2008.

Arkansas’ tourism sector (leisure & hospitality) employed 101,500 during July, down from revised 102,000 during June, and below the 102,100 during July 2012. At a revised 103,700, January 2013 marked a new employ

Arkansas’ 2% tourism tax receipts totaled $6.287 million for the first half of 2013, up 1.9% compared to the $6.169 million during the same period of 2012.

Arkansas’ 2% tourism tax receipts totaled $12.405 million during 2012, up 3.16% compared to the $12.025 million during 2011. The gains marked the third consecutive year of improving tourism tax revenue and was a record total for the tax.

Sustainability has been a major platform for retail giant Wal-Mart since 2005 and the company continues to enlist the help of suppliers to move the needle.

Wal-Mart on Thursday (Sept. 12) held its annual Global Sustainability Milestone meeting in Bentonville and presented nine initiatives that have raised the company’s overall sustainability index reading by 12% in the past year. Duncan Mac Naughton, chief merchandising officer for Walmart U.S., said the retailer couldn’t make that kind of progress without the help of its suppliers.

Wal-Mart CEO Mike Duke said the company is working with about 1,000 suppliers in categories on various sustainability initiatives. But by the end of 2014, he said participation would be broadened to include 300 product categories and engage up to 5,000 suppliers around the world.
 
Wal-Mart rolled out its sustainability index in 2009, a measurement system used to track the environmental impact of products. Last year the company provided sustainability guidelines for 100 categories and Thursday’s meeting was a chance to recap the progress since that time. Wal-Mart said its general merchandise department has improved its index product sustainability score by an average of 20%, while grocery moved up 12%.
 
“With the sustainability index, Wal-Mart is applying the science and research that we’ve developed to create a more sustainable supply chain globally,” said Kara Hurst, CEO of The Sustainability Consortium.

Nine groups spoke at Thursday’s meeting, touting their progress in sourcing sustainable products while working together with suppliers to innovate new packaging, reduce chemicals used and facilitate more recycling – all of which are better for the environment. High on the list is a broad range of recycling activities as more than 29 million tons of valuable plastics are sent to landfills every year in the U.S. at a cost of about $6.6 billion annually.

Coca Cola has found a way recycle more of its plastic bottles like the holiday ornament cola bottle which was discontinued last year because it could not be recycled. The beverage giant said the shrink wrap label rendered the bottle as non-recyclable. This year that product will be back because they have found a way to perforate the label so it breaks away from the bottle during recycling.

A team from Hanes said it plans to be a “zero landfill” company by 2020 as it continues to source recycled materials for the products it makes, such as tee shirts and fleece sweatshirts and bottoms. Hanes officials said 5% of the content found in fleece or cotton tee shirts sold at Wal-Mart comes from recycled plastic bottles. The company also works with farmers who employ sustainable practices such as growing switch grass which also goes into cotton garments.

Other U.S. suppliers presenting at Thursday’s meeting included Kellogg's, Crayola and Technical Consumer Products — the supplier for private label “Great Value” light bulbs for Wal-Mart.

The retailer said that by the end of 2017, U.S. Wal-Mart and Sam's Club stores will get 70% of their goods from global suppliers that use its sustainability index. This ambitious agenda by Wal-Mart has been scrutinized heavily by analysts and other sustainability experts.

Jason Long, a supplier consultant in St.Louis with Shift Marketing Group, said Wal-Mart has put some teeth into their sustainability efforts by doling out performance objectives, but there is still a lot of confusion in the supplier community, particularly among small-to-midsize firms.

“Wal-Mart hasn’t done a good job of explaining the sustainability scorecard to its vast supplier base. I’m hearing more and more from suppliers who are trying to understand and demystify the sustainability scorecard requirements and that process,” Long said.
 
Retail sustainability expert Stacy Mitchell said Wal-Mart pivoted to the supplier emphasis in the last year or so while other goals once stated where abandoned. Mitchell is a research analyst at the Institute for Local Self Reliance in Portland, Maine. She said Wal-Mart does a great job picking certain areas to focus on, but avoids issues like responsible land use as it continues to build sprawling, single-story structures five miles within its other stores.

Mitchell said there is still lots of room for improvement in Wal-Mart’s own sustainability goals but it may be easier and cheaper for the retailer to shift more focus on the supply chain for which they can take also credit.

Alisha Staggs, a project manager at the Environment Defense Fund in Bentonville, said in a May blog that the retail giant’s sustainability index requirements were an ambitious goal, noting that there would likely be some who “think Wal-Mart is taking this too far.” Staggs noted EDF is onboard with Wal-Mart’s sustainability index goals, and believes the Wal-Mart push will help achieve the kinds of transformational change needed.

