The old saying “whistling by the graveyard” may have new context for anyone who has seen a cemetery but never thought about how one makes money.

According to Kelly Lowell, manager of Benton County Memorial Park in Rogers, the days of stand-alone private cemeteries have been largely replaced by a business model where a cemetery and funeral home are partnered.

“For us, it’s really been about having the funeral home here on the premises. That’s the long-term aspect of it. I think having it where we can work both places is an important part of it,” Lowell said.

Having funeral home staff work the cemetery business is what allows Benton County Memorial Park to not run into overhead issues, including staffing and grounds maintenance.

“For us, our (customers) expect a cemetery that is well taken care of as opposed to a country cemetery (maintained by volunteers). It helps with the manpower situation. It takes a lot of time and a lot of resources to maintain a cemetery. For a funeral home, we can share staff. For us, that’s what makes us different. With the amount of work that goes into it, you really need people that can work both places,” he said.

As a result of the level of care required to maintain the cemetery to Lowell’s standards, plots can run as high as $360 for the least expensive plot on site, while others can run as high as $600.

But included in those prices is a fee required by the State Cemetery Board of Arkansas.

“They are what are called perpetual care cemeteries. People might say that they’re in the business of making money, for-profit cemeteries,” Lowell said. “What happens is if you’re not governed by a cemetery board or you’re not a city-owned cemetery, or if you’re not affiliated with a church, then you have to be perpetual care. With everything that sells, a percentage of that money has to go into the perpetual care fund. It is then held at a bank and overseen by the state cemetery board.”

In the case of Benton County Memorial Park, the fee ranges from $60 to $100 and is included in the sale of the plots. Should the cemetery go broke, the State Cemetery Board will then tap into the banked perpetual funds for maintenance of the cemetery.

“The only way it can be touched is with permission from the government,” Lowell said. “It’s also a positive thing for a family because they know whatever happens, there will be money set aside for a nice place to come to. They’ll never have to worry about weeds growing up or leaving messages and not getting a return call. That’s the advantage of it.”

Cemeteries also profit through the opening and closing of grave sites, typically charging as much as the plot itself to dig the grave and then again to bury the remains. The fee can run higher if the burial takes place on a weekend or holiday.

ALTERNATIVE CARE
An alternative to perpetual care cemeteries are non-profit or public-owned cemeteries.

One public-owned cemetery is Oak Cemetery in Fort Smith, which charges a flat $400 for each plot regardless of location or size — standard, infant, or cremains. As a result of the flat rate, Fort Smith Parks and Recreation Director Mike Alsup said the cemetery has become heavily subsidized.

“In our case, Oak Cemetery doesn’t make money. It doesn’t break even. We operate with money from the tax base in order to stay open.”

In 2013, Alsup said the city had spent $148,940 on the cemetery upkeep, maintenance and staffing while only bringing in revenues of $80,712, a little more than half of the operating cost.

Alsup said with the high costs associated with running a cemetery, he’s “not sure why cities got into the cemetery business.” He said the difference between a public or non-profit cemetery and perpetual care cemeteries was essentially the cost.

“I’d say it was to offer a more affordable funeral for people who couldn’t afford it. It’s a good service the city offers,” Alsup said.

Lowell said while cost is a very likely concern for some, he said for those looking for a permanent resting place perpetual care was the way to go.

“We’re probably on the higher end in terms of cost, but we tend to have a lot more personal attention for a family.”

And Lowell said the ultimate goal at Benton County Memorial Park was to break even, using the funeral home to help prop up a business that often is unprofitable.

“Our goals are a bit different than the average cemetery. We want to maintain it nice and have it compliment the funeral home,” he said. “That’s the wave of the future. You can’t just do one thing anymore. You need to diversify. It helps the funeral home, too, to have prices lower for people. The old days of having a funeral home, you’d see people working a crossword puzzle if they weren’t doing something. Those are the days of the past. If they have that kind of overhead, they won’t be that successful in the future.”

Recent news from Trane and the Pernod Ricard (formerly Hiram Walker) operations in Fort Smith exemplify a recovery struggle within a regional economy hit hard in the past decade by significant manufacturing job losses.

Trane, which operates a residential and light-commercial air conditioning equipment manufacturing plant in Fort Smith, has in recent months added jobs to a plant that once was feared to be near closure.

Beginning in late 2009 and early 2010, a Trane plant which once employed more than 500 began to lose production as the effects of the national housing downturn hit the air conditioning industry. More than 200 jobs were cut in 2010. In early 2012, the company announced that 59 more jobs would be lost with “transfer coil production” moved to Columbia, S.C.

By the summer of 2012, the company employed just under 200 hourly and around 25 salaried workers.

BETTER TIMES AT TRANE
But that picture is changing, according to Chris Farnsworth, Trane’s plant manager in Fort Smith. He’s been with the company more than 23 years, with seven of those in Fort Smith and 16 in a Trane plant in Tyler, Texas.

“We were at 135 (employees) in March (of 2013), and we’ll be up to 212 by the end of this month,” Farnsworth told The City Wire in a recent interview. “We’re in a growth mode. ... Things here are going in a much more positive direction.”

With around 25 salaried workers, Trane will employ about 100 more than it did this time in 2013. Farnsworth said plant officials and workers are “in the midst of transforming” the operation by “clearing up the floor space” in a manner that results in increased productivity and lowered production costs. And after “not spending a dime in the plant for years,” the company has invested more than $800,000 in improvements since August 2013.

“The result of all that is that we could bring in some other work ... some new lines,” Farnsworth explained, adding that national economic conditions which look good for the industry include hope for plant expansion.

While he notes that there are no guarantees in any business, Farnsworth said he does not see Trane leaving Fort Smith anytime soon.

“The message I’d like for you to tell in your story is that we’re here and we’re committed to being in the community,” Farnsworth said. “You don’t spend the kind of money we have and do the things we’re doing if you’re just going to do that (leave town).”

WILD TURKEY JOBS
What is leaving town are 14 jobs related to the bottling of Wild Turkey being moved from  the Pernod Ricard plant (formerly Hiram Walker) in Fort Smith to a recently constructed bottling plant in Lawrenceburg, Ky.

Fortunately, the plant will remain with about 216 jobs.

Pernod Ricard, a liquor bottling and packaging company that moved to Fort Smith in 1981 under the Hiram Walker moniker, had around 240 jobs in early 2012. The company also operated with 40 to 100 temporary employees each day, depending on the work load, according to a December 2011 speech by Plant Manager Melissa Hanesworth.

She said in the 2012 speech that the plant came critically close to shutting down when “major players” in the liquor industry began to consolidate. In the consolidation, Allied Domecq, a United Kingdom company that owned Hiram Walker, was bought by competitors Pernod Ricard and Fortune Brands. The two competitors divided up the assets of Allied Domecq, with Pernod Ricard now owning the Hiram Walker plant.

The plant’s future was again uncertain in 2010 when the Wild Turkey bourbon brand was sold to another company. Hanesworth said the Hiram Walker plant was already operating at about 50% capacity, and the Wild Turkey brand represented about 15% of the capacity. The company that bought the Wild Turkey brand decided in 2012 to build a plant to bottle Wild Turkey. That move resulted in Wednesday’s (March 19) announcement of the 14 job losses.

Hanesworth noted in the press release that loss of the Wild Turkey production had been anticipated.

“As part of that process, some employees who left the company over the last 18 months were not replaced. Regrettably, however, some job loss was unavoidable,” she said in the statement.

Hanesworth said no further job losses are expected. The plant also produces Pernod Ricard’s Seagram’s Gin, Kahlua and Hiram Walker Liqueurs.

THE MANUFACTURING JOBS PICTURE
Preliminary estimates from the U.S. Bureau of Labor Statistics show 18,200 manufacturing jobs in the Fort Smith metro area in January. That’s down from 18,400 in December and down from 18,300 in January 2013.

The estimated January manufacturing employment also is down 36.1% compared to January 2004 employment of 28,500. The January employment is the second-lowest employment level in the sector in modern history. The lowest level was 18,100 which was recorded in February 2013.

Average annual employment in the sector in 2013 was at a multi-decade low of 18,300. The record average annual sector employment was 31,700 in 1999. The average fell below 30,000 in 2002, fell below 25,000 in 2009 and fell below 20,000 in 2012.

Recent sales have grown 180% for Oh Baby Foods, and officials with EcoVet and DataRank report positive momentum as they work to grow their respective businesses. The three companies are among the five emerging or young companies The City Wire is following in 2014.

One of the common challenges reported by the entrepreneurs involve finding the right people to help push and manage the growth.

OH BABY GROWS
Fran Free and her all-natural baby food company are off and running after picking up 25 new stores while attending the Natural Products Expo West trade show in early March.

“We made the trip to California for this big trade show and also met with our suppliers out there face-to-face because we plan to expand our product line by this summer adding bite-size snacks for toddlers and squeeze snacks for big kids,” Free said.

Free returns to California late next month to meet with her manufacturer because the company has sold through its inventory more quickly than anticipated. She said Whole Foods’ sales per store have grown five-fold in recent months.

“Sales grew 180% from February to March and we continue to bring on new stores. While a large part of our business is in the West, we went ahead and expanded east because we were getting so much interest from the North Atlantic region,” Free said.

She said finding a broker for the Northeast region has been a challenge, because four out of the five she has interviewed already represent a baby food line. 