“With over 100,000 suppliers, Wal-Mart has the ability to use the Sustainability Index to move entire industries to go beyond what is required by law, benefiting consumers, workers and the planet,” she noted.

Wal-Mart said the sustainability goals are being expanded across its global operations. Walmart Chile, Mexico will launch the index in their markets in 2014. South Africa’s Massmart has already begun to include key index questions in its supplier sustainability surveys.

“We’ve reached an acceleration point where we are moving from measurement to results. We’re starting to really drive progress with the index,” Duke said. “This is about trust and value. Using less energy, greener chemicals, fewer fertilizers and more recycled materials – all of this – is the right thing to do for the planet and it’s right for our customers and our business.”

Simmons First National CEO George Makris said the $53.6 million bid for Metropolitan National Bank was grounded in thorough due diligence conducted by 10 of its veteran loan specialists who spent four days combing through the bank records.

He said the deal was financially attractive on several levels, with expectations of 25% earnings per share accretion in fiscal 2014 and 35% by 2015 after the first full year conversion. The internal rate of return for this deal is a projected 27% with a three-year payback.

There is no expected headwinds from federal regulators, and Makris expects the merger to close by the end of this year. He said at that point there will be branch consolidation in both Northwest Arkansas and Little Rock. He said the banks’ staffs will work together between now and the end of the year to assess the best course of action for the branch consolidation.

“It will be at least April of next year before we could do that, because we have to wait for the merger to close and then give 90 days notice to the customers at those closing branches.” Makris said during the Thursday afternoon’s conference call.

The $53.6 million in cash will go a long way in repaying the creditors listed in Rogers Banchsares’ bankruptcy. The most recent schedule on file with the federal court noted the bank holding company owed $52.938 million to several institutions who provided capital to Metropolitan in recent years.

Not named as a creditor is the U.S. Treasury who made $25 million available to Metropolitan National in exchange for preferred shares in the holding company as part of the TARP program. That is money that will not be recovered by U.S. taxpayers.

Simmons projects a one-time merger cost of $8.8 million related to court fees and other acquisition charges.

Makris also said the Simmons Northwest Arkansas bank charter would be consolidated with the Pine Bluff charter once the deal is complete, giving Simmons seven bank charters in all.

The win for Simmons is a major boost in deposit marketshare in the Little Rock and surrounding market. The pro forma bank will top $1.032 billion in deposits in the Little Rock metro area, some 7.4% of that marketshare. This will rank them fifth behind First Security Bank and one spot ahead of Arvest.

Statewide, the pro forma bank will have $3.457 billion in deposits with 6.49% of the marketshare. This ranks them fourth behind the pending Home Bancshare/Liberty consolidation, Regions and Arvest.

“Metropolitan has a strong brand with some 90,000 retail customers in the state’s two largest markets,” Makris said. “We look forward to merging these two banks.”

He said Metropolitan is roughly half the size it was a few years ago as the bank had no choice but shrink itself in light of capital shortfalls. However, the bank was still able to hold on to a loyal customer base, which speaks highly of a well-qualified staff. Makris said Simmons is solidifying the capital needs of Metropolitan with this acquisition, but more importantly, “we want those sales people to be able to hit the road and build that business back up again.”

Together the bank will have $2.376 billion in loans producing a yield of 6.01%. Prior the merger, Simmons portfolio is yielding 6.27% against Metropolitan’s yield of 4.98%.

Simmons also will pick the management of $370 million in trust assets, according to the supplemental documents provided by Simmons on Thursday.

Makris the capital ratios for the pro forma bank is a Tier 1 leverage ratio of 8.03%. The risk-based capital ratio will be 13.38% with the total risk-based capital ratio at 14.45%.

He said stock buybacks are on hold at this time, as the holding company will focus on this merger.

Simmons projects a cost savings of $15 million when the merger is completed. He said FDIC insurance cost savings will be roughly $1.6 million, while reduced legal fees and IT expenses will save $2.4 million. Makris said those savings will be phased in at 60% this first year and 100% thereafter. He expects Simmons will see the full benefit in the third quarter of 2014.

Garland Binns, an attorney with Dover, Dixon and Horne, said acquisition though bankruptcy proceedings are fairly rare, citing about 10 in the U.S. overall. Binns applauded the Simmons purchase as a great deal for both banks as well as a way to help the creditors listed in the bankruptcy regain a fair amount of the money they are owed.