“I continue to look for the right broker. We know we need one. We got into the stores just fine through one main retailer. But getting in is just half the battle. A broker on the ground is key to make sure our products are actually out in the stores and products get replenished,” Free said.

Small suppliers often have to carry the brunt of their manufacturing and inventory storage costs, which can challenge cash flows, Free said. 

“It costs us about $250,000 for us to go to production. In the past we have paid on demand up front with no terms finance available,” she said. 

Free recently secured a line of credit through Arvest for her production and storage expenses. She said the company is now getting some payable terms offered as they have been in business longer and continue to grow sales. 

“It is very capital intensive to run a full production line and then have to store and transport that product across the country. We are picking up two additional manufacturers and sourcing more raw products because of the product expansion. This is giving us a little diversification, but it will also be more to manage,” Free said.

In the meantime, she has put her food scientist consultant to work at 20 hours a week formulating the new products.

“We go to so much trouble to win the loyalty of our customers we don’t want to lose that business as the kids grow older, which is why we are back to product development again,” she said.

ECOVET HITS THE ROAD
Inventory isn’t a problem for EcoVet. It’s finding the right retail channels to feature the company’s handcrafted wood furniture products that has co-founder Drake Vanhooser busier these days.

Vanhooser said EcoVet recently participated in a Sam’s Club grand opening event in San Antonio, Texas. EcoVet is working with Shopper Events on several road show opportunities hoping to sell its wares and find additional retail outlets for the handcrafted furniture pieces that are made from reclaimed wood products by U.S. veterans.

“We are learning as we go. Shoppers in San Antonio bought out our supply of cutting boards, but the furniture really did not fit that club demographic. One new club in Austin, Texas is on our radar when it opens,” Vanhooser said.

This week EcoVet is set up in the Fayetteville Sam’s Club. Joseph Forman, a supervisor at EcoVet told The City Wire he has sold about 20 of the cutting boards over the past two days. Forman said people who hear the EcoVet story want to help, most buy the cutting board as it’s the lowest price point at $17.58. He has been with EcoVet since June 2013 working full-time, while also pursuing his business management degree at University of Phoenix.

The other furniture on display at Sam’s Club this week is the company’s contemporary and farmhouse lines. Vanhooser said in recent days he has held several meetings with local furniture retailers, large and small.

“We are working on building some floor samples for several furniture stores and hope we can strike a deal for some of our handcrafted products. We have even considered sourcing other wood to expand the price points,” he said.

Last week, Michelle Gloeckler, senior vice president for home at Wal-Mart Stores Inc., blogged about an upcoming initiative to source U.S. made patio furniture and find suppliers who can also assemble patio furniture as part of the company’s commitment to supporting U.S. jobs.

Vanhooser said EcoVet was excited to hear about Gloeckler’s plan. He said becoming an assembly partner or fashioning new products are exactly the kinds of opportunities EcoVet is exploring.

DATARANK ON PAR
This week DataRank is attending the GigaOM big data conference in New York City, seeking out brands and retailers trying to cut through clutter and make sense of big data possibilities.

“We have an employee on the ground in New York now. He is representing us there. We attend these conferences looking for companies lost in the big data noise. Our job is to show them how our company can help them use the data they need grow their businesses,” said Ryan Frazier, one of the startup founders.

Frazier said DataRank recently added a couple of new clients. One of those is Foot Joy, a golf shoe manufacturer. The other is a consumer packaged goods supplier. 

“Golf season is underway and we are working with Foot Joy and Calloway Golf at this time,” Frazier said. 

Frazier said he recently hired another developer who will revamp the company’s website and mobile application. This brings DataRank up to 10 full-time employees, most are based in their office in downtown Fayetteville, but they also have employees based in San Francisco and New York City.

Frazier said he and the other founders continue work on maintaining their corporate culture as they are also expanding their team. 

“Right now we are focused on getting our new hires up to speed, because business is growing a little faster than we projected,” he said.

On the horizon, he said the firm will have a redesigned website and mobile application will also continuing to grow its list of clients.

The City Wire will publish March 22 updates on Silicon Solar Solutions and Overwatch, the other startups followed in 2014.

Various transport tonnage and shipment reports indicate that the U.S. economy is recovering from heavy winter weather in January and early February, with economists remaining optimistic about gains – even if slight – in the U.S. economy during 2014.

The American Trucking Associations’ Truck Tonnage Index was up 2.8% in February after a 4.5% decline in January. For the first two months of 2014, the index is up 2.3% compared to the same period in 2013.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, was 4.5% below the previous month.

“It is pretty clear that winter weather had a negative impact on truck tonnage during February,” ATA Chief Economist Bob Costello said in his report. “However, the impact wasn’t as bad as in January because of the backlog in freight due to the number of storms that hit over the January and February period.”

Apart from weather disruptions, Costello said economic conditions look good for the U.S. trucking industry.

“The fundamentals for truck freight continue to look good. Several other economic indicators also snapped back in February. We have a hole to dig out of from such a bad January, but I feel like we are moving in the right direction again. I remain optimistic for 2014,” Costello said.

Trucking serves as a barometer of the U.S. economy, representing 68.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.4 billion tons of freight in 2012. Motor carriers collected $642.1 billion, or 80.7% of total revenue earned by all transport modes.

An industry report from Baird is also optimistic about the industry, noting that February numbers show a 3% year-over-year growth in freight rates. The growth was above Baird expectations. The report also noted that many trucking and transportation companies may show first quarter losses because of the weather issues.

“However, we expect outlooks to be very constructive given better-than-expected core pricing growth and the likelihood of solid freight volume trends in upcoming months after severe weather disruptions (presumably) normalize,” Baird noted in its report on the truck, intermodal and rail sectors.

The Cass Freight Index also showed freight activity in February recovering from the January disruptions. February shipments were up 7.3% compared to January, but were down 0.4% compared to February 2013. Total expenditures on freight reversed a two-month decline with an increase of 6.8% in February. The expenditures index was up 6.4% from this time last year, 15.8% from February 2011, and was the highest February gain for the Cass index.

Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., has said ongoing trends between shipments and rates indicate potential price inflation for the consumer.

“Expenditures have grown at a faster rate than shipment volume, and the economy has yet to feel the rate increases that should be coming later this year when capacity tightens and carriers take back the reigns for rate control,” Wilson noted.

Her optimism about the economy was “uttered with an abundance of caution and recognition that there are still many potholes to deal with.” Following are other notes from Wilson about economic conditions.

• There are still some strong headwinds to overcome in the freight sector, the most obvious being the nearly imperceptible growth in volumes.

• The global marketplace remains weak, so exports are lagging expectations.

• While unemployment continues to fall, the number of new jobs created each month is not enough to sustain the economy. As the Federal Reserve reduces its bond purchases, interest rates will continue to rise, which will have repercussions in the freight sector.

• The inventory levels that are now higher than our previous crisis level, when carrying costs were minimal, will become more burdensome and probably lead to a drawdown similar to that during the recession.

• Trucking capacity is at exactly the right level for the existing volume of freight, but will quickly be inadequate later this year if the predictions of a robust 2014 materialize. Obtaining credit to purchase new vehicles will become tighter, probably squeezing out smaller and marginal trucking companies that don’t have the capital to expand their fleet, or almost as important, modernize their fleets. Continue to expect a bumpy ride.

Enplanements in Northwest Arkansas and Fort Smith are off to a good start in 2014, while traffic out of the Bill & Hillary Clinton National Airport (Little Rock) continues a decline that saw traffic dip 5.45% in all of 2013.

Traffic increases at XNA and Fort Smith during the first two months of 2014 came against thousands of U.S. flight cancellations during the period because of winter storms.

Travelers flying out of XNA during February totaled 40,873, up 5.05% compared to the 38,908 during February 2013. For the first two months of 2014, enplanements at XNA total 82,456, up 6.16% compared to the same period in 2013. The early 2014 traffic is up 4.1% compared to the same period in 2007, the year that XNA reached its record enplanement of 598,886.

For all of 2013, XNA enplanements totaled 579,679, up 2.58% compared to the same period in 2012. The enplanement growth remained stable through the year, with enplanements up 2.42% at the end of the first quarter of 2013.

Enplanements at XNA totaled 565,045 during 2012, up just 0.4% compared to 2011. Although slight, the gain prevented XNA from posting two-consecutive years of enplanement declines. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

American Airlines remains the dominant carrier at XNA with around 43% of all enplanements during 2013. Delta is second with around 27% of enplanements followed by United Airline at around 15%. The airport has more than 10 service connections with five carriers.

XNA officials recently approved upgrades and renovations to better manage the continued growth of traffic at the airport. Fort Smith-based SSI Inc. was hired in December for 2014 work that will focus on terminal lobby renovations. The work will include new counter tops at airline and rental car spaces, new carpeting and a new public address system.

Later in 2014, bathrooms and other spaces on the second floor are scheduled for renovations.

“Lots of remodeling is scheduled for this year, but it will be beautiful once completed. Thanks for your patience during these projects,” noted an XNA statement.

FORT SMITH TRAFFIC
The Fort Smith Regional Airport, served by flights from Atlanta and Dallas-Fort Worth, posted February enplanements of 6,212, up 3.8% compared to February 2013.

Enplanements for the first two months of 2014 total 13,034, up 9.16% compared to the same period in 2013.