He said Metropolitan worked together with the Ford Financial Group to get the ball rolling, and it is highly unusual for an outside bidder to stake their claim. But in this case the higher bid offered by Simmons, someone who already knows the market, looks like the best deal possible.

In the five years through 2013, revenue for China’s poultry farming industry has grown at an average annualized rate of 7.7% to $75.3 billion and two U.S. meat giants are in the thick of it. Tyson Foods and Cargill each want their share of this burgeoning market expected to produce 20 million tons of chicken this year with revenue growth of nearly 10%, according to IBIS World.

The research firm anticipates over the next five years this industry transitioning to vertical integration will mature with revenue of $105.8 billion as China’s 1.3 billion consumers eat more chicken. In vertical integration the poultry company controls the chicken from the egg though processing and contracts with growers who house the birds during their maturation phase which is typically 47 to 50 days.

TYSON’S VENTURES
Springdale-based Tyson Foods has worked toward complete vertical integration of its China operations for more than a year. It's a move the company said will improve food safety standards in China while also helping grow topline sales.

Tyson CEO Donnie Smith recently said that roughly 50% of its chicken business in China is vertically integrated, and by the end of 2014 it should reach 100%.
 Tyson operates three ventures and employs about 4,300 people in China. The first venture, established in 2001,Tyson Dalong Food Co., operates two modern processing plants and a separate marinating facility.

In 2008, Jiangsu Tyson Foods Co. was formed near Shanghai, which is a fully integrated poultry complex where the company is sharing food safety and efficient processing methodology with Chinese consumers.

In 2009, Tyson acquired a majority interest in three poultry plants in the Shandong province. In 2011, Tyson purchased the remaining 40% bring the company’s total investment of $115 million with another $93 million for capital needs. Those facilities are known as Tyson Rizhao and Tyson Weifang.

Tyson Rizhao is a fully integrated poultry complex located in Juxian Industrial Park. Earlier this year, Tyson said it sold Welfang, one of its smaller chicken operations that processed fully cooked chicken products and exported to Japan and Korea.

Smith said the investment needed to bring Weifang inline with Tyson’s operational goals was too great and the best alternative was to sell it.

In China, Tyson processes chicken sold wholesale into food service for clients such as Yum Brands! and McDonalds as well fresh chicken sold in retail groceries like Wal-Mart and Sam’s, extending those longtime U.S. relationships abroad.  

Tyson said it is processing about 1.3 million birds per week with a goal  to reach 3 million per week by late 2014.
 
“We’re expanding the volume of company-controlled birds we produce for our poultry operations.  This includes both company-owned birds raised by contract farmers and company-owned birds raised on Tyson-owned and operated farms,” Tyson spokesman Gary Mickelson said.

CARGILL CHICKEN
Like Tyson, Cargill has made substantial investments in China. Known for beef and turkey in the U.S., Cargill stretched its wings into chicken production with a $250 million green field investment last year in Anhui, China.

The large broiler facility includes a feed mill, farms, hatchery and processing plants, according to Michael Martin, Cargill spokesman. He said the facility will raise 65 million birds a year, one of the largest integrated plants in China when production is running a full capacity in the next couple of years.

Construction was completed this summer and production kicked off last month. The chicken raised by Cargill’s China operations are being sold via food service channels. The company estimates by 2015 the complex will employ 3,500 people.

“In a country that consumes about a third of the world's animal protein, we believe the product quality and integrity made possible through this model operation will help build confidence in China's food supply,” Cargill noted in a release.

Cargill said China’s chicken industry is beginning to modernize, much like the pork sector did 20 years ago.

FOOD SAFETY
The timing for Tyson and Cargill couldn’t be better given that China’s image has suffered from multiple food safety gaffes in recent years and these two International meat companies have strong food safety records, analysts said.

Earlier this year an Avian Influenza outbreak known as the H7N9 virus, devastated flocks, sickened more than 100 people and caused more than $6.5 billion in losses to China’s economy. Smith said the outbreak was troubling and detrimental to protein consumption in the short run. However, he said the unfortunate event had “absolutely validated our model for extreme biosecurity.”

Smith said, while many chickens in China are still raised by small farmers, Tyson is bringing technology and practices common in the U.S. to the Asian country. To keep birds healthy, Tyson uses ventilation systems in the houses, mills its own feed, controls access to farms and requires anyone entering or leaving the buildings to shower, he said.

Customers in China are willing to pay more for added food safety Tyson provides, he added.

Martin said the Chinese government continues to encourage the modernization of the poultry supply chain, including the construction of modern housing complexes, in order to improve food safety and disease prevention.   

While China’s consumers are receptive to these brands, Tyson and Cargill each said expansion there has had its challenges.