For all of 2013, enplanements at the airport totaled 84,520, down 2.46% compared to the same period in 2012. The decline ended three consecutive years of enplanement gains at the airport.

With 7,836 enplanements for the first two months of 2014, American Airlines accounts for 60.1% of commercial traffic out of Fort Smith. Delta Air Lines had the remaining market share for the first two months of 2014.

Enplanements at the Fort Smith Regional Airport totaled 86,653 during 2012, just ahead of the 86,234 in 2011, and marked three consecutive years of enplanement gains.

LITTLE ROCK NUMBERS
Enplanements at the Bill & Hillary Clinton Airport (Little Rock National Airport) were 69,459 in February, down 6.87% compared to February 2013. Enplanements for the first two months of 2014 were 143,098, down 6.67% compared to the same period of 2013.

With 48,433 enplanements during January and February, Southwest posted the most enplanements of the eight carriers operating out of Little Rock.

Enplanements in 2013 totaled 1.085 million, down 5.45% compared to 2012. Enplanements in 2012 totaled 1.147 million, up 4.07% compared to 2011. The 2012 numbers ended five consecutive years of enplanement declines at Arkansas’ largest commercial field.

U.S. TOURISM, TRAVEL TRENDS
Early 2014 gains at Fort Smith and Northwest Arkansas follow a national trend of travel and tourism increases during the fourth quarter of 2013.

The U.S. Bureau of Economic Analysis reported Thursday (March 20) that “real spending” on travel and tourism grew at an annual rate of 4.2% in the fourth quarter, up from a revised 3.1% in the third quarter. The fourth quarter growth was better than the overall U.S. GDP increase of 2.4% during the fourth quarter.

“For the year, real spending on travel and tourism increased 3.6 percent in 2013 after increasing 2.8 percent in 2012. By comparison, real GDP increased 1.9 percent in 2013 after increasing 2.8 percent in 2012,” noted the BEA report.

Employment in the travel and tourism industries was up 2.8% in the fourth quarter of 2013 after rising a revised 1.8% in the third quarter. By comparison, overall U.S. employment increased 1.8% in the fourth quarter. For the year, employment in the travel and tourism industries increased 2.2% in 2013 after increasing 2.7% in 2012. Overall U.S. employment increased 1.7% in 2013 and in 2012.

Notes from the BEA report also included:
• In the fourth quarter of 2013, total current-dollar tourism-related spending was $1.5 trillion and consisted of $915 billion (59%) of direct tourism spending — goods and services sold directly to visitors — and $625 billion (41%) of indirect tourism-related spending — goods and services used to produce what visitors purchase.

• Total tourism-related employment  was 8.1 million jobs in the fourth quarter of 2013 and consisted of 5.8 million (71%) direct tourism jobs — jobs where workers produce goods and services sold directly to visitors — and 2.3 million (29%) indirect tourism-related jobs — jobs where workers produce goods and services used to produce what visitors purchase.

• The leading contributors to the acceleration in the fourth quarter were “traveler accommodations,” and “food services and drinking places.” “Traveler accommodations” accelerated, increasing 14.5% in the fourth quarter after increasing 3.3% in the third quarter. “Food services and drinking places” also accelerated in the fourth quarter, increasing 7.7% after no change in the third quarter.

The gifts that give again, or paying it forward are one of the main reasons the Walmart Foundation continues to support the Jones Center for Families in Springdale. Karen Parker, spokeswoman for the Walmart Foundation handed over a $250,000 grant to Ed Clifford CEO of the Jones Trust and Jones Center on Thursday, March 20.

Clifford said the gifts from Walmart and its foundation have been significant in helping the Jones Center during the past two years as it restructured operations, expanded programming and worked to make the sprawling resource financially sustainable for future generations.

Parker said the grant awarded Thursday would be used to support several initiatives and soon-to-be announced programs. Some of the proceeds will go toward scholarships for memberships so all citizens have access to amenities at the Jones Center. Clifford said thus far there have been roughly 1,000 members get some form of scholarship made possible with grants like this one.

PROGRAMS ON TAP
The grant also will support various programming and event costs such as spring break week from March 24 to 28. There are two special events planned during spring break week. Thursday (March 27) there will be an open house event from noon to 8 p.m., and on March 28 there’s a special skate event.

“All of our collaborative partners will be there in the gym to provide information on all of the programming and events such as Camp War Eagle, American Red Cross level 1 to 6 swimming lessons this summer. We will also have our own sports camps this year for things like speed and agility and we are managing the ‘learn to ice skate’ classes now. All of that is available on our website,” said Kelly Kemp, chief advancement officer for the Jones Center.

Kemp said noon to 8 p.m. on March 28, will be Frozen Friday, a theme day fashioned after the movie sensation. Kids are asked to dress up like their favorite princess/ prince characters and skate to the soundtrack of Frozen. There will be Ben and Jerry’s ice cream handed out after the skate.

She said the grant proceeds also will support $3 All Access Passes on Sunday Fun Days coming soon. Kemp said patrons can skate on some days and swim on other days so they will have to watch for those announcements.

FACILITIES UPDATE
Last year the Jones Center announced they would revamp their fitness center with new equipment using another grant they received from the Walmart Foundation. That has been completed and the new fitness center was relocated in a larger room upstairs above the gym. The old fitness room has been converted into a children’s gymnastics center where classes are taught three times a week. The gymnastics classes are part of the programming expansion still underway.

In January a new Montessori preschool opened at the Jones Center. At this time there are 13 preschoolers ages 2 to 5 attending daily. About half of those received scholarships. The preschool has a capacity of 24. 

Clifford said Springdale’s third new high school will open at the Jones Center in late August. Springdale School Board earlier this month approved its “iSchool” which will be similar to what Rogers did this year with its “New Tech” campus. He said the district will use six classrooms at the Jones Center for the iSchool campus, and will have access to the gym and share the computer lab already on site.

Mike GIlbert, chief operations officer for the Jones Trust, said the energy updates which will make the center more sustainable in terms of utility costs are well underway. Using a $3 million grant for the Walton Family Foundation initiated in November 2012, the Jones Center is in the midst of converting from a steam boiler system to a hot water boiler system for heating the 220,000 square foot building. Gilbert said steam is very expensive to produce and the center runs two large boilers which requires around the clock maintenance personnel. The conversion will trim an estimated 2,500 hours in personnel costs and include substantial utility savings as well.

“Our energy conservation measures are key to our sustainability as utilities are 50% of our operating budget,” Gilbert said. 

The Jones Center’s operating costs average about $3.5 million annually. 

Gilbert said final bids for the conversion are expected Wednesday (March 26). He said some of the components bid came in lower than expected which is always good.

“I expect the final bid on Wednesday, board approval on Thursday (March 27) and work to begin on Monday (March 31).

Gilbert said steam boiler conversion will take place over the summer so that the energy savings will be seen in the fall of this year.

The University of Arkansas System Board of Trustees took one giant leap forward Thursday (March 20) when it approved the creation of a new online university, becoming the 18th school in the UA System. The vote was held during a board meeting held Thursday and Friday (March 21) at the University of Arkansas at Fort Smith.

The new online university, named the University of Arkansas eVersity, will cater to adult students who are unable to otherwise access a traditional college education.

“For many students, the optimum experience is to learn intensively under the mentorship of the exceptional faculty we have at each institution. However, for those students for which that is not possible, the eVersity will provide a much needed option,” Bobbitt said.

The proposal was made by Dr. Donald Bobbitt, president of the UA System, and his staff, as a response to a resolution passed by the board in November 2012 directing the system president to coordinate and expand online education in the system.

With Bobbitt's proposal now approved, the next step in the process of establishing the school is planning academic governance through a consortium of existing UA System schools, according to a press release.

By establishing the eVersity, the UA System hopes to attract Arkansas students who may have turned to for-profit institutions to obtain their education. Another core group that will be targeted by the new school will be adult learners who may have obtained some college credit but have not yet completed their degrees.

According to Dr. Michael Moore, the UA System's vice president for academic affairs, the eVersity's core principals will include providing high quality classes, affordable tuition and programs relevant to today's workforce needs.

Moore added that a planning phase for the new online school will involve faculty from across the system's 17 colleges and universities.

"The eVersity will be a collaborative effort drawing on the strength and expertise found in our existing UA institutions. Faculty members at our colleges and universities will specify degree requirements, will develop the course work in concert with expert instructional designers and will teach our courses. In this respect, we will draw an important distinction from many of the existing fully online universities that rely almost exclusively on adjunct faculty."

According to the Arkansas Department of Higher Education, more than 80 schools from across the United States operate more than 1,000 degree programs within the state of Arkansas. The number includes both non-profit and for-profit institutions, with more schools seeking approval for additional degree programs each month.

In announcing the creation of the eVersity, the UA System quoted a study from the Lumina Foundation, which said Arkansas needs 519,000 college graduates to meet its workforce needs by the year 2025. The same study claimed that 358,000 adult Arkansans had completed some college, but have no degree.

Moore said the school's goal will be to complement the efforts of the traditional institutions in the UA System, which offer some targeted online programs among traditional face-to-face on-campus instruction.

Bobbitt said with the newly established eVersity, the UA System would be successful in its attempt to increase the number of college graduates in the state.