Mickelson said the acquisition of land rights is vital for Tyson’s ability to expand and is not a simple process. He said Tyson has received great support from local and provincial governments in their efforts to virtually integrate all of their operations in China.

Martin said Cargill spent a considerable sum constructing roads and bringing the power infrastructure into Anhui before they could began building their complex operations.

Despite some hurdles, Tyson and Cargill are confident their recent and ongoing investments in China will pay off. Much of the growth will come from the burgeoning quick service restaurants (QSR) sector and emergent frozen/processed food sectors. QSRs are the major driving force for poultry demand thanks to a double-digit growth rate and menus biased to poultry, according to IBIS World.

YUM Brands and McDonald’s are the two fastest growing QSRs in China. Each have publicly said in recent months their business in China has been adversely impacted because of the food safety gaffes in the country’s poultry industry.

Tyson said chain restaurants are opening in China at a rate of more than 1 per day, which provides a substantial opportunities for them and other U.S. companies.

“China remains one of our key markets for international growth ... Per capita poultry consumption in China is lower than it is in the U.S.; however, when you consider the overall size of the population in China, any increase is substantial,” Mickelson said.

Tim Ramey, an industry analyst for D.A. Davidson, said American processors like Tyson have a great story to tell about what they are doing to advance food safety practices in China.

Wal-Mart has set its sights on Siloam Springs for a new Neighborhood Market expected to open next fall.

The retail giant is scaling up its grocery format to 500 stores in the next 18 months, a move that is expected to drive strong sales and a key element in Wal-Mart’s growth strategy.

“This is great news for Siloam Springs. We are thankful to Wal-Mart for continuing to  bring growth and jobs to our city,” Siloam Springs Mayor John Mark Turner said. “This new development will continue to improve the quality of life for our residents and broaden our tax base.”

The new Neighborhood Market, located at Highway 412 and Holly Street, will create up to 95 jobs and is scheduled to open in the fall of 2014, according to Wal-Mart.

The store will be approximately 41,000 square feet, much like the new recent opening a in Bentonville. Wal-Mart said new store will include energy-efficient technology in keeping with its new more environmentally friendly prototype using LED lighting in the exterior signage and refrigeration cases.

“Walmart is excited for the opportunity to continue to expand our service to the people of Siloam Springs and Northwest Arkansas,” said Brian Hopper, Wal-Mart VP for real estate,

This will be the second location for Wal-Mart in Siloam Springs, a town of roughly 15,000 people. The city already has a supercenter that sells groceries and in the past two years attracted Aldi as well.

Retail analysts see Wal-Mart’s aggressive growth strategy as somewhat cannibalistic, given that the retailer continues expand in markets where it already has a strong presence.

Walmart continues to tout its expansion efforts as paramount to growing sales in part because these Neighborhood Markets are returning much higher comps as a cohort than the clunkier supercenter model.

Walmart U.S. CEO Bill Simon said earlier this week that Wal-Mart’s retail competitors from the Dollar Stores, Kroger, Publix and others are doing a great job offering convenience at competitive prices.

He said the smaller formats and Wal-Mart’s ability to merchandise them with an endless aisle inventory through merging its e-commerce platform with site-to-store is something many other retailers are not doing.
 

The National Retail Federation reports retail sales grew at a snail’s pace 0.01% from July to August, rising 3.9% unadjusted year-over-year. These sales have stripped out automotive, gas stations and restaurants.

“Slow growth continues to be the economic story five years after the financial crisis,” NRF President and CEO Matthew Shay said. “The economy, employment, wages, and retail sales continue to stagger along. Retailers and consumers are resilient but not overly optimistic about the broader economy. While positive retail sales growth continues month-after-month, it is just not strong enough to move the needle.”



The August retail sales, released today by the U.S. Census Bureau, showed that total retail and food services sales (which include non-general merchandise categories such as automobiles, gasoline stations, and restaurants) increased 0.2% seasonally adjusted month-to-month and increased 4.7% adjusted year-over-year.



“Retail sales and employment, while measurably positive, have been disappointing over the last few months, and have been difficult to reconcile with consumer confidence. The data suggests that consumers remain cautious with their pocketbooks and purchases. This month’s weak retail sales report will continue to put pressure on policymakers, who are dealing with tapering, and retailers, who will need to focus on price and value to entice consumer spending,” said NRF Chief Economist Jack Kleinhenz.


Other findings from the August retail sales report include:


• Building material and garden equipment and supplies dealers stores’ sales increased 5.7% unadjusted year-over-year.



• Clothing and clothing accessories stores' sales increased 4.6% unadjusted year-over-year.