“The University of Arkansas System has a rich portfolio of talent that resides in the faculty and staff of our 17 institutions and divisions,” Bobbitt said. “I’m confident that we will, and in fact, must, bring this array of talent to bear on Governor (Mike) Beebe’s challenge to double the number of Arkansans with a post-high-school credential.”

The UA System Board of Trustees will continue its Board meeting in the Reynolds Room of the Smith-Pendergraft Student Center at the University of Arkansas at Fort Smith on Friday, where a resolution continuing the system's ban on firearms will be on the agenda.

The 188th Fighter Wing, which is in the process of converting to an intelligence and recon unit, has received approval to spend $12.5 million to build a 40,000-square-foot facility that the 188th commander says could help the unit become an “ISR Center of Excellence.”

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.  It was announced in 2012 that the A-10 Thunderbolt fighters of the 188th would be lost and the unit’s mission would change to an intelligence, surveillance and reconnaissance (ISR) mission.

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 Sept. 6, 2013, that 977 positions are based at the 188th, which will be reduced to 960 positions as a result of the realignment.

In a March 19 note to Dr. Jerry Stewart and Kevin Wear, Anderson said the funding and the new mission has the potential to create a unique military operation in Fort Smith. Stewart is chairman of the 188th Fighter Wing-Fort Chaffee Community Council, and Wear is a former 188th commander.

“Our conversion from a fighter mission to an Intelligence, Surveillance and Reconnaissance (ISR), targeting and remotely piloted aircraft mission is progressing on schedule,” Anderson noted in the e-mail message to Stewart and Wear. “Our vision for the 188th is an ISR Center of Excellence where all three facets of the mission operate on the same installation. This will be the first of its kind in the Air National Guard. We’re excited about the future of the 188th and extremely proud that the Air Force has entrusted us with such an important, cutting-edge mission.”

Anderson said the early design work from the funding “could speed up our Fully Operational Capability status in all missions.” He also called the news a “huge win” for the 188th and the National Guard.

“This facility will be the environment where groundbreaking tactics techniques and procedures are be formulated for all the components Intelligence Surveillance and Reconnaissance professionals. We still have some work to do (Getting the actual RPA airframes, Getting a Manned airplane, SOF partnership....etc) but this is another big step toward the establishment of the Arkansas Reconnaissance of Excellence,” Anderson wrote. “Much, thanks goes to all the members of the Community Council that engaged and supported this effort.”

Anderson provided this statement on Thursday to The City Wire: “Our conversion from a fighter mission to an Intelligence, Surveillance and Reconnaissance (ISR), targeting and remotely piloted aircraft mission is progressing on schedule. Our vision for the 188th is an ISR Center of Excellence where all three facets of the mission operate on the same installation. This will be the first of its kind in the Air National Guard. We’re excited about the future of the 188th and extremely proud that the Air Force has entrusted us with such an important, cutting-edge mission.”

Expediting a new mission would likely be welcomed by members of the 188th. The A-10 planes began leaving two at a time in September. The planes are flown to their new home at Moody Air Force Base in Georgia with the 75th Fighter Squadron. There are five A-10’s remaining, and the last two are scheduled to leave June 7. On that same day, the unit plans a maintenance “stand down” ceremony for the fighter mission, and a “stand up” ceremony for the new mission.

An amazing interest in Wal-Mart’s push for convenience, money for ‘Bags for Books,’ more Clinton disclosures and a talking baby are part of the Northwest Arkansas Friday Wire for March 21.

NOTES & ANALYSIS
• Crazy for convenience
Apparently, size does matter.

Bentonville-based Wal-Mart Stores Inc. unveiled its new convenience store– Walmart to Go – format this week and judging by the media and retail industry reaction it seemed that Wal-Mart announced it was selling dimes for 5 cents.

This little (relatively speaking) 5,000-square-foot format now open in Bentonville just a short Ford pickup drive from the corporate headquarters is Wal-Mart’s effort to capture more of the $415 billion “quick-trip” market consumers make between their big grocery and shopping runs.

Traffic on The City Wire from our coverage of the new format was unreal, and about more than 10 times the traffic from the recent news of a new CEO for the world’s largest retailer. We offer three basic reasons that incredible attention was given to the opening of what is essentially nothing more than a convenience store.
• The retail industry is convinced Wal-Mart is serious about capturing market share through smaller format stores;
• Smaller format store companies – Dollar General, Family Dollar, etc. – are concerned that Wal-Mart is serious about the small-format move; and
• Regional convenience store companies and their suppliers are worried that this move by Wal-Mart could put them out of business.

The retail sector can be fickle, but if Wal-Mart decides to focus its economic power on this new format, the Walmart to Go concept could be Here to Stay.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• Gaming software lessons
There’s hardly a single minute of downtime in a busy Walmart distribution center (DC), so the the three minutes it takes to recharge a forklift battery is not wasted because the retail giant works with Waterloo, Ontario-based Axonify to reinforce safety education through a gaming application.

• Trucking exec money
Top executives at Lowell-based J.B. Hunt Transport Services enjoyed big compensation boosts in 2013, with CEO John Roberts III posting an almost 20% gain in base pay, stock awards and other benefits.

• Minimum wage support
Arkansas Economic Development Commission director Grant Tennille says he’s supportive of efforts to raise the state minimum wage to $8.50 per hour, calling it a “jobs creator.”

NUMBERS ON THE WIRE
$78.58 million: Value of home sales in Benton and Washington counties during January and February, ahead of the $73.17 million during the same period of 2013.

60: Consecutive months that the Arkansas jobless rate has been at or above 7%. The January rate was 7.3%.

$15,000: Fundraising goal for the Northwest Arkansas Bags for Books event, which supports a literacy program by the United Way of Northwest Arkansas through the Dolly Parton Imagination Library.

OUTSIDE THE WIRE
• More Clinton disclosures
President Barack Obama's White House has moved to extend the review of roughly 8,000 pages of Clinton White House documents withheld under confidentiality provisions which expired early last year, according to a statement issued by the National Archives.

• Have we heard the last of the E-Trade talking baby?
Digital discount broker E*Trade Financial Corp on Thursday bid farewell to the precocious baby who starred in the television commercials advertising its trading platform for the last seven years.

• Why people bet on the favorite
Everybody likes to cheer for the underdog, but hardly anyone bets on the underdog to win. We tend to put our money on the favorite most of the time. In fact, we bet on the favorite far more frequently than we should. To understand why, you have to understand some of the basic functions and malfunctions of human decision-making.

WORD ON THE WIRE
“Sam’s model was ‘Try it, fix it, then do it.’ he fostered a learning environment and back then we tried lots of ideas. Of course we were able to keep it quieter than they can today. ... The Wal-Mart culture has a low resistance to change and to stay relevant they are constantly testing and tweaking ideas to align with what customers want.”
– Andy Wilson, former executive officer with Wal-Mart Stores Inc., about the corporate culture at the retailer with respect to innovation

“We wrote 18 contracts in February. I had one weekend that although I didn’t even leave my house due to the snow and ice and I still sold three homes. People that relocate to our area don’t stop looking because of the weather and luckily I have a lot of listings that these buyers have been looking at online for several weeks prior to their house hunting trip.”
– Nicky Dou, a Realtor with Keller Williams in Bentonville, about the impact of winter weather on home sales in Northwest Arkansas

Manufacturing jobs, controversy surrounding a nursing home company owner, campaign money, more Clinton disclosures and a talking baby are part of the March 21 Friday Wire for the Fort Smith region.

NOTES & ANALYSIS
• Long road back
For those who believe manufacturing recruitment should capture a bulk of our incentive structures and energies because that’s the best bet for the future health of the Fort Smith regional economy, well, good luck with that.

Just to return to the regional manufacturing jobs employment of 10 years ago would require a more than 5% gain in manufacturing jobs per year for the next 10 years. And that would only get us near 28,500 jobs, well below the record level for area manufacturing employment.

Preliminary estimates from the U.S. Bureau of Labor Statistics show 18,200 manufacturing jobs in the Fort Smith metro area in January. That’s down from 18,400 in December and down from 18,300 in January 2013.

The estimated January manufacturing employment also is down 36.1% compared to January 2004 employment of 28,500. The January employment is the second-lowest employment level in the sector in modern history. The lowest level was 18,100 which was recorded in February 2013.

Average annual employment in the sector in 2013 was at a multi-decade low of 18,300. The record average annual sector employment was 31,700 in 1999. The average fell below 30,000 in 2002, fell below 25,000 in 2009 and fell below 20,000 in 2012.

The region is long overdue for an aggressive and consistent economic development strategy that looks beyond what worked in 1970.

ICYMI
Following are a few stories posted this week on The City Wire that we hope you didn’t miss. But in case you missed it ...

• New complaint filed in Maggio case may involve Fort Smith businessman
Attorneys for the family of a Faulkner County woman who died in April 2008 due to what the family alleged was neglect and negligence have added even more fuel to the fire in the case of Circuit Judge Mike Maggio – fuel that could mean trouble for Fort Smith businessman Michael Morton.

• Campaign finances
The race for the U.S. Senate is not the only big senate race happening in the Natural State and political observers are starting to take notice. The District 9 Senate Republican primary, which will pit incumbent Sen. Bruce Holland of Greenwood against Rep. Terry Rice of Waldron, will take place May 20 and already tens of thousands of dollars are pouring into the race.

• Minimum wage support
Arkansas Economic Development Commission director Grant Tennille says he’s supportive of efforts to raise the state minimum wage to $8.50 per hour, calling it a “jobs creator.”