• Electronics and appliance stores’ sales increased 3.1% unadjusted year-over-year.

• Furniture and home furnishing stores’ sales increased 4.9% unadjusted year-over-year.


• General merchandise stores’ sales increased 0.4% unadjusted year-over-year

.

• Health and personal care stores’ sales increased 3% unadjusted year-over-year.



• Nonstore retailers’ sales increased 8.8% unadjusted year-over-year.



• Sporting goods, hobby, book and music stores’ sales increased 3.7% unadjusted year-over-year.


For the first time in seven years, the Democratic Party of Arkansas on Saturday (Sept. 14) held their quarterly state committee meeting in Northwest Arkansas. The meeting, held at the Northwest Arkansas Convention Center in Springdale reflected on the past while also looking to the future with the election of Vincent Insalaco as DPA chairman, replacing Will Bond as the party looks to the 2014 general election.

In accepting the chairmanship, Insalaco was clear that he was planning on giving Republicans the fight of their lives as Democrats fight to regain control of the General Assembly, which the Republican Party won control of during last year's election for the first time since Reconstruction.

"They haven't won by talking about social security. They haven't won by talking about Medicare or Medicaid. And if we allow them to do it again it's our own fault, and I'm not going to have anything to do with that," he said.

Insalaco said the key to a Democratic victory next year will be localizing the elections to issues being faced by citizens and communities across Arkansas, not talking points handed down from out of state interests in Washington, D.C.

He also said that he fully expects outside interests to attempt to buy the election for Republican candidates.

"We also have to recognize that we're going to get outspent, a lot, and not by money from Arkansans. Do you honestly think all that money's coming in here from Washington because they give a damn about our people? We have got to collectively recognize that this is going to be a battle and it's going to require a huge ground game."

Speaking about his time as chairman, Bond said that he was proud of his time as chairman, marking a little over two years in the top job.

Bond recalled taking the job with a lot less experience than Insalaco, who has been involved with Democratic politics for decades. But he despite his lack of experience compared to other chairmen past and now present, he was able to lead the party to a smaller loss in 2012 than was experienced with what was known as the Republican wave of 2010. Something he said was due to the hard work of the DPA staff.

"It takes a tremendous amount of personal commitment and they're all underpaid and they're all over worked and my thanks goes to them. … thank you," he told the staff and members of the parties as he began to choke up.

This morning's meeting also saw many political speeches, including one by former U.S. Rep. Mike Ross, D-Prescott, a candidate for governor who is started to come out even harder against presumed Republican nominee Asa Hutchinson, a former 3rd District Congressman and a former undersecretary of Homeland Security during the administration of President George W. Bush.

The attacks this morning attacked what Ross said were Hutchinson's "flip flops" on several different issues.

"We don't need a governor who's going to take us backward. We don't need a governor who's going to flip flop on issues. Asa has already flip flopped on the private option, on taxes, on minimum wage. If you think about it, it's a good thing that he spells his name A-S-A frontward and backward because he flips flops so much," Ross said to a raucous crowd.

Following the state committee meeting in Springdale and the Razorback-Southern Mississippi football game in Fayetteville, many of the candidates for statewide Democratic office made their way to the tiny town of Little Flock in Benton County for the annual Democratic picnic, which Benton County Democratic Central Committee Chairman Mike Brown said was in its 47th year.

The event gave candidates a chance to meet personally with constituents in a county many consider safe Republican territory, an assumption Brown took challenged.

"We had more votes for Mike Beebe than any other county except Pulaski County, so there are a lot of Democrats up here but the population has grown," he said, adding that the influx of vendors and others from out of state working at Walmart and their vendors should continue to alter the political makeup of Benton County.

One of the candidates to meet with voters was Rep. Nate Steel, D-Nashville, the presumed Democratic nominee for attorney general. Steel said the position of attorney general is one that he viewed as a more non-partisan position, working for all Arkansans instead of for a single group.

"I'm certainly proud to be a Democrat, but I've worked across the aisle a lot during my legislative time and I've always prided myself on doing what I think is right regardless of what party leaders or the politics of the situation may be," he said.

He said it also takes someone who can call "balls and strikes" when you see them regardless of what the politics may be.

Highway Commissioner John Burkhalter, who is the presumed nominee for lieutenant governor, said he was concerned about current ethics issues facing Lt. Gov. Mark Darr, who dropped out of the race for Congress in the 4th District after only 17 days following revelations first made public by the blue Blue Hog Report which highlighted questionable spending by Darr's 2010 campaign for the office, including clothes purchases labeled as "supplies."

Burkhalter said that the Ethics Commission should have the ability to do more auditing, instead of relying on the current complaint-driven model.

"I think it would give us the opportunity to find issues and problems and possible patterns of abuse early on instead of later. And I think it's extremely important for anyone that serves the public that they need to have extremely high ethics," he said. "I think people make mistakes. Legitimate mistakes. But repeated violations, repeated issues. We need the ability to audit that and improve on this system."

Few things are as integral to American culture as innovation. In 2012, the U.S. Patent and Trademark Office received over 300,000 patent applications from people and organizations across the country — the highest number of applications to date.  

In January 2013, Larry Robertson and Andrew Bojie founded AON Invent and All Products Design, a Northwest Arkansas company that capitalizes on the market’s insatiable need for innovation by helping area businesses, consumer packaged goods companies (CPGs) and inventors develop their initial ideas into market-viable and profitable products.

This small company has two divisions, AON Invent and All Product Design. Each division operates independently, but is designed to function as a unit.

Bojie, an engineer by trade, first formed All Products Design in 2011 using his 18 years of experience as an inventor and product designer to provide other innovators with the blue print they need for mass production.

Robertson is also an entrepreneur focusing on high tech, retail and the financial service sectors. He previously worked as a corporate manager of business development for Sam’s Club and understands what buyers look for in new products.

AON INVENT
This duo branched out earlier this year with AON Invent, headed by Robertson, to help prevent inventors from wasting their life’s savings on developing, patenting and licensing bad ideas. Instead, for a small fee, AON Invent assesses and analyzes an individual’s invention. 

If the invention is determined to have market potential, it progresses through Robertson’s step-by-step development system, where it is first engineered, designed and tested by All Product Design and then presented for feedback to a panel of industry experts. 

It is only the inventions with a proven capability to fill a consumer need that AON Invent give the green light for manufacture and places in the hands of the CPG companies that supply to America’s biggest retail chains.

ALL PRODUCT DESIGN
All Product Design works more directly with CPG suppliers, providing them with consumer product design and development services. Bojie and his team specialize in transitioning initial concepts for consumer products into 3D production ready files that can be used to create a prototype or even go straight to manufacture.

It is standard for American CPG companies to rely on design resources in China to develop their ideas and create product prototypes – a process that typically takes 7 to 18 months.

Without the hindrances of a language barrier and time difference, APD is able to create manufacture-ready product designs for suppliers much faster, usually in just two short weeks. Bojie and Robertson also cite the cultural differences between America and China as another factor that affects the length of the design process. Because designers overseas lack insight into Western markets and the needs of Western consumers, it takes them much longer to achieve a product design that is viable for many CPG companies.

APD’s efficient business model helps suppliers react quicker to change and minimize the overhead and systematic inefficiency associated with outsourcing product design to Chinese companies, Bojie said.

According to Bojie, CPG companies using APD’s services have made great strides in pushing out their competition. For example, one well-known supplier has seen a 300% increase in sales of a product redesigned and engineered by APD. 

APD’s material optimization analysis helped another CPG supplier reduce their raw material cost by 48% and their product packaging cost by an additional 30%, Bojie said.

“What we offer is so significantly better than the model every company is using at the moment that it sounds too good to be true,” he said. But, it really can change their world.”

INSIDE PERSPECTIVE
Getting a product from an idea stage to mass production has its fair share of challenges, but Bojie and Robertson offered some tips for innovators to consider:
• Understand the difference between an “idea” and an “invention.”  An idea merely recognizes the need for an invention, while an invention actually solves a problem. Edison didn’t have an invention until the light bulb came on.

• Know when to ask for help. Trying to manage the often inherent tendency creative people have to build their own airline, when they simply need to buy a ticket.

• Focus on problems that are worth solving while realizing that we all occasionally give birth to an ugly baby (metaphorically speaking of course). Unfortunately, in the world of innovation, there are a lot of ugly babies.

MARKETING CHALLENGES
Robertson and Bojie are pleased with the growth of their business units though they do admit to experiencing a few challenges along the way.  

For instance, like most small companies, AON Invent and APD relies on word-of-mouth advertising to supplement a small marketing budget. However, they have found that their clients are reluctant to share their positive experiences with others, wanting to keep the competitive advantage AON Invent and APD provides a secret from the competition. 

While it is a testament to their success, Robertson and Bojie agree that it is a frustrating problem and one that they hope to solve with a social media marketing campaign.

Robertson and Bojie say that All Product Design’s Bella Vista location gives them an advantage – that, and they are the only business providing the bundled service.

“Eventually, we want to be considered the official portal of innovation,“ said Robertson.