NUMBERS ON THE WIRE
126.01%: The increase in home sales values in Crawford County in February 2014 compared to the same month last year. During the same period, Sebastian County saw a drop of more than 20%.

$600,000: The amount spent on the Senate District 21 special election held earlier this year in Jonesboro. Consultants who spoke with The City Wire said a competitive primary in Senate District 9 between Sen. Bruce Holland, R-Greenwood, and Rep. Terry Rice, R-Waldron, would likely be an expensive race, as well. It's a trend they said was becoming more the norm across Arkansas.

60: Consecutive months that the Arkansas jobless rate has been at or above 7%. The January rate was 7.3%.

OUTSIDE THE WIRE
• More Clinton disclosures
President Barack Obama's White House has moved to extend the review of roughly 8,000 pages of Clinton White House documents withheld under confidentiality provisions which expired early last year, according to a statement issued by the National Archives.

• Have we heard the last of the E-Trade talking baby?
Digital discount broker E*Trade Financial Corp on Thursday bid farewell to the precocious baby who starred in the television commercials advertising its trading platform for the last seven years.

• Why people bet on the favorite
Everybody likes to cheer for the underdog, but hardly anyone bets on the underdog to win. We tend to put our money on the favorite most of the time. In fact, we bet on the favorite far more frequently than we should. To understand why, you have to understand some of the basic functions and malfunctions of human decision-making.

WORD ON THE WIRE
"The concerns that have been brought to my attention by many citizens in the Fianna Hills area are the other potential developments that are being asked in the PZD. These other potential developments are something that I am going to research and get a better understanding on how they could affect the existing homeowner property values."
– Fort Smith Vice Mayor Kevin Settle, addressing the proposed planned zoning district for the Fianna Hills Country Club renovation

"When I talk to people about quality of life, they talk about police, fire and ambulance. They have never spoke to me about the golf course. Police, fire and ambulance. Every time you lose $184,000 a year, it comes from police, fire and ambulance. It's money that you can't spend on that. So I would think when businesses talk about quality of life, they talk about police, fire and ambulance. I mean, he talks about families coming here. Would that not be something families would be interested in?"
– Sebastian County Justice of the Peace Shawn Looper, refuting an assertion by Fort Smith Area Chamber of Commerce President and CEO Tim Allen that the county's golf course at Ben Geren Regional Park was among the amenities that helps sell the region to businesses

Sizeable shifts in the size of the workforce and the number of employed — potentially related to winter weather impacts on reporting – pushed the January Northwest Arkansas jobless rate to 5.9%, up from 4.9% in December and unchanged compared to January 2013. However, January marked 18 consecutive months the metro rate has been at or below 6%.

Metro employment of 216,656 was down from the 227,109 in December, and was down 1.29% compared to January 2013, according to figures released Friday (March 21) by the U.S. Bureau of Labor Statistics.

Only one of the eight metro areas (Memphis-West Memphis) in or connected to Arkansas had a jobless rate decline in January compared to December. Two areas had jobless rate increases compared to January 2013, three had declines and three areas were unchanged. For perspective, 98.6% of the 372 U.S. metro areas had year-over-year-over-year jobless rate declines in January, while 37.5% of Arkansas’ eight metro areas posted year-over-year declines.

During January, the lowest metro jobless rate in the state was in Northwest Arkansas and the highest rate was 10.8% in the Pine Bluff area.

The federal BLS issued this statement with its January labor report: “Effective with this release, nonfarm payroll estimates for states and metropolitan areas have been revised as a result of annual benchmark processing to reflect 2013 employment counts primarily from the BLS Quarterly Census of Employment and Wages (QCEW), as well as updated seasonal adjustment factors. Not seasonally adjusted data back to April 2012 were revised. Seasonally adjusted data from January 1990 were subject to revision.”

NWA METRO NUMBERS
The size of the Northwest Arkansas regional workforce during January was estimated at 230,145, down from the 238,877 during December, and below the 233,300 during January 2013. June 2014 was the first month the region’s workforce topped 240,000. The average annual monthly labor size was 234,792 during 2012, 229,950 during 2011 and 226,593 during 2010.

Following are other key figures from the BLS metro report.
• Unemployed persons in the region totaled 13,489 during January, a big jump from the 11,768 during December but below the 13,807 during January 2013.

• The Northwest Arkansas manufacturing sector employed an estimated 26,300 in January, down from 26,400 in December, and down from the 26,400 during January 2013. Sector employment is down almost 22% from more than a decade ago when January 2004 manufacturing employment in the metro area stood at 33,700.

• Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 48,300 in January, down from a revised 49,600 during December, and up from the 49,200 during January 2013. The sector reached record employment of 50,500 in December 2006.

• Employment in the region’s tourism industry was 20,700 during January, down from 21,100 in December and up from 19,700 during January 2013. Employment in the sector set a record of 22,000 in June 2013.

• In Education & Health Services, employment was 24,500 during January, down from 24,800 during December and up from 23,700 during January 2013.

• In the Government sector, employment was 30,900 during January, down from 32,300 in December and up compared to 30,000 during January 2013.

NATIONAL NUMBERS
Unemployment rates were lower in January than a year earlier in 367 of the 372 metropolitan areas, higher in three areas, and unchanged in two areas, noted the broad BLS report.

The U.S. unemployment rate in January was 6.6%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.3% in January, down from 7.4% in December and down from 7.5% in January 2013.

Oklahoma’s jobless rate during January was 5.2%, down from 5.4% in December, and down compared to 5.4% in January 2013. The Missouri jobless rate during January was 6%, unchanged from December and better than the 6.7% in January 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
January 2014: 5.9%
December 2013: 4.9%
January 2013: 5.9%

Fort Smith
January 2014: 7.8%
December 2013: 7.6%
January 2013: 8.7%

Hot Springs
January 2014: 8.1%
December 2013: 7.5%
January 2013: 8.4%

Jonesboro
January 2014: 7.8%
December 2013: 6.6%
January 2013: 7.8%

Little Rock-North Little Rock-Conway
January 2014: 7.1%
December 2013: 6.2%
January 2013: 7.1%

Memphis-West Memphis
January 2014: 8.4%
December 2013: 8.6%
January 2013: 9.7%

Pine Bluff
January 2014: 10.8%
December 2013: 9.8%
January 2013: 10.5%

Texarkana
January 2014: 7.3%
December 2013: 6.8%
January 2013: 7.2%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2012: 5.6%
2011: 6.2%
2010: 6.4%
2009: 6.2%
2008: 4.1%
2007: 3.8%
2006: 3.6%
2005: 3.3%
2004: 3.8%
2003: 3.7%
2002: 3.3%
2001: 3%
2000: 2.9%

Swings in the workforce size and number of employed — potentially related to winter weather impacts on reporting – pushed the January Fort Smith metro jobless rate to 7.8%, ahead of the 7.6% in December but well below the 8.7% in January 2013. The metro rate has been at or above 7% for 61 consecutive months.

Metro employment of 117,794 was down from the revised 122,466 in December, and was down 1.7% from the 119,845 in January 2013, according to figures released Friday (March 21) by the U.S. Bureau of Labor Statistics.

Only one of the eight metro areas (Memphis-West Memphis) in or connected to Arkansas had a jobless rate decline in January compared to December. Two areas had jobless rate increases compared to January 2013, three had declines and three areas were unchanged. For perspective, 98.6% of the 372 U.S. metro areas had year-over-year-over-year jobless rate declines in January, while 37.5% of Arkansas’ eight metro areas posted year-over-year declines.

During January, the lowest metro jobless rate in the state was 5.9% in Northwest Arkansas and the highest rate was 10.8% in the Pine Bluff area.

The federal BLS issued this statement with its January labor report: “Effective with this release, nonfarm payroll estimates for states and metropolitan areas have been revised as a result of annual benchmark processing to reflect 2013 employment counts primarily from the BLS Quarterly Census of Employment and Wages (QCEW), as well as updated seasonal adjustment factors. Not seasonally adjusted data back to April 2012 were revised. Seasonally adjusted data from January 1990 were subject to revision.”

FORT SMITH METRO NUMBERS
The size of the Fort Smith regional workforce during January was 127,708, down from 132,560 during December, and down 2.74% compared to the 131,316 during January 2013. The labor force reached a revised high of 140,253 in June 2007.

Unemployed persons in the region totaled an estimated 9,914 during January, down from the 10,094 during December, and more than 13% below the 11,471 during January 2013.

The Fort Smith area manufacturing sector employed an estimated 18,200 in January, down from 18,400 in December, and below the 18,300 during January 2013. Sector employment is down more than 36% from a decade ago when January 2004 manufacturing employment in the metro area stood at 28,500. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 24,200 in January, down from the 24,800 in December, and above the 23,500 during January 2013. Employment in the sector reached a high of 25,700 in December 2007.

Employment in the region’s tourism industry was 9,100 during January, down from 9,200 in December and above the 8,700 in January 2013. The sector reached an employment high of 9,800 in August 2008.

In Education & Health Services, employment was 16,400 during January, down from 16,600 in December and below the 16,900 during January 2013. Annual average monthly employment in the sector has steadily grown since 2005 when it reached 14,000. In 2012 the average was 17,000, but fell slightly to 16,800 in 2013. Employment in the sector reached a record 17,300 in October 2012.