Corporate money flowing into Arkansas campaigns may become a thing of the past if one group has its way.

The group Regnat Populus has begun the work to collect the over 63,000 signatures needed to get their ballot question on the Nov. 2014 ballot.

According to Regnat Populus co-chair Paul Spencer, the group's goal is to severely limit the flow of money from non-human entities into Arkansas political campaigns.

"The initiative itself, it will place restricts on corporate contributions to political campaigns (by businesses) either chartered in the state or chartered out of state but doing business in Arkansas," he said.

Businesses may now donate the same amount as an individual to a campaign - $2,000 per election cycle. In a typical election, that would allow $2,000 for the primary, $2,000 for a run-off and another $2,000 for the general election for a total of $6,000.

In addition to restricting the flow of money, the group – working with the groups Common Cause, Free Speech for People and Public Citizen – are also calling for a constitutional amendment to overturn the Supreme Court's Citizens United ruling, which essentially said corporations have the same free speech rights as people.

"If we are wanting to give the voters of Arkansas fair footing and an equal playing field, we each have one vote that we can exercise," Spencer explained. "It seems rather contradictory that the Supreme Court could bestow human characteristics on non-human entities."

Asked how a group from Arkansas could stand against a ruling of the Supreme Court, Spencer said he is hopeful the Court will moderate their stand on the issue as time goes on, referring to rulings made by the Supreme Court from the days of slavery up through the civil rights movement that he said showed moderation, even if just by an inch at a time.

"The way that we're going about this, we're not saying that any individual human being is being deprived of their free speech rights. We're saying the state can restrict unfettered campaign funding. The Supreme Court has looked at some of these (campaign finance) cases that have been coming down the track. We think that if the Supreme Court were to revisit this, we don't think they'd strike it down. And we're not going to shy away from a Supreme Court fight."

But for a group attempting to restrict the flow of corporate financing in campaigns, how are they funded?

"We're going to start soliciting funds as soon as the Attorney General approves the ballot question title. When we ran our 2012 title (dealing with ethics reform), we (declined to accept) direct corporate contributions to candidates, the same as federal election laws. We took donations (from several bi-partisan groups). Better Ethics Now, they raised a lot of money. …Ultimately we would like individual donors. We've never taken corporate donations – ever. We have no plans of taking any corporate money for this."

Groups contacted said they were undecided so far.

Andrew Parker, director of governmental affairs at the Arkansas State Chamber of Commerce, said a decision by the Chamber on whether to support or oppose the measure would be made at a later time as more information about the ballot initiative becomes available.

Executive Director Laura Hawkins of the Arkansas Society of Professional Lobbyists, said her group had no official position yet, either.

"We have not taken a position, but we will abide by whatever the people want to do. We, of course, are aware of it. They are discussing the proposed initiative but we haven't taken a position yet," she said.

Hawkins added that while she represents professional lobbyists, the Association typically does not inject itself into specific ballot issues.

"Historically, we have just gone with whatever the people of the state have wanted to do. We try to follow rules and regulations that people have voted for. That's how the democratic process works."

Spencer said the group has until July 7, 2014, to collect the signatures of 63,507 registered Arkansas voters.

The latest Federal Reserve Burgundy Book, which provides a snapshot of Arkansas’ economy in the second quarter, highlights more evidence of a “two steps forward, one step backward” recovery.

The report, which was issued last week, provides statistical and anecdotal notes on 62 of the state’s 75 counties. The Little Rock Zone covers six MSAs, including Little Rock/North Little Rock/Conway, Pine Bluff, Hot Springs, Texarkana, Fort Smith and Fayetteville/Springdale/Rogers. Neither the Jonesboro nor Memphis/West Memphis MSAs are included in the study.

Categories including housing, real estate, construction, employment, manufacturing, banking, consumer debt, and agriculture are covered in the economic report.

Kevin Kliesen, Business Economist and Research Officer and author of the Burgundy Book, noted that the housing market is improving in the region, but he warned that manufacturing activity is slowing down.

“On balance, economic activity strengthened in the Little Rock zone in the second quarter,” Kliesen writes. “Real estate activity continued to strengthen across most areas of the zone, with residential activity generally outpacing commercial activity.”

Kliesen said that manufacturing employment “declined modestly” from the second quarter of 2012, but he said service sector jobs from Fayetteville to Fort Smith, and trade and transportation jobs in central Arkansas were “especially brisk.”

Some notes and highlights from the Burgundy Book include:

MANUFACTURING
Manufacturing employment declined in the second quarter, although there was some positive news in the lumber industry brought about by construction demand that the Fed described as “strong.”

Arkansas’ nondurable goods employment dropped significantly in the second quarter of 2013. It also declined by 2.5% compared with 12 months ago. In contrast, Arkansas’ nondurable goods earnings increased by 4.5% in the first quarter of 2013, outperforming the national rate.

“Anecdotal evidence continues to indicate that a limited supply of workers at the prevailing wage could hinder employment growth and put upward pressure on wages. In fact, average hourly earnings are up over 4 percent from the same time last year,” the report said.

REAL ESTATE, CONSTRUCTION
The Burgundy Book noted that in the Little Rock region, the residential real estate market is improving.

Single-family home sales increased by 21.5% from a year ago during the second quarter, resulting in the strongest first half since 2010. Anecdotal evidence indicated that more people were looking for houses than current inventory of homes for sale could support, pushing up prices by 3.4%, the report said.

The office real estate market also strengthened. In the second quarter, office vacancy rates further declined to 12%, while the nation’s vacancy rates remained at 17%. Asking rents continued slowly increasing on a year-over-year basis.

The improvement of commercial real estate construction remained “modest,” according to the Feds.

The vacancy rate for apartments in the region was 6.7%; for office space it was 12.1%; for retail space it was 13%; and for industrial space it was 7.9%.

DEBT
Households continued to reduce non-automotive debt and the report noted that loan delinquencies fell further from the previous quarter.

“Across Arkansas, mortgage delinquency rates were down in the second quarter of the year. The balance of loans in delinquency was 1.15 percentage points below its peak and remained well below the national average,” the report said.

It also noted that while credit card debt was down year-over-year, the rate at which borrowers were de-leveraging has been slowing. “Evidence suggests consumers are becoming more comfortable with their credit card balances,” according to the report.

That trend could change in the coming few months, however, The survey noted that income growth slowed in Arkansas during the first quarter of the year, mirroring U.S. trends. The slowdown was largely due to the expiration of the payroll tax holiday.

BANKS
“Commercial bank profits at Arkansas banks in the second quarter were well above their Eighth District and U.S. peer banks,” the Burgundy Book said.

Stronger net interest margins and declining loan loss provisions helped boost bank health. However, return on average assets (ROA) at Arkansas banks declined two basis points from the previous quarter, while nationally ROA for U.S. banks rose six basis points. Still, average ROA for Arkansas banks was up 17 basis points from its year-ago level.

“Although our revenue is double that of last year, the gains are coming from fewer bad loans, rather than loan growth. Competition for good quality borrowers is very stiff and some bankers are making loans they shouldn’t,” said one anonymous northwest Arkansas banker. The Burgundy Book relies on anecdotal evidence from various in-the-field sources in the region.

Link here for a PDF of The Burgundy Book.

Roger Norman, director of the state’s division of Legislative Audit, has forwarded an investigative report to Prosecuting Attorney John Threet of Fayetteville.

On Friday, state lawmakers heard conflicting testimony from fired University of Arkansas spokesman John Diamond who said he was told by his superiors to destroy documents related to a budget shortfall in the UA Division of University Advancement. UA Chancellor David Gearhart, according to this report from the Arkansas Times, called the allegations "astounding,” "absurd" and "pathetic."

Lawmakers reviewed a state audit that found deficits in the UA Division of Advancement’s budget of $2.14 million in fiscal 2011 and $4.19 million in fiscal 2012.

In a letter delivered today (Sept. 16) to the General Assembly’s Joint Auditing Committee, Norman said:

“As you know, the above-referenced Investigative Report was discussed at the Legislative Joint Auditing Committee’s September 13, 2013 meeting. While under oath, witnesses presented conflicting testimony regarding the alleged destruction of budget-related documents in the Division of University Advancement.

“Ark. Code Ann. § 10-4-419(c)(1) states: “The Legislative Auditor shall notify and cooperate with the appropriate prosecuting attorney on all matters that appear to involve a criminal offense.” Based on the testimony presented, I determined that the testimony given at the September 13, 2013 meeting should be forwarded to the appropriate prosecuting attorney for further review. That has been done.”

Diamond, contacted Monday by The City Wire, declined to comment about the report being forwarded to Threet.

“At this point, beyond what I said at the hearings, I don’t have anymore to add,” Diamond said.

Diamond’s dismissal was announced by UA Division of Advancement chief Chris Wyrick on Aug. 23, with his last day to be Sept. 22. Diamond, who earns $173,000 a year, is to work from home, with his work assignments received by e-mail or phone.

University officials plan to have a response on Tuesday, according to UA spokesman Mark Rushing.