In the Government sector, employment was 18,800 during January, down from 19,400 in December and up compared to 18,600 in January 2013.

NATIONAL NUMBERS
Unemployment rates were lower in January than a year earlier in 367 of the 372 metropolitan areas, higher in three areas, and unchanged in two areas, noted the broad BLS report.

The U.S. unemployment rate in January was 6.6%, down from 7.9% from a year earlier. Arkansas’ jobless rate was 7.3% in January, down from 7.4% in December and down from 7.5% in January 2013.

Oklahoma’s jobless rate during January was 5.2%, down from 5.4% in December, and down compared to 5.4% in January 2013. The Missouri jobless rate during January was 6%, unchanged from December and better than the 6.7% in January 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
January 2014: 5.9%
December 2013: 4.9%
January 2013: 5.9%

Fort Smith
January 2014: 7.8%
December 2013: 7.6%
January 2013: 8.7%

Hot Springs
January 2014: 8.1%
December 2013: 7.5%
January 2013: 8.4%

Jonesboro
January 2014: 7.8%
December 2013: 6.6%
January 2013: 7.8%

Little Rock-North Little Rock-Conway
January 2014: 7.1%
December 2013: 6.2%
January 2013: 7.1%

Memphis-West Memphis
January 2014: 8.4%
December 2013: 8.6%
January 2013: 9.7%

Pine Bluff
January 2014: 10.8%
December 2013: 9.8%
January 2013: 10.5%

Texarkana
January 2014: 7.3%
December 2013: 6.8%
January 2013: 7.2%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 8.1%
2008: 5%
2007: 5.2%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

The final day of the University of Arkansas System Board of Trustees meeting at the university's Fort Smith campus saw passage of several new degree programs and a renewal of the system's ban of guns on its 17 campuses across Arkansas.

According to UA System Communications Director Ben Beaumont, the gun ban passed Friday (March 21) without objection.

"It did (pass)," he said. "The recommendation that was included in the agenda was approved."

The original ban on firearms on campus was passed in the Spring of 2013, though UA System President Dr. Donald Bobbitt said such items must be renewed each year.

"Subsequent to the passage of Act 226, the Chancellors and a number of faculty and staff at the University of Arkansas System institutions, including campus public safety officers, expressed the opinion that the Board should adopt a policy expressly disallowing the carrying of a concealed handgun by staff members in the buildings or on the grounds of the University and to post the required notices," Bobbitt wrote in a memo to trustees, recommending renewal of the gun ban.

Among the degree programs approved at Friday's meeting, UA Fayetteville added an online bachelor of science degree in business administration with a general business major, which Bobbitt said would allow "the Walton College (of Business) to capture new markets (e.g., students abroad, degree completion, and adult learners)."

Students in the current on-campus program will be able to complete their studies, but new admissions to the program will be able to complete requirements through online-only education starting in the Fall semester.

The Fayetteville campus also saw approval of a new bachelor of international business with a major in retail. According to Bobbitt, a retail major was created at the school in 2011, though it had been separate from the international business degree.

"Adding the retail concentration would provide students the opportunity to choose a concentration from any of the major areas of study," he wrote, noting that other majors within the degree program include accounting, business economics, finance, general business, information systems, marketing, management and supply chain management.

Several other degree programs were approved at other campuses within the UA System. They include 12 online degree and certificate programs at the University of Arkansas Community College Morrilton, five new certificate programs at Cossatot Community College of the University of Arkansas, and 11 online degree and certificate programs at CCCUA.

The Board of Trustees created news during its first day of meetings Thursday (March 20) when it approved the creation of the system's 18th campus, the University of Arkansas eVersity, an online university that will cater to adult students who are unable to otherwise access a traditional college education.

“For many students, the optimum experience is to learn intensively under the mentorship of the exceptional faculty we have at each institution. However, for those students for which that is not possible, the eVersity will provide a much needed option,” Bobbitt said.

The proposal was made by Dr. Donald Bobbitt, president of the UA System, and his staff, as a response to a resolution passed by the board in November 2012 directing the system president to coordinate and expand online education in the system.

The two-day meeting of the UA System Board of Trustees was held at the Smith-Pendergraft Student Center at the University of Arkansas at Fort Smith, the first time the Board has met at UAFS since 2010.

Wal-Mart execs keenly focused on improving comparable sales and driving top line revenue are testing a new “Savings Catcher” pricing tool as a way to drive in-store traffic and hammer home the low price message.

Duncan Mac Naughton, chief merchandising officer for Walmart U.S., said Savings Catcher is one of the new data innovations they are eager to share with consumers. Mac Naughton said recently that Savings Catcher is being tested in seven cities: Charlotte, N.C.; Dallas; Lexington, Ky.; Atlanta; Minneapolis, Minn.; Huntsville, Ala.; and San Diego.

“We know we have to innovate to make savings easy for our customers. We still match prices at the register but Savings Catcher goes bit further,” Mac Naughton said.

The system is simple. A customer who shops at a Walmart store in the test cities will have bar code and “TC number” on the bottom of their receipt. The number is entered into the Walmart website for the program.

According to to Mac Naughton, the system then analyzes all grocery advertisements in the area, and if other retailers had a lower price the difference is credited to the shopper on a Walmart gift card.

The program only pertains to grocery. It does not include general merchandise or electronics, which is one of the several ways Wal-Mart has protected itself with this program, according to analysts.

ANALYSTS REACTION
“At first glance I like the program. Psychologically, it could resonate with the customers. It should also help to drive in-store traffic. It will be interesting to see if the program is expanded,” said Jason Long, CEO of Shift Marketing Group.

He said it hasn’t been that long ago that Walmart was the clear leader in low prices in the minds of most consumers. But Dollar Stores, Aldi and aggressive pricing from Kroger, HEB and other grocers have nipped away at that image.

Because Wal-Mart is controlling the eligibility of various items, promotional situations and advertising scenarios, any comparisons will most likely reinforce Walmart’s value proposition rather than compromise it, said Carol Spieckerman, CEO of NewMarketBuilders. She also said the program brings the customer into the relationship.

“The genius of Walmart’s Savings Catcher program is that it adds a new dimension to its price match guarantee while continuing to make it incumbent upon shoppers to take the initiative. Walmart can satisfy shoppers who are truly price sensitive and message value and price transparency to everyone else without lowering prices across the board. It offers the best of both worlds,” Spieckerman said.

Long said it’s obvious the retailer is insulating itself against major risks by having the consumer take the initiative to sign up and then take an extra minute or two scan the bar code into the phone or key in the numbers on the website.

Walmart also is limiting the price match to branded only grocery items that are published as “on sale” by the competitors. For instance, if the everyday low price on a particular item is cheaper at a competitor and it’s not published in the sales circular, Walmart’s system may not compare that item.

While Walmart is comparing against other low cost grocers such as Aldi, only branded products are eligible. Most of the items sold at Aldi are private label. Other retailers included in the comparison are numerous traditional full-service grocers and higher-priced convenience pharmacies such as Walgreens and CVS that use loyalty discounts. Target, Dollar Store and Dollar Tree were also listed as competitors in the program.

However, Walmart said it will reward coupon users when a competitor is found to have lower on-sale prices. For instance, if a shopper buys Oreo cookies at Wal-Mart for $2.50 and uses a 25-cent coupon for a total cost of $2.25 and a competitor advertises those same cookies at $2 on sale, Savings Catcher will refund 50 cents back to the Wal-Mart shopper in a gift card (Walmart).

Long said given the restraints on the price checks (branded, on-sale groceries) it could take quite a lot of time to build up any meaningful credit. Even so, he said consumers like to spend cash back. 

“If they have $3 on a card, they are apt to come into a store and spend that and more,” Long said.

Stephen Quinn, executive vice president of marketing at Walmart U.S.  said recently that Wal-Mart was committed to “show customers even more savings, and prove it to them (more) than we been able to do in the past.”

DATA WIN
Wal-Mart’s continued investments in @WalmartLabs, is giving the retailer a leg up against some of its competitors.

Long and Spieckerman said Savings Catcher offers data-gathering benefits for the mass retailer that can be leveraged to help consumers realize savings while also showing Wal-Mart exactly what items certain customers are buying. Spieckerman has said Wal-Mart’s continued investments into data-rich technology startups gives the retailer enormous insight and future omnichannel opportunities.

“Any time a customer enters a receipt number, Wal-Mart will gather data that will enable it to further refine its value proposition and localized pricing strategies. Another example of a multi-benefit program from Wal-Mart,” said Spieckerman.

With Savings Catcher, Walmart is taking its data capabilities and putting it in the hands of consumers, according to Kantar Retail.

“They have the data capabilities, why not use it to their advantage,” said Leon Nicholas, senior vice president of retail insights for Kantar Retail.

Some experts believe it won’t be long until Savings Catcher will plug into Amazon. ASDA, Wal-Mart’s British retail banner, has been using this program for sometime. But there is no gift card option at ASDA.

Others wonder how else the retailer might use data it collects from shoppers who sign up. For instance, the retailer could use the data to make predictive shopping lists for specific customers, with the info delivered via smart phone when they enter a Walmart store. 

Or Walmart could send alerts for rollbacks or other reduced pricing on specific items they know the shopper regularly purchase. This type of individualized marketing is already active with Walmart.com.

The future leaders of the Arkansas House and State Senate – Rep. Jeremy Gillam, R-Judsonia, and Sen. Jonathan Dismang, R-Searcy – say they will be pragmatic in their approach to leading their respective chambers in 2015.

Gillam, 37, was elected Speaker-designate for the 2015 General Assembly last week. Dismang, 34, was chosen to lead the Arkansas State Senate after the 2013 legislative session. The two leaders made a joint appearance on Sunday’s TV edition of Talk Business & Politics, which airs at 9 a.m. on KATV Channel 7.

“I’m a firm believer in proportionate representation,” Gillam said about how he would make committee assignments if Republicans and Democrats maintain their close majority-minority numbers. “At this point, it doesn’t look like we’re going to be re-inventing the wheel on that.”

Republicans hold 51 seats in the Arkansas House, while Democrats number 48 representatives.

Despite a sizable majority for Republicans in the Senate, Dismang said he’s hoping current Joint Budget Committee chairman Larry Teague, D-Nashville, will continue in his fiscal oversight role.

“Sen. Teague has done a great job for Sen. Lamoureux in this current session. We haven’t visited yet on what he would like to do moving forward, but that would probably be one of the more prominent positions that we’d have some influence on,” Dismang said.

Despite a closely divided House and the possibility that Democrats could re-take control of the majority, Gillam said he won’t campaign against incumbents on the other side of the political aisle.

“I’m not going to be out campaigning against my colleagues,” he said. “We’ve got several open seats and some primaries that are just Republican primaries, so I think there are plenty of things to keep me busy in planning the House and getting ready and moving forward in the next session that I won’t have to be out campaigning against my fellow colleagues.”

Dismang said he’s open-minded about bringing live-streaming to the State Senate, but he has reservations about the potential cost of adding the service to the 35-member chamber’s proceedings.

“I think it’s something we’ll discuss, but it’s something we’ll discuss as a whole. It would not be my decision solely to move forward either way,” he said. “In some ways, it is something I’m supportive of. I’d like to have that broadcast and have that representation out there. But again, the Senate is a little bit different body. For instance, we don’t use microphones on the Senate floor. That would have to change if we’re going to be recording or videoing what we do.”

Both leaders said they expected the private option to be a major issue of discussion in the 2015 session, and that data collected between now and next year will drive decision-making on future public policy related to the health insurance program.

Link here for a video of the interview with Dismang and Gillam.

Businesses across Benton and Washington counties collected 9.8% less in sales tax in January across the region’s four largest cities. Total sales tax revenue slid to $3.938 million in March, compared to $4.356 million reported by the same four cities in March 2013.

There is a two-month lag in the reporting from the time the sales are made and when the cities report the associated revenue. Fayetteville, Springdale, Bentonville and Rogers each collect a 2% local sales tax. One percent of that goes to repaying debt and 1% goes into the cities’ general funds. This report tracks the general fund revenue.

MARCH REVENUE (compared to year-ago)
Springdale: $813,815, up 4%
Rogers: $1.037 million, down 3%
Fayetteville: $1.325 million, down 7%
Bentonville: $762,246, down 29%

City administrators and mayors attribute the lower collections to snowy weather that kept more people at home or kept businesses closed for several days in January. Retailers from Wal-Mart to Macy’s said their sales suffered in January from cold, snowy weather that blanketed much of the country — Arkansas included.

Bentonville officials said the March report was a tough year-over-year comparison but trends should be good as long as revenue meets the $750,000 budgeted on a monthly basis. Springdale does not have the retail presence of Fayetteville or Rogers and tends to report more stable numbers on average.

The smaller towns of Lowell and Siloam Springs also reported double-digit declines in sales tax revenue this month. Siloam Springs collected $261,761, down 21% from $274,959 reported a year ago. Lowell city officials reported March revenue of $218,989, down 35% from the same month in 2013.

Consumer sentiment is also closely tied to sales revenue. Consumer sentiment dipped in January, as recent economic improvements did not translate to rosy consumer outlook. The final reading on the University of Michigan's overall index of consumer sentiment slipped to 81.2 in January, down from the 82.5 posted in December. Analysts were looking for a reading of 81.0 in the month. Lower income households (75,000 or less) were largely responsible for the negative outlook, according to the release.

Year-to-date collections among the region’s largest cities are trailing revenue reported in 2013, except Rogers — up just slightly.

SALES TAX COLLECTIONS (year-to-date)
Rogers
2014: $3.691 million
2013: $3.629 million
1.7%

Springdale
2014: $2.501 million
2013: $2.54 million
-1.54%

Fayetteville
2014: $4.502 million
2013: $4.632 million
-2.8%

Bentonville
2014: $2.335 million
2013: $2.791 million
-16.3%

Simmons First National Corp. will acquire Little Rock-based Delta Trust & Banking Corp. for roughly $66 million. The Pine Bluff-based bank said it has entered into a definitive agreement and plan of merger with Delta Trust.

According to the terms of the agreement, Simmons First will acquire all of the outstanding common stock of Delta Trust in a transaction valued at approximately $66 million, subject to potential adjustments. The transaction is expected to be accretive to the company’s diluted earnings per common share for the first 12 months after the transaction closes and thereafter.

The transaction is the second in less than a year for Simmons First, which acquired Little Rock-based Metropolitan National Bank in September 2013 for $53.6 million.

“French Hill and his team have developed a successful and well-respected financial services franchise. In addition to the growth opportunities afforded Simmons Bank, we look forward to expanding our Simmons Trust services, and offering investment management and insurance products throughout the markets we serve,” said George A. Makris, Jr, Simmons First Chairman and CEO. “We believe the acquisition will enhance our ability to offer a full range of financial services to our customers including wealth management, consumer and commercial financing needs, and asset protection.”

Delta Trust & Bank has assets of approximately $431 million; loans of $319 million; deposits of $377 million and total equity of $40.6 million. It has nine banking locations in Little Rock, northwest Arkansas, and south Arkansas, and is building a new location in Conway.

“We are excited that our expertise in the strategic areas of investment brokerage, trust administration and insurance sales along with our experienced commercial bankers in all three Arkansas markets are going to be able to join the dynamic, growing Simmons franchise,” said Delta Trust founder and CEO French Hill. Hill continued, “Our employees will have expanded career opportunities as Simmons expands its reach in Arkansas and its new locations in Missouri and Kansas.”

Completion of the transaction is expected in the third quarter of 2014.

Under the terms of the agreement, each outstanding share of common stock and equivalents of Delta Trust will be converted, at the election of each Delta Trust shareholder, into the right to receive shares of the company’s common stock or the right to receive cash, all subject to certain conditions and potential adjustments, provided that the cash portion of the merger consideration paid to Delta Trust shareholders will be limited to approximately $10 million.

The number of shares to be issued is fixed with an exchange ratio of 15.1428 shares of Simmons First (NASDAQ: SFNC) stock for each share of Delta Trust stock or cash of $545.14 per share of Delta Trust stock.

Shares of Simmons First closed trading on Monday (March 24) at $37.47 per share. The company’s stock has traded between $23.16 and $38.54 per share during the last year.

Ben Geren Aquatics Center has taken another step closer to reality with news that the final plans for the joint city-county water park have gone out to bid.

According to Sebastian County Judge David Hudson, bids will be opened April 10 at 2 p.m. at the county courthouse in Fort Smith.

"The construction manager and architect are generating interest among potential bidders," he wrote in a memo to the Quorum Court dated Friday (March 21). "There will be more than 30 bid packages for the project. This number of bid packages will give smaller contractors greater opportunity to be part of the project."

With plans now largely complete and in the bidding process, conceptual drawings have shifted from what was a dream to a more exact view of a finished facility. Hudson said the water park will include four slides, as has been promised in the years leading up to this point, as well as a children's play structure.

"Two of the slides will empty into a plunge pool, and two of the slides will have run-outs at the ends," he explained. "The children's play structure will be bid with a deductive alternate in the event bids are higher than we can afford. The alternative play structure would include two levels instead of three."

With the water park now out to bid, Sebastian County and Fort Smith leaders are shifting attention to how the facility will be run.

"Our next tasks will focus on updating the operating/business plan, creating a name for the aquatics center, and considering whether a management company should be used to operate the facility," wrote City Administrator Ray Gosack in an e-mail the city's Board of Directors on Friday. "All of these will be reviewed with the city board and quorum court before being finalized."

In a telephone call Monday (March 24), Hudson said the review of the facility's business plan will focus on a January 2010 feasibility study that was completed during a preliminary discussion about whether a water park would be a good fit for the county.

The study showed a combined facility jointly-owned and managed by the county and city would have expenditures of $822,772 while revenues would only be $709,300, resulting in a loss of $113,472 each year. The figures are based on admission rates of $5 for children and adults 5 years and older, while children under 4 years old would be charged $2.

Hudson said Monday that while the rates were included in the feasibility study, they are not current policy and subject to the will of the county and city's governing bodies.

"As we approach these decisions, the past studies were there to help us determine feasibility," he said. "But there have been no decisions made about rates because now it's 2014. We need to get the projected operating cost updated based on 2014 market criteria and evaluate with full knowledge of all the competing facilities out there. Back in 2010 (when the feasibility study was authored), there wasn't even a facility in Rogers. They may have been talking about it. ... That wasn't even in operation. So now we have to take into account where we are in 2014 from 2010. We're talking about four years later."

Another item that will be under review will be salaries for lifeguards and others employed at the facility. The feasibility study listed lifeguard salaries at a rate of $8.50 per hour, while head lifeguards would earn $9.50 per hour and aquatics program instructors would be paid $10 per hour.

"It was my understanding that they used local salaries primary based on Creekmore (Pool's salaries) and local rates based on the region."

Aaron Lee, an administrative secretary at the city's parks and recreation department, said salaries at Creekmore Pool this year are only $7.25 per hour for first-year lifeguards, $7.50 for second-year and $7.75 per hour for third-year. The rate stays the same for aquatics program instructors, while head lifeguards earn between $8 and $8.50 per hour, depending on tenure, she added.

Hudson said the other outstanding variable is whether both governments will decide to forgo self-management and instead contract management of the facility to an outside group, specifically mentioning Tustin, Calif.-based AmusementAquatic Management Group. It was AMG's president and CEO, Kent LeMasters, who flew to Fort Smith in January to convince the city and county legislative bodies to approve funding for a wave pool at the facility, though he did not reveal concerns he had regarding "extremely high" estimates for construction of the water park. E-mails obtained by The City Wire reveal that Gosack requested Fort Smith Parks and Recreation Director to instruct LeMasters to not discuss his concerns at a Jan. 6 joint meeting of both the Board and Quorum Court.

"It's a very significant pending matter before both governmental entities — how are we going to staff it? What are the fees going to be? What are the revenues going to be? None of us have operated a water park. It may be good to have an outside party (like AMG) to be our partner. That's what I was excited about when Mr. LeMasters was here."

After bids are opened April 10, Gosack told the Board it would need to hold a special meeting to approve bid awards.

"A special meeting could be held in conjunction with the April 22 study session. We will wait until after the bids are opened on April 10 before asking for this special meeting. This will give us time to assure that the bids are affordable and that the low bidders are qualified."

Should bids and subsequent construction go on as planned, a Memorial Day 2015 grand opening is planned. Hudson said he is excited to see the project inch closer to next year's planned opening, though he admits frustration with the process to this point.

"This has frankly been one of the most difficult projects I've worked on in my career," he said Monday. "It's been confusing to me as to why it has been. It will be such a great asset to our area for those families that will use it."

Tax filers the Fort Smith and Northwest Arkansas areas who have waited until the last few weeks of tax season do not have to go it alone.

According to Susan Reehl, program director for WestArk RSVP, programs like hers are available to provide assistance to low income and senior populations in need of tax preparation assistance.

"We have two types of IRS grants," Reehl explained. "Tax counseling for the elderly, which lets us help people 60 or older regardless of income, and then we have a grant to help people who make $52,000 (per year) or less."

She said WestARK RSVP is also able to assist active duty military regardless of income, as well as the unemployed. An additional service available to earners with an income up to $58,000 is free state and federal tax preparation and eFiling through the RSVP website. The website also has information about hours of service, locations and other information.

While assistance is available to many, Reehl said ministers and farmers could not be serviced by the organization.

Reehl said for those seeking assistance in person, a so-called "super site" is open in Fort Smith, while an elderly tax counseling center is open in Rogers. So far, those two centers have already helped local residents reclaim millions in tax refunds.

"As of Friday afternoon, we had done 2,143 federal tax returns. We have just gone over the $3 million mark in refunds. And we've done $1.151 million in earned income tax credits."

While the program is open for households earning up to $52,000, Reehl said RSVP's average adjusted gross income for this year was just under $17,500, while the senior program open to all incomes for individuals over 60 was averaging an AGI of about $22,000.

Volunteer Manager Trish Walker said one of the changes that has impacted refunds this year has been the change in standard deductions, making it more difficult for low income individuals to itemize and claim higher tax refunds.

"The standard deductions have gotten quite high now. The standard deduction is like $12,200 (for married couples). A single person is $6,100. The head of household is $8,950."

She said the difficulty is also because the deductions do not kick in until the total has surpassed the first 10% of income, while it was previously 7.5%. In addition to the standard deductions bringing both confusion and frustration, the Affordable Care Act (aka Obamacare) has brought a lot of confusion. According to Walker, many people have asked about penalties for not having insurance coverage.

"Obamacare will effect (tax filers) in (tax year) 2014, the tax return that you file beginning in 2015," she said. "If you can prove that you had some sort of insurance. If they have it through their employer, it will be coded with a 'DD.'"

Should tax filers not obtain health insurance before March 31 of this year, which is next Monday, she said the resulting tax penalties could leave many with an empty wallet.

"That penalty will either reduce the refund or could cause a balance due on the return."

Speaking of owing the IRS, Walker said filers expecting to owe taxes should not wait until April 14 or 15 to file their returns.

"If they suspect that they are going to owe, they don't need to wait until the last minute. What I've seen in a lot of situations is they owe federal, but get a refund on state," she said, adding that filing early could enable easier payment to the federal government by using the possible state refund.

Should someone owe the government money but is unable to pay, Walker did say that payment plans are available, which RSVP can notify filers of at the time of filing. She added that penalties will be assessed, though they can be greatly reduced should a filer be able to pay a large amount of the taxes due at the time they arrange payment.

Reehl said anyone seeking to use WestArk RSVP should bring all tax forms (i.e. W-2, 1099, etc.), as well as the Social Security card of anyone to be included on the tax return. Primary filers and their spouses should also bring a photo ID, as well. As for anyone fearing the tax filing process, Reehl said there was no need to stress.

"They get treated well. The volunteers are very kind and very accurate."

The consumer packaged goods (CPG) industry reported total sales growth of 1.5% in 2013, down from 2.8% in 2012 and lower than the 3.4% in 2011. Last year’s growth was nearly on par with the same increase coming out of the recession in 2010.

A recent study by Boston Consulting Group and IRI Worldwide notes that large CPG companies are ceding market share to midsize and small companies to the tune of $14 billion in lost sales since 2009. Last year small companies (less than $100 million in sales) collectively grew by 4.3%. At the same time large companies lost 0.5% in market share, mostly captured by the small companies.

The recent report notes that emergence of digital media has been an equalizer for small companies because it has reduced advertising costs. Smaller players also are benefiting from the rise of online and speciality retailers which offer new selling opportunities.

LARGE COMPANIES
Despite a decline in their overall share, large companies (more than $5 billion in sales) collectively performed better in 2013 than in 2012. Even so, just one in three reported gains in market share last year, according to the study. This was particularly true for the five top-ranked large companies listed here in random order: Hershey Company, Lorillard, Mondelez Interntional, Campbell Soup Company, and Procter & Gamble.

The study shows dollar sales growth among these five companies ranged from 6.1% to 1.2%; their volume sales growth ranged from 4.7% to 0.5%, and their market share percentage-points gains ranged from 1.2 to 0.2.

Gains were largely driven by a renewed focus on delivering volume growth instead of raising prices to achieve short-term gains in dollar sales, with tactics including garnering more shelf space with the right assortments and revenue management. The other top-10 large companies include: Johnson & Johnson, PepsiCo, Grupo Bimbo, Coca-Cola Company, and Kimberly Clark.

Four of these five large companies also posted dollar sales gains ranging from 2.4% to 0.5%. Coca-Cola was the exception with a 1% dip in dollar sales during 2013. J & J and Kimberly Clark posted volume gains of 3.2% and 0.7%, respectively. Coca-Cola realized a 0.2% gain in market share while PepsiCo’s share rose 0.1%. The study found the top 10 large companies had average sales growth of 1.7%, volume growth of 1.1% and a market share change 0.3%. 

MIDSIZE COMPANIES
Companies with sales ranging from $1 billion to $5 billion are considered midsize in the study. The top-performing midsize companies last year include:
• Green Mountain Coffee Roasters, 
• Chobani 
• McKee Foods, 
• Sterilite, 
• Monster Energy Company, 
• Gruma, 
• Red Bull, 
• Land O' Lakes,
• Link Snacks, and 
• Starbucks.

The study revealed that Green Mountain, Chobani and McKee posted double-digit dollar sales growth of 25%, 18.3% and 14.1%, respectively. Volume growth for these top performers was 24.9%, 22.6% and 10.1%, respectively. Four of the top five had market share gains of 2% or greater, with McKee at 2.7%. On average, the top 10 midsize companies had dollar sales growth of 10.9%, volume sales growth of 10.6%, and grew market share by 1.8%, according to the study.

SMALL COMPANIES
The top 10-performing small companies noted in the study include:
• Kind, 
• Paris Presents, 
• TalkingRain, 
• Old World Industries, 
• Idahoan, 
• Materne Industries, 
• All Market, Promotion in Motion, 
• NJoy, and 
• Aqua Star.  

Among these companies with less than $100 million in sales, three realized triple digit dollar sales gains. The study shows NJoy was up 126.9%, Kind increased 122.6% and TalkingRain dollar sales rose 103.6% from the prior year. Each of the other small companies posted double digit gains, the smallest being 11.8% by Idahoan.

LIkewise, volume sales gains rose by triple or double digits by all ten small companies. The only company to lose market share was NJoy, at a 1.7% dip. On average, the top 10 small companies had dollar sales growth of 54.9%, volume sales growth of 50.3%, and 2% gain in market share last year. 

The smaller companies' success at discovering new pockets of growth within mature categories underscores how crucial it is for companies to spot and timely capitalize on trends, noted the researchers